Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to the Dingdong Limited Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this event is being recorded. I will now turn the conference over to the first speaker today, Roger Zhu, Senior Director of Investor Relations. Please go ahead, sir. Thank you. Hello, everyone, and welcome to Dingdong Q2 2022 Earnings Call. With us today are Mr. Changlin Liang, our Founder and CEO, and Ms. Le Yu, our CFO. You can refer to our Q2 2022 financial results on our IR website at ir.100.me. You can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion. For today's call, management will provide their prepared remarks first, and then we'll be hosting a question-and-answer session. Before we continue, I would like to refer you to the safe harbor statements in our earnings press release, which also apply to this call, as we will be making forward-looking statements. Please note that all the numbers stated in the following management prepared remarks are in RMB terms, and we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to our most comparable measures reported in our earnings release and filings with SEC. I will now turn the call to our first speaker today, Founder and CEO of Dingdong, Mr. Liang. [Foreign language] Hello, everyone. Welcome to the Q2 earnings call of Dingdong Fresh in 2022. On the call today, I'll mainly cover three areas. First, I'll briefly report our Q2 operating performance. Second, I'll discuss our product development capabilities. Lastly, I'll share the company's further development plans. [Foreign language] Firstly, let me report the company's operating performance in Q2 2022. Our Q2 revenues were RMB 6.63 billion, representing 42.8% year-over-year growth. We also achieved a non-GAAP net profit of over RMB 20 million for the first time, marking an important milestone for our development. [Foreign language] The Yangtze River Delta region, or YRD in particular, achieved profitability with an operating margin of 3.7% in the first half of 2022. We started our business in Shanghai back in 2017, and gradually expanded to the whole YRD region and then to other cities across China. We have seen that the entire YRD has become a solid market for the company following Shanghai. We're also confident that our product development capabilities, methodology, and management talents accumulated in the YRD region will help us grow and serve more users in other cities. [Foreign language] We have prioritized product development capabilities to increase users and orders ever since the adoption of the quality growth strategy in August 2021, and we have made great progress. Specifically, in Q2, of all products sold, we had a total of 217 SKUs that were uniquely Dingdong, and our private label accounted for 17.5% of the total GMV. With the majority being developed and processed in-house in our 3F factory. We have become not only a large-scale fresh grocery e-commerce leader, but also a food manufacturer with R&D and innovation capabilities. [Foreign language] 三月到五月，上海发生了严重的疫情。在疫情期间，叮咚买菜克服了供应链和管理上的各种困难，为民生保供而奋战。在这里我想分享两个小故事。 As we all know, Shanghai was hit by another pandemic wave from March to May 2022. During that period, we overcame various supply chain and management difficulties to ensure the continuity of Shanghai residents livelihood. [Foreign language] 第一个故事呢，是四月的一个晚上，一位叮咚骑手送单回来，路过一个小区，忽然听到有人从居民楼的窗户远远地对着我们的叮咚骑手喊："叮咚买菜加油！"接着有很多邻居都喊出叮咚买菜加油。那是抗疫最艰难的时刻，我们每天都精疲力竭。用户们为叮咚买菜加油的声音让我们充满力量。叮咚买菜永远和用户在一起，愿意为用户的需求而坚持战斗。 Actually, on an evening in April, one of our riders was driving through a neighborhood on his way back from delivering an order, when he suddenly heard a shout of [Foreign language] "叮咚加油", which means "Cheer on Dingdong" in English. Many neighbors joined in the chanting. It was the most difficult time in the fight against the pandemic, and we were exhausted every day to fulfill the market demand. The cheers of our users gave us the strength to battle on. [Foreign language] 第二故事呢，是我看到一个小学生画的一幅画，画中是一个叮咚骑手，车前车后都挂满了包裹，每个包裹上画着叮咚Logo红萝卜。画中的叮咚骑手一个红色的披风，高高的飞扬。这位小画家给这幅画取名叫《萝卜侠》。在抗疫中有很多可歌可泣的英雄故事。因为叮咚买菜一直坚守在抗疫保供的岗位上，也成为了孩子们心中的英雄。我们特别骄傲。 