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Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yungi's first half 2026 Earnings Conference Call. With us today are Mr. Shang-Lu Hsiao, Chairman and Chief Executive Officer, and Ms. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on the company's current expectations and current market operating conditions and relate to events that invoke known or unknown risks, uncertainties, and other factors of Yen-G 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 the company's related documents filed with the U.S. SEC. Any forward-looking statements that the company makes 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 its filing with the SEC. The company does not undertake any obligation to update these statements, except as required under applicable law. With that, I will now turn the call over to Mr. Sheng Lu Xiao, Chairman and CEO of Yunji. Please go ahead, sir. 但我们坚守有机生活移民者的战略定位,通过产品和体验双轮驱动,在有机健康生活领域持续深耕。接下来,我将向大家汇报公司的财务表现和战例执行情况。 Okay. Hello, everyone. Welcome to ING's earnings course. Thank you for your continued interest and support. The market environment remains challenging in the first half of 2026, but we stayed firmly committed to our strategic positioning as a leader in organic living, advancing our products and experience through ING strategy as we continue to deepen our presence in the organic health living market. and we will now walk you through the company's financial performance and strategic execution. Let me begin by sharing some financial highlights, which reflect our proactive approach to optimizing our structure and improving quality and efficiency. Thank you very much. 提高公司的盈利水平和长期发展。 Total revenue for the first half was 96.3 million RMB compared with 158.3 billion RMB in the first period last year. This reflects the structural adjustment from our proactive efforts to optimize the merchandise mix, including discontinued relationships with certain third-party merchants whose offerings did not meet our enhanced product standards. While this affected our near-term revenue, we believe it has strengthened our merchandise mix in support of our long-term strategy. Self-operated merchandise now accounts for approximately 70% of the total sales, of which private label products accounted for 56%. Private label products with higher margins are increasingly becoming the core support for our revenue, while our experiential initiatives such as supply chain traceability continue to strengthen customer engagement and maintain stable customer retention, supporting improved profitability and long-term development. And at the same time, our growth margin remained resilient and our losses narrowed significantly. Growth margin for the period held steadily at approximately 41%, and the net loss for the first half narrowed to 72.4 million RMB, a substantial improvement compared with the same period last year. This reflects our continued display in cost management and operational efficiency as we directed resources toward high retention, high margin private label products, and toward enhancing the user experience. We remain confident in our path to improved profitability. Next, let me walk you through our business progress in the first half. Our strategy rests on two engines, product and experience. On the product side, we continue to build out our organic health, organic food, and beauty and skin care metrics. With food and medicine homology products as a growing focus within organic health. Together, our products and experience due engine approach powers UNG's organic health ecosystem. We'll be right back. In our organic health segment, we continue to deepen our presence in the broader health and wellness market with a particular focus on food medicine homology products that address the health needs of the modern families in China. Our first flagship product in this category is Polygonation Tea, which launched in the first quarter of 2025. Supported by premium origin sourcing, genuine quality, and refined processing techniques, the product received market feedback that exceeded our expectations. It quickly became a key growth driver of our food medicine homology product line. In the first half of 2026, Polygonation Tea delivered rapid sales growth and successfully validated a complete growth model. This demonstrates that our product strategy for entering the Chinese wellness and health market has a long-term market potential. 作为流量引入切点,与有机健康产品共同形成高低频搭配,长短周期互补的产품矩阵。 In our organic food segment, we have integrated our organic philosophy into consumers' daily meal occasions, particularly breakfast, the most important meal of the day. By capturing a high-frequency daily consumption occasion, we have established an effective customer acquisition channel, Together with our organic house product, this year forms a complementary product portfolio that balances high and low frequency consumption patterns and long-term consumption cycles. In our beauty segment, we remain focused on offering customers high-quality, high-value skincare and beauty products. In the current market environment, increasingly rational consumers, favorite products that deliver high value with affordable price. And Suya's long-standing brand positioning aligns closely with this trend. As a result, this brand has continued to earn consumer recognition and maintain a stable market position, with segment sales broadly stable compared with the same period last year. And at the same time, certain products have stood out. Suya Skin Care Condensing Essence Oil launched in the second half of 2025 has continued to receive positive feedback from consumers and achieved 29% sequential sales growth in the first half of this year. 所有的动作围绕着强化用户信任,提升复购转化展开。 我们共开展溯源活动约30次,每一次溯元都为我们带来了良好的销售转换。 如4月13日开展的白华之溯原,使得该单品的销证额同比与和环比分别增长了128%和146%。 再如6月17日开展的白岳山枸杞原浆溯源,使得单品销售额同比增长13%,环比増长366%,这验证了我们打造溯原体验强化用户触达这一策略是高效可行的,值得我们长期坚持。 End-to-end supply chain traceability experience is a core competitive advantage that sets Wingy apart from traditional e-commerce platforms. This is also a key method in building our customer loyalty. Our traceability experiment turns product quality from an abstract concept into something users can see and verify for themselves. In the first half of 2026, we continued to increase our investment in supply chain traceability experience, with all of our initiatives focused on strengthening user trust and improving repurchase conversion. In total, we conducted approximately 30 traceability events during the period, and these events collectively delivered strong sales conversion. For example, a traceability event for our Baiyueshan Birch Sap product held on April 13th drove the product's first-half sales up 128% year-over-year and 146% compared with the second-half of 2025. Similarly, a traceability event for Baiyueshan, Wolfberry, Peru held on June 17 is due to the product's first half sales up 13% year-over-year and 366% compared with the second half of 2025. These results confirm that our traceability experience strategy is effective in strengthening user engagement, reinforcing our confidence in pursuing this approach over the long term. 