Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong (Cayman) Limited Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this event is being recorded. I would now like to turn the conference over to the first speaker today, Nicky Zheng, Director of Investor Relations. Please go ahead, sir. Thank you. Hello, everyone, and welcome to Dingdong's Third Quarter 2023 Earnings Call. With me today are Mr. Changlin Liang, our founder and CEO, and Mr. Song Wang, our Head of Finance. You can refer to our Third Quarter 2023 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 go through their prepared remarks first, which will be followed by a question and answer session. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call. As we will be making forward-looking statements, please note that all 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 are reconciled to the most comparable measures reported in our earnings release and filings with the SEC. I will now turn the call to our first speaker today, the founder and the CEO of Dingdong, Mr. Liang. Hello, everyone, and welcome to the Dingdong Third Quarter 2023 Earnings Call. During the call today, I'll briefly review our operating performance during the quarter, share some thoughts on our instant delivery retail business, and update you on some of our key business developments. In the third quarter, we recorded CNY 5.14 billion in revenue, a 6.2% sequential increase. GMV grew by 6.4% sequentially to CNY 5.67 billion, and net operating cash flow was CNY 130 million. Non-GAAP net income margin was 0.3%, marking our fourth consecutive quarter of non-GAAP profitability as we continue to prioritize our strategy of efficiency first, with due consideration of scale. In addition, we achieved quarterly profitability on a GAAP basis for the second time since Q4 of 2020, 2022. Sustaining profitability over the past four consecutive quarters on a non-GAAP basis is critical for both Dingdong and the industry. First of all, it indicates that we have successfully navigated the difficult macroeconomic and competitive environment we found ourselves in, with many doubting the sustainability of the sector. Second, it reflects the corporate flexibility and adaptability we maintained. With the market continuing to change rapidly, these attributes will remain critical to our long-term sustainability. Third, among the leading companies competing in the sector, we're the first to achieve profitability. It was a long and difficult journey to get here, but we stuck to our principles and vision, which kept us on the right path. Lastly, having reached a profitability milestone, we're constantly and confidently looking to the future, where we will maintain a sustainable long-term growth. ... 本季度GMV环比增长6.4%。环比Q2，我们总订单量提升了6.0%，仓均单量环比提升了11.7%。虽然受宏观经济形势影响，我们的部分头部生鲜大单品的销售单价持续受压。在疫情结束后，消费者在购物囤货倾向上退坡。但受益于我们一直以来在商品结构的优化和商品力量的深耕，使得我们的客单价同比基本持平，环比也有0.5%的提升。此外，我们持续对前置仓进行升级改造，截至10月底，我们已经升级启用了近100个前置仓，其中6月底完成升级的前置仓，Q3的GMV环比Q2增加了15.2%。 As I previously mentioned, GMV for the third quarter increased 6.4% sequentially. This growth was largely driven by a 6% increase in total order volume and an 11.7% increase in average order volume per station. While a soft macroeconomic environment led to a decline in the average selling price of some of our top selling fresh grocery SKUs, and dampened consumers' willingness and needs to stock up following the pandemic, our average order value remained stable year-over-year with a 0.5% sequential increase, thanks to our continuing efforts to optimize product mix and enhance our product development capabilities. Building on our previous initiative, we have now upgraded and optimized almost 100 frontline fulfillment stations over the past 10 months across China. In particular, frontline fulfillment stations that were upgraded in Q1 and Q2 have already seen their GMV increase by 15.2% sequentially. 本季度GMV同比下跌了13.0%，主要是受去年Q4以来暂停部分城市及站点运营的影响，这部分影响GMV同比约9.8%。同时，受今年恢复常态后，今年夏天消费者有更多回归线下消费的需求，及用户在暑假期间集中出游的影响。 On a year-over-year basis, third quarter GMV decreased by 13%. Within this decrease, 9.8% was attributable to the suspension of operations for a number of cities and stations starting in Q4 last year. In addition, the return to post-COVID normalcy during the summer holiday season also impacted GMV, as consumers increased offline consumption and resumed holiday travel. 本季度用户月均频次同比、环比都在进一步提升，月均达到了4.2次，在上季度4次的基础上进一步稳步提升，其中绿卡会员的月均频次达到了6.9次。叮咚买菜通过持续的商品能力建设，培养用户想吃什么，就上叮咚的心智，持续满足消费者的需求。Q3月UP值在560 CNY以上的月均成交用户达到了近百万，这部分用户GMV成交占比高于48.8%。我们将继续努力，服务好新老用户的需求。 