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Hello, everyone. Good afternoon. Welcome to Qisda Corporation Investor Conference First Quarter Result of 2023. This conference is shared by Chairman, Peter Chen, President, Joe Huang; and CFO, Jasmin Hung accompanied by GM of our business groups; GM of Information Technology Business Group, Daniel Hsueh; GM of Commercial and Industrial Business Group, Yuchin Lin; GM of Medical Devices Business Group; Harry Yang; GM of Business Solutions Group; Michael Lee; GM of Networking and Communications Business Group, April Huang and our CIO, Michael Wang. This conference is estimated to take 1 hour. The agenda is as follows. First, Jasmin will bring us the first quarter of 2023 financial results. And Peter, Chairman and our President, Joe, will bring us business updates and outlook, followed by each GM to give us a briefing. Then we will proceed with Q&A session. [Operator Instructions] Before we commence, we want to remind you to pay attention to the safe harbor notice. In this conference, we have a statement subject to risks. Please spend some time reading the content on Page 4.
Next, we will have Jasmin to give us an illustration of financial results and highlights.
Hello, everyone. I am CFO of Qisda, Jasmin. First, I will give you a brief. Qisda is a global technology group with businesses spanning information technology, medical, smart business solution and networking communication. We have 16 listed companies in Taiwan. Our global presence, our manufacturing site located in Taiwan, China and Vietnam, we have more than 200 places as our sales offices. Next, business groups. Purple blocks are high value-added product performance, mainly include medical, revenue accounts for TWD 5.7 billion in total, mainly from medical services to hospital and one in medical management services and equipment and consumable and dialyzer. BSG account for 16%, TWD 8.1 billion in revenue, mainly in IT intelligence and OT intelligence and OMO solution services. NCG accounts for 16% revenue, TWD 7.9 billion, mainly in LAN/MAN and wireless broadband. Left side, IT, you will see 43% plus 8%. 43% is our operation main business and 8% is IT high value-added business. It has reached TWD 4.3 billion revenue, account for 8%, include professional display module, integration solutions and high-end video surveillance. Let's take a look at the first quarter financial results. In the first quarter of 2023, both gross margin and operating income margin increased both on Y-o-Y and Q-o-Q basis. Consolidated gross margin was 15.8%, up by 2.9 percentage points Y-o-Y, up by 0.2 percentage point Q-o-Q highest in the past 10 years and exceeded 15.5% for 2 consecutive quarters. OP income margin was 2.7%, up by 0.5 percentage point Y-o-Y, up by 0.1 percentage points Q-o-Q. Although first quarter revenue down by 17%, but contributed by high value-added products. Our operating income amount still increased 2%. HVA business revenue reached TWD 26 billion, Y-o-Y up by TWD 1.8 billion. Operating income amount grew more than 30% Y-o-Y, significantly more than revenue grew. Medical, revenue grew 29%, both gross margin and OP income margin increased Y-o-Y. NCG, revenue grew 14%. Gross margin did not increase, but operating income margin increased. Therefore, operating income amount grew 20%. BSG, revenue grew 6%, both gross margin and op income margin increased Y-o-Y. OP income amount grew more than 50%. And we have talked about in the first quarter revenue down by 17%. This is impacted by the slow demand of IT revenue down by 32%. Therefore, both OP income margin and OP income amount decreased. Inventory, good news.
Inventory amount decreased for 4 consecutive quarters. The first quarter of last year inventory hit TWD 56.3 billion. This year, TWD 39.7 billion, down by TWD 16.7 billion Y-o-Y and TWD 4.2 billion Q-o-Q. And we have announced that we want to enhance our pharmaceutical channel, and we invested in Norbel Baby Corporation, parent company of Tin Tin drugstore, to acquire up to 28.54% outstanding shares through private placement and public tender offering. And it has reached the minimum tender offer requirement on April 26 and will be finalized on May 15, and we encourage stockholders to release share. Consolidated statement of comprehensive income of the first quarter. Net sales, TWD 50.4 billion, gross margin of 15.8%, OP income TWD 1.3 billion account for 2.7%. Net income TWD 757 million. Net income attributable to Qisda, TWD 324 million. EPS TWD 0.16, Y-o-Y basis down by TWD 10.4 billion, 17% decrease.
