Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to ATRenew Inc.'s second quarter 2026 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 will now turn the call over to the first speaker today, Ms. Jessie Jin, Head of Investor Relations. Please go ahead, ma'am. Thank you. Hello, everyone, and welcome to ATRenew's second quarter 2026 earnings conference call. Speaking first today is Kerry Chen, our Founder, Chairman, and CEO, and he will be followed by Rex Chen, our CFO. After that, we will open the call to questions from the analysts. The second quarter 2026 financial results were released earlier today. The earnings press release and investor slides accompanying this call are now available at our IR website, 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 our quarterly performance and business strategy, followed by Rex who will address the financial highlights. Both Kerry and Rex will participate during the Q&A session. Please note our safe harbor statements. 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 operate our assumptions on the statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press 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 CNY 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. [Non-English content] Hello everyone and thank you for joining ATRenew's second quarter 2026 earnings conference call. We are pleased to review our operating results for the quarter and share our views on industry trends and our strategy. Hello everyone, and thank you for joining ATRenew's second quarter 2026 earnings conference call. We are pleased to review our operating results for the quarter and share our views on industry trends and our strategy. [Non-English content] In the second quarter, total net revenues exceeded the high end of our guidance, increasing 32.4% year-over-year to CNY 6.61 billion. Our continued focus on 1P has strengthened our end-to-end capabilities and driven rapid growth in product revenue of 35.9% year-over-year to CNY 6.19 billion. Non-GAAP operating profit grew 70.1% year-over-year to CNY 210 million. While non-GAAP operating profit margin expanded by 69 basis points year-over-year to 3.1%. [Non-English content] F irst of all, I'd like to share four key external shifts and trends. The first dynamic is the year-over-year decline in new device sales. The intuitive thinking is that this could drag our recycling business. But counterintuitively, when new devices are selling well, recycling and trade-in programs are just supplementary value-added services and are not a top priority. Conversely, when new device sales soften, trade-in programs become the most critical and effective promotional tool. Major manufacturers and platforms place greater emphasis on and allocate more resources to trade-in initiatives. We have seen this clearly in our business trends over the past few years. [Non-English content] Second is microeconomic headwinds in consumption, and significant growth in demand for high-quality, affordable pre-owned smartphones and other secondhand products. This is clearly reflected in the sustained, robust growth of our curated B2C business. [Non-english content] The third shift is increasingly strengthened regulation, including taxation and device refurbishment. AHS has always been committed to compliant operations, while tighter regulations disproportionately impact fragmented small-scale and non-compliant operators. They benefit our 1P business. [Non-English content] The fourth shift is the accelerating trend of exporting domestic pre-owned devices. As the penetration rate of trade-in and recycling programs continues to rise in China, domestic supply is expanding rapidly. China has shifted from a net importer to a net exporter of pre-owned smartphones, establishing a clear industry trend where high-end models are sold domestically, while mid-to-high-end and low-end modules are exported. With that, let us now move to our business update. [Non-english content] In recent years, we have firmly prioritized 1P business because trust and efficiency are critical in the secondhand consumer electronics industry. Our 1P model starts with first-hand supply from C2B channels. We add depth to the value chain through compliant refurbishment, strengthen B2C retail for premium curated products, and leverage B2C retail pricing capabilities to offer better pricing and user experience on the recycling side. Together, those efforts enhance our end-to-end capabilities across the value chain. [Non english content] On recycling, we capitalize on opportunities as brand e-commerce platforms and offline retailers prioritize and invest in trading programs. Leveraging AHS Recycle's increasingly extensive fulfillment network to enhance the user experience. Trade-in and recycling demand was strong during the June 18th Shopping Festival. In response, we expanded our nationwide to-door fulfillment team, including flexible capacity to nearly 3,000 by the end of June, up sharply from the end of March. Together with our 2,117 AHS stores, this gave us strong advantages in sourcing and customer service over industry peers. During the major promotional period from May 13th through June 18th, the recycling value of mobile phones and consumer electronics at AHS Recycle increased 57% year-over-year. Both to-door and in-store recycling orders grew 45% year-over-year, while face-to-face orders accounted for 80% of recycling orders across all channels. Multiple user experience metrics also continued to improve. [Non-English content] Our compliant refurbishment business also continued to accelerate. Revenue from 1P refurbished products increased 87.8% year-over-year. With higher new device prices, stable pre-owned market sentiments and more refined