Despite the impact, our users are accessing our services more frequently than ever. The average monthly user order frequency increased on both a year-over-year and sequential basis, increasing to 4.2 orders during the quarter, up from four last quarter. Notably, Dingdong members averaged 6.9 orders per month. We continue to develop our product offerings to foster a culture of using Dingdong for all food-related needs. As a result, nearly one million users during the quarter generated monthly ARPU of more than 560 RMB, accounting for more than 48.8% of total GMV. We'll continue to focus on serving the needs of both new and existing users. 在区域上，上海受去年同期疫情 high base 的影响，GMV 同比虽然仍有所回落，但同比大幅收敛至10%以内。同时，Q3季度环比恢复正增长，达到了7.8%。江苏和浙江在Q2增长的基础上，受益于我们的下单用户规模持续扩大，同时老用户下单频次也有了显著提升。Q3仍继续实现同比、环比的双位数增长。在高速增长的同时，江苏和浙江区域整体均已连续实现四个季度的覆盖，总部费用后的区域整体盈利。随着公司实现持续稳定的盈利，为我们在华北和华南的区域增长提供更多的人才、方法和财务保障。三季度，我们在华北、华南已经稳住了规模，后续我们会进一步优化在上述区域的运营改善。 Looking at the geographical breakdown, our performance in Shanghai was impacted by the high base effect created during the same period last year, when pandemic restrictions were impacting the region. While GMV in Shanghai declined year-over-year, the rate of decline narrowed sharply to less than 10%. On a sequential basis, however, Shanghai GMV increased 7.8% in Q3. At the same time, GMV growth picked up significantly in Jiangsu and Zhejiang provinces, as our user base there continued to expand and existing users placed more orders. These two provinces built on their strong growth momentum last quarter, delivering double-digit growth on both an annual and sequential basis in Q3. Moreover, each region was profitable for the past four consecutive quarters, even after allocating headquarters expenses. Sustainable and stable profitability provides us with additional human resources, operational know-hows, and cash to drive growth initiatives in North and South China, where we stabilize and we stabilize the build-out during the quarter and see significant room to further optimize our operations going forward. 接下来，我想和大家谈谈叮咚买菜对目前零售行业和消费环境的思考，以及当下我们业务的主要进展。我们认为，在疫情后，全球经济增长进一步放缓，用户消费意愿和偏好发生了变化，零售企业需要适应充满挑战的新环境。这一阶段，消费者购物的心态趋于确定性，即时零售终将回归到商业本质，更好地提供给消费者购物过程中确定的服务能力、稳定的品质保障和价格竞争力。 Next, I'll share our perspective on the current state of the instant delivery retail industry and the overall consumer environment before moving on to cover some of our key business developments. As the global economy slows, consumer preferences and shopping habits are changing, and retailers really need to adapt to a complex new environment. What consumers want most in a current environment is certainty, and instant delivery retail can cater to this by providing reliable service, stable quality assurance, and competitive pricing. 叮咚买菜的基础能力正契合了这些新的变化和市场需求。了解我们的人都知道，叮咚买菜自从创立以来，一直构建的三大核心竞争力，就是极致的商品力、超预期的服务力和通过供应链系统打造，追求极致性价比、品价比。所谓守正出奇，无论市场环境如何变化，我们一直坚定地走在正确的道路上，从未改变过。 Our core abilities have been directly aligned with these changes in consumer preferences. Since our inception, we have focused on cultivating three core competencies: solid product development capabilities, services that exceed expectations, and a robust supply chain that delivers optimal cost effectiveness and a maximum value for money product. Despite changing market conditions, we remain steadfast in our commitment to these values. 在福利上，叮咚买菜通过距离用户最近的自营前置仓，离消费者更近，最快29分钟送达，能够更好地满足当下都市消费人群随心所欲的消费需求，有效实现生鲜和食品的快速高品质配送，以及时性、高效率和确定的即时配送到家的方式，为现代家庭提供更高性价比的生鲜和食品，也为用户提供超预期的服务。 Let me further expand on our service capabilities. We're able to meet high demand among urban consumers for quick and efficient delivery of groceries and other products through a network and a network of self-operated frontline fulfillment stations in 29 minutes or less, something that we have become synonymous with. We're able to provide families with affordable, high quality, fresh food and other products through a timely and reliable home delivery service. Service is critical to exceeding customer expectations. 我们致力于通过更快、更确定的时间，将货品运送到用户手中。本季度，我们通过调整运营结构，优化出勤排班等方式，提升了履约速度和效率。本季度40分钟以内，即时单占比同时提升了6.8个百分点，最短可约时长同比缩短了14.3分钟。在更好地服务用户的同時，在疫情后供应链趋于稳定的大环境下，我们本季度已经完成对分拣中心的仓网布局优化的联动目标。分拣中心的履单费用率同比优化了2.7个百分点，环比优化了0.3个百分点。 We're committed to delivering orders in a timely manner through a reliable delivery service. In Q3, we improved order fulfillment efficiency by restructuring our delivery capacity and optimizing scheduling. As a result, we saw a 6.8 percentage points year-over-year increase in rush orders delivered within 40 minutes, while the average earliest available time slot for scheduled order delivery was brought forward by 14.3 minutes compared to the same period last year. During the quarter, we optimized our network of regional processing centers to bring them in line with the more stable post pandemic supply chain environment. As a result, fulfillment expense ratio for regional processing centers decreased by 2.7 percentage points year-over-year and 0.3 percentage points sequentially. 