I also saw a picture of a Dingdong rider drawn by a primary school student. The front and back of the scooter were covered with parcels and each box was painted with a carrot, the Dingdong logo. The rider's red cloak was flying high and the young artist had named the painting Carrot Man. We are proud that our riders have become heroes in the eyes of the children because of their dedication to securing the supply of daily necessities in their fight against the pandemic. [Foreign language] 第二个大的方向呢，我想谈谈叮咚买菜的商品力建设。以前我们介绍过，在创立叮咚买菜之前，我们的上一个创业项目是一个母婴社区。在那次创业中，我们发现中国家庭很大的一个痛点就是每个家庭都会为孩子能否吃得健康安全而担心。所以再次创业，我们希望能够通过我们的努力解决这个痛点，能够通过我们的努力，让我们的用户，特别是我们的孩子，吃得健康放心。所以做好商品不但是叮咚买菜实现业绩增长和盈利的需要，而且是我们这个团队的初心。 Second, I would like to discuss the cultivation of our product development capabilities. Our last entrepreneurial endeavor before Dingdong focused on the mother-child community. We discovered a pain point through that venture. Chinese families were constantly worried about whether their children were eating healthy and safe food. Therefore, we started Dingdong to provide our users, especially children, with healthy and safe food products and convenience. Therefore, product quality is not only about our growth and profitability, but also the mission of our founding team. [Foreign language] 我们主要从五个方面提升商品力。第一呢，坚定地提高商品品质。我记得乔布斯讲过他小时候一个故事，他的养父教他做木工活。老乔布斯告诉小乔布斯说："你要把柜子和栅栏的背面制作好也是很重要，尽管这些地方是人们看不到的。"在用户看不见的地方努力，我们为之匠心。今天做生鲜和食品，更需要这种匠心。 We have improved our product development capabilities from the following five aspects. First, we don't compromise on product quality. Steve Jobs was taught carpentry by his stepfather, who told him it is just as important to make the backsides of cabinets and fences right, even though they are hidden. This is what we call craftsmanship. To be meticulous where it is not seen. It is especially true in producing fresh groceries and other food products. [Foreign language] 举个例子，为了避免韭菜、小葱种植中的农药容限超标问题，我们跑遍中国十多个省份，最后通过GAP和订单种植来建立品质靠谱的韭菜和小葱基地。但是这些努力和投入的成本，消费者可能根本看不到，有时可能还觉得市场上的普通商品看上去更加水灵好看，有的时候价格还低。 For example, to avoid excessive pesticide residues in the cultivation of leeks and shallots, we visited over 10 provinces in China before finally establishing a reliable planting base that fulfilled our GAP and order based planting requirements. But these efforts and costs are hidden from consumers who only see that our products appear nicer and fresher than the others, and sometimes at a lower price. [Foreign language] 这里我们在研发食品的时候一直在倡导清洁标签。这什么意思呢？大家买到食品的时候，注意看一下商品包装袋上的配料表，有很多化学物品、调味剂、防腐剂等等，有时候密密麻麻写满了页纸。而叮咚买菜倡导除非必需，绝少添加。并且我们不断通过技术的提升来实现这种清洁标签。这样下来，有的时候成本增加了，有的时候没有那些添加剂的商品口感丰富，但是我们为消费者守住了健康的底线。 Another example is how we have always advocated for the clean label on our products. Normally, you will see various chemicals, flavorings, and preservatives densely written on the ingredient list on the product packaging. Our principle is no additives unless necessary. We call this the clean label, which we achieve through the continuous improvement of technology. Even though by doing this, our costs sometimes increase, and although our clean products may not taste as savory as those with additives, we ensure the health and safety of our consumers first and foremost. Uh, [Foreign language] Second, we keep developing more signature products unique to Dingdong. As mentioned earlier, we have private labels, and we are increasing contribution from in-house developed products. We have become a food manufacturer with proprietary R&D and innovation capabilities. In Q2, we had a total of 217 SKUs of signature products. For example, our 1972 farm-to-table craft beer, jointly developed by Dingdong and Qiandaohu Brewery, can be delivered to consumers within 24 hours of shipping from the brewery, thus maintaining the beer's delicate taste and ultimate freshness. Another example is that by transforming and applying the patented technology of Jiangnan University, we have exclusively developed the Kongkakongka prune enzyme drink, which is the fusion and sublimation of California prune, citrus fiber, probiotic fruit, and vegetable enzymes. The drink achieves a refrigerated shelf of 45 days with zero preservatives, making it a delicious choice for young users to maintain a healthy intestinal tract and a fit physique. Our bakery's self-developed lotus dim sum, which combines deliciousness and oriental aesthetics, coincided with the release of the hit TV series Meng Hua Lu, which introduced a similar dim sum from the Song dynasty. The strong cultural resonance