未来我们将持续优化产品矩阵,深化大健康布局,加码钥匙同源大健刚赛道,将资源向高毛利高复购单品倾斜,从根源优화盈利结构,同时我们将强化平台差异化体验壁垒,构建用户信任和品牌互征核,此外我们会持继保持成本管控,审慎评估各项资产和费用结枟,确保资员配置服务于长期战略优先级,最终为中国家庭提供更优质的有机健庯生活, Looking ahead, we will continue to refine our product metrics, expand our food and medicine terminology offerings, and channel more resources into high-margin, high-precious items to support continued margin improvement. At the same time, we continue to strengthen our differentiated experimental offerings to build user trust and a durable brand mode. We will also maintain our discipline in cost management, carefully evaluating our asset and expense structure to ensure resources are allocated in support of our long-term strategic priorities. Ultimately, our goal is to provide a better organic health living solutions for families across China and to create greater social value. 继续以用户价值为核心 平衡增长与盈利 推动公司实现长期可持续发展 Thank you for your continued interest and support Despite a complex market environment We remain confident in our strategic direction And we will continue to put user value At the center of our approach As we balance growth and profitability To drive the company's long-term sustainable development 我的分享到此结束 接下来欢迎我们公司财务高级总监 This concludes my prepared remarks for today. I will now hand it over to Ms. Nan Song, our Senior Financial Director, to walk you through the financial details. Thank you, Song Li. Hello, everyone. Before I go through our financial remarks, please note that all numbers stated in the following remarks are in our midterms, and all comparisons and percentage changes are on a year of... Otherwise noted. In the first half of 2026, the market environment remained the challenge. As Song Wei outlined, we stay firmly committed to our strategic position as a global leader in organic living, addressing our products and the experience due and supported by our relevant financial position. We remained disciplined in cost management and made timely adjustments to adapt to these conditions. Now let's take a closer look at our financials. Total revenues were $96.3 million compared to $158.3 in the same period a year ago. Revenues from sales of merchandise were $82.4 million, and revenues from our marketplace business was $13.7 million. The change in our total revenues for the period was primarily driven by softer consumer spending amid a broader macro environmental in China. Together with our choice to stay aligned with the organic health philosophy guiding our business As part of the effort, we also proactively tested certain products that did not align with our standard filters, sharpening our merchandise mix in support of our private label and organic housing priorities. Given this strategic declaration, we had anticipated this effect on our revenue backdrop for the period, and we continue to believe it represents the right long-term path for the business. On the cost side, the total cost of revenue decreased by 31.9% to R&D 56.8 million, primarily due to the low merchandise sales, which are recognized on a growth basis, excluding the impact of direct recognition of incentive available to inactive members, which carries no associated cost of revenue. Our growth margin remained resilient at 41% during the period. This is supported by our continued focus on selecting premium high retention categories together with our provider-labeled products. Now let's take a look at our operating expenses. Fulfillment expense decreased to $10.3 million from $20.6 million in the same period a year ago. The decrease was primarily driven by lower warehousing and logistics expenses resulting from reduced merchandise sales. Together with long personal costs from staffing, structure, refinement, sales and market expenses were 39.5 million compared to 15.1 million in the same period a year ago. The change is primarily due to the low management fees and reduced business promotion expenses. Technology and content expenses were 12.4 million compared to 15,3 million in that same period, a year ago. was mainly due to the reduction in personal costs as a result of continued staffing structural reform. General and administrative expenses decreased to $47.5 million from $93.4 million in the same period a year ago. The decrease was mainly driven by reduction in allow for credit loss on the third part, low receivable and partially offset by increasing impediment for property and equipment. Our executive plan extended across nearly every category this period, with year-over-year reduction reflecting both our small merchandise space and our ongoing staffing and cost Defection measures as a result totally operating expenses in the first half of 2026 decreased to $109.7 million from $139.4 million in the same period of 2025, a 38.8% reduction loss from operation levels significantly to $39.4 million from $100.4 million in the same period a year ago. This expense display supports our continued progress towards profitability, even as revenue fetches pressure from the software environment disappeared Net loss was $72.4 million compared with $107 million a year ago, while adjusted net loss was $72,3 million. Compared with $100.5 million a year ago the year-over-year level of both net loss and adjusted net loss reflects our expected strength together with our continuous focus on addressing customer engagement and maintaining stable customer retention. Basic and narrow-diluted net loss per share attributable to ordinary shareholders were both narrowed to 0.04 from 0.05 in the same period over 2020. 5. Turning to liquidity as of June 30, 2026, we have a total of over $242.1 million in cash and cash equivalent restructural cash and short-term investment on our balance sheet compared to $216.1 billion as of December 31, 2025. We maintained a sufficient record to meet our payable obligations while continuing to optimize working capital and manage our assets efficiently in support of our operations. Looking at the first half as a whole, in the gastronomic market environment, we made future progress on cost display and then narrowed our loss on a year-over-year basis. This reflects our continued execution of the strategic priorities shown on the slide. are displaying in cost management and our focus on organic health and provide label products. Our solid financial position continues to support these priorities and will remain displaying how we manage costs and allocate in support of our strategic position as a leader in organic health living. Looking forward, we will remain focused on improving our operation margin as we balance growth and profitability in support of the company's long-term sustainable development. This concludes our prepared remarks for today. Thank you. Operator, are you listening? That brings us to an end of today's call. Thank you for attending. You may now disconnect.