Q2 2024 ATRenew Inc Earnings Call

Operator: 优优独播剧场——YoYo Television Series Exclusive 字幕由 Amara.org 社群提供, Good morning and good evening, ladies and gentlemen.

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Michael Kim, Joyce Ju, Chen Chen, Lixin Ju Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to AT Renews Incorporated Second Quarter, 2004 Earnings Conference Call. At this time, all participants are in a listen only mode. We will be hosting a question and answer session after management's prepared remarks. Please note today's event is being recorded. I would now like to turn the call over to our first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the Company. Please go ahead, sir. Thank you, Chuck. Hello everyone. Welcome to AT Renews, Section Culture of 2020 Earnings Conference Call. Speaking first today is Charityan, our founder, Janna, and CEO. And here we follow by direction, our CFO. Observe to open the call to questions from analysts. The second quarter, 2024 financial results were released early today. The earnings release and the investor's lives accompanying this call are available at our website, www.aqnew.com. There will also be a transcript following this call for your community. For today's agenda, Karen will share her thoughts about our quarterly performance and business strategy for the directs who will address the financial highlights. Both Carrie and Rex will join the Q&A session. Let me cover your sit-hop estimates. Some of the information you will hear during this conversation today will consist of a forward look in statements, and I refer you to our sit-hop estimates in the earnings press release. Any forward look in statements that management makes on this call today are based on assumptions as of today, that AT Renews does not take any obligations to upgrade our assumptions on these statements. Also, this call includes discussions of certain non-get financial measures. Please refer to our earnings press release, which continues a reconciliation of conduct measures to get measures. Finally, please note that, a life otherwise stated, all figures mentioned during this conference call are in R&B, and all comparisons are on a year-old year basis. I now like to turn the call over to Carrie for degrees and strategy updates. Hello everyone, and welcome to AT Renews 2nd quarter of 2024 earnings conference call. We are pleased to share our achievements in this quarter, and the strategies we have implemented in the evolving landscape, where the circular economy has been driving consumer

Operator: Good morning and good evening, ladies and gentlemen.

Operator: Thank you for standing by and welcome to

Operator: Thank you for standing by, and welcome to ATRenews, Incorporated's second quarter 2024 earnings conference call.

Speaker Change: Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to AT Renews Incorporated's second quarter 2024 earnings conference call.

Operator: ATRenews Incorporated's second quarter 2024 earnings conference call.

Operator: At this time, all participants are in a listen-only mode.

Operator: At this time, all participants are in a listen-only mode.

Operator: We will be hosting a question and answer session after management's prepared remarks. Please note today's event is being recorded.

Operator: We will be hosting a question-and-answer session after management's prepared remarks. Please note today's event is being recorded.

Speaker Change: At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks.

Operator: I would now like to turn the call over to our first speaker today,

Operator: I would now like to turn the call over to our first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the company.

Speaker Change: Please note today's event is being recorded. I would now like to turn the call over to our first speaker today, Mr. Jeremy Ji, Director of Corporate Development and Investor Relations of the company. Please go ahead, sir.

Operator: Please go ahead, sir.

Jeremy Ji: Thank you, Chuck.

Operator: Mr. Jeremy Gee, Director of Corporate Development and Investor Relations of the company.

Speaker Change: Thank you, Chuck. Hello, everyone, and welcome to AT Renew's second quarter of 2024 earnings conference call.

Jeremy Ji: Hello, everyone, and welcome to AT Renew's second quarter of 2024 earnings conference call.

Scarriing: Speaking first today is Kerry Chen, our founder, chairman, and CEO . And he will be followed by Rex Chen, our CFO . After that, we will open the call to questions from the analysts.

Speaker Change: The second quarter of 2024 financial results were released on each day.

Speaker Change: The earnings release and investor slides accompanying this call are available at our IR website, ir.humu.com.

Speaker Change: There will also be a transcript following this call for your convenience.

Jeremy Ji: Speaking first today is Kerry Chen, our founder, chairman, and CEO.

Jeremy Ji: And he will be followed by Rex Chen, our CFO.

rexs: For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Rex, who will address the financial highlights.

Speaker Change: Both Kerry and Rex will join the Q&A session.

Speaker Change: And we cover the six harvest statements.

Speaker Change: Some of the information you'll hear during this conversation today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earliest press release.

Speaker Change: Any forward-looking statements that management makes on this call today are based on assumptions as of today. And that AT Renewal does not take any obligations to upgrade our assumptions on these statements.

Speaker Change: Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.

Speaker Change: Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB, and all comparisons are on a year-over-year basis.

Carrie: I'd now like to turn the call over to Kerry for the news and strategy updates.

Speaker Change: Hello investors and analysts, welcome to the Wannu New Life Group's 2024 Q2 earnings call. We are pleased to share the group's performance with you and discuss our strategic thinking on promoting consumption through the circular economy this quarter.

Jeremy Ji: After that, we will open the call to questions from the analysts.

Operator: Please go ahead, sir.

Speaker Change: Hello everyone and welcome to AT Renew's second quarter 2024 earnings conference call. We are pleased to share our achievements this quarter and the strategies we have implemented in the evolving landscape where the circular economy has been driving consumer behavior.

Chuck: Thank you, Chuck.

Jeremy Ji: The second quarter of 2024 financial results were released on each day.

Jeremy Gee: Hello, everyone, and welcome to ATRenews' second quarter 2024 earnings conference call.