between the two struck a chord with many young female consumers and was widely publicized in domestic and international media. Eating Dingdong's Lotus Dimsum while binge-watching the TV drama series became trendy. [Foreign language] Our prepared food category, which exemplifies our prowess in consumption scenario development and manufacturing efficiency, continued to advance with the launch of the Airfryer Gourmet and vegetarian prepared food series in response to emerging consumer trends. This has further broadened consumption scenarios, enrich the user experience of our prepared food, set the direction for future healthy prepared food expansion, and augmented Dingdong's leading position in the prepared food segment. Third, we have significantly strengthened our research efforts on user consumption trends and improved success rate of our new product development. With our strong data analysis capabilities and loyal user base, our product research department produced 15 consumer insight reports in the first half of 2022, and organized over 10 user testing sessions with nearly 1,000 participants. The consumers gave opinions on product selection and development adjustment directions, which strongly supported key products market positioning and selection and subsequent growth strategies early on, thus significantly increasing the success rate in product development. [Foreign language] 第四，开发更多的消费场景，更高效地感知新需求、定义新产品和培育新品牌。因为我们的初心是让孩子们吃得健康，让每个家庭放心，所以京东买菜有个特殊频道叫宝妈严选。 Fourth, we have developed more consumption scenarios to efficiently discover new consumer needs, define new product specifications, and cultivate new labels. Executing our mission of making healthy food for every child and family, we created a specialty category called Mom's Choice. [Foreign language] 现在宝妈严选的商品已经通过追根溯源、科学营养、更少添加、严格品控的完整开发体系，彻底消除了妈妈们对食品安全的担忧，而且率先做到了入选食品均符合低糖食品标准。同时通过一周七天不同样的今日食谱和一键加购，让妈妈们可以更轻松地为孩子规划营养美味的餐食解决方案。通过品类成长这个栏目，让关注孩子体格发育的家长能够同时获得丰富的食品选项和科学的营养知识。宝妈严选频道正在探索创造商品加健康服务的融合价值，进一步提高我们的用户忠诚度和盈利能力。 Products of Mom's Choice must pass through a comprehensive development system of origin traceability, scientific nutrition, minimum additives, and strict quality control, which eliminates parents' worries about food safety. Dingdong also became one of the first companies to meet the low sugar content food standards. At the same time, through our Recipe of the Day initiative, which offers varied recipes each day of the week, and our one-click add to basket app feature, parents can easily plan nutritious and delicious meals for their children. Through the Grow With You section, parents concerned about their children's physical development can access diverse food options and scientific nutrition knowledge. Through Mom's Choice, we have explored the fusion of product plus health services to increase user loyalty and operational profitability. [Foreign language] 除了宝妈严选这样把商品做出了服务价值的频道以外，类似的叮咚买菜还有为热爱健身和追求营养的年轻人开发的青养星球，还有正在筹划中的服务于城市中老年人优雅健康生活的频道。在消费主体正在从以家庭为单位向生活个体甚至标签个体变迁的背景下，借助以上这些细分消费场景频道，精准服务越来越多的忠实用户，叮咚正在努力成长为拥有独特优势的食品开发和品牌矩阵运营公司。 In addition to Mom's Choice, which provides superior value by integrating products with service, we have also a similar category for young people who love fitness and health, and a project in the pipeline for urban seniors who want to live an elegant and healthy lifestyle. As the general consumer group changes from a family-based unit to an individual or even a label-based individual, Dingdong keeps launching dedicated categories, serving targeted groups of loyal users, and has grown into a food development and brand matrix operation company with unique advantages. [Foreign language] 第五，加强基础设施建设。在以前的财报分析会上，我们介绍过叮咚买菜拥有最大面积的高标准半自动化大仓，拥有十多家食品工厂，并且正在建设三个大规模的3F工厂。同时，我们在食品研发、品控等环节建设中都有很多投入，这些投入都将慢慢产生回报，确保叮咚能够有更多独一无二或全行业率先上市的优质商品，提升叮咚买菜的商品力。 Fifth, we are strengthening our infrastructure. As we have explained in previous earnings calls, Dingdong has the largest high-standard semi-automated warehouse and over 10 food factories. We're building three additional large-scale 3F factories. We have also invested generously in food R&D and quality control, which are slowly paying off, ensuring that we launch more unique or industry-leading products while enhancing our product development capabilities. [Foreign language] 第三个大的方向，我想简单介绍叮咚买菜进一步发展规划。首先，我特别想强调，叮咚买菜会专注在生鲜和食品的事业上。