从商品力阶段来看，叮咚，商品力是叮咚买菜业务发展的第一推动力。从今年以来，我们始终围绕着跨SKU、窄SKU的方向，在商品结构内部，在区域之间的商品力上持续做精选汰换。Q3，我们月销超500万的SKU数量，较Q1提升了10个，GMV占比提升了4个百分点，月销超1000万元的SKU数量，较Q1提升了3个，GMV占比提升了2个百分点。我们通过精选SKU的策略，以及供应链和商品力的优势，打造头部大单品，通过我们优质的供应链和规模化销售，将商品采购价格做到最低，从而使商品更具有价格竞争力，增强头部商品的比重，缩短长尾商品的剩余，提高商品的周转率。 ...Our product development capabilities remain the core driving force of our business. This year, we implemented a strategy of extensive SPUs and concentrated SKUs, where we expand SKUs, SPUs within a product category and allocate more capacities to top-selling SKUs and phase out slow-moving ones across different regions. In Q3, we offered 10 more SKUs with monthly sales exceeding CNY 5 million when compared to Q1. GMV contribution from the SKUs with monthly sales exceeding CNY 5 million increased by four percentage points during the period. Over the same time frame, we had three more SKUs with monthly sales exceeding CNY 10 million. GMV contribution from the SKUs with monthly sales exceeding CNY 10 million increased by two percentage points. Our SKU selection strategy and strong product development capabilities enable us to create more top-selling products. Additionally, our efficient supply chain and a larger scale of these products enable us to minimize sourcing costs and maintain a price-competitive product offering. Through this strategy, we have boosted contribution to GMV from best sellers, phased out excessively long-tail products, and improved product turnover rates. During Q3, we offered both regular and dynamic scenario-based discounts to pass on more savings to consumers. The discount amount per order increased by 17% compared to Q1, which shows that we can meet the changing needs of our users and offer better products at lower prices. Our focus on selling products with better prices and discounts and quick turnover creates a scale effect, and the increasing concentration of best-selling products strengthens our bargaining power during the procurement process. This dynamic represent our powerful competitive advantage and will continue executing this approach to offer greater value to consumers. We're more than just a retail company. In fact, we're a food company with R&D and production capabilities. Our top priority has always been to provide our customers with unique, high-quality products. As we grow, our customers are not only buying products on Dingdong, they are increasingly buying Dingdong-branded products. We develop and produce private label products in 12 self-operated factories, in addition to cooperating with high-quality upstream suppliers. In Q3, we worked closely with our upstream supply chain to create the Dingdong Handmade Thin Skin series of rice flour products. After conducting extensive research on consumer preferences, we carefully selected a factory to produce these handmade paper-thin wrappers for wontons, dumplings, and other pastries. The factory manages the production process while Dingdong leads research and development. By cooperating directly with the factory, we're able to ensure the quality of these innovative products. Our Dingdong Handmade Thin Skin products are delicious, affordable, and high quality, making them a hit with customers. Since their launch at the end of August, they have generated more than RMB 16 million in sales in just over two months. I'll conclude with a few words on our outlook. Looking ahead, we're confident that we'll achieve non-GAAP profitability for the fourth quarter and full year in 2023. We remain focused on sustaining the healthy and high-quality growth of the business. Thank you all very much. I would now like to invite Song Wang, our Head of Finance, to review the company's financial performance. Thank you, Mr. Liang, and hello, everyone. Before I review our financial performance, please note that all of our figures are in RMB. During Q3 of 2023, we generated RMB 5.14 billion in revenue, with a non-GAAP net profit margin of 0.3% and net operating cash inflow of RMB 130 million. We're pleased to report that we achieved GAAP profitability for the second time since the Q4 of last year. Amid a rapidly changing external environment, we remained committed to prioritizing our strategy of efficiency first, with due consideration