Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew Inc.'s second quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. We will be hosting a question and answer session after management's prepared remarks. Please note today's event is being recorded. I would now like to turn the call over to the first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the company. Please go ahead, sir. Thank you. Hello, everyone, and welcome to ATRenew's second quarter 2022 earnings conference call. Speaking first today is Kerry Chen, our Founder, Chairman and CEO, and he'll be followed by Rex Chen, our CFO. After that, we'll open the call to questions from analysts. Our second quarter of 2022 financial results were released earlier today. The earnings release and investor slides accompanying this call are available at our IR website at ir.atrenew.com. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts of the quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will join the Q&A session. Let me cover safe harbor statement. Some of the information you will hear during our discussion today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that management makes on this call are based on assumptions as of today, and that ATRenew does not take any obligations to update our assumptions on these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB and all comparisons are on a year-over-year basis. I'd now like to turn the call over to Kerry for business and strategy updates. Hello, everyone, and thank you for joining us on our second quarter 2022 earnings conference call. During the second quarter, we faced unprecedented challenges to our operations in the most complex external environment since the pandemic first occurred at the beginning of 2020. First of all, let's take a look at our business segments at the city level. The core one P recycling business locations, including Shanghai and Beijing, were adversely impacted by the pandemic, especially in Shanghai as the city entered COVID control measures for two consecutive months. Our physical stores had to suspend operations or implement strict COVID prevention measures, which put consumers off. The control measures also resulted in interruptions in door-to-door recycling and logistics. Our merchant users also had operational difficulties brought by the pandemic and the relatively weak consumer confidence in consumer electronic products. Our employees at the Shanghai headquarters started to work from home from March 15 to June 1. During this period, we proactively fulfilled our social responsibilities by ensuring our employees were supplied with daily necessities and were able to work flexibly. We also took care of the mental health of our employees. As people's daily lives in Shanghai returned to normal in June and the June 18 grand promotion kicked off, our 1P business got on a fast track of recovery. By successfully overcoming the multiple adversities we faced during the second quarter, we have demonstrated the overall resilience of the circular economy. As a result, our total net revenues increased by 14.9% year-on-year to RMB 2.15 billion in the second quarter of 2022, exceeding the high end of our revenue guidance. The quarter-over-quarter decline in revenue was mainly attributable to the impact of the pandemic. [foreign language]具体来看，1P的回收业务。4月、5月，在上海、北京的防疫政策之下，全国三分之一的爱回收自营门店处于非正常的状态，二季度的1P增速也因此达到一个低点。从回收端来看，从上海的6月1号解封以来，我们的1P回收业务快速恢复到去年的水平。以解封后的十天为例，即6月1号到10号，上海的C2B的回收业务的GMV同比增长超过了11%。从销售端来看，由于我们持续提升自营二手优品在拍拍的零售，二季度虽然受到疫情的影响，但自营的二手优品的零售业务的GMV实现了32%的同比增长。 Now let's take a more detailed look at our 1P recycling business. In April and May, the COVID control measures in Shanghai and Beijing resulted in a temporary suspension of one third of our self-operated AHS stores, dragging the growth of our 1P business to a low point. However, on recycling, our 1P business rapidly recovered to the same level as last year at the beginning of June. During the first 10 days in June, GMV for pre-owned devices recycled by AHS Recycle in Shanghai increased by 11% compared to the same period of 2021. On distribution, we continued to lean into the retailing of our self-sourced premium products on Paipai marketplace, where the GMV for the 1P2C segment increased by 32.3% year-over-year, despite a challenging environment in the second quarter. [foreign language] 平台业务方面，二季度疫情防控为平台业务的开展带来了很多的阻塞点，包括平台上的商家自己的回收业务开展，商家发货到运营中心，运营中心收发货和质检以及物流运输方面都面临了严峻的挑战。在二季度，我们保持了商家的满意度，有针对性地支持商家开展业务，优化拍机堂买卖家的物流费收取，适时调整了拍拍规则，并进行库存的优化，同时实现了平台的综合收费率的小幅提升，达到了4.54%，同比增长9个基点，环比提升了39个基点。二季度末，拍机堂的注册商家数量突破33万，同比增长41%。伴随着综合收费能力的提升，我们相信在二手商家端的业务开展虽然短期受到了疫情不利影响，但是长期仍然它交易规模仍然有持续提升和货币化增长的潜力。 