有人比较着叮咚买菜和我们的友商，这几年友商们干过了很多业态，而叮咚买菜五年如一日死磕前置仓这一商业模式。叮咚买菜有一种笨拙精神，这种笨拙精神还体现在另一方面，当友商们纷纷拓宽到生鲜食品以外的其他品类时，叮咚买菜一直坚守在生鲜和食品上，一直坚持，从未动摇。可以这样说，食是叮咚买菜…… [Foreign language] 食是京东买菜一生奋斗的事业。 Finally, I would like to touch on Dingdong's future development plans. Firstly, I want to emphasize that Dingdong will stay focused on the fresh grocery and food business. By comparison, our peers have attempted various business models in the past few years, while we upheld our commitment to the frontline fulfillment grid model for the past five years, despite all the struggles and challenges. We call it the clumsy spirit, which is also reflected in the fact that we have been persistent in doing fresh groceries and food, whereas our peers have branched out to other categories. Food is our lifelong passion. [Foreign language] 为什么呢？因为大家知道民以食为天，生鲜食品不是普通的消费品，不但要让大家买得到，还要让大家吃得好，要让食品为大众带来幸福和生活的激情，要让食品中充满灵感和灵魂。只有一个团队矢志不渝，全心全力，全力以赴，才有可能实现这个目标。 Why? Because food is a necessity. Fresh food is not ordinary consumer goods. We aim to ensure not only food availability, but also food quality. We strive to bring happiness and passion for life to the public through food, and to infuse inspiration and soulfulness into food. Only a team with unwavering, wholehearted commitment and dedication can achieve this goal. [Foreign language] 所以，当流沙们选择做宽，叮咚买菜选择做厚。为此，叮咚买菜会深耕扎根，专注专心，持续加强商品力，不断强化供应链，加大对基础设施投入，为吃的事业不懈奋斗。在中国，吃是一个十几万亿的市场，放眼世界，更加海阔天空，这个市场足以缔造很多个成功且伟大的企业。 That is why we choose to go deep while our peers choose to go broad. We will stay grounded, focused, and dedicated. We'll continue strengthening our product development capabilities, reinforcing the supply chain, increasing investment in infrastructure, and working tirelessly for the cause of food. China's food market alone is worth over RMB 10 trillion, not to mention the international space. The food market is large enough to give rise to many successful and great enterprises. [Foreign language] 其次，叮咚买菜会继续提升用户体验。在疫情期间，因为供应链、大仓和前置仓管理等方面出现了很多困难，影响了疫情期间的用户体验。疫情好转后，叮咚买菜迅速组织力量提升用户体验。我们会重构物流和仓储系统，实现库位准确和库存准确。我们会优化服务流程，不断提升人效和仓效来服务更多用户，也不断提升送单速度。同时，叮咚买菜会加强对一线人员的招募培训，提供行业领先的薪酬，提供顺畅的晋升通道，提升一线人员的幸福感和获得感。幸福快乐的履单人员也能创造出幸福快乐的用户体验。 Our second development plan is to improve the user experience. Our user experience was affected during the lockdown because of the difficulties in managing the supply chain, warehouses, and frontline fulfillment centers. After the lockdown, we quickly mobilized resources to improve user experiences. Going forward, we'll reconfigure our logistics and warehousing systems to establish precise warehouse location and accurate inventory. We'll optimize our service process to improve the efficiency of our staff and warehouses to serve a broader user base and expedite deliveries. At the same time, we'll strengthen the recruitment and training of frontline personnel and provide them with industry-leading remunerations and career advancement options to enhance their sense of joy and achievement, as we firmly believe that happy riders lead to superior customer experiences. [Foreign language] 最后想说一下，Q2的阶段性盈利是受到了疫情的部分影响。展望Q3，我们可能会略微亏损，但是比较我们疫情后和疫情前的数据，除了营收增长，亏损率是在持续和不断地改善的。所以我们非常有信心，在今年期末，叮咚买菜可以实现全面盈利。 Finally, I would like to conclude that the milestone profit we achieved in Q2 was partially a result of the lockdown. Looking ahead to Q3, we may expect a slight loss. However, comparing our post-lockdown and pre-lockdown numbers, we expect the net loss margin to narrow continuously while we sustain our revenue growth. We're confident that Dingdong can be fully profitable by the end of this year. [Foreign language] 我的发言到此结束。谢谢大家。下面请公司CFO Yu介绍一下财务情况。谢谢。 Thank you, everyone. With that, I'll hand the call over to Miss Yu, our CFO, to go over the financials. Thank you. Thank you, Mr. Liang, and hello, everyone. Before I walk you through our detailed financial results, please note that all numbers stated in the following remarks are in RMB terms. All comparisons and percentage changes are on a year-over-year basis, unless otherwise noted. In Q2 2022, we maintained quality growth, with revenues increasing 42.8% year-over-year to RMB 6.63 billion. Our product development capabilities and operational efficiency have significantly and steadily improved since we began implementing the strategy of efficiency first with due consideration to scale at the