scale. Through these efforts, we have now achieved non-GAAP profitability for four consecutive quarters. Let's take a closer look. Q3 recorded GMV of RMB 5.67 billion, and revenue of RMB 5.14 billion, representing an increase of 6.4% and 6.2%, respectively, as compared to the second quarter this year. The increases were mainly due to a 6% increase in order volume and a 0.5% increase in AOV relative to the prior quarter. These figures indicate improved user loyalty, driven by our optimized product structure and product development capabilities. However, GMV and revenue decreased by 13% and 13.5% year-over-year, respectively. It is also worth noting that we saw double-digit GMV growth in Jiangsu and Zhejiang provinces on both a year-over-year and sequential basis. In addition, our growth rate in South and North China has now stabilized, where we're a relatively new player facing intense competition. Q3 gross profit margin increased by 0.4 percentage points year-over-year, reaching 30.4%. This was driven by the continuous improvement of our operational capabilities and efficiency as we expanded along the supply chain. Our extensive SPUs concentrated SKU strategy allowed us to leverage our supply chain and product development capabilities to create top selling products while managing slow-moving ones. This approach also helped us improve supply chain efficiency, resulting in a company-wide turnover time of only 10.7 days, and 4.5 days for frontline fulfillment stations. Our end-to-end loss rate was kept below 1.5%. This helped us utilize economies of scale while improving our bargaining power and optimizing our product mix. As a result, our gross profit margin remained stable while maintaining our ability to provide significant value to our users. Our fulfillment expense ratio in Q3 was 23.3%, an improvement of 3.5 percentage points compared to the same period last year, reflecting the substantial impact of this year's optimization measures. We completed the optimization of our network of regional processing centers. Additionally, the fulfillment expense ratio for regional processing centers improved by 2.7 percentage points year-over-year. We have refined our operations to improve labor efficiency and optimize labor costs in frontline fulfillment stations. Our stations have also seen a 6.6% year-over-year increase in average daily order volume, further boosting operational efficiency. Selling and marketing expense ratio in Q3 was 1.9%, a 0.2 percentage points improvement from the same period last year. We continued to leverage our product strength to engage users and enhance our brand image. Compared to the same period last year, the general administrative expenses ratio improved by 0.5 percentage points and is now at 1.7%. Similarly, R&D expense ratio improved by 0.4 percentage points and is now at 3.9%. We remained committed to investing in research and development, focusing on food research, agricultural technology, and technical data algorithms. We believe that investing in these areas will enhance our competitive edge and deliver long-term value to our investors. We achieved a non-GAAP net profit margin of 0.3% in Q3, a year-over-year increase of 5.1 percentage points. This marks our fourth consecutive quarter of non-GAAP profitability and the second with a positive GAAP net profit margin since Q4 of 2022. As Mr. Liang mentioned, our primary goal is to offer customers the most cost-effective and high-quality products through our exceptional services. We'll achieve this by focusing on our core competencies, product development, service, and IT-enabled supply chain capabilities. Leveraging these strengths will continue to improve our operational efficiency and profitability. We recorded a positive net operating cash inflow of CNY 130 million during the quarter. By the end of Q3, we had a total of CNY 5.63 billion in cash, cash equivalents, short-term restricted cash, and short-term investments. We maintain close relationships with banks, and our credit line for pure credit liquidity loans, which can be used at any time, has reached CNY 1.14 billion. Additionally, credit lines for supply chain financing stood at CNY 9.6 billion. We're constantly optimizing our financing structure to ensure the efficient use of our funds. Compared with the end of September last year, our short-term borrowing balance decreased by CNY 564 million. Additionally, we're also committed to empowering our suppliers with supply chain financing. As of the end of Q3, our supply chain finance loan balance was CNY 2.81 billion. After deducting the balance of short-term loans, the fund balance now stands at CNY 1.94 billion. When compared to the same period last year, we achieved a net increase of nearly 320 million CNY in self-owned funds. Additionally, the improving profitability of our core business provides us with more adequate finance reserves to respond to changes in the market as well as for future operations. This concludes our speech today. Operator, we can now start the question and answer session. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. The first question today comes from Thomas Chong with Jefferies. Please go ahead. So I translate myself. Thanks, management, for taking the questions, and congratulations on the fourth consecutive quarter of non-GAAP profitability and another quarter of GAAP profitability. Recently, some of our peers, such as Hema, Yonghui, have adapted their strategies. Can you provide an overview of the competition landscape in which Dingdong currently operates? Thanks. 好，谢谢您的问题。先给大家简单介绍一下我们所处的这个市场，以及我们和其他模式的一些区别，然后再给大家介绍一下我们叮咚，我们叮咚买菜前置仓的特点。 Thank you for your question. Before delving into the details of frontline fulfillment grid model, I'd like to provide you with an overview of our market and highlight the key differentiators between our model and that of our competitors. 首先呢，中国的生鲜市场是非常大的市场，我们一直觉得，只要是对用户有价值的模式，都可能生存下去。生鲜是不是一个可垄断的市场，上面我们也聊到，在疫情后，即时零售将回归到商业本质，更好地提供给消费者购物过程中确定的服务能力、高效的商品力和价格竞争力。现在大家更加关注效率和低价，在吃这件事上，低价是效率提升，而不是品质的降低。 The market for fresh groceries in China is vast and fractured. It cannot be monopolized. As a startup, Dingdong is committed to providing value to consumers. We believe that many different business models can thrive in this market. As discussed earlier, we believe instant delivery retail will bring the sector back to the basics of providing efficient service, better product development capabilities, and competitive pricing. In today's world, efficiency and low prices are critical factors that everyone considers when making purchasing decisions. Low prices result from an improvement in efficiency, not a compromise in quality. 我们在生鲜食品上更多和源头农场主合作，砍掉了生鲜供应链中繁多的中间环节。对于非生鲜食品，我们也做了很多的自有品牌和生产加工，提升毛利率，也让用户因为差异化商品来到我们平台消费。总而言之，我们能够改善商品供给，对品质把控更深，满足用户多样化的需求，同时对用户的反馈也能更加快速，更加迭代。 As for fresh grocery products, we continue to work directly with farmers on the ground, cutting out numerous intermediaries in the supply chain. For non-fresh products, we have increased the proportion of private label products and in-house production to boost our gross profit while attracting consumers with our exceptional products. In essence, our approach entails improving our product supply, maintaining quality control from the source, meeting a diverse range of user needs, and responding promptly to demand. 结合目前的经济社会，我觉得我们商品的定位还是相对有优势的，我们更多集中在民生强相关的商品，比如蔬菜，是我们传统的优势品类，我们的消费者粘性会更高。在发挥我们优势品类商品的基础上，我们会更加看重宽SPU，窄SKU的策略，我们也会在上述优势能力持续建设基础上，加大促销和折扣的资源投放力度，进一步提升我们头部大单品的渗透和销售，同时也给价格更敏感的人群以更好的触达点。 Given the current economic environment, I believe our product positioning is relatively advantageous. We mainly focus on offering products that are everyday life staples. For instance, vegetables are a core category, and we enjoy strong customer loyalty in this category. To leverage this, we implemented a strategy of extensive SPUs, concentrated SKUs. This approach will allow us to offer a wider range of options to our customers while still focusing on our best-selling products. Building on our existing advantages and capabilities, we also plan to increase our investment in promotions and discounts to further drive sales of our top-selling products. In doing so, we aim to offer better touch points to customers who are more price sensitive and a deeper market penetration. 好，谢谢。 Thank you. The next question comes from Sophia Qi with Daiwa. Please go ahead. 哎，晚上好，感谢管理层接受我的提问，也恭喜本季度很好的业绩。梁总，您好，主要想要请教一下，就是在当前这个宏观环境以及市场格局下，叮咚的这个增长逻辑主要是什麽，以及背后的核心驱动力？ Let me translate myself. Hi, Mr. Liang, thanks for taking my question, and congrats on another solid quarter. Could you elaborate on Dingdong growth strategy under the current macro environment, as well as the competitive landscape? What will be the key driver for the growth going forward? Thanks. Thank you for the question. Let me break it down into a few different aspects. First, our metrics in Jiangsu and Zhejiang are improving rapidly. For example, GMV growth in these provinces increased by over 13% sequentially, and around 10% year-over-year. Both markets have achieved overall profitability for four consecutive quarters, even after allocating headquarters expenses. We aim to further