In terms of our platform business, multiple aspects of the business, including recycling activities of our merchant users, shipment to our operation facilities, pick up and ship out activities of goods at our operation centers, safety inspection and logistics faced challenges brought about by the COVID resurgence. In the second quarter, we managed to achieve an increase in the overall take rate through a continued effort in keeping our merchant users happy and providing differentiated transaction support. We adjusted the rules for charging logistics fees from PJT Marketplace users and optimized our platform regulations and inventory management for Paipai Marketplace. As a result, the overall take rate of our marketplaces grew slightly to 4.54% in the second quarter, representing an increase of 9 basis points year-over-year and 39 basis points sequentially. By the end of the second quarter, the number of registered merchants exceeded 330,000, which represents a year-over-year growth rate of 41%. We believe our merchant users will eventually navigate the short-term challenges provoked by COVID, and that they have the long-term potential for scale expansion, which will in turn enable us to grow our monetization capabilities. [foreign language] 费用方面，集团在二季度快速应对挑战，控制了各项经营费用的支出。一方面，对于一些核心能力建设，比如我们自营的多品类回收，后端的质检、订级自动化，我们还在持续坚定投入。但是另外一方面，我们坚持持续降低总运营成本，提升经营效率。由于疫情的严重影响，我们二季度出现了小幅的财务亏损，但是相较于去年同期都有所改善。Non-GAAP下的经营利润率从去年负的-2.7%缩窄到今年负的-2.0%。Non-GAAP下的净利润率从去年的负的-3.2%缩窄到今年负的-0.6%。同时我们还加强了资金管理。二季度末，我们的综合现金储备达到25.9亿元人民币。在使用了3,150万美元的股票回购之后，现金储备较2021年年底仍然增加了亿元人民币，其中二季度的经营性活动现金流流入为正的2.8亿元人民币，连续两个季度经营性现金流为正。盈利能力和运营现金流的改善，让我们有能力在变化的市场环境中保持可持续发展的能力，并巩固我们的竞争优势。 Turning to our expenses. We reacted swiftly to the quarter's challenges and managed our operating expenses prudently. However, I would like to clarify that we continue our investments in core capabilities, including 1P multi-category for recycling and automated inspection technology. In the second quarter, we had some losses due to the pandemic. However, our non-GAAP operating margin has narrowed to negative 2% from negative 2.7% in the same period last year, and our non-GAAP net margin has narrowed to negative 0.6% from negative 3.2% in the same period last year. We also improved our capital management. As of the end of the second quarter, our total cash reserve was RMB 2.59 billion, an increase of RMB 170 million compared to the end of 2021, even when we spent $31.5 million to buy back our shares in the first half of 2022. Of note, cash inflow from operating activities was approximately RMB 280 million, representing a second consecutive quarter with positive operating cash flow. The improvement in monetization capabilities and operating cash flow will safeguard our sustainable development while solidifying our competitive advantages in an evolving market condition. [foreign language] 虽然二季度的外部环境存在了诸多的挑战，但是从大的趋势来看，二手3C的市场规模还在持续扩张、扩容。循环经济的政策预期稳定，消费者的二手回收和购买的需求还在提升。从历次的财报会，大家都可以看到万物新生的战略路径是清晰并且持续的，有很强的战略稳定性。下半年我们将沿着既有的路径，在既定的几个关键点上持续投入。 Although the macro challenges continue, as the scale of the pre-owned consumer electronics market continues to expand against the backdrop of a stable circular economy policy outlook, consumer demand for recycling services and consumer electronic product purchases will continue to increase. As you can tell from our previous earnings conference calls, ATRenew keeps a clear and consistent strategic roadmap we believe is quite stable. In the second half of this year, we are committed to investing in the following pivotal areas. [foreign language] 第一点，继续落实城市一体化模型，夯实业务的基本盘，继续提升回收市场的渗透率。 First, we will continue implementing our city level service integration strategy, solidifying our business foundations, and increase the penetration rate. [foreign language] 二季度，我们进一步升级了城市的组织架构，将全国市场分为东部、南部、中部和北部四个战区，将原来一部分试点城市与城市周边的下沉城市拉通，形成了四十三个重点城市和城市群，并推行了区域经理制度。从C2B和B2B两条业务线的员工中选拔绩效表现优秀的城市群经理，实现人员综合经营管理能力的提升。我们将这些城市经理的职级和回报与城市的等级、体量、贡献利润以及增长挂钩，完善了人才的选拔、培养和激励制度。 This quarter, we further upgraded our front-end organizational structure, dividing the domestic market into four, northern, southern, eastern, and central markets. Furthermore, we connected some of the pilot cities with the surrounding lower tier cities, strategically forming 43 city clusters. We also launched our regional manager system, promoting outstanding employees from both C2B and B2B business lines, thus realizing a leap forward in talent management capacity. We bound the title and reward of regional managers with the business performance, GMV, revenue, and growth rate of each cluster. We also improved our talent selection process as well as our training and remuneration system. [foreign language] 经过二季度的数据复盘，我们的四十三个重点城市和城市群中，有三十三个的GMV同比增长跑赢了全国的大盘。二十三个城市群的渗透率实现了超越大盘的环比增长。这些数据更加地坚定了我们推进城市一体化核心战略的信心。 Looking back at the consolidated GMV for C2B and B2B offerings in the second quarter of 2022. 33 out of the 43 city clusters grew faster on a year-on-year basis compared with the national average, and 23 city clusters successfully outpaced the national average expansion speed of the recycling penetration rate compared with the first quarter of 2022. These results strengthen our confidence in advancing and executing our city level service integration strategy. [foreign language] 第二点，升级爱回收的品牌，加快建设多品类回收的能力。 Second, we will upgrade the AHS Recycle brand and accelerate our pace of category expansion in terms of recycling. [foreign language] 爱回收是一个优质的在回收领域稀缺的品牌，具有很强的服务延展性。