end of August 2021. Our non-GAAP net loss margin has narrowed consistently to 37.2%, 31.9%, 18.9%, and 7.8% over the past four quarters respectively. This quarter, we also reached a positive non-GAAP net margin of 0.3% for the first time, up 37.5 percentage points from Q2 2021. Now let's look at the Q2 results in detail. The company's revenue reached RMB 6.63 billion, representing year-over-year growth of 42.8%. The GMV to revenue conversion rate was 93.2%, up 6.9 percentage points from the same period last year. The gross margin in Q2 was 31.6%, up 17 percentage points year-over-year and 2.9 percentage points quarter-over-quarter. This is because we kept developing and diversifying the source of our supply. For example, our newly developed food production and processing initiative improved our product R&D capabilities, expanded our processing scale, and boosted our product sales, thus increasing our production positive contributions to gross margin. Data analytics also empowered our order-based production and reduced production inefficiency and wastage. In addition, a high percentage of direct sourcing has penetrated not only the fresh produce, but also the non-fresh produce categories. The final step of our supply chain is door-step delivery, providing convenient, reliable, and reputable value-added service to the consumers. In summary, the long multi-linked and deep supply chain has not only brought us differentiated products that dominated the mind share of users, but also generated higher growth margins. The fulfillment expenses ratio in Q2 was 23.2%, down 13.2 percentage points year-over-year, mainly driven by the improvement of average order value and enhanced frontline labor efficiency. Q2 sales and marketing expenses ratio was 2.2%, down 6.6 percentage points year-over-year. Our product development capabilities have become a new source of user traffic, reducing both online traffic acquisition expenses and offline marketing expenses significantly, while optimizing average customer acquisition costs. Thanks to the scaling effect, our G&A expenses ratio was optimized to 2.3% from 6.6% in the same period last year, down 4.3 percentage points. Our R&D expenses ratio declined to 3.8% from 4.4% last year, despite its absolute value increase, increasing 23.7% year-over-year. Going forward, Dingdong will keep investing in food R&D, agriculture technology, technical data algorithms, and other infrastructure. This investment will strengthen our competitive advantage and create a long-term return for investors. We further improved our efficiency in Q2 with a net loss margin of 0.5%, down 41.2 percentage points from last year. We also achieved a positive non-GAAP net profit margin of 0.3% for the first time. We achieved a net profit in Shanghai back in December 2021. Today, we are pleased to report that our P&L has turned positive for the entire Yangtze River Delta region in both Q1 and Q2 this year. Meanwhile, in the first half this year, the Yangtze River Delta region achieved a 47.9% year-over-year revenue growth. Such quality growth and rapid optimization of our unit economics is a strong testament to the profitability of Dingdong's business model and the responsiveness of our organization. In Q2, we had RMB 220 million cash inflow from operating activities. By incorporating supply chain finance into our cash management, we attained RMB 880 million actual operating cash inflow. As of the end of Q2, we had RMB 6.1 billion in cash, cash equivalents, restricted cash, and short-term investments. The pandemic has led to many uncertainties that increased our operational difficulties greatly. However, we overcame these challenges and enhanced our organizational capabilities, supply chain adaptabilities, and responsiveness. This improvement will remain our most valuable asset. Driven by the growing product development capabilities, we also realized quality growth and a non-GAAP positive net margin in Q2. As we establish what our product development capabilities amount to among consumers, comparing our pre-lockdown and post-lockdown performance this year, we also saw a significant increase in the AOV post-lockdown and an improvement in our operational efficiency, which validated our efficiency first with due consideration to scale strategy. Looking ahead to Q3, we expect quality revenue growth with narrowing losses compared to the pre-lockdown Q1 this year. We also expect to achieve a single-month non-GAAP breakeven in December this year. This concludes our prepared remarks for today. Operator, we are now ready to take questions. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone in the call. At this time, we will pause momentarily to assemble the roster. Our first question will come from Joyce Ju of Bank of America. Please go ahead. [Foreign language] 管理层晚上好，我是美银的分析师Joyce，我这边的话有一个问题是想问一下，因为最近呢我们都知道，可能有一些跟我们比较接近的同行，然后呢可能有新闻报道出一些运营困难的状况，然后呢，希望管理层能够跟我们分享一下，作为同行，你们怎么看这个情况？ [Foreign language] 如果说就是说现在这个情况，它对我们的竞争格局，然后对整个行业的运营，然后也包括对我们可能未来的这个成长或者是盈利的规划，会不会有什么样的影响？谢谢。I will translate my question by myself. Recently we noted, there is a close competitor of the company was reportedly having some difficulties in terms of cash flows, and also a shrinkage in operations. We wonder like, you know, could management share some colors in terms of your view on the market competitive landscape how this company's business or like, you know, situations will actually affect Dingdong in terms of like, you know, competitive landscape, in terms of capabilities, in terms of relationship with the customer and, you know, also their suppliers? Many thanks. [Foreign language] 好，谢谢你的问题啊。这个我觉得这是大家最近讨论比较热烈的问题。那么首先呢，我们很少评价友商，那么做好自己比指点江山更重要。 [Foreign language] 另外呢，有些人看到一家企业遇到困难，就觉得全行业都不行。我们非常不赞成这种简单的线性的思维方式，即使在同一行业，但不同企业的差异可能是天壤之别。叮咚买菜跟我们的行业中的每家企业都不太一样，我们一直专注在一件事情上，一直更加关注用户的需求，然后倒逼自己去进步。我们不耍小聪明，死磕商品力，使我们的越来越多的被用户喜爱。被用户喜爱的公司，我们觉得都是有前途的公司。 Okay, thank you for your question. Indeed, the news has triggered heated discussions recently. First of all, we rarely comment on our peers. It's more important to focus on what we do than to point fingers. Also, some people think that the whole industry is doomed when they see one company in trouble. We strongly disagree with such a simple, linear way of thinking. Even in the same industry, the differences between companies can be drastic. Dingdong is very unique in our industry. We have always been focused on one thing, always paid more attention to the needs of our users and then pushed ourselves to progress. We don't cut corners. We don't compromise. We are committed to developing product development capabilities, which has gained us love and trust from our users. Any company loved by its users is a promising company. [Foreign language] 我们也希望社会对创业者有更多的包容心，也祝愿遇到困境的创业者都能坚持下去，迎来柳暗花明的时刻。 We also hope that the society can be more tolerant toward entrepreneurs, and we wish entrepreneurs who encounter difficulties will persevere in the moments of darkness and usher in a bright future. [Foreign language] 好，这是我的回答。 All right. That's all for my answer. Thank you. The next question comes from Ashley Xu of Credit Suisse. Please go ahead. [Foreign language] 你好，谢谢管理层接受我的提问。首先恭喜非常强的业绩，然后我想了解一下，就是咱们在疫情中，还有这个lockdown的过程中，就是除了营收增长比较，也获得了一些加速之外，我们还有哪，哪方面的收获？就是比如说在运营上，在供应链上，看管理层有没有哪些值得分享的地方。然后我翻译一下。Thanks management for taking my question. Just wanna check, during the lockdown period, other than our revenue growth, any other improvement or development, especially in terms of our operation or supply chain that is worth sharing? Thank you. [Foreign language] 好，谢谢您这个问题啊，特别好。那么除了营收增长以外呢，经过疫情的考验，叮咚买菜在三个方面获得了进步。第一呢，建立了更加灵活快速反应的柔性供应链，我们建立了更强的反应体系。在疫情期间，面临供应中断、运输系统阻塞、大商小商被封控、人员管理困难等等问题，我们灵活应变，创新了很多供应链模式，例如商家直送、邻里团等方式，在疫情期间既保障了供给，又能平抑物价，也磨练了我们的供应链系统。在遇到突发事故的时候，能够守住保供的基本职责。 Okay, thank you for this particularly good question. In addition to our revenue growth, Dingdong has grown in three areas after the lockdown. First, we have established a more flexible and adaptive supply chain and built a responsive organization. During the lockdown, we faced various problems including supply disruption, logistical blockages, regional warehouses and frontline centers being locked down, and personnel management difficulties. However, we adopted and created new supply models. For example, using direct delivery by merchants and neighborhood group buys not only ensure supply during the lockdown, but also calm prices and sharpen our supplying system to hold the basic duty of securing supply in case of unexpected incidents. [Foreign language] 第二个呢，我们提升了团队的凝聚力。在疫情期间，工作量大，生活很艰难，还可能随时被封控。叮咚买菜同事们都承担了前所未有的压力，但大家都以保供为己任，坚持战斗，涌现了很多可歌可泣的事情，大家也能感受到为用户服务带来的成就感。