OP income up by TWD 26 million, 2%, contributed by HVA products due to onetime non-OP disposal last year. So our net non-OP income down by TWD 362 million. EPS down by TWD 0.11. Revenue on a Q-o-Q basis down by TWD 5.6 billion or 10%. Gross margin down by TWD 771 million compared to last year's fourth quarter, net income attributable to Qisda down by TWD 48 million, without non-OP expense TWD 215 million, EPS eventually down by TWD 0.02 Q-o-Q.
Next, consolidated balance sheet highlights. Cash and equivalent TWD 36 billion, up by TWD 5.3 billion Q-o-Q, up by TWD 16.1 billion Y-o-Y. Inventory, TWD 39.6 billion. We have mentioned down by TWD 4.2 billion Q-o-Q, down by TWD 16.7 billion Y-o-Y. Total liability 67% compared to last year same time 69%, down by 2 percentage points. And compared to last quarter, up by 2 percentage points due to the preparation of cash dividend. It will bring a temporary total liability increase. Book value per share is TWD 20.02. Next, financial ratio compare. Differences between each quarter compared to March 31 last year, cash conversion cycle up to -- up by 9 days and AR turnover and inventory turnover remained the same. AP turnover down by 11 days due to the high stock up last year. Next page, we have collected info for investors financial results in Q1 on a Y-o-Y basis from last year first quarter, TWD 60 billion, and this year, TWD 50 billion and because net op income actually increased and gross margin enjoyed an upward trend on a Q-o-Q basis. As to OI, OI percentage also went up. Gross margin grew from 12.4% in 2018 to 15.8% in 2023. OI percentage impacted by a slight decrease in revenue. It was 2.68% in the first quarter of 2023. The next page is on a Q-o-Q basis. Both gross margin or open income margin is on an upward trend. Now financial highlights by business group. As to medical, we have mentioned first quarter account for 11% in revenue. On a Y-o-Y basis, it is on an upward trend. GM percentage range remained the same as last year. And it has hospital and medical device and consumable possible to account for around 15% to 20%. Other medical consumables account for 30%. So in total, it falls around 20% to 25%. BSG gross margin at 15% to 20%, remain the same on a Y-o-Y and Q-o-Q basis. NCG falls in 15% to 20%. Y-o-Y, Q-o-Q remained the same as well. IT HVA and the revenue went down, but gross margin remains at 20% to 25%. IT non-HVA, it has monitor and projector. Although the revenue down by TWD 11.4 billion. And the gross margin has already grew from 5% to 10%, now to 10% to 15%. This is a good news.
And next page, revenue breakdown by business quarterly. You can refer to the information on this page. High value-added revenue portion trend this year first quarter reached 51%. And last year, fourth quarter, 50%, we have exceeded 50% in total revenue in consecutive 2 quarters. And we have enjoyed a successful result of the transformation since 2018, it was 18%, now 51%. Next page. Qisda Group's listed company's results. First session, IT. Due to the slow demand, the revenue decreased. Therefore, net income also decreased. Medical -- the 3 companies in total revenue went up. BenQ Medical Tech up by 12%. And net income down by TWD 65 million due to last year, we enjoyed a gain in non-OP profits.
BSG, MetaAge revenue up by 21%. Net income up by TWD 135 million, enjoyed the highest growth. DFI revenue down by 2%, net income up by TWD 42 million, highest in the same period in 3 years. Others revenue down by a 2-digit trend. NCG Alpha revenue up by 14%, net income up by 30%.
Hello, friends from News Media and our investors. Good afternoon, everyone. I am the Chairman of Qisda, Peter Chen. I'm very happy that I can chair the investor conference of this quarter. Let's recap in the last conference, we have mentioned 2 highlights. First, last year, we have accomplished the goal that we have announced 9 years ago. High value-added business revenue exceeded 50% of total revenue. Next, second phase. We won high value-added business profit to exceed 50% of total profit. So our CFO, Jasmin has given us the information. Revenue, we keep improving. Last year, the fourth quarter was around 50%. The first quarter of this year we have exceeded more than 50%. So the revenue is consistently growing. As to profit, we have also reported consolidated gross margin last year fourth quarter, 15.6% increased to 15.8%. And for profit to exceed 50% in total profit, the contribution of HVA product. We have to see the outcome on gross margin performance. This is the first highlight. The second highlight, the entire environment, what is the current situation? Basically, we want to convey an information that is consistent to what we want to say in last quarter. Revenue in the first quarter, we have met trough TWD 50.4 billion. Last year, TWD 60.8 billion, down by TWD 10 billion due to the demand on IT product went down head bottom. And we can see, we have announced in April, TWD 16 billion revenue compared to January and February, around TWD 15.7 -- TWD 15.8 billion, it went up. So our core goal remain the same. We want to improve every quarter and we expect our performance in May and June and to exhibit a positive outcome in the second quarter. As to the difference between the first half and second half of 2023, we expect the situation -- the business to pick up in the second half. We expect revenue and profit to pick up. However, the speed of recovery depends on many, many factors worldwide. So we have to look closely at the situation in the entire environment. So this is what I want to say. Next, our President, Joe will bring more detailed information regarding operational aspects.