pricing strategies and operations, 1P2C retail revenue grew 92.4% year-over-year in the second quarter. As a percentage of product revenue, 1P2C retail revenue increased 3.6 percentage points sequentially to 48.8%, allowing us to meet user demand better for curated for owned phones, computers, smart devices and other products. [Non-English content] Turning to our 3C businesses. Service revenue decreased 4.2% year-over-year in the second quarter. Within 3C business, we maintained our industry leading position in B2B, while B2C 3C services faced pressure from merchant activity. In multi-category recycling, we navigated the headwinds from gold price fluctuations and continued to focus on more refined operations. [Non-Engish content] Specifically, PJT Marketplace continued to expand into fragmented markets, reaching more small size merchants, mom-and-pop shops, and specialty buyers. By the end of June, total registered merchants on the platform exceeded 20.27 million. For sellers, we offered free shipping on the first three orders and aligned inspection standards upfront, lowering selling costs and barriers to trial and error for new small sized merchants. For buyers, we launched the PJT themed campaign on Douyin and other platforms. Video views rose sharply, driving rapid growth in our specialty buyer model. Together with one piece minimum quantity ordering, these initiatives made it easier for small merchants to start buying on the platform. After their first transaction, buyers gradually become more engaged on the platform through repeat purchases, VIP membership, and participation in the like new device marketplace, showing consistent improvement in transaction stickiness. Throughout this process of user expansion and support, PJT's 3P warehousing inspection penetration rate reached 84.4% this quarter, up around 11.5% year-over-year, delivering rapid scale expansion with solid growth in service revenue. [Non English content] For Paipai, platform service revenue decreased year-over-year in the second quarter, mainly due to subsidies provided to POP merchants to boost activity during the promotional campaign and our strategic reduction of service fees. Meanwhile, we continue to refine the consignment model by introducing warehousing capabilities for third-party merchants, improving price competitiveness and sell-through, and optimizing financial economics. Paipai's consignment business grew 22.4% sequentially. [Non-English content] In multi-category recycling services, service revenue maintained a year-over-year growth of over 30%. Gold prices were volatile and trended lower in the second quarter. We also chose to give more back to users. Together, these factors led to a 35% year-over-year decline gold service revenue. During the quarter, we upgraded a select number of AHS stores to luxury themed stores with improvements to store design and functional areas. Together with more refined tiered pricing and enhanced category-specific service capabilities, luxury recycling service revenue grew 77.3% year-over-year. Building on those positive results and experience, we plan to open more themed multi-category stores this year, including luxury themed stores and sports themed stores. This will give more users a better and more engaging experience when recycling and buying pre-owned products. [Non-English content] Our long-term strategy has remained focused and consistent. Here, we would like to reiterate our three-stage development strategy. Stage 1, we continue to solidify the healthy growth of our core second-hand consumer electronics business. In 2026, the smartphone and consumer electronics market has faced substantial price hikes across the upstream supply chain. Brand manufacturers are actively adjusting their product portfolios and placing greater emphasis on trade-in programs. At the same time, e-commerce platforms are also introducing subsidy programs to support device upgrades. Against this backdrop, we have captured these opportunities through our 1P model, leveraging our front-end fulfillment capabilities and targeted trade-in scenarios. We drove rapid growth in our core second-hand consumer electronics business. At the same time, we are strengthening merchant capabilities with a decentralized strategy to penetrate fragmented markets, while leveraging AI-powered automated inspection to reinforce the infrastructure we have built for the industry. [Non-English content] Stage 2, we are strengthening AHS Recycle's position as China's leading recycling brand. In the pre-owned industry, word-of-mouth brand names remain scarce. We continue to make a prudent investment in building the AHS Recycle brand. As ATRenew marks its 15th anniversary, we invited Wu Lei to serve as the AHS Recycle's global brand ambassador. Through his youthful, energetic, stylish, and environmentally conscious image, we encourage users to embrace a simpler lifestyle and choose high-quality pre-owned products. This initiative has generated broad positive feedback and engagement from users. From second-hand consumer electronics recycling to multi-category recycling and further into consumer retail, we aim to leverage the AHS Recycle brand name to provide users with better recycling and purchasing experiences. [Non-English content] Stage three, we continue to advance breakthroughs in our overseas strategy. Over the past year, our overseas export business has grown rapidly. in June this year, we hit a milestone with HK$120 million in monthly sales. Building on our solid progress, on July 28th, we held our overseas strategy launch event in Hong Kong and updated our global expansion strategy. [Non-English content] First, we see a huge pre-owned phone market globally with a scale of over $100 billion in Hong Kong, Dubai, and Miami as key hubs. As China is changing from a consumer to a supplier of pre-owned phones globally, we see a chance to build an international B2B marketplace leveraging PJT's success domestically. As such, we launched FoneSquare. It relies on two core strengths of ours: growing 1P export supply and automated quality inspection technology. We will follow our domestic experience and gradually expand from 1P to 3P supply while establishing global standards. We will also optimize cost and efficiency through automated quality inspections and improve transaction transparency, building a more efficient B2B marketplace and traditional trading platforms. Aiming to give pre-owned goods a second life globally. While exports are growing fast, FoneSquare still needs time to improve, and we appreciate your patience and support. We also launched our overseas consumer brand, named ReRe, that is, we value what you own, renew the way you choose. We will cautiously explore the 2C business model through recycling kiosks and physical stores with a small amount of investment. We will share more updates on our overseas business as appropriate. Looking at 2026 as a whole, we will continue to enhance supply sourcing, customer mindshare, merchant services and operating efficiency. We look forward to giving users a better experience, more choices and more value in pre-owned transactions. Now I'd like to turn the call over to our CFO, Rex Chen, for financial updates. [Non-English content] Good day, everyone. I'm pleased to share our outstanding financial performance for the second quarter of 2026. Both revenues and profits reached record highs. During the quarter, the ongoing rollout of China's trade-in programs for consumer electronics, together with the 618 Shopping Festival, further boosted consumer demand for device upgrades and expanded the supply of first-hand devices available for recycling. We actively captured these market opportunities, continued to support recycling and trading scenarios, and fully leveraged the synergies between our supply chain and retail capabilities. As a result, we sustained solid growth momentum over the quarter. [Non-English content] In the second quarter, total revenue exceeded the high end of our guidance, increasing by 32.4% year-over-year to CNY 6.61 billion, while non-GAAP operating income surged by 70.1% to over CNY 200 million. [Non-English content] Before we review the financials in detail, please note that all figures are in CNY and all comparisons are on a year-over-year basis unless otherwise stated. [Non-English content] In the second quarter, total revenue growth was primarily driven by continued growth in net product revenue. Net product revenues increased by 35.9% to CNY 6.19 billion, largely attributable to the growth in online sales of pre-owned consumer electronics. [Non-English content] Net service revenues were CNY 410 million in the second quarter, representing a decrease of 4.2%. The decrease was primarily due to the discretionary discounts on service fees provided to merchants during the extended 618 Grand Promotion event period. [Non-English content] Now let's discuss operating expenses. To provide greater clarity on the trends of our actual operating base expenses, we will mainly discuss our non-GAAP operating expenses, which better reflect how management views our operating results. The reconciliations of GAAP to non-GAAP results are available in our earnings release and the corresponding Form 6-K furnished with the U.S. SEC. [Non-English content] Merchandise costs increased by 31.9% to CNY 5.22 billion, in line with the growth in product sales. Gross profit margin for our 1P business was 15.7%, compared with 13.2% in the same period last year. The gross margin improvement in our 1P business was primarily driven by high efficiency C2B recycling scenarios, combined with fulfillment capabilities incorporated in our supply chains and an increasingly diversified retail channel mix. This allowed us to increase the proportion of higher margin retail sales, with 1P2C revenue accounting for 48.8% of product revenue in the second quarter of 2026, up from 34.4% in the same period last year. [Non-English content] Fulfillment expenses increased by 31.1% to CNY 514 million. Non-GAAP fulfillment expenses increased by 30.5% to CNY 530 million. Under the Non-GAAP measures, its increase was primarily driven by higher personnel costs resulting from the growth of our business compared to the same period in 2025, as well as higher logistics expenses in line with the increased product sales. Additionally, operating center related expenses rose along with the increasing volumes of recycling and transactions. Non-GAAP fulfillment expenses as a percentage of total revenues decreased to 8.1% from 8.2%. [Non-English content] Selling and marketing expenses increased by 24.8% to CNY 510 million. Non-GAAP selling and marketing expenses increased by 29.9% to CNY 500 million, primarily driven by an increase in commission expenses in relation to channel service fees. Non-GAAP selling and marketing expenses as a percentage of total revenues decreased to 7.6% from 7.8%. [Non-English content General and administrative expenses increased by 23.5% to CNY 95.7 million. Non-GAAP G&A expenses also increased by 13.6% to CNY 85.3 million, primarily due to an increase in personnel costs. Non-GAAP G&A expenses as a percentage of total revenues decreased to 1.3% from 1.5%. [Non-English content] Research and development expenses increased by 23.5% to CNY 77.2 million. Non-GAAP R&D expenses increased by 24.2% to CNY 72.3 million, primarily due to an increase in personnel costs. Non-GAAP R&D expenses as a percentage of total revenues decreased to 