经过一场疫情的洗礼，我们这个团队更加团结了。 Second, we have improved the cohesiveness of the team. During the lockdown, the workload was heavy, life was tough, and there was the risk of being quarantined at any time. We were under unprecedented pressure, but we all took it upon ourselves to maintain supplies for local residents, creating plenty of heroic stories. Everyone here at Dingdong could also feel the sense of accomplishment from serving our users. After the lockdown, we as a team became more united. [Foreign language] 第三点就是在整个疫情期间，叮咚买菜始终和用户在一起，保供给，平物价，也因此我们受到了更多用户的喜爱。无论是正常消费还是在困难时刻，叮咚买菜都是大家可以闭着眼睛选择的值得信任的好伙伴。 Third, Dingdong has been with our customers throughout the lockdown, keeping supplies and prices stable. As a result, we are loved by more customers than ever before. Whether it's routine consumption or lockdown purchases, Dingdong is always a destination that you can trust without a doubt. [Foreign language] 最后想说一下，在疫情我们一直遵守政府的管理和要求，履行好一个民生保供企业的基本职责，也祝疫情早日结束，每个人都能享受健康安定的生活。这就是我的回答。 Finally, I would like to highlight that we have been complying with the government's pandemic control requirements and fulfilling our basic duties as a daily supply company for the general public. We also hope that the pandemic will end soon and that everyone can enjoy a healthy and stable life. Thank you. That's all for my answer. The next question comes from Thomas Chong of Jefferies. Please go ahead. [Foreign language] 晚上好，谢谢管理层接受我的提问。我们看到了在Q2的话，我们已经是实现了一个阶段性的盈利，如果我们看Q3、Q4的话，管理层可以分享一下情况会是怎么样吗？另外的话呢，我们应该什么时候会实现了全面的盈利呢？在实现了一个全面的盈利之前呢，我们会出现一个现金流的风险吗？Thanks management for taking my questions. We have seen, we have done a very good job in achieving profitability in Q2. How should we think about the situation in Q3 and Q4? When should we expect full year profitability? Before we reach full year profitability, how should we think about our cash flow? Would there be any issues? Thank you. [Foreign language] 好，请我们CFO于乐来回答这个问题。 All right. Our CFO, Ms. Yu, will take your question. [Foreign language] 好的，谢谢Thomas的问题。那么首先呢，对于公司来说，Q2其实是一个非常非常困难的时期。那么在大环境的因素影响下，这个履约啊等等一些运营的阻力是非常巨大的。那么好在呢，公司的小伙伴都是齐心协力的这个迎难而上，那么我们最终呢，取得了这个quarterly的这个正向利润。那么我们也观察到，这个疫情后对比疫情前，无论是像商品力啊、用户口碑啊，这些我们最关注的方面，还是像这个客单价、渗透率等等，这些非常核心的数据指标都有了比较大的优化。所以呢，我们认为，Q3对比疫情前的Q1呢，non-GAAP的这个net loss margin会有大于3个百分点的优化，那么后续的Q4呢，也会继续在这个Q3的基础上继续优化。 Okay. Thank you, Thomas, for your question. First of all, Q2 was a very difficult period for the company and the operational headwinds were tremendous under the influence of macro factors. However, the good thing is that the company staff were united to battle the challenges, and we finally achieved quarterly positive profits in Q2. We also observed very positive progress post lockdown compared to pre-lockdown periods, both in terms of product development capabilities and user satisfaction, which are the aspects that we care about most, and also about core performance indicators such as the AOV and penetration rate. We also achieved very positive progress as well. Therefore, we believe that our non-GAAP net loss will be down at least 3 percentage points in Q3 compared to the pre-lockdown Q1 and Q4 will be further optimized on the basis of Q3. [Foreign language] 其次，今年一月份我们当时其实肯定还是完全没有办法预知后续的这个疫情的。那么当时，管理层就已经定下了今年期末十二月份，那么公司整体实现单月break even这样的一个大的目标，那么这个目标，我们从未有过任何的变化，我们也坚信必然是可以实现的。 Second, in January this year, when we were all still completely in the dark about the subsequent lockdown, the management had already set the goal of achieving a single month breakeven, by the end of the year, a goal that we have never changed and we are still convinced that we will achieve this goal. [Foreign language] 最后，虽然我们实现全面盈利的时间点没有变化，但是Q2的业绩客观上优化了我们全年的亏损率以及现金流出的金额。那么今年的Q3和Q4，我们的亏损额和现金流对比去年同期将会有极其大幅度的优化。明年全年，我们预估公司也会是整个全年是正向的现金流。那么截止Q2末，我们的现金余额是人民币60.6亿。那么银行跟公司的合作更加紧密了，银行短期借款增加到了人民币8.9亿。那么在Q2，不少银行在到期续约了以后，给到公司的贷款额度也是更高的。简而言之，其实就是咱们需要花的钱已经不多了，但是账上的余额还是不少的。因此，我们认为公司是完全没有现金流的风险的。 