Thank you for standing by for Fanhua's Second Quarter and First Half 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. All lines have been placed on mute to prevent background noise. After the management's prepared remarks, there will be a question-and-answer session. Please follow the instructions given at that time if you would like to ask a question. For your information, this conference call is now being broadcasted live over the Internet. The webcast replay will be available within three hours after the conference is finished. Please visit Fanhua's IR website at ir.fanhuaholdings.com 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, Fanhua's Investor Relations Manager.

Good morning. Welcome to our second quarter and first half 2022 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 these 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 laws. Joining us today, are our Chairman and Chief Executive Officer, Mr. Yinan Hu; Chief Financial Officer, Mr. Peng Ge; and Chief Operating Officer, Mr. Lichong Liu. Mr. Hu will provide a review of our financials and operational highlights in the second quarter of 2022. There will be a Q&A session after the prepared remarks. Now, I will turn the call over to Mr. Hu.

Good morning and good evening. This is Hu Yinan. Thank you for joining today's conference call. In the second quarter of 2022, as we continued executing on our Professionalization, Career-based, Digitalization and Open Platform strategy and implemented a series of strategic initiatives, the efforts started to show some encouraging results, with positive improvements across various operating metrics. Our insurance business grew 12.2% year-over-year to RMB2.9 billion in gross written premiums of which our life insurance first year premiums reached RMB615.7 million, up by 43.7% year-over-year and 25% quarter-over-quarter. The growth was primarily driven by substantial increases in the number of high-performing agents and their per capita productivity. During the quarter, both the number of high-performing agents and the per capita performance indicators have enjoyed great improvement on a year-over-year basis. The number of three-month 10,000 Premium Agents who are defined as those contributing over RMB10,000 annualized premiums equivalent or APE monthly for three consecutive months during the quarter increased by 23.6% year-over-year with per capita productivity up by 33.3% year-over-year, while the number of 100,000 Premium Agents who are defined as those contributing over RMB100,000 APE during the quarter increased by 41.2% year-over-year with per capita productivity growing 6.3% year-over-year. Correspondingly, as we purposely reduced the number of non-performing and low-performing agents, the total number of Fanhua's performing agents reduced by 37.6% in the second quarter of 2022. These are clear signs of the positive effects of our strategic focuses on serving mid to high-end customers and high-performing agents. With the steady progress in executing our new strategy, we were proud to deliver robust growth in our new business during the quarter while operating income reached RMB31 million well exceeding our prior expectation. The year-over-year decrease in operating income was mainly due to, one; a loss of RMB7 million within…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from [Zixian Wang] at CICC. Please go ahead.

[Foreign Language] So the first question, how do you expect the company's revenue and the profit in the second half of this year? And the second one is about the agent force. So what is the [indiscernible] of our sales agents in aspect of region, age, education, et cetera? How about their income and productivity? And the last one, can you share us what’s your current product mix? How to expect the demand for savings products? Does the [indiscernible] of this products sustainable? Thanks.

[Foreign Language] Thank you for the questions. For the first one regarding the outlook for our commission income and profit guidance in the second half of this year. Our new strategies has been proven to be quite effective in driving our business growth. And key part of this strategy is our focus on double-high, which is – which means that we focus on high-end customers and as well as high-performing agents with digital empowerment. And these strategies have been proven to be quite effective in driving our business growth over the past quarters. As we can see that even though the total performing agents, the number of total performing agents has dropped by roughly 30%. However, our first year premium continue to increase substantially, which prove the internal driving force to remain strong. And as we continue to execute our strategies, we believe that we will see our growth momentum will pick up over time in the third quarter, four quarter and next year. However, we do notice that there are two factors may pose adverse impact on our business results. Firstly, our product mix, even though we maintain strong growth in our first year premium, however, the products are mostly short-term products, which means that this product have [lower and bad] value for the company. So that's why that our commission income profit growth are not exactly in line with the growth of our first year premium. And the second factor is the resurgence of COVID cases in many regions in the third quarter as well as the regulatory requirement for double-recording in some key markets, particularly in our major markets, which may pose some pressures on our business growth. That’s why we believe that we are bottomed out and we don’t believe that we will see any further…

Thank you. We have no further questions in queue. [Operator Instructions] If there are no further questions, I will hand back to management for closing remarks.

Thank you for participating in today's conference call. If you have any further questions, please feel free to contact us. Thank you. Have a good day. Bye.

Thank you so much. This does conclude today's conference call. Thank you all for joining. You may now disconnect.