1.1% from 1.2%. [Non-English content] As a result, our Non-GAAP operating income exceeded CNY 200 million in the second quarter of 2026, compared to Non-GAAP operating income of CNY 120 million in the second quarter of 2025, representing an increase of 70.1% year-over-year increase. Non-GAAP operating profit margin was 3.1% for the quarter compared to 2.4% in the second quarter of 2025, representing an increase of 69 basis points. [Non-English content] As of June 30th, 2026, cash and cash equivalents, restricted cash, short-term investments and funds receivable from third-party payment service providers totaled CNY 2.16 billion. Our financial reserves are sufficient to support reinvestment in business development and shareholder returns. [Non-English content] During the second quarter of 2026, we repurchased a total of approximately 1 million ADSs for approximately US$4.2 million. On June 30th, 2025, the board has authorized a share repurchase program under which the company may repurchase up to $50 million USD of our shares over 12 months. The board has authorized the extension of this share repurchase program for 12 months from June 30th, 2026, with key terms unchanged. As of June 30th, 2026, we repurchased approximately $14.8 million USD under this program. [Non-English content] Now turning to the business outlook for the third quarter of 2026. We anticipate total revenues to be between CNY 6.34 billion to CNY 6.44 billion, representing an increase of 23.1%-25.1% year-over-year. Please note that this forecast may only reflect our current and preliminary views on the market and operational conditions, which are subject to change. [Non-English content] This concludes our prepared remarks. Operator, we are now ready to take questions. Thank you. 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 are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. at this time, we will pause momentarily to assemble our roster. The first question today comes from Mandy Lu with UBS. Please go ahead. [Non-English content] ？ Thank you very much for the opportunity to raise questions, and congrats on another strong quarter in terms of both revenue and profits. Well, my question is that as the launch of Apple's iPhone 18 is around the corner, how would you expect the impact towards our financial performance ahead? Also, is there any updates on your full-year revenue and margin guidance? Thank you very much. [Non-English content] Thank you for the question. Here, I'd like to reiterate a counterintuitive view. When new devices are selling well, recycling and trading programs are just supplementary value-added services. When new devices sell soft in trading programs, they become the most critical and effective promotional tool. Major manufacturers and platforms place greater emphasis on and allocate more resources to trade-ins. This year, against new device sales headwinds, e-commerce platforms, brand manufacturers, and recyclers have all increased their investments in trade-in scenarios, making C2B recycling for pre-owned consumer electronics more efficient. With strong sourcing channels and convenient recycling fulfillment, we have built an industry-leading supply base and further strengthened our supply side advantage in the pre-owned value chain. [Non-English content] For the third quarter guidance, we take into account this year's major flagship smartphone launches. Take the iPhone 18 lineup as an example. Current market expectations are that Apple may introduce more premium models, and some standard modules could shift to next spring. This could extend iPhone 18's volume shipment cycle into the fourth quarter and the first quarter of next year. We monitor this closely. Our third quarter guidance has already factored in all potential impacts. [Non-English content] Should new device prices rise due to higher upstream memory costs, trade-ins and recycling could be more valuable for users, and prices for high quality pre-owned products will have room for upside. The second quarter already saw a year-over-year increase in the average order volume of our 1P business. [Non-English content] On profitability, we continue to make disciplined investments in fulfillment capabilities and consumer brand marketing in the second quarter. Benefiting from economies of scale and more refined operations, we delivered the expected year-over-year improvement in Non-GAAP operating profit margin. Overall, we expect to maintain strong growth in both revenue and profit this year. [Non-English content] Thank you for the question. The next question comes from Wang Zhao with CICC. Please go ahead. [Non-English content] Good evening. Thanks for taking my question. Could you please elaborate on the reasons for the decline in service revenue and share your outlook? Thank you. [Non-English content] Strategically, our 1P model will play an increasingly vital role in the pre-owned smartphones and consumer electronics categories. First, it ensures a premium transaction experience for end users and strengthens brand awareness. In addition, the industry's inevitable shift towards greater compliance will further support the development of our 1P business. [Non-English content] In the second quarter, net service revenue decreased by 4.2% year-over-year, mainly due to two factors. First, we increased subsidies for merchants, including logistics fees, incentives for new users as PJT Marketplace expanded into more fragmented markets. Second, during the promotional campaign, we provided discounts or waivers on services to Paipai POP merchants to boost their transactions. [Non-English content] Looking ahead, we expect that as PJT continues to penetrate lower-tier markets, more small-sized merchants will gain easier access