Hello, and thank you for standing by for Energy Monster’s 2022 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Today’s conference is being recorded. [Operator Instructions] I would now like to turn the meeting over to your host for today’s conference call, Director of Investor Relations, Hansen Shi.

Thank you. Welcome to our 2022 third quarter earnings conference call. Joining me on the call today are Mars Cai, Energy Monster’s Chairman and Chief Executive Officer; and Maria Xin, Chief Financial Officer. For today's agenda, management will discuss business updates, operation highlights, and financial performance for the third quarter of 2022. Before we continue, I refer you to our Safe Harbor statement in the earnings press release, which applies to this call as we will make forward-looking statements. Also, this call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. I would now like to turn the call over to our Chairman and Chief Executive Officer, Mars Cai for the business and operation highlights.

Thank you, Hansen. Good day, everyone. Welcome to our 2022 third quarter earnings call. In the third quarter, the effects of COVID continues to impact our operation as quarantine and lockdown measures resulted in a general decline in offline foot traffic in a number of regions within China. We however, remain resilient against these challenges and committed to delivering value to all of our partners. We continue to transition our operations to better mitigate the impact from COVID-related reasons, namely through the increasing contribution of the network partner model and the decreasing usage of entry fees or upfront fees for new signings. Revenues for the third quarter was above our guidance as the recovery from COVID was above our previous expectation, and as we continue implementing measures to effectively expand the coverage of our mobile device charging operation despite the COVID headwinds. Our mobile device charging service network is as expensive as ever. As of the end of the third quarter, our network features 965,000 POI locations, 6.4 million power banks in circulation and 325 million registered users across 1,800 counties and county-leveled regions. The recovery during the third quarter was strong quarter-over-quarter with revenue increasing by 18%. Revenue per power bank increasing by 11% and adjusted net loss declining 50%. While the recovery trend is clear cut, the impact from COVID is also evident across various regions. In the third quarter of 2022, notable COVID outbreaks in Shiyan and Xiamen in mid-August. Chengdu and Shenzhen starting from late August resulted in 49%, 68%, 84%, and 50% week-over-week declines in revenue respectively. Recovery rate from the outbreaks is also more pronounced. Chengdu, Shiyan, Shenzhen and Xiamen bounced back to 94%, 82%, 85%, and 62% in the following week when COVID cases are fully contained. While those outbreaks have been less…

Thank you, Mars. Now let me walk you through the financial result in greater detail. For the third quarter of 2022, revenues were RMB815 million, representing a 12.4% year-over-year decrease. Revenues from mobile device charging business were down 11.7% to RMB791 million and accounted for 97.1% of our total revenues for the quarter. The decrease was primarily attributable to the impact of COVID-19 during the third quarter of 2022, which resulted in a significant decline in general offline foot traffic in China due to COVID-19 restrictions. Revenues from power bank sales were down 33.9% year-over-year to RMB18.1 million and accounted for 2.2% of our total revenues for the quarter. The decrease was primarily attributable to the impact of COVID-19 during the third quarter of 2022, which resulted in a significant decline in general offline foot traffic in China due to COVID-19 restrictions. Other revenues were down 19% year-over-year to RMB5.8 million and accounting for 0.7% of our total revenues. The decrease was primarily attributable to the decrease in user traffic as a result of the impact of COVID-19 during the third quarter of 2022. Cost of revenues were down 10.2% year-over-year to RMB125.5 million for the third quarter of 2022. The decrease of cost of revenues was primarily due to the decrease in maintenance costs and cost of power banks sold, which was partially offset by the increase in logistics costs for the delivery of equipment to network partners. Gross profit was down 12.8% year-over-year to RMB689.4 million for the third quarter of 2022. The decrease was primarily due to the decrease in revenues from mobile device charging business. Operating expenses for the third quarter of 2022 was RMB786.4 million down 9.9% year-over-year, excluding share-based compensation. Non-GAAP operating expenses were RMB779.3 million representing a year-over-year decrease of 10%. Research and…

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.