经常有很多用户在我们的爱回收门店询问我们是否能够回收家里的奢侈品、家电以及其他品类。二季度以及近期，我们在上海、北京等地筛选了三十多间主力门店作为试点。大部分门店位于城市的副中心的商圈。经过简单的门店改造和店员培训后，在原来的手机3C的回收业务之外，还承接了二手奢侈品、摄影器材、黄金等高值商品的回收，为用户提供最佳的回收体验。以奢侈品回收为例，消费者通过线上预约到店或者直接到店，店员再拍摄商品的成色细节照片，后台根据照片竞拍报价后，商品同城被同城闪送到后端的质检中心鉴定真伪。如果是真品，就立即打款，不和用户协商价格。如果是假货，则原路退回。六月初，上海的门店复工复产后，二手奢侈品的业务快速在上海铺设到了二十多个门店。奢侈品回收的业务增长开始上量。六月到八月的回收额保持每个月环比50%的月环比增长。除此之外，上半年我们在北京和天津试点的六家门店，通过叠加摄影摄像器材的回收业务，联合行业优秀的合作伙伴，让每家店的月成交额增加了近三十万。 AHS Recycle is the high quality brand that is scarce in the recycling industry. The brand is quite capable of expanding its service scope. Many users often ask whether they can recycle luxury goods or home appliances, etc at our AHS stores. In the second and the third quarter, we selected over 30 stores in Shanghai and Beijing as pilot stores, most of which are located in the sub centers of the cities. We upgrade the stores branding and train the store staff. Then these stores offer even premium recycling services and open up for high value products such as luxury goods, photographic equipment and gold. Taking luxury goods as an example, consumers can now make appointments online for an in store consultation, where our staff will take pictures of the product conditions for merchant bidding at the back end. If the consumer is satisfied with the final bid price, which will be our recycling price, the product will be sent to a quality inspection center through intra city instant delivery for authenticity and quality evaluation. Once the product is verified authentic, the consumer will get the agreed amount of cashback instantly. If it's a counterfeit, we will return it to the consumer. When shopping malls in Shanghai reopened in June, the number of luxury goods pilot cities stores jumped to over 20, and the recycling orders increased rapidly. From June to August, the total monthly recycling value of luxury goods in Shanghai continued to grow at 50% sequentially. In addition, six of our pilot stores in Beijing and Tianjin collaborated with industry leading partners to launch a photography equipment recycling business, increasing the monthly transaction value by RMB 300,000 per store. [foreign language] 经过谨慎的尝试，我们对于爱回收的多品类回收业务更加有信心。一方面，很多用户尤其是在经济增长放缓、家庭消费紧缩的时期，有着更多的回收变现的需求。另外一方面，爱回收的品牌并没有局限于我们只收手机，因此具有天然的品类延展性。我们遍布全国的门店也是很好的服务基础和交付场景。通过更多品类的回收业务，不仅能打开业务空间，也能加强用户的复购和留存，提升爱回收的品牌价值。零售的渠道和品牌是很多的，但是回收的品牌却是稀缺的。依托我们坚实的基础能力，我们有信心把爱回收这个品牌打造成为用户耳熟能详的第一回收品牌。 Now, we are even confident in category expansion after testing the waters. On one hand, we see the underserved need for categories other than electronics during a period of flattening macro-economic growth, and when consumers become prudent buyers. On the other hand, AHS Recycle, the brand name, is a valuable asset while not limiting the product category to mobile phones and our nationwide AHS stores are premium consumer touchpoints. Through recycling more categories, we broaden our business horizon and improve both user retention and repurchases, further elevating the brand value of AHS Recycle. We understand that there are many retail channels where good brands are scarce. Relying on our solid capabilities, we are confident in building AHS Recycle into the most popular brand. [foreign language] 第三点，继续提升合规维修翻新的产能，拓宽产业链的利润边界。 Third, as compliant refurbishment capacity ramps up, we expect further widening of the profit margin of the value chain. [foreign language] 今年四月，深圳市检察院发布了试行全国首个电子产品的合规翻新指南。在合规翻新指南的指导之下，万物新生通过合规的维修终止业务，为消费者提供更多优质的产品，增加产业链中间的利润。从四月份到现在，今年上半年我们已经实现了7万台的维修增值。随着维修能力的积累、提升对于适合维修增值的1P会员的把握能力，我们在下半年开始预计会有一个更大的维修产能的翻新产能的产能爬坡，在更完整的产业链上锁定利润空间。我们预估三季度的合规翻新的业务可以实现7.5万单的订单量，对应产生近1.3亿元的GMV，环比增长均超过80%。在毛利方面，保持一季度电话会沟通的15%的预期。整体上来看，增值业务的边际贡献利润可以保持在4%到5%左右的水准。 In April, the People's Procuratorate of Shenzhen Municipality published the Guidelines for Criminal Compliance of Intellectual Property Rights in the Electronic Product Refurbishment Industry of Shenzhen Procuratorate (Trial). Under the compliance refurbishment guidelines, we have performed value-added refurbishment services on around 70,000 devices. As we expand our capabilities and plentiful sources of supply that are suitable for refurbishment, we expect to have a more exciting ramp up in capacity starting in the second half of this year. We expect 75,000 orders, which will generate a GMV of RMB 130 million in the third quarter, each increasing by over 80% compared with the second quarter. We expect a 15% gross margin, the same as we anticipated during the previous earnings call. Overall, the operating margin of the refurbishment business is expected to be around 4%-5%. [foreign language] 第四点，持续推进自动化的部署，为疫情后的消费恢复回收量攀升提前做好运力储备。 Fourth, we will continuously deploy automation to prepare our operational capacity for post-pandemic recycling volume and consumption recovery. [foreign language] 因为疫情的负面影响，我们东莞的运营中心的自动化升级工作受到了一定的延误。但是六月底东莞运营中心已经完成了输送线的建设，七月底已经完成了自动化输送线与立库的联动运营。相关流程的自动化效率比升级前提升了50%。我们预计在九月份会上线Matrix 2.0的系统，并且完整实现对于东莞运营中心的自动化升级部署。 