Good day, and welcome to the Quhuo's '24 H1 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Qishu Wang, Investor Relations. Please go ahead.

Thank you, operator. Hello, everyone. Welcome to Quhuo's first half of 2024 earnings conference call. The company's results were released earlier today and are available on our IR website. On this call today are Leslie Yu, Chairman and CEO; and CFO, Barry Ba. Leslie will review business operations and company highlights followed by Barry, who will discuss financials and guidance. They will be available to answer your questions in the Q&A session that follows. Before we begin, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to the events that involve known or unknown risks, uncertainties and other factors. All of them are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under the law. With that, I will now turn the call over to our Chairman and CEO, Mr. Leslie Yu. Please go ahead.

Thank you, Qishu, and thank you all for joining our 2024 first half earnings conference call. In the first half of 2024, the global economy environment remains complex and volatile, particularly in the context of uncertainty in both domestic and international market, which caused numerous challenges for our industry. However, Quhuo maintained stable business growth and these fluctuations through strategic foresight and lean operational business. In the first half of 2024, Quhuo achieved a total revenue of RMB 1.62 billion. In terms of profitability, although we experienced a short-term loss in the first quarter due to market and seasonal factors during the Chinese New Year. We successfully rebounded in the second quarter. Our gross margin not only returned to normal levels but also surpassed the last year's performance, reaching 5.6%, demonstrating our enhanced resilience and profitability are made much wanted. On the cost control front, thanks to our continuous lean management, general and administrative expense decreased by 13.2% year-on-year in the first half of 2024, which reflects our ongoing efforts to improve operational efficiency. Looking at the business segments, despite the fluctuation in the overall market environment, our Mobility Services segment performed very well, with total revenue increasing by 71.7% year-on-year. Our revenue from shared-bike maintenance service grew by 6.2% year-on-year, while ride-hailing service revenue increased by 47.5% year-on-year. Particularly on Quhuo's International vehicle export solutions, the revenue increased by 389% year-on-year, successfully exporting 815 new energy vehicles overseas in the first half, making a new growth driver for us with just one year and further expanding our business coverage in international markets, showcasing our international competitiveness. The housekeeping service segment also performed very well, with gross profit increasing by 28.5% year-on-year and the gross margin rising from 13.8% in the same period last year to 24.6%, reflecting our success…

Thank you, Leslie. Hello, everyone. Welcome to Quhuo's first half of 2024 conference call. Please be reminded that all amounts quoted here will be RMB unless stated otherwise. Total revenue decreased by 6.7% from RMB 1,736.3 million in the six months ended June 30, 2023 to RMB 1,619.9 million in the six months ended June 30, 2024 due to the following reasons. Revenue from on-demand delivery solutions for RMB 1,499.1 million, representing a slight decrease of 9.1% from RMB 1,649.6 million in the six months ended June 30, 2024 -- 2023, primarily because we optimized our business by disposing several inferior business districts, which leads to a decrease in the revenue scale. Revenues from Mobility Service Solutions consisting of share-backed maintenance, ride-hailing and vehicle export business solutions for RMB 100.5 million, representing a remarkable increase of 71.7% from RMB 58.5 million in the six months ended June 30, 2023, primarily due to the growth of our vehicle export solutions which generated revenue of RMB 58.6 million. Revenue from housekeeping and accommodation solutions and other services are RMB 20.4 million, representing a decrease of 27.8% from RMB 28.2 million in the six months ended June 30, 2023, primarily due to the transaction of business model in our hotel services. Cost of revenue of RMB 1,595.2 million, representing a decrease of 4.5% year-over-year, primarily attributed to the decrease in our labor cost and the service fee paid to team leaders in line with the decrease of revenue from on-demand delivery solutions. Speaking of expense, general and administrative expense were RMB 7.9 million, representing a decrease of 13.2% from RMB 81.6 million in the six months ended June 30, 2023, primarily due to the decrease in first professional service fee from RMB 22.2 million in the first half of 2023 to RMB 14.5…

[Operator Instructions] And the first question comes from [indiscernible] Limited.

My question is, what are the company's plans for Quhuo International in the second half of 2024? And how do you see its growth prospects? Thank you.

Okay. This is Leslie. On Quhuo International serves as the platform for Quhuo's global expansion. We have entered the international markets through the trade-off new energy used vehicles, which help us to connect outstanding partners' resources with domestic production capacity. And we have started building brand recognition in overseas market. I think that we have successfully achieved our first stage growth with the business now in face of continuous revenue generation and sales sustained profitability. Talking about the second half of 2024, we will be moving into the next stage of development. Based on the first stage, we will focus on defining and innovating our overseas business model. By redefining our partner roles and unifying long-term profit sharing mechanism to drive faster growth in both revenue and profit. Additionally, we will be developing systems to optimize new business processes with our partners to ensure a successful establishment of new business ecosystem. So we expect this phase not only to bring scale growth for Quhuo International, but also to achieve a significant qualitatively further solidifying and expanding our position in the international market. So for the second half of 2024, we are looking forward to step into the Phase 2 of our international business. Yes. Thank you.

And this does conclude the question session as well as the event. Thank you so much for attending today's presentation. You may now disconnect your lines.