to the national pre-owned trading market. By leveraging our quality inspection technology, platform services, and differentiated membership programs, we expect to both PJT's operational efficiency and grow its platform service revenue in line with the healthy expansion of China's pre-owned consumer electronics and smartphone industry. [Non-English content] For our Paipai B2C business, we are shifting towards 1P curated retail and 3P consignment models, which will affect revenue in the short term. Under the 1P model, we are co-building capabilities with JD.com to meet consumer demand for curated pre-owned products, helping users upgrade their devices with high quality, affordable options. Under the consignment model, Paipai is continuously exploring ways to support small merchants. We are expanding merchant recruitment, boosting merchant vitality, and providing robust support for their store operations, traffic management, and after-sales services. [Non-English content] In our multi-category recycling services, we are advancing refined operations to reinforce consumer mindshare of the AHS brand through theme stores and differentiated user experiences. We are confident to continue growing faster than broader industry. That is it for the questions. Thank you. The next question comes from Brian Lantier with Zacks Small-Cap Research. Please go ahead. Good evening, and congratulations on navigating what is turned into a challenging year for the smartphone market. I wonder if you could talk a little bit about your development plans and your performance goals for the international business. [Non-English content] The main path of our overseas strategy is B2B, which is complemented by our 2C business. B2B remains the core revenue contributor, accounting for around 90% of our overseas revenue. Our goal is to build FoneSquare into a global version of PJT Marketplace in three years. We will expand our supply and buyers network, bring our automation technologies overseas, and improve our open platform. We already have a mature B2B system in Hong Kong covering inspection, operations and sales. We plan to start building new regional capabilities in Dubai, in the second half of this year. FoneSquare is now officially available in Hong Kong App Stores. We plan to gradually expand into Middle Eastern markets like Dubai and Southeast Asian markets like Malaysia. We continue to optimize FoneSquare's functionality and user experience, and expect to launch the next phase of our user growth initiative soon. Great. Thank you. [Non-English content] In addition, we are cautiously exploring overseas to see opportunities under the ReRe brand. Whether through ReRe kiosks already deployed in Europe or our first ReRe store recently opened in Hong Kong, our overseas to C business is still at an early stage of exploration. We will share further updates as we make progress. Thank you. Thanks again. The next question comes from Raphael Tse with DBS. Please go ahead. [Non-English content] Kerry Chen, Rex Chen, good evening, leaders. I am Raphael, an analyst from DBS. Congratulations again to the company for achieving brilliant results. I have a question here. I see that the group's number of stores declined quarter-over-quarter in the second quarter of 2026, while the number of in-store visitors increased significantly. How can we estimate or forecast the change in store numbers for this year? Thank you. I will recap in English. Good evening, management, and congratulations for the record-breaking quarter. One question on my side. The group's number of stores declined quarter-over-quarter in the second quarter of 2026, while the number of in-store visitors increased significantly. How can we estimate or forecast the change in store numbers for this year? Thank you. [Non-English content] To begin with, I would like to note that AHS team has solid capabilities in innovation and pacing for store operations. There are two factors to consider in making phase store count adjustments. First is the need to solidify our operations after rapid expansion. Accordingly, we have repositioned some poorly located stores and closed some underperforming ones. This is standard business practice. Secondly, we are preparing and accumulating experience for our new store strategy. Our luxury themed and sports themed stores have already seen good data validation. Moving forward, we will adopt a tiered store strategy, upgrading select locations into specialized category themed stores. You will soon see us rolling out more of these themed stores across different categories. I also want to emphasize that our budget to build store-based fulfillment capabilities remains disciplined. With no incremental investment, we are strengthening these capabilities by reallocating resources within our existing budget. [Non-English content] Demand for recycling and trading services has been strong this year. We expanded our to-door team to meet higher fulfillment demand in top-tier cities. During the 618 Shopping Festival, we used flexible workforce solutions to quickly expand the team to nearly 3,000 people. After the peak period, the two doors happily adjusted back down, helping us control front-end operating expenses. We will continue to strengthen our in-store and to-door fulfillment capabilities to provide users with a trusted and convenient experience. Thank you. As there are no further questions at this time, I'd like to turn the conference back to management for closing remarks. Thank you again for joining us. A replay of today's call will be available on our IR 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. Thank you. This conference is now concluded. Thank you for attending today's presentation. You may now disconnect.