Due to the COVID resurgence, the automation upgrade of our Dongguan Operation Center got delayed. By the end of June, our Dongguan Operation Center completed the construction of its conveyor system, which was later connected to the storage system in late July, realizing a 50% efficiency improvement. As an update, we now expect to land the Matrix 2.0 system by the end of the third quarter, thus completing our second automated operation center in China. [foreign language] 总体来说，二季度的疫情反复对我们的业务造成了短期较大的冲击，也敦促我们在运营上保持警觉，用更积极的心态，更稳健的抗风险的单位经济模型，在循环经济的长期赛道上做好核心能力沉淀以及厚积薄发的准备。展望下半年，我们将努力加快业绩的修复，尤其是自营回收和自营销售业务的增速。我们的1P自营业务是持续盈利的，即使是在疫情和经济下行的影响之下，仍然保持了良好的增长。在未来的不确定性环境中，着重发展1P自营业务将是我们的战略重点。今年的苹果iPhone 14系列将会提前发布。我们从城市前端的以旧换新到中后台的自建运营，都会为之做好准备，迎接业务量的复苏。 Overall, we learn to stay nimble and positive from the transitory challenges. We keep being operationally vigilant and keep advancing our core capabilities. We aim at more robust and risk-resistant unit economy in the long run along with the developing circular economy. We are committed to getting ourselves well prepared. Looking at the second half of the year, we will strive to accelerate the recovery of our business, in particular the growth rates of self-operated recycling and direct retail. Our 1P business maintain profitability and healthy growth in face of the unfavorable pandemic and downward consumption trends. Amid uncertainties in the future quarters, we will focus on the solid development of our 1P self-operated business. The iPhone 14 lineup will be launched at an earlier date in September. We will prepare ourselves well for a recovering business from frontline recycling and trading to quality inspection processing as well as back office operation. [foreign language] 最后我想说的是，今年夏天，全球各地从北美到欧洲再到亚洲都炎热异常，上海多次超过了四十摄氏度的红色高温预警。全国多地突破历史最高温度，全球各地干旱严重，江湖干涸。全球变暖的环境问题变得日益严峻，并且迫在眉睫。今年六月，万物新生发布了2021年年度的ESG报告，首次通过生命周期的评价方法和碳足迹的公式分析。因为循环使用每台二手手机的平均碳减排的贡献为三十点四千克。公司2021年的碳减排的贡献总量为四十六万吨，相当于二百三十万亩城市森林一年的碳汇效果。二百三十万亩的森林，四十六万吨的碳减排。这样的数字相比于数百亿的GMV、近百亿的收入，更加让我们振奋。哪怕是业务上有一些短期的波动，哪怕是股价上…… The last but not least, this summer has been a scorcher across the globe, especially in North America, Europe, and Asia. Shanghai has repeatedly declared red alerts on extreme heat of over 40 degrees Celsius, and many parts of China have also seen record high temperatures. Global warming and drought are increasingly severe and pressing. In June this year, ATRenew published its 2021 environmental, social, and governance report. In this annual ESG report, ATRenew adopted a life cycle analysis of pre-owned mobile phones and leveraged its circular footprint formula for the first time to disclose its contribution of 464,000 metric tons of greenhouse gas emission reductions through the reuse of pre-owned mobile phones in 2021. This is equivalent to the annual carbon sink of 2.3 million mu of city forests. On average, recycling and reusing a smartphone contributes 30.4 kilograms of GHG emission reduction. Our environmental performance is even more exciting compared with the economic value we created. Even if the business fluctuates, and our stocks are undervalued in the short term, we will remain steadfast, because we know that we are doing the right thing and doing something that contributes to the environment. Our value accumulates over time. With that, I will hand the call over to Rex, our CFO, to go over the financials. Thanks, Kerry, and hello, everyone. We are pleased to report that our second quarter revenue exceeded our previous guidance despite the macroeconomic headwinds and the dynamic operating environment caused by the COVID recurrences. I will start by sharing some of our financial highlights before we go into a more detailed look at the numbers. Please note that all amounts are in RMB, and our comparisons are on a year-over-year basis, unless otherwise stated. In the second quarter of 2022, our core teams in Shanghai headquarters and Beijing navigated a challenging operating environment mainly caused by COVID resurgence, but they managed to surpass our top line guidance provided last quarter. Total net revenues increased by 14.9% year-on-year to over RMB 2.1 billion. We would like to extend a heartfelt thank you to our dedicated employees who stayed strong and quickly adapted to such dynamics. In terms of total GMV, it grew by 10.3% to RMB 8.6 billion, driven by the growth in both product sales GMV and online marketplace GMV, which grew 15.8% and 8.5% respectively. Starting June, the shopping malls in Shanghai reopened, and the logistics capacity normalized. We saw a recovery in GMV and a sourcing rebound during the 618 Shopping Festival, primarily supported by our loyal customers. In this quarter, the commission rate of our third-party marketplaces was 4.54% at the group level, remained stable compared with the same period last year, while it reasonably increased by 39 basis points sequentially. This increase in the overall marketplace take rate was primarily due to an optimized operational strategy of charging logistics fees from merchants and users based on the established trust and user stickiness. Gross margin at the group level was 22.9% in the second quarter. Gross margin for our 1P business was 10.8%. In the second quarter, in response to regional operational interruption, in particular in Shanghai, the national hub of our profitable 1P business, we implemented a strict cost control measures. These helped us narrow our losses in both GAAP and non-GAAP measures compared with the same period last year. I will elaborate on this later. Now let's take a detailed look at the financials. In the second quarter, total revenues increased by 14.9% to RMB 2,145.7 million. Net product revenues increased by 15.6% to RMB 1,854.1 million, while net service revenues increased by 10.3% to RMB 291.6 million. Growth in net product revenues was primarily driven by an increase in the sourcing volume and the corresponding sales of pre-owned consumer electronics through Paipai Marketplace and the company's overseas channels. Growth in service revenues was primarily driven by the increase in transaction volume and the monetization capability of Paipai Marketplace. Besides the adverse impacts from COVID control measures in Shanghai and Shenzhen, I also want to bring to your attention that we have procured parts and components in the second quarter of 2022, as we started rolling out our compliant refurbishment business. This innovative business led to higher days sales of inventory, and we expect this business to optimize our profit profile in the future. Next, turning to our operating expenses. To provide greater clarity on the trends in our actual operating expenses, we will also discuss our non-GAAP operating expenses, which better reflect how the management views our results of our operations. Reconciliations of GAAP and non-GAAP results are available in our earnings releases and the corresponding Form 6-K furnished with SEC. Operating costs and expenses decreased by 2.2% to RMB 2,327.4 million. Non-GAAP operating expenses, which exclude share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 14.5% to RMB 2,201.5 million. Merchandise costs increased by 18.5% to RMB 1,653.8 million. This was in line with the growth of the 1P product sales revenues. Fulfillment expenses decreased by 0.1% to RMB 275.2 million. Excluding share-based compensation expenses, which we will refer to as SBC, non-GAAP fulfillment expenses increased by 14.9% to RMB 267.7 million. Under non-GAAP measures, the increases were primarily due to, first, the increases in operations center and the self-operated store related expenses, which were in line with the increase in sales of pre-owned consumer electronics and the addition of 103 self-operated AHS stores compared with the second quarter 2021. Second, an increase in personnel cost in connection with the company's growing business. non-GAAP fulfillment expenses as a percentage of total revenue remained flat at 12.5% compared with the same period last year. Selling and marketing expenses decreased by 7.2% to RMB 293.4 million. Excluding SBC expenses and the amortization of intangible assets, non-GAAP selling and marketing expenses decreased by 7.3% to RMB 198.1 million. Under non-GAAP measures, the decreases were primarily due to the decrease in sales promotion and coupon expenses as a cost control approach during the resurgence of the COVID-19 variants. Among the cost reductions, we saved RMB 33 million on Paipai promotion expenses, which were mainly due to our shifting the strategy focus from the consignment model to 1P2C direct retailing. non-GAAP selling and marketing expenses as a percentage of total revenues decreased to 9.2% from 11.4% in the second quarter of 2021. G&A expenses decreased by 85.4% to RMB 45.2 million. Excluding SBC expenses, non-GAAP G&A expenses increased by 2.1% to RMB 28.8 million, primarily due to an increase in office related expenses, which was in line with the company's growing business. non-GAAP G&A expenses as a percentage of total revenues remained flat at 1.3% compared with 1.5% in the same period last year. Technology and content expenses decreased by 27.1% to RMB 59.7 million. Excluding SBC expenses and amortization of intangible assets, non-GAAP technology and content expenses increased by 0.6% to RMB 53 million. Under non-GAAP measures, the increase was primarily due to the increases in operation center and automated inspection system upgrade related expenses in connection with the company's growing business. Non-GAAP technology and content expenses as a percentage of total revenues remained flat at 2.5% compared with 2.8% in the same period last year. As a result, our non-GAAP operating loss was RMB 42.3 million in the second quarter of 2022. Non-GAAP operating margin was -2% compared with -2.7% in the same period last year. Once again, we had a cash inflow from operating activities during this quarter, which totaled RMB 280 million. As of June 30, 2022, cash and cash equivalents, short-term investments, and the funds receivable from third-party payment service providers totaled RMB 2.6 billion. The sufficient cash on hand paves the way for sustainable growth in the future. As a recap, we announced our $100 million share repurchase program on December 28, 2021 out of the management's strong confidence in the company's solid fundamentals and growth momentum. During the second quarter of 2022, we have repurchased nearly 2.9 million ADSs in the open market for a total cash consideration of $9 million. Now turning to outlook. For the third quarter of 2022, the company currently expects its total revenues to be between RMB 2,500 million and RMB 2,550 million. The highly transmissible Omicron variant might impose adverse impacts on the operation of our stores and facilities, as well as the transaction activities of merchants in 2022. Thus, this forecast only reflects the company's current and preliminary views on the market and the operational conditions, which are subject to change. 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 telephone keypad. If you're 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 on the call. We will now pause momentarily to assemble our roster. Our first question will come from Bonnie Liu with China Renaissance. You may now go ahead. Thank you management for guiding lower than expected new phone production this year. Could you please talk about the potential impact of early iPhone 14 release on your third Q earnings? Thanks. Thank you, management. Two questions. One is, we've seen that GMV growth has slowed, so, want to know how are we seeing the overall industry, the impact from COVID and, the weak mobile phone demand, due to product cycle. How should we think about the secondhand 3C market and, the impact to our company? Second is about the gross margin declines. Want to hear, wanna know whether it's due to some of the promotions, or is it a mix in the 1P 3P business structure? Thank you. [foreign language] 感谢，非常感谢提问。二季度之前，公司长期保持了40%以上的GMV和收入的同比增长，但是二季度确实遇到了压力，既有短期的疫情的原因，也有通讯的行业的消费下行的原因。首先，我们看疫情对我们的影响，就如我们Q1的季度电话会议时所沟通的那样，疫情封控对我们在上海、北京、西安、天津、深圳约两百多家的爱回收自营门店以及第三方商家的订单、物流和履约都造成了一定的负面冲击。以上海为例，四月、五月是持续受到了疫情的负面影响，六月初才开始逐渐的恢复正常运营。但是，我们认为疫情的冲击更多是短期的、事件性的。长期来看，对比其他面临宏观经济变化的挑战较大的消费领域，我们坚信了中国的二手的这个3C交易和服务仍然是一个巨大的还未被满足的市场。 Thank you for the question. Before the second quarter, the year-on-year growth momentum of our GMV and total revenue stayed strong at the level of over 40% for a long period of time. During the second quarter, we faced temporary pressures from the pandemic mobile phone consumption slowdown. As we mentioned during the last quarter's earnings call, the COVID control measures disrupted our business operation of 200 self-operated AHS stores in big cities including Shanghai, Beijing, Tianjin, Xi'an and Shenzhen, as well as the logistics services and order fulfillment. Take Shanghai as an example, the store performance in April and May was largely impacted by COVID. Beginning in early June, the operation started to back to normal in Shanghai. We believe that the impact of the pandemic is transitory. In the long term, when compared with the other consumer industries that face greater challenges from macro environmental challenges, we believe the second hand electronics transaction service industry is a huge yet underserved market. [foreign language] 今年以来，国内的新机销售面临比较大的压力，尤其是在一些大的城市，同时叠加了疫情的封控和消费放缓的影响，新机的出货量确实不容乐观。虽然环境不好，但是长期来看，我们对二手电子产品的回收和购买仍然持乐观的期待。原因如下。一方面呢，苹果是我们服务的主要品牌，苹果品牌仍然保持强势的市场地位，在高端市场的市场占有率还在继续提升。苹果品牌的产品在我们这个平台的交易规模的GMV的40%以上，贡献了业务的基本盘。今年九月份iPhone 14系列发布也是备受瞩目，我们也做好了以旧换新的交付准备。与此同时呢，我们和苹果官方的持续对话，在中国大陆和海外正在积极推动回收和其他创新业务的合作。另外一方面呢，针对上半年增长压力大的安卓的品牌厂商，我们将持续加强与京东和安卓品牌厂商的合作，作为有效的促销活动措施，为消费者提供更加便捷的、安全的、经济的以旧换新的服务，帮助厂商增加新品销售的转化。 Since the beginning of this year, the domestic market for new electronic devices has faced pressure. This has been especially true in those cities that experience declining sales as a result of COVID resurgence and control measures. However, in the long run, we remain optimistic about the outlook for recycling and purchasing pre-owned consumer electronics. Here are a couple of reasons. First, Apple is the main brand in our service coverage, accounting for over 40% of our GMV. Apple maintains a top tier market position. Its market share in China's high-end smartphone market continues to increase. As has been widely publicized, the iPhone 14 lineup is due to be launched in September, so we have a positive attitude towards our recycling and trading business. In addition, our conversation regarding recycling and innovative partnerships with Apple continues. Second, as Android brands face greater growth pressure this year, we continue to strengthen our collaboration with JD.com and other major Android brands, launching effective marketing campaigns based on our trading solutions, thereby providing consumers with more convenient, safe and better value for money trading services and improving new device sales for brand partners. [foreign language] 面对外部环境的不确定性，从上半年整体来看，我们上半年全平台的GMV是达到了180亿人民币，同比去年140亿，同比增长28%，总单量是1,620万单，同比去年增长是14.4%。由此可见，我们的增速在二季度虽然出现了一些放缓，但是相比于手机通讯厂商的这个普遍的下滑，我们这个循环经济这个行业整体还是呈现了比较坚韧的这个特性。另外，有一点可以关注，在疫情影响和经济下行的环境下，我们的1P的自营业务抗风险能力更强。上半年我们的1P的GMV为44亿人民币，同比增长为32.4%，超过了大盘的增长。我们的1P的自营业务也是下半年重点发力的方向，下半年我们将通过一些关键的优化点，例如自营门店效益的优化，以及让更多的1P优质货源在拍拍上To C去零售。这样的话，我们的1P业务也会保持更加强势的增长趋势。 In the face of micro uncertainties, our total GMV increased by 28% year-on-year to 18 billion RMB in the first half of 2022 from 14 billion RMB in the same period of 2021. The total number of transactions was 16.2 million, increased by 14.4% year-on-year. This indicates that the circular economy business is relatively stable compared with the downward new phone shipments in the second quarter. In the first half of 2022, GMV for product sales total 4.4 billion RMB, representing an increase of 32.4% year-on-year, which was faster than the overall GMV growth. Through some optimizations, such as improved efficiency of self-operated stores and more direct retailing of premium for self-sourced products through Paipai, our 1P business will be able to achieve a stronger growth momentum. [foreign language] 好的，谢谢。 I will take the second question. Overall gross margin as a group level for second quarter was 22.9%, a decline of 2.37 percentage points on a year-over-year basis. This was primarily due to a decrease in 1P business gross margin, which was caused by first an increased number of promotion level campaigns on e-commerce platforms and second adverse impact from COVID recurrence. In detail, the gross margin for our 1P business this quarter was 10.8%. The decline in gross margin was due to the following reasons. Firstly, due to the pandemic recurrence in the second quarter, we did not have sufficient self-sourced supplies to meet consumer demand. As a result, we increased the proportion of goods sourced from industry partners in preparation for the E-commerce shopping festivals in June. Sourcing from third parties lowered our gross margin. However, this was only a temporary tactic, and we increased the proportion of our self-sourced supplies as our offline stores returned to normal operations after June. In addition, the gross margin for second quarter was low, also due to the marketing and sales campaigns, including our 618 shopping festival, which we would distribute corresponding coupons. We expect that the impact of the pandemic will gradually fade away and that we will see a growth in device refurbishments and our 1P 2C business. The gross margin for our 1P business in the second half of 2022 is forecast to be between 13.5% - 4%. The overall take rate of our 3C business in the second quarter increased to 4.54% from 4.15% in the first quarter. We anticipate a steady increase of both the platform take rate by adding more value added services on top of the current portfolios, such as value added prime repair services and supply chain financing. Thank you. [foreign language] 谢谢你。 Again, if you have a question, please press star then one. Our next question will come from Joyce Ju with Bank of America. You may now go ahead. [foreign language] 管理层早上好，这里我是Joyce。我们看到这个爱回收APP上线了奢侈品的询价服务，然后询价后呢也会导流到店里的奢侈品回收的服务。所以刚刚你们也提到了一些这个相关的逻辑，但是能不能请管理层多分享一些，就是说就我们拓展这些多品类回收，还有一些什么新的这个战略规划和进展，然后爱回收拓展品类的逻辑是什么？另外呢，我们应该怎么看待这种多品类回收的业务对公司整体的收入还有利润未来的影响？非常感谢。 I will translate the question. We have seen AHS actually launched a luxury product recycle services recently. Just want to understand, like, you know, what's the progress of like, you know, expansion into other categories or like, you know, non-electronic categories, what's the business rationale behind and how we should look at the, those kind of category expansion, its impact on our company's revenue and profit. Thank you. [foreign language] 好，谢谢提问。二季度呢，我们依托爱回收的门店体系，在北京、上海筛选了位于城市副中心商圈的一些主力门店。在原来的手机3C的业务之外呢，在试点叠加了奢侈品的箱包和腕表的回收，摄影摄像器材的回收，以及黄金的回收等业务。消费者可以在我们的爱回收的APP、官网、小程序上看到奢侈品和摄影摄像器材的回收入口。服务流程类似于手机3C的电子产品回收。消费者通过线上回答几个问题，快速就可以获得报价，预约到店，店员简单的检测，确认外观的成色，给出最终的报价。然后呢，就通过闪送的服务，一小时把商品送到该城市的质检中心，由后端的质检中心里面的鉴定师最后最终完成... [foreign language] 最终确认真伪，并且完成回收，并且给用户打款。如果产品有问题，就原路退回。全部依托于这样的业务，全部依托于爱回收门店的服务的这个体验过程简单友好，未来还可以叠加京东回收等业务。 In the second quarter, leveraging the tiered AHS store system, we selected a number of pilot stores in Beijing and Shanghai sub-center areas. In addition to our existing consumer electronics recycling, we tapped into pre-owned luxury bags, watches, photography and video equipment and gold recycling services. Customers can get a price quote through AHS mobile app, official website and WeChat mini program. The recycling process for these pre-owned categories is similar to that of consumer electronics. Consumers get preliminary pricing shortly afterwards, answering a couple of questions regarding the model and conditions of their product. They can then make a reservation or walk into one of our offline stores so our staff can check product conditions and confirm the recycling price. Then the product will be sent to the local inspection center within an hour through instant delivery. After our quality inspection experts confirm the authenticity of the product, the recycling process is complete and customers receive their payment if the product is authentic. The whole process is simple and user-friendly as we provide face-to-face interaction at our physical stores. Based on that, we can further extend our multi-category recycling offerings to users of JD.com. [foreign language] 二手奢侈品行业的传统模式存在了很多的痛点。