Hello, investors. I am President, Joe Huang. I want to give you operational briefing. The first quarter OP performance, as Peter said, the performance was weak. The second quarter traditionally is the slack season of IT business. However, as far as we observed, we actually seen a slight increase. And the third and fourth quarter is traditionally the best season for IT industry. So we should recover to a reasonable level. Production should pick up. As to Medical and BSG, the first quarter enjoyed a prosperous outcome. NCG did better in the first quarter than last year, we will continue to dedicate in the second quarter. Investment, proceed our M&A investment and keep to be lean and focused on 4 key areas. Some target that do not fall in our focus areas. We will keep a much flexible mindset instead of thriving to include them. Recently, we invested in Tin Tin drugstores, create channel ahead for pharmaceutical channel expansions. As to hospital, Suzhou BenQ Hospital hit 10 years anniversary, Nanjing hit 15 year this year. After facing the challenge of pandemic, they have transformed nicely and continue to expand. Establishment of Suzhou BenQ Hospital Medical RD center is to be completed in the second quarter. Nanjing BenQ Hospital is also in second phase construction, should be completed in the third quarter next year, and they should expand our hospital business, and this is operational information. Next, I want to update the performance regarding ESG. Last December, we have framed a future carbon deduction road map. In 2030, supplier reduce carbon emission by 20%. 2040 using renewable energy 100% joining RE100 campaign. 2050 reached 0 carbon emission, which is consistent with government's timeline, and we have surpassed other company. Currently, there are only 25 companies in Taiwan joining RE1000 campaign, and we are the first joining this campaign among computer peripheral industry. After advocating last year, we invited 400 suppliers that have USD 1 trillion market value in total to join this campaign with us. Not only advocating, we want to help our suppliers to monitor. First step is to have curriculum in greenhouse gas monitoring. Supplier involving in over 60% of our trading amount had already taken the curriculums and those curriculums are still ongoing.
After monitoring, our next step is to set goal for carbon deduction. We will also provide curriculum in carbon deduction and help our suppliers in taking action and implementing performances. This is the situation regarding ESG. As to HVA business profit exceeding 50% of total profit, each business group continued to plan for a long-term growing momentum.
Next, I would like to have our GM of our business group to give us a briefing.
Hello. I'm Daniel, GM of IT Business Group. I would like to give you the highlight of the first quarter and outlook of the second quarter. In the first quarter, global monitor market had hit the bottom. Qisda monitor sales volume in the first quarter remained constant compared to previous quarter despite the impact of Lunar New Year. Frontline inventory level of each brand has returned to normalcy. Among that mid- to high-end device market remained depressed and hence, it was slower to complete inventory clearance. We're seeing the positive outcome to correct Qisda monitor inventory and the performance has recovered. And the outlook of the second quarter, we have seen additional order to place for domestic monitors. Demand for business monitors side went up. Clients for our brand began to moderately plan for future needs instead of being extremely conservative. Therefore, better sales volume of Qisda monitor in the second quarter is to be expected. Yield of monitor in Vietnam proceed to grow, volume will exceed 100,000 in a single month. Thank you.
Next, we will have GM of CIG.
Hello, everyone. I am GM of CIG, Yuchin Lin. I will report the highlight of the first quarter and the outlook of the second quarter. First quarter highlights, demand for high-end projector was lower than expected. Q1 revenue on a Y-o-Y basis at 1 digit decline. Regarding devices for industrial business and medical markets, our clients are ejecting inventory actively. And market demand remained week. It will take some more time for inventory correction and clearance. Q1 revenue of car used devices slightly declined on a Y-o-Y basis. Outlook of the second quarter due to the inference of geopolitical tension, hyperinflation, rising interest rates our clients' overestimated demand and made repetitive orders last year, purchasing power remained weak, will need more time for inventory correction and clearance. Demand for high-resolution projector remained low. Therefore, we will accelerate RD process for new product to create new demands. Third, medical intraoral digital scanner had been purchased by Italian and Chinese customers. Originally, we arranged shipment in the third quarter. After our effort, we will begin with small amount of delivery ahead in the second quarter. Working on inventory clearance of device for industrial and business use, we will also accelerate RD process and shipment of new product of interactive flat panel display to create new demand. Thank you. Next, BSG, Michael will bring us update.
The first quarter, the entire business enjoyed a growth on revenue on Y-o-Y basis. MetaAge due to strategic adjustment, we enjoyed the outcome in the first quarter and hit the second highest in our investment history. DFI consolidated net income, enjoy a significant growth. Revenue declined slightly due to our flexible strategy for secondary businesses. We focus on those areas that has our most attention. Outlook of the second quarter, DFI and MetaAge, enjoy an uptrend on a Y-o-Y, Q-o-Q basis. In the past year, our focus were in the [ sixth ] area. The rigid demand existed. HPC, Green Energy, automation, new infrastructure, Edge to Cloud integration. As far as we have observed, we think the demand were there. In the past 2 to 3 years, our clients are cleaning the inventory. Some enjoy early recovery if they take action earlier. The second quarter and the third quarter should see an upward trend regarding inventory level. Transformation of MetaAge to an Edge to Cloud integration service platform, we will keep invest 3 major public cloud-related business. As to service platform, OMO, we keep enjoying growth and outcome in Taiwan and Singapore.
Hello. I'm Harry, GM of Medical Business Group. Here, I want to report the first quarter highlight and outlook of the second quarter. In the first quarter, Medical Business Group revenue grew 29% Y-o-Y. Quarterly revenue was the highest in the same period. I have 3 highlights to share. The first, we had ceased reviving post-pandemic business opportunity in hospital, operation, medical services and medical devices in domestic and international market. So we embraced speedy growth in this area. Second, actively deploying medical service business configuration. It is divided into 2 parts. First, hospital, second, retailing channel. Continuing the momentum that we invested in CK-Care pharmacy. This year, we spent TWD 1.8 billion in Tin Tin drugstore, up to 28.54% outstanding share. After the entire public tender offering period finish, we will give you an update. Third, in-depth development in hemodialysis business actively deploy a complete system for dialysis products, create new product for dialysis powder and liquid and actively explored foreign market.
In Southeast Asia and China and develop medical device in China and expect great progress. The second quarter outlook to proceed with the momentum of the first quarter in this revitalizing medical device business. Second, we will accelerate our M&A progress.
Thank you. Hello. I am April, GM of NCG Business Group, here to report you the highlight of the first quarter. Shipping schedule of wire and wireless broadband product delayed due to our clients' inventory corrections. However, demand for switch remain high in the first quarter. So total revenue reached TWD 7.8 billion, up by 14.5% Y-o-Y.
Under our effort in optimizing product portfolio demonstrated a significant outcome, and we enjoyed a grade improved in net income and our EPS was 0.32. Outlook for the second quarter, wireless broadband product were impacted by client inventory adjustment, demand for Switch was relatively high. However, with clients increasing inventory level, we have announced in April, revenue was up by 22% Y-o-Y, but we have seen the uncertainty for product needs in the second quarter, will be higher than the first quarter. But we believe network broadband upgrade would be a rigid demand. So this should be a temporary phenomenon. So we will actively develop new clients. Thank you.
We have presented you business outcome of the first quarter of 2023, and outlook of second quarter. Now proceed with Q&A session.
[Operator Instructions] Regarding Harry mentioned that investment in Tin Tin drugstore, many questions is about that because it's still in public tender offering period finalized on May 15. So we can only provide brief answer. Many of you pay attention to our distribution in medical channel. And you may ask why we're focusing on pharmaceutical channels from last year's CK-Care drugstore, now this year Tin Tin drugstore. We have 2 reasons. One, we have spirits of creating channels ahead for future expansion as HVA to be our main sector in our strategy. For medical, channel would be the most difficult part, but also the most valuable part. So creating channel ahead has been our consistent target. For example, since 2008, we opened hospital business. Hospital is actually channel for medical business, also the most valuable parts. So through the core strategy of creating channel ahead we have begun in 2008. Next, we invest in CK-Care drug farm. We also invest in Tin Tin. And medical and pharmaceutical channels are actually in the same system and drug development is tied to medical development based on creating channel ahead strategy. We also put effort in pharmacy investment. And you can imagine, we want to build channel for drugs as we build hospital for medical channel. This is a consistent goal for future prosperous drug businesses. This is my short answer for this question. As to we have shared in previous conference, many of you pay great attention to [ BVHC ], hospital shareholding ratio increasing. We have briefly mentioned in previous session. In the past 3 years, COVID had created turmoil in hospital operation. Luckily, we have great hospital operation. So for BenQ Hospital in China in the past 3 years, revenue keep growing. Last year, it was the first time revenue over TWD 10 billion, we have been in a profitable and healthy situation. Since the first quarter this year, we have experienced a rapid growth in revenue and profit in this post-pandemic era, it has returned its performance than that in before pandemic era. We have enjoyed high performance in revenue and profit. In this sector, I've mentioned before, in the entire Qisda Group distribution, we have invested in medical and pharmaceutical aspect. We want to enhance the input in medical and pharmaceutical parts under the Grand fleet strategy, we want to lead the entire Taiwan for medical and pharmaceutical development to exhibit the highest value, not only under our group, our investment to bring value.
We also want to stimulate industry in Taiwan to boost better performance among Taiwanese companies. We have wide and deep investment in medical and pharmaceutical aspect.
These will be the major pillar to contribute in our future development. So this is my answer to medical and pharmaceutical related question.
Next question is the new market for NCG Business Group. Should we have April to answer this question?
Hello, everyone. This question I will bring some explanation to you. NCG Business Group, we have some development strategy. One of them is to deploy new market. It means 2 parts. First, we apply new product to deploy new application or we use original product to find new channels. Let me explain. For example, Alpha is the major pillar in NCG Business Group. And we have acquired Hitron. This is an example for exploring new wire broadband channel for Alpha's product to expand business opportunity through new channel. What about using new product to expand new application channel? I can give you one example such as low earth orbit satellite related development. We also have receptor products. So this is an example to apply new product to expand new application or 5G market is also to apply 5G new products to expand the application in 5G market. This is a brief answer for this question. Thank you very much.
Next question, focusing on AI and cyber security distribution. Many investors asked this question. Should we have Michael to answer this question?
Hello, thank you for this question. I will answer this question. Regarding AI, HPC and cybersecurity, it has 3 topics: one, Cloud, server room, and third Edge. We have business opportunity in those 3 areas, whether it's AI, cybersecurity, we focus on application, which include MetaAge, which is a leading company in Taiwan. The second one, Grandsys last year experienced IPO, now we're preparing to have it listed on stock market. They focus on client service AI application. And we also have investment in DSI Group and D8AI.
DSI focus on recent election situation analysis and power system and health care insurance analysis. D8AI focus on checkbox development. So for cloud application, whether it's regarding AI or cybersecurity, we have such distribution for server room. We have companies such as AEWIN, providing cybersecurity platform for server room. This investment could also expand its value to marketing to the world. We will do it through IP seed, and it is the top 3 company. Third, Edge, focus on software and hardware service integration, both in DFI and partner, we provide the integral system service. And the other focus is development. We focus on HPC development in U.S. market. We also introduced development process for platform services.
Next, for hemodialysis, many of you ask questions as well. Should we have Harry to answer this question?
Hello, everyone. I am GM of Medical Business Group; Harry Yang. Regarding hemodialysis, the progress in China, we have gained certificates. After that, we need to go through each province and submit tender application in each hospital. It is going smoothly according to our plan and our schedule. The entire situation is promising. The other aspect for Southeast Asia, we also gained certificate in many countries. So far, hemodialysis, as I have mentioned, it is going smoothly according to our plan. Thank you.
For dialysis market, I want to add some information. As you know, in Taiwan, we have around 15,000 dialyzer consumed in Taiwan market. And consumers are around 90,000 patients. Patients in Taiwan benefits from health care insurance. Whenever they have need, basically, they can be taken care of. So based on this experience, we can assume there will be a bigger market scale in China because the population there is 60 to 70x population than in Taiwan. So as that in India.
Other country, patients might not be taken care of properly than in Taiwan. Many patients might suffer from financial struggle. They cannot enjoy this benefit. Therefore, this is the main reason why we invest in hemodialysis. We have seen enormous market needs worldwide, and in China and India and Taiwan. We have a factory here in Taiwan who has been in -- that's producing for many years in Taoyuan. We also have another bigger factory in Shanghai. We wish to provide services for patients in China. We want to achieve the goal and to self-produce in supply chain. The progress in this area is rapid, and we hope to bring good news to everyone soon. This is ongoing according to our plan.
As to hemodialysis business, it should be our next major pillar that can contribute greatly in medical business group, whether it's about revenue or profit, it should account for a bigger amount. This is my brief introduction about this business in the future to our investors. Next, regarding financial question, should we have Jasmin to answer this one?
Okay. Many of you have asked profit after tax from noncontrolling interest ratio. As a matter of fact, due to non-OP onetime disposal may occur. So it's difficult to provide an accurate ratio per quarter. But I can give you a general number. As a matter of fact, our consolidated company, our share holding ratio is around 30% to 60% after brief calculation, noncontrolling interest should be around 40% to 50% with no significant non-OP disposal occur. This is the first one.
Second, estimated tax rate this year. To view our past valid tax rate in the past, it was around 22% to 25% averagely. It has differ greatly per quarter due to tax rate difference in different countries. But in general, it is around 20% to 25%. And the third question is dividend payout ratio we have mentioned before, we will maintain stable ratio.
In the previous 2 years, it is over 50%. This year, it is close to 50%. Qisda Corporation keep working on Grand fleet strategy, whenever we see great investment target, we will mildly address the dividend payout ratio, but will maintain it close to 50%. So this year, we have announced we want to increase shareholding ratio in BenQ Hospital spend around TWD 7 billion and Tin Tin drugstore around TWD 0.8 billion. Due to the major investment, we will adjust dividend payout ratio. Outlook of gross margin the second quarter, last quarter and this quarter is around 15.5%. Each business group maintain around the same regarding gross margin range. This is regarding financial question -- my answer to it.
And some of our investors pay great attention to the low demand in IT business. What about the differences in the first half and second half performance. Should we have Joe to answer this question.
Regarding IT product difference, is around 48% to 52%, and it is a much more vulnerable period due to inventory clearance. The front-end sales might maintain 45% to 55% level, production might be bigger. After inventory clearance, the ratio should be bigger than 45% to 55% or even exceeding 40% to 60%. This is my answer to this question.
Regarding medical development, such as best sound hearing aid and dental development, should we have Harry to answer this question.
Hello, everyone. I'm Harry GM of Medical Business Group. Regarding best sound hearing aid current development, it is the top 2 company in Taiwan and is growing smoothly. It has 40 to 50 stores, market share accounted for around 30% to 40% in total market. It is developing smoothly. After COVID, the market is picking up due to -- during COVID time, human contact is not appreciated. After that, business is enjoying an uplift.
Investors also asked a question regarding dental development. We have intraoral scanner. We're now actively developing the second generation model and develop software and hardware on our own. And other investments, other than intraoral scanner, we also invest in digital dental implantation. We're beginning to invest in software and hardware development. As to invisible braces, we haven't commenced in this area yet. In the future, we might invest more through M&A activities. Thank you.
As to the listing timing for BenQ Hospital, we will have Jasmin to answer this.
After COVID revenue for both -- hospital were both great.
Due to the successful smart hospital business establishment we have experienced those periods, and we are now preparing to have hospital to be listed in stock exchange market. This year, it might not be a great timing and we will estimate a good timing for this to happen, and we are still preparing for this.
Regarding hospital, I have also shared with all after pandemic era, both revenue and net income, we enjoyed great performance. It has come back to pre-pandemic era performance, I believe, in the future with the alleviated situation in pandemic. The growing speed for hospital would definitely accelerate. Other than Nanjing and Suzhou Hospital, we also have other plans to have hospital to be listed in stock exchange market. This is a very important action for us.
We will actively promote this action. We cannot give a clear timing for when. It also depends on where we're going to make it happen and the regulation and the situation in those regions. But I want to say our hospital enjoys healthy operation, and we have met what is required to be listed. So we will actively to make it happen. This is why we also increased stock sharing in hospital. We want to make sure that we can create a benefiting environment for this plan.
We expect through the rapid growth of hospital development, it can add value to the entire Qisda Corporation.
So we have almost covered all the questions, and it is close to 3 p.m. I think we have answered all the questions now.
Currently, we have collected all the questions and answered them. We are ending this investor conference. Thank you for joining this online investor conference. We will upload video of this investor conference. We want to thank you, and you may disconnect now.