Finally, although there is no change in the timing of us achieving full profitability, the Q2 results objectively optimize our loss ratio and cash outflow for the year. For Q3 and Q4 this year, our loss and cash outflow will be significantly optimized compared to the same period last year. Next year, we forecast that the company will still be cash flow positive. As of the end of Q2, our cash balance was RMB 6.06 billion. Banks have been working more closely with the company, with short-term bank borrowings increasing to RMB 890 million. In Q2, many banks have given us higher credit limits on loans after renewal at the end of the term. In short, we don't have many capital spending needs at the moment, and the balance on the books is still quite sufficient. We think that the company is not at any cash flow risk. Thank you. That's all for my answer. The next question comes from Robin Leung of Daiwa. Please go ahead. [Foreign language] 谢谢管理层接受我的提问，恭喜这么强的业绩。我想问，每日优鲜的困境使大家又对于前置仓的模式产生了怀疑。另外一些竞争对手多次对于前置仓模式持有否定的态度，你觉得前置仓模式真的能跑通吗？我先翻译。Thanks, management, for taking my question and congratulations on the strong set of results. Some investors have concern on the front end warehouse models given what happened to Missfresh. Also, some competitors in the local retail industry explicitly said, front end warehouse is not going to work. Could management share your thoughts on that? Thanks. [Foreign language] 好的，谢谢您的问题。首先我想请您看看，就是说剔除疫情严重的三个月，叮咚买菜已经连续十个月实现持续改善亏损率。我们非常有信心在今年期末实现全面持续的盈利。所以呢，我们对前置仓模式是充满坚定的信念的。那么市面上对前置仓的分析有很多很多，见仁见智，但是大家常常忘了判断一个模式的优劣，最重要的关键点是什么，是不是真的满足用户的需求，是不是顺应用户消费行为的变化趋势，只有用户的取舍才决定商业模式的成败。 Well, thank you for your question. First of all, I would like to draw your attention to the fact that, excluding the three months during the pandemic, when the lockdown hit hard, Dingdong has been able to continue improving its loss ratio for 10 consecutive months. We are very confident that we will achieve full and sustained profitability by the end of this year. Therefore, we have a strong belief in the frontline fulfillment grid model. There are many analysis of this model on the market and they are up to you to judge. But we often forget that the most important criteria to assess the pros and cons of a model are whether it really meets the needs of the users and whether it is in line with the changing trend of user consumption behavior. Only the user's choice can determine the success or failure of a business model. [Foreign language] 前置仓模式呢，有最高的效率，最快的配送速度，能够更好地控制生鲜品质。这种模式满足了消费者对美好生活的需求，满足了年轻一代不一样的消费习惯。因为看到了这一点，我们坚信这是有美好未来的商业模式。然后我们再倒逼自己努力进步。大家认为生鲜电商毛利率低，我们通过做厚做强供应链来改善。大家质疑损耗大，我们通过大的订单密度和预测推荐技术来改善，今年效果已经非常好了，损耗远远低于传统生鲜业态。大家觉得非标品的品质控制很难。我们通过规范流程，加大人力和技术投入，现在我们的品控应该在整个生鲜行业里都是领先的。 The frontline fulfillment grid model enjoys the highest efficiency, the fastest delivery, and can better control the quality of fresh food. This model meets the needs of consumers for a better life and caters to the younger generation of new consumption habits. With that, we firmly believe that this is a business model with the bright future, and we in turn push ourselves to strive for progress. When people think that the growth margin of fresh groceries is low, we improve it by making the supply chain deeper and stronger. When people criticize the losses and the high loss rate in fresh groceries, we improve it by enhancing our order density and improving our prediction and product recommendation technologies. As a result, our recommendation is excellent today, and our loss rate is far lower than the traditional fresh produce peers. When people think that the quality control of non-standardized, or non-standard products is difficult, we standardize the process and we increase human resources and technology investment. As a result, our quality control nowadays is industry-leading in the entire fresh grocery industry. Our way of thinking is identifying the user's needs and then pushing ourselves to improve accordingly. Some people see problems, and immediately they try to be smart and announce to the world that they know everything. Others, on the other hand, keep their heads down in solving problems. In fact, entrepreneurship is the process of problem-solving. Why do we need entrepreneurs if there is this perfect industry with a huge, highly lucrative market, with no problems or difficulties? Thank you. This concludes our question-and-answer session. I'd like to hand the conference back to our management for closing remarks. Thank you again for joining our call today. If you have any further questions, please feel free to contact us or request through our IR website. We look forward to speaking with everyone in our next earnings call. Have a good day. The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect.