Good morning, and good evening ladies and gentlemen. Thank you for standing by and welcome to Yunji's First Quarter 2024 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Yeqing Cui, Senior Financial Director; and Ms. Kaye Liu, Investor Relations Director of the company. As a reminder, this conference call is being recorded. Now I would like to hand the conference over to our first speaker today, Ms. Kaye Liu, Investor Relations Director of Yunji. Please go ahead, ma'am.

Hello everyone. Welcome to our first quarter 2024 earnings call. Before we start, please note that this call will contain forward-looking statements 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 relate to events that involve known and unknown risks, uncertainties and other factors of Yunji’s 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 latest document filed with the U.S. SEC. Any forward-looking statements that we make on this call are based on assumptions as of today and are expressly qualified entirely by cautionary statements, risk factors and details of the company 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.

[Interpreted] Hello everyone, welcome to Yunji's first quarter 2024 earnings call. The first quarter is in traditionally an off-peak season for e-commerce. We seize the opportunity to further refine our operations, allow us to maintain a solid growth margin. As consumers' appetite for pursuing a better life intensifies, we are laser-focused on driving high-quality growth by centralizing average order values and gaining deeper insights into our core users' consumption preferences. In May, I celebrated Yunji's 9th Anniversary alongside our service managers, partners and employees. During the festivities, we unveiled several exciting new initiatives. One such initiative is our plan to provide our users with a holistic healthcare solution. To realize this, we will extend our presence into offline communities and establish wellness spaces, bringing our healthcare products directly to consumers. These initiatives are set to generate both part-time and full-time employment opportunities, nurturing individual entrepreneurship through our top-tier retail services. Our private label beauty brands SUYE and P&S continued to roll out new products that have proven main heads [ph]. These products are specially formulated with ingredients that are tailored for mature skin, mirroring the effectiveness of the leading Western beauty brands. In terms of marketing, we are actively extending our partnerships across a variety of external channels this year. Our approach includes creating engaging content on diverse content platforms, leveraging the power of short video platforms, and harnessing the influence of marketing on live streaming platforms. In the healthcare sector, we will continue to streamline cutting-edge manufacturing technology and natural ingredients with medicinal properties to create products that further enrich our health supermarket metrics. Our goal is to transition Chinese families from a reactive approach to healthcare to a proactive one that emphasizes daily dietary enhancements. At the same time, we will continue to innovate and enhance the vertical…

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers 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 first quarter of 2024, our operations remained relatively stable, as we continued to bolster the core process underpinning our operations. Refinements to our inventory management protocols enabled us to sustain a consistent level of gross profit. Inventory management remains a strategic focal point. We are vigilant in monitoring our assorted product categories on a weekly or monthly cadence to optimize stock levels. By doing so, we enhance utilization of our assets while more effectively managing our cash flows. At the same time, we are actively making our cash flow management more efficient. Now, let's take a close look at our financials. Total revenues were RMB 128 million compared to RMB 179 million a year ago. Revenues from sales of merchandise were RMB 102 million, and the revenue from our marketplace business was RMB 24 million. The changes were primarily driven by ongoing refinements to our product range across all categories. This, coupled with the optimization of our supplier and merchant network resulted in a shorter impact on sales. Despite these changes, our gross margin remained relatively solid at 49.4%. This was due to sustained customer loyalty towards our product labels and our effective product creation strategy. Now, let's take a look at our operations expense. Fulfillment expenses were RMB 22 million compared to RMB 27 million a year ago. This was primarily driven by a decrease in warehousing and logistic expenses which lowered merchandise sales, and reduced personnel costs resulting from staffing structure optimization. Sales and marketing expenses decreased to RMB 26 million from RMB 30 million a year…

Thank you. We will now begin the question-and-answer session. [Operator Instructions]. At this time, we will pause momentarily to assemble our roster. Our first question is from the line of Ethan Yu from First Trust Group. Please go ahead.

[Foreign Language] Hi, good evening. Thank you for taking my question. The management just mentioned our progress in short video and live streaming. Could you share more details about how we differ from other platforms in this area? Thank you.

[Interpreted] Thank you for your question. Firstly, we will select every commodity of an oil category and ensure they are cost-effective. We do not resort to selling low-priced, low-quality clearance items to draw traffic. Secondly, we are not only content creators but also developers of numerous commodities. Our team engages from the inception of the product [inaudible] project, actively participating in the traceability of the origin, production and selection of packaging materials. This hands-on approach creates a deeper understanding of the commodities and a more tangible grasp of the entire commodity chain compared to other content producers. At the most critical human level, Yunji's short video strategy in comprising both content production and distribution is rooted in an ordinary people-centric approach, facilitating individual entrepreneurship and rendering our content more accessible. Also, all these have differentiated us from other competitors. Thank you for your question.

Okay, got it. Thank you.

Thank you. Ladies and gentlemen, as there are no further questions at this time, I would 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.

Thank you. This conference is now concluded. Thank you for attending. You may now disconnect.