strengthen the scale and profitability of these two regions and pay more attention to the growth opportunities in South and North China. Another aspect is that our user consumption frequency has increased this quarter, both year-over-year by 7.8% and sequentially by 4%. This is a very positive trend for our business. We've also seen a consistent growth in average daily order volume for our frontline fulfillment stations, both year-over-year and sequentially. In addition, we have found that the longer customers use our service, the more orders they tend to place. On average, users who join our platform in 2017 placed around six orders per month, while the 2018 cohorts placed 5.4 orders per month. This suggests that our existing users are highly loyal and tend to increase their order frequency over time. We're confident that we'll achieve sustained growth by meeting customer needs and retaining users for longer term. During the third quarter, we collaborated with third-party platforms such as Ele.me, which helped us achieve an average monthly GMV of over CNY 50 million, a year-over-year increase of 82%. We also partnered with Douyin to offer local live services. By promoting and selling our products via live streaming, we're reaching new customers with our instant home delivery services, supported by our full chain order fulfillment capabilities. We launched this program in September and achieved daily sales of CNY 340,000. In October, our average daily sales volume increased by 78%, reaching CNY 600,000 per day. Thank you. As a reminder, if you have a question, please press star, then one to be joined into the queue. That's star, then one to join the queue. The next question comes from Jijing Chen with CICC. Please go ahead. Let me translate myself. Hello, Mr. Liang. I noticed several improvements in your financial metrics compared to the last quarter. For instance, when looking at your operating cash flow, it was net outflow last quarter, but is a net inflow this quarter. Also, short-term borrowings among your current liabilities also improved significantly. Can you please elaborate on these developments? Thank you. Thank you. Thank you for your question. I'll let our Head of Finance, Mr. Wang Song, to answer this one. Thank you. Thank you. Earlier, we provided you with an update on our current cash position and credit lines. In the second quarter, we paid the year-end bonus for the previous year, which impacted our cash flow last quarter, but not this one. Additionally, we made some inventory preparations in September for China's National Day in October, resulting in a net outflow of operating cash. Despite these circumstances, we benefited from improved sales volume and achieved a net operating cash inflow of approximately CNY 130 million in this quarter. In terms of our interest-bearing liability structure, we have three types of short-term borrowings. The first involves bank borrowings, which is relatively small, amounting to about CNY 510 million RMB. Major domestic banks provide these loans to improve our liquidity. The balance of these borrowings has decreased significantly by 43.9% compared to last year. The second type is referred to as reverse factoring or supply chain finance, and amounts to about CNY 2.81 billion. The third one is note payable and amounts to about CNY 271 million. Our collaboration with high-quality service providers has been crucial to our success, given that we have a complex supplier network with many upstream suppliers. Our main objective is to work closely with these suppliers to develop superior brands while providing them with stable financial support, resulting in mutual benefits of both parties. Now, that is why we provide the latter two short-term borrowings to them. In sum, we have further optimized our short-term liability structure, leading to a net decrease of CNY 564 million in interest-bearing liabilities year-over-year. At the end of Q3, our self-owned fund balance was CNY 1.94 billion after deducting the balance of short-term borrowings. We also have sufficient cash reserves. Our net interest, income and expenses increased by CNY 21.04 million year-over-year, due to the improvement of the overall operating efficiency of funds and financing structure. This optimization helped us to strengthen our balance sheet structure and improve the performance of the P&L. As there are no further questions, I'd like to hand the conference back over to 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 us 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. You may now disconnect.