Good morning and good evening, ladies and gentlemen. Thank you, and welcome to Yunji's Fourth Quarter 2021 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Chengqi Zhang, Vice President of Finance; and Ms. Kaye Liu, Investor Relations Director of the company. Now I would like to hand the conference over to our first speaker today, Ms. Kaye Liu, IRD of Yunji. Please go ahead, ma'am.

Hello, everyone. Welcome to our fourth quarter 2021 earnings call. Before we start, please note that this call will contain forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995 that are based on our current expectations and current market operating conditions and relate to events that involve known and unknown risks, uncertainties and other factors of Yunji and its industry. These forward-looking statements can be identified by terminologies such as will, expect, anticipate, continue or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to our related documents filed with U.S. SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and are expressly qualified in the entirety by cautionary statements, risk factors and details of the company's filing with the SEC. Yunji do not undertake any obligation to update these statements expect as required under applicable law. With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

Hello, everyone. Welcome to Yunji's Fourth Quarter 2021 Earnings Call. Today, I will summarize our strategy execution during the past year and discuss the outlook for its continued implementation in the coming year. We are acutely aware that consumers need to be more successfully targeted and segmented and given greater peace of mind. At the same time, we realized that our service managers need to increasingly focus on serving our users. As such, we have launched our highly curated product selection, Yunji 99 special sales portal. Yunji 99 displays no more than 99 cost-effective products per day, each of which is guaranteed to be in line with current trends, meet user needs and consistent with our high product selection standards. In addition, our product curation model allows us to more efficiently operate our platform and community groups. During 2021, we cultivated our user made by first gathered at Yunji. Going forward, we hope that our platform will be known for quality products gathered at Yunji by effectively executing our product curation strategy, we guarantee that only products that reach the high standards necessary to be certified, Yunji quality products are launched on our platform. We always put quality first, carefully selecting superior products for our customers while saving them time and enhancing their shopping experience. By doing so, we are developing our user made by the quality products gather at Yunji. Our private label strategy is crucial for us to achieve healthy profitability. We have made substantial progress developing our private labels, successfully for our food-focused strategy. At the same time, we have fortified and extended our cosmetics and health care categories. With our food category as our focus, our dream is for our members to be able to eat delicious food from all over the world without having to…

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in renminbi terms and all comparisons and percentage changes are on a year-over-year basis, unless otherwise noted. During the fourth quarter, we sustained our strategy of leasing our product range and carefully creating our products as we continue executing our market product food program. which focus on expanding our offering of exclusive products and private labels. . It's worth mentioning that as we accelerate the development of our new products and the improvement productivity, our private label have made a substantial progress allowing us to realize substantial profitability. In addition, our private labels received an excellent reception from the market and prove to be a great success. This success was reflected by our high repeat repurchase rate, which reached 80% in the 12 months ended December 31, 2021. As a result, we recorded operating income of CNY 4 million and a net income of CNY 58 million during the first quarter compared with operating loss of CNY 20 million and a net loss of CNY 77 million a year ago. This is our fourth consecutive quarter of non-GAAP measure profit and the first year turning growth to profit. Now let's take a closer look at our financials. Total revenue was CNY 471 million compared to CNY 1,327 million a year ago. Revenue from sales of merchandise was CNY 389 million and the revenues from our marketplace business was CNY 74 million. Adhering to our long-term growth strategy with a focus on profitability, we will find our selection of merchants and suppliers, resulting in near-term decrease in both our marketplace business and the merchandise sales. Importantly, our gross margin improved significantly to 40% compared to 26% a year…

[Operator Instructions] Your first question comes from the line of [indiscernible] who is an individual investor.

[Foreign Language] Let me quickly translate myself. We have observed downturn in the consumer market and a fierce competition in the second half of the year, and would like to ask whether Yunji is also affected by the economic downturn. Could you share some news and the future strategies?

In 2021, we have started to work with many advanced manufacturing of companies in China to explore more new quality products. Our products are mainly in such areas as food, health care and cosmetics. And we have explored more quality products that have a large market in China and that are also cost effective. With all these products, we have further tackled the influence of the downturn of the economy. We believe that in the next 10 years, the Chinese consumers will have a greater demand to further upgrade their consumption. For Yunji, on our supply chain, we will continue to explore more quality products that are also cost effective. And we believe that this will meet the demand of nearly 1/3 of Chinese families. At the same time, we will also make 10 years as a cycle to further explore more quality and cost-effective products and to make greater contribution to meet the consumers' needs.

As there are no further questions at this time, I'd like to hand the conference back to the management for closing remarks.

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

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