Thank you for standing by for Fanhua's Third Quarter 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 Web site at ir.fanhuaholdings.com under the Events & Webcasts 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 third quarter 2022 earnings conference call. The earnings results were released earlier today and are available on our IR Web site 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 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 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 financial and operational highlights in the third 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. Thank you for joining today's conference call. In the third quarter of 2022, challenges and opportunities coexist. On the one hand with multiple factors such as the macroeconomic uncertainties, restrained consumption, resurgences of COVID-19 cases and the regulatory requirements of nationwide double recording at play, the gross written premiums of China's life insurance industry merely recorded a low single digital growth of 1.3% year-over-year, representing a sharp decline in the growth rate compared with the second quarter of 2022. The decline in the number of insurance sales agents in the industry also continued, with substantial declines in sales force numbers reported by many large insurers. On the other hand, we are encouraged to see a steady growth momentum among insurance intermediaries as a whole, driven by significant growth in agent productivity, despite an overall decline in sales force. In addition, more and more insurers are engaging intermediary channels and showing a more open attitude towards the mode of cooperation with independent insurance intermediaries suggesting greater development opportunities awaiting intermediaries like us. Despite challenging external environment, Fanhua showed resilience with steady business growth during the third quarter of 2022. Our life insurance premiums grew by 6.2% year-over-year to RMB2.8 billion, of which regular life insurance first-year premiums reached RMB529.7 million, up by 9.1% year-over-year. Even with the continued investments in technology and training, our operating income beat expectation to achieve RMB32.2 million representing a growth of 14.2% year-over-year. The quality of our sales force continued to improve during the quarter. While total number of performing agents declined in accordance with our plan, the per capita productivity of performing agents grew by nearly 20% year-over-year. The contribution from high performing agents increased even further with the number of 100,000 premium agents growing by 46% year-over-year, contributing 48%…

Thank you. [Operator Instructions]. Our first question comes from the line of [indiscernible] from CICC. Please go ahead.

I have three questions. And the first one is what's your current product mix, especially what's the proportion of your savings products? And in terms of the savings products, what type of insurers do you work with more often? And what is the current take rate for such products? And secondly, could you share some more color on your profile of the customers and especially what's the proportion of your high end customers? And the last question is about your sales force. Could you give us some more details on your strategy as to recruitment? Is it difficult to recruit high quality agents currently? Thanks.

Let me get back to your first question first. In the third quarter, whole life insurance products, annuity and endowment, such savings products accounted for 87.5% of our total first-year premiums as compared to 83.6% in the same period last year. And in terms of first-year premiums, our major product suppliers [indiscernible], respectively, accounting for 27.3%, 24.8%, 11%, 5.5% and 4.6% of our first-year premiums, respectively. With the implementation of the [indiscernible] Phase 2, many life insurance companies actually is subject to greater restriction in terms of growing their business as the new accounting principles lowered the recognition of life insurance policies profit as capital which also is resulting in a lowered solvency ratio, therefore, subjecting them to greater gross pressure, capital pressure and this is also one of the reason that even though synergy [ph] remains to be our largest [indiscernible], the shares in terms of our first-year premiums has not yet contacted from last quarter. As we also mentioned earlier, more and more insurance companies have been engaging with insurance intermediary channels and adopted a more open attitude towards the cooperation with independent intermediaries. We expect that our product supply as well as our insurance company partners will become more diversified next year. Based on 10 years APE, annualized premium equivalent, the first-year commission rate of savings products is in the range of 90% to 98%. But in terms of 20 years APE, the first-year commission rate for savings products can be as high as 138% to 145%, varying from one insurance company to another. However, savings insurance products, the payment periods are generally much shorter, typically three years, five years or 10 years. So even though the first-year commission rate is higher, the renewal commissions are actually much lower than other type of products such as critical…

Thank you. [Operator Instructions]. I'm showing no further questions at this time. I'd like to turn the call back over to Ms. Oasis Qiu for closing remarks.

Thank you. So if you have any further questions, please feel free to contact us. Thank you for joining on today's conference call. Thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.