Good morning and good evening, ladies and gentlemen. Thank you, and welcome to Yunji's Second Quarter 2022 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Peng 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 second quarter 2022 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 the 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 the cautionary statements, risk factors and details of the company's filing with the SEC. Yunji does not undertake any obligation to update these statements except as required under applicable law. With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

[Foreign Language] Hello, everyone. Welcome to Yunji's second quarter 2022 earnings call. [Foreign Language] During the second quarter, we successfully navigated through the uncertainties and the volatility for about by the challenging macro backdrop, widespread resurgences of the pandemic and related control measures affected a number of major cities across China. In the face of these headwinds, we retained our focus on optimizing our platform’s user experience while upholding our social responsibility to ensure users received outstanding fulfillment services and timely delivery often the urgent free media orders. We nimbly and proactively deployed our logistic resources. For example, in some [indiscernible] reach our extra delivery service to those providers, such as [indiscernible] Express who service remained unaffected by the pandemic. Furthermore, we optimize our inventory structure by transferring products between warehouses to ensure they’re ready availability for delivery to use it. [Foreign Language] As in time our supply side was also affected by the macro headwinds to certain effect including down product could not be released from customers or shipped out from factories in those regions severely affected by the pandemic. Unfortunately, this means that these products were not available for projects on our platform during the originally expand promotional period. Since during this year, the situation is going to be improved and our supply and our cross-border logistics change have both gradually recumbent. Our private label product inventory has now been delivered, securing sufficient stock for merchandise sales during the last two quarters. Furthermore, we have taken pre-emptive measures to mitigate potential future COVID-related supply chain disruptions by increasing our inventories of a private label product and cross-border merchandise. [Foreign Language] During the first half of this year, we adhere to our strategy often developing inclusive private label products, actively enriched our productive offerings and developed a variety of…

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 all comparisons and percentage changes are on a year-over-year basis unless otherwise noted. During the quarter, we were once again faced with the resurgence of COVID-19 and associated lockdown measures in Shanghai and across the country. Compared to the same period last year, our repurchase rate remained relatively stable at 79% and our gross margin improved even in the face of this headwind. We intensify our focus on optimizing cost structures and developing our private label brands, enabling our business to navigate safely through the present macro uncertainties. Furthermore, we invested in our fulfillment partner base to ensure the delivery of product even within areas on the strict pandemic control measures. Our cash position remains strong enough for us to successfully still through the current market downturn and adverse economic environment. We will continue to reward our shareholders through share buybacks. Now let's take a closer look at our financials. Total revenue were 284 million compared to 571 million a year ago. Revenues from sales of merchandise were 237 million and revenues from our marketplace business were 42 million. This decline revenues was primarily the result of continued COVID outbreaks particularly during April and May. The pandemic related lockdowns disrupted our supply chain with our third-party suppliers, merchants and logistics service providers being particularly effective. Consumers’ willingness to spend was also impacted with uncertain macro conditions, fostering desire among consumers to save rather than spend. These factors combined to create merchandise strategies, logistical delays, and stagnating consumer demand of which negatively affected our operations during the first half of 2022. Their continued impact depends upon the future direction of the pandemic. And though…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Ethan Yu from First Trust, China. Please go ahead.

[Foreign Language]

Hi.

[Foreign Language] Thanks for taking my question. At present, including the past June 18 promotions GMVs via short videos and the live gaming are growing rapidly. Could you share us some color or views on this trend? Thank you.

[Foreign Language] Thank you for your question. [Foreign Language] Live streaming is not a new format and we have done a lot of it in the past. For us live streaming is more like a content marketing than direct sales, especially for private label promotions. Marketing comes in many forms and we believe that highest value group and supply chain are the cornerstones of sales. [Foreign Language] In fact content marketing, it is what Yunji has been doing since establishment. And we have focused on this area a lot. Actually either the photos or articles, they are the important channels for us to deliver the information. We have a group of loyal [ph] users and the service managers who love to share shopping experience. That is also a kind of content sharing, live streaming and short videos make sharing more vivid. We are more than welcome to as for live streaming and short videos as a sharing method to bring fancy content and shopping experience to users. [Foreign Language] We were pleased to remain in the official account of third-party platform has grown rapidly. The account offers in three [ph] interesting content every week and has many short videos and received around 1 million views confidently. Later, we will also try to organize live streaming sales on these accounts to promote private label products and Yunji belongs to the high quality supply chain. [Foreign Language] So we hope that these high-quality contents and efficient live streaming could actually bring more value to our platform and users. Thank you.

[Foreign Language]

Thank you. [Operator Instructions] There are no further questions at this time, I'd like to hand the conference back to 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.

Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.