Good morning and good evening, ladies and gentlemen. Thank you and welcome to Yunji’s Second Quarter 2020 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Chen Chen, Chief Financial Officer; Mr. Hui Ma, Chief Strategy Officer and Chief People Officer; and Ms. Kaye Liu, Investor Relations Director of the company. Now, I’d like to hand the conference over to your first speaker for today, Ms. Kaye Liu, IRD of Yunji. Please go ahead, ma’am.

Hello, everyone. Welcome to our second quarter 2020 earnings call. Before we start, please note that this call will contain forward-looking statement within the meaning of the Private Security Litigation Reform Act of 1995 that are based on our current expectations and current market operating conditions and related events that involve known or unknown risks, uncertainties and other factors affecting the any industry. These forward-looking statements can be identified by certain terminologies such as will, expect, anticipates, continue or other statement or expressions. For detailed discussion of these risks and uncertainties, please refer to our stated documents filed with the US SEC. Any forward-looking statements that we take on this call are based on assumptions as of today and within are expressly qualified entirely by cautionary statements with factors and details of the company filing with the SEC. Yunji do not undertake any obligation to update this statement effect as required on applicable law. With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

Hello, everyone. Welcome to Yunji’s second quarter 2020 earnings call. Despite the impact of the epidemic, we generated a total RMB7.8 billion in GMV and RMB 1.49 billion in revenues during the second quarter as a result of our outstanding team work. In the second quarter, we also achieved a non-GAAP net profit for three consecutive quarters. Additionally, the upgrades we made to our membership enrollment system also helped us to ramp-up the total number of transacting members on our platform to 12.2 million for 12-months ended June 30, 2020. Ever since our IPO as a leading membership basis, social e-commerce platform, we are committed here building our platform that benefit all participants by continuously investing in our supply chain upgrade and community network optimization. First, I would like to provide an overview of the current development of our supply chain. In the first half year of 2020, many quality suppliers and the leading manufacturers has find it difficult to adapt their business and grow their online traffic in the context of the new business environment. Retail business are having a hard time promoting their quality products and in generating sales also, especially in comparison to those top e-commerce brands capable of producing engaging content and providing more differentiated products. Meanwhile, many users have experienced a consumption upgrade and are start on the lookout for an increasingly broader range of quality products that they are able to purchase at attractive prices. In light of these developments and in recognition often the pain points, we have established our long-term strategy offer, supporting private labels and in joint-venture brands on the supply side, utilizing our resources to empower sales managers on the service side and refining our platform experience and the user value proposition on the user side. This strategy is helping…

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms, and our comparisons and percentage changes are on a year-over-year basis, unless otherwise noted. We continued to accelerate our business transformation and to refine our membership enrollment system during the second half of 2020. In this quarter, an increasing amount of transactions were made through our marketplace business and recognized our net basis. In addition, competition through China’s e-commerce industry continue to ramp up during the period as a larger industry players increases our spending on promotional campaigns and buyer subsidies during e-commerce mid-year shopping festival. In line with our long-term goals, we decided to forgo the distractions of such short-term gains and instead focus our attention on refining our operational efficiency and the bolstering our brand awareness. We continued to advance towards healthy profitability during the second quarter of 2020 as a result of these efforts, as well as the progress made on other fronts including supply chain and the product differentiation. GMV in the second quarter of 2020 was RMB7.8 billion compared with RMB8.2 billion. GMV related to marketplace revenues in the second quarter of 2020 increased by122.7% to RMB4.9 billion from RMB2.2 billion. Revenues in the second quarter of 2020 were RMB1.5 billion compared to RMB3.1 billion. Gross margin in the second quarter of 2020 improved to 29.1% from 22.2%. Non-GAAP net income in the second quarter of 2020 were RMB20.1 million compared with non-GAAP net loss RMB39.2 million. Such results reflect the successful execution of our new strategy described by our CEO which is to improve the profitability in the near term and high quality growth in the long run. Let’s now take a closer look at our financials. Revenues…

[Operator Instructions] And your first question comes from the line of Ivy Liu from Credit Suisse. Ivy, the line is now open.

I will quickly translate myself. So, could management share more color in the current strategies on merchandising capabilities especially with regards to those self-owned brands and JV brands? Thanks.

Okay. Our commodity supply chain has more than contributed by the connection with B end consumers and our member consumers. So, we’re going to see in that where labor force and resources in the development of the private label and the joint venture brand. And so for the products high in margin and high in the repurchase rate, we’re going to do promote more private label in the healthcare and in cosmetic and in food. And then for the medium level margin and the medium level repurchase rates product, we’re going to do cooperate with some publicly traded company to do more joint venture brands. And then for one of the joint venture brands, we promoted ATM, it’s called the [indiscernible] Act and then it has been quite popular among the consumers and the repurchase rate has been 50%. And today, we just launched a new product that is called Yunji ID Facial Cream and GMV for today has reached RMB1 million. And also, we can see such partnership model has been quite popular among our upstream partners like those JV brands and the private labels. And also it able to promote the values for our members because they are longing for those products; good in price and high in quality. And also it will generate more values for our service managers because they also want to promote such popular products in high quality and also they would like to increase their income. And also, we can see the partnership within the China high-quality manufacturing companies and the mainstream consumer product companies will be the main strategy for our supply chain. That’s for your questions. Thank you.

There are no questions at this time. I’ll hand back to the management for closing.

Thank you for joining us today. Please do not hesitate to contact us if you have any further questions, and we’re looking forward to talking with you next quarter. Bye.

That does conclude our conference for today. Thank you for participating. You may all now disconnect.