Ladies and gentlemen, thank you for standing by for CNinsure's Second Quarter 2016 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] After the management's prepared remarks there'll be a question-and-answer session. [Operator Instructions] For your information, this conference call is now being broadcasted live over the internet. A webcast replay will be available within three hours after the conference is finished. Please visit CNinsure's IR website at IR.CNinsure.net under the events and webcast section. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Ms. Oasis Qiu, CNinsure's Investor Relations Officer.

Good morning, welcome to our second quarter 2016 earnings conference call. The earnings results were released earlier today, and are available on our IR website, as well as on Newswire. Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause our actual results to differ materially from those projected or anticipated. Such risks and uncertainties include but are not limited to those outlined in our filings with the SEC, including our registration statement on Form 20-F. We do not undertake any obligation to update this forward-looking information, except as required under applicable law. Joining us today are our Chief Executive Officer, Mr. Chunlin Wang, and Chief Financial Officer, Mr. Peng Ge. Mr. Wang will walk you through our financial and operating performance in the second quarter 2016, and then the management will take your questions after the prepared remarks. Now I will turn the call over to Mr. Wang.

Hello, everybody. Thank you for joining us in the second quarter 2016 earnings conference call. Now, I will give you an update of our financial and operational results in the second quarter of 2016 and our CFO, Mr. Peng Ge, and I will take your questions at the end of the report. In the second quarter of 2016, our total net revenue beat guidance again and grew 58.6% year-over-year. Our insurance premiums grew 46.1% year-over-year, outpacing the industry growth of 29.5%, evidencing the further strengthening of our market position during the quarter. Now, I would like to review the highlights of our various business segments. Firstly, life insurance business. Net revenues from our life insurance business grew 207.9% year-over-year during the quarter, while insurance premiums from the business segment grew 61.5% year-over-year in comparison with an industry growth of 44.7% in the life insurance market. Noticeably, our first year of premiums from long term life insurance product grew [208.5%] year-over-year, accumulated first year premiums from long term life insurance products in the first half of 2016 was 1.5 times more than that in the whole year of 2015. Besides 13 months' persistency ratio, maintained at over 89% for two consecutive quarters laying a solid base for the steady growth of our renewal life insurance business in the future. Secondly, our P&C insurance business, despite a continued slowdown in the P&C insurance market with only 5.3% growth during the quarter, our P&C insurance business increased 44.2% year-over-year in terms of insurance premiums, of which insurance premiums generated by our P&C insurance agency segment and brokerage segment were now 40% and 63.8% year-over-year respectively, leading to a 45.2% and 38.4% year-over-year growth in net revenues in the two business segments. Thirdly, our claims adjusting business. Our claims adjusting business grew steadily with…

We'll now begin the question-and-answer session. [Operator Instructions] Our first question comes from the line of Bolun Tang from CICC. Go ahead.

My question is actually from an item in the balance sheet. So I noticed that the goodwill and the intangible assets at the end of this quarter actually increased roughly 50 million from the end of last quarter. I just want to understand the reason behind. Is it some acquisition of the goodwill due to our expansion in some branches in Anhui province or other provinces?

The increase in the goodwill and intangible was mainly due to two reasons. Firstly, we upgraded our CNpad App starting in the second quarter of 2016, and so some of the expenses were capitalized in the second quarter, amounting to roughly RMB50 million. And then secondly, as we enter into new regions and new markets and set up new branches, we also bought some new equipment so that may also result in an increase in intangible assets. Thank you.

And Oasis, can we expect the IT infrastructure investment like in CNpad in the future could be more put in to CapEx instead of expense, which I think may be helpful to our bottom line?

Most of our R&D expenses were already capitalized as a matter of fact, and as the capitalized expenses were basically amortized in a range of three years so this kind of expenses doesn't really have much impact on our bottom line.

Thank you [Operator Instructions]

Okay, thank you for your participation. If you have any questions, you can just contact me directly after this conference call. Thank you.