线下门店的寄售模式呢，往往会利用信息的不透明进行压价。通过邮寄回收则缺乏用户信任，回收的转化率很低。上门的回收模式，鉴定师的人力成本会很高。针对于传统模式的这些痛点，万物新生呢首创了门店的回仓模式，线上报价，门店店员拍照并核定成色，然后回仓鉴定真伪。这样的话可以为用户提供更加优质的回收服务体验。根据我们的试运营数据，已经接受了我们回收报价的用户中，有超过85%的用户愿意接受回仓质检模式。 Whereas traditionally there are many pain points for luxury goods recycling, the consignment merchants tend to cut prices as the market lacks transparency. Consumers have trust issues when recycling by mail. The door-to-door recycling model has higher labor costs. ATRenew innovatively offers the two-store recycling plus two-station inspection model. It allows consumers to get a price estimate online, go to a nearby physical store for condition check, and get authenticity verification at the local inspection station. We provide a more user-friendly customer experience. Over 85% of the consumers who accepted our recycling price were willing to try this model. [foreign language] 爱回收开展多品类回收的业务的壁垒，主要两个，一个呢是经过十一年积累的爱回收的品牌，我们的品牌获得了消费者的广泛认可。用户在有需求时，首先会想到爱回收这个品牌。以六月试运营的数据为例，在摄影摄像器材的回收的用户和通过爱回收官网下单回收的成交的二手奢侈品的用户中，分别有57%和41%是由爱回收的3C回收用户完成的，证明了爱回收的品牌已经形成了强消费者心智，可以进行跨品类的迁移。另一个壁垒的话是我们遍布全国的一千六百多家爱回收的门店的网络，形成了广泛的消费者触点，构成了很好的服务履约基础，也是建立消费者信任的重要基础设施。从财务的视角来看，奢侈品回收是新兴的业务，其市场规模相对于手机回收可能会略小，但是它的行业更加不透明，产业链的利润比手机更高，而现有的服务体验比较差，亟待整合。多品类的回收主要带来的是爱回收门店、爱回收用户的复购率的提升，UP值的提升。我们通过三十多家门店的试点数据验证了奢侈品回收和3C回收用户可以进行双向的转换。在线下单的奢侈品回收用户中，41%是爱回收成交过的3C用户。过往回收3C的... [foreign language] 过往回收3C的交易，加强了用户对于服务品质的感知，从而更愿意把家里更贵重的包和表拿出来交给我们进行回收。另外一点，完成了奢侈品回收业务首单的用户中，三十天之内又有11%的用户把家里面的其他的手机、3C产品拿出来进行回收。 We believe that there are two factors that contribute to the core competency and the competitive mode of our multi-category recycling business. The first is the brand of AHS Recycle, which has been cultivating customers over the past 11 years so that it is now a widely recognized brand among Chinese consumers. AHS Recycle becomes consumers' go-to destination. When analyzing our June trial operation data, we noticed that 57% of the users who recycled their camera equipment and 41% of those who placed luxury product recycling orders online have historical consumer electronics recycling orders, proving the strong consumer mindshare and our ability to cross-sell. The second factor is our nationwide network of over 1,600 offline AHS stores. This network is a valuable infrastructure for us to reach, serve, and build trust with consumers. From a financial point of view, luxury goods recycling is an emerging business, and its market size may be slightly smaller than that of mobile phone recycling, but the value chain is even more opaque, yet more profitable than mobile phones, while the existing solutions are relatively poor. Multi-category recycling mainly brings about an increase in repurchases and an increase in average revenue per user. We have an idea that we could convert mobile phone recycling orders from luxury product users and vice versa. This idea has been verified through our pilot program at more than 30 AHS stores. 41% of those who recycled luxury products have previously sold their consumer electronics to us. These consumers have stronger perceptions towards AHS Recycle and are more willing to trust us for higher value bags and watches recycling. In terms of repurchases, 11% of first-time luxury recycling service users sold their idle consumer electronic devices to us within 30 days. As the repurchase rate increases, the efficiency of advertising is also expected to improve. Traditionally, we rarely advertise AHS Recycle as a consumer electronics recycling brand, as electronic product is a low frequency category and a relatively local to store business. Today, based on the wider store coverage and more transactions brought by luxury goods and other categories, we can reevaluate the ROI of advertising. We can try to amplify our brand awareness, as long as our profit covers marketing expenses. In general, we believe the key to developing our multi-category recycling business is to leverage the trust we have built with consumers and AHS Recycle service capabilities, as well as the nationwide store network. There are many choices when consumers shop online and offline, but quite a few trustworthy multi-category recycling service providers. We are excited about the innovative course our business is taking, and we look forward to enhancing our brand's reputation as the most trusted and recognized one in the industry. Thank you. Thank you. As there are no further questions at this time, I'd like to hand the conference back over to our management for closing remarks. Thank you. Thank you all again for joining us. A replay of today's call will be available on our website shortly, followed by a transcript when ready. If you have any additional questions, please feel free to email us at ir@atrenew.com. Have a good day. This conference is now concluded. Thank you for attending today's presentation.