Speaker Change: Although residents' willingness to consume continues to be sluggish and they are saving on living expenses, Wanwu Xinxing still achieved solid growth. Both the recycling end and the second-hand retail end showed positive growth trends. We see the country driving domestic demand consumption through large-scale consumer goods trade-in policies, bringing more idle goods into the second-hand circulation. Driven by policies, we have already seen significant benefits in recycling volume in some cities, such as Shenzhen, in the short term. In the long term, we see these policies enhancing the awareness of a wide range of users about second-hand idle recycling. Policy support is beneficial for the certainty of our long-term business development. In the second quarter, we achieved positive growth, especially in the recycling end and the sale of valueless goods, which will have a lasting impact. By increasing sustained consumption and the recycling of second-hand goods, such support provides greater certainty for our continued growth. Specifically, Wanwu Xinxing's growth performance in the second quarter showed that the group's total revenue reached 3.78 billion RMB, a year-on-year increase of 27.4%, exceeding the high end of the guidance. Among them, the revenue of a batch of products reached 3.4 billion RMB, a year-on-year increase of 29%, contributing the main driving force for growth. It is worth mentioning that the recycling order volume of the main 3C mobile phone 3C digital category increased by 27.8% year-on-year, including the total order volume of some low-margin self-operated businesses, which increased by 38.9% year-on-year. Focusing on our business performance in the second quarter, the total revenue reached 3.78 billion RMB, a year-on-year increase of 27.4%, exceeding the high end of the guidance. The revenue of products reached 3.4 billion RMB, a year-on-year increase of 29%, contributing the main driving force for growth. It is worth mentioning that our core self-operated business contributed the main driving force for growth, with total revenue reaching 3.97 billion RMB, contributing the main driving force for growth. The joint recycling with JD Communications' innovative Apple-for-Apple model has been well received by users. In May, the recycling amount of the trade-in through JD channels increased by 97.6% year-on-year. During the 618 promotion period, the order volume of mobile phone 3G digital trade-ins through JD channels increased by 100% year-on-year.

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Speaker Change: Willingness remains low, and budgets are being saved on living expenses, but All Things Renewed still achieved solid growth.

Speaker Change: There has been a positive growth trend in both the recycling sector and the second-hand retail sector. We see the country stimulating domestic demand through large-scale consumer goods trade-in policies, leading to more idle goods entering the second-hand circulation cycle.

Speaker Change: Driven by policies, in the short term, we have already seen significant benefits in recycling volumes in some cities, such as Shenzhen. In the long term, we also see these policies enhancing the awareness of second-hand idle recycling among the general public.

Speaker Change: The support of policies is beneficial for the certainty of our long-term business development.

Jeremy Ji: The earnings release and investor slides accompanying this call are available at our IR website, ir.atrumu.com.

Speaker Change: In the second quarter, we achieved solid growth, especially at the recycling end and in value-for-money retail business, even though consumers are more prudent with spending.

Jeremy Ji: There will also be a transcript following this call for your convenience.

Speaker Change: To boost domestic consumption, the government has taken actions to encourage large-scale trade-ins of consumer goods. As a result, more products have entered the pre-owned market through e-commerce platforms and physical retailers.

Speaker Change: In the near term, we have already witnessed a significant increase in recycling volumes in cities like Shenzhen. More importantly, we believe such policies and support will have a long-lasting impact by raising awareness of sustainable,

Speaker Change: consumption and the resulting of second-hand goods.

Speaker Change: Such support provides greater certainty to our sustained growth outlook.

Speaker Change: Specifically, in terms of the growth performance of All Things Renewed in the second quarter, the group's total revenue reached 3.78 billion RMB, a year-on-year increase of 27.4%, exceeding the high-end of the guidance. Among this, the revenue of a batch of products reached 3.4 billion RMB.

Speaker Change: Year-on-year growth of 29% contributed to the main driving force of the growth. It is worth mentioning that

Jon: The main business of recycling orders for mobile phones and 3C digital products saw a year-on-year increase of 27.8%. The total order volume of self-operated business, which includes some low-priced items, increased by 38.9% year-on-year in the second-hand industry.

Jeremy Ji: For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy, followed by Lex, who will address the financial highlights. Both Kerry and Rex will join the Q&A session.

Jeremy Ji: And we conduct a Six-Part statement.

Speaker Change: Looking specifically at our business performance in the second quarter, our total revenue reached 3.78 billion RMB, up 27.4% year-over-year, exceeding the high end of our guidance.

Jeremy Ji: Some of the information you'll hear during this conversation today will consist of forward-looking statements.

Jeremy Ji: And I refer you to our safe harbor statements in the earliest press release.

Jeremy Ji: Any forward-looking statements that management makes on this call today are based on assumptions as of today, and that AT Renewal does not take any obligations to upgrade our assumptions on these statements.

Jeremy Ji: Also, this call includes discussions of certain non-GAAP financial measures.

Jeremy Ji: Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.

Speaker Change: Product revenue was $3.4 billion, up 29% year-over-year, serving as the main growth driver.

Jeremy Ji: Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB, and all comparisons are on a year-over-year basis.

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Speaker Change: Other volume related to our core self-operated consumer electronics recycling business grew 27.8%, while other volume of the overall self-operated business that included low-ASD business grew 38.9% year-over-year, leading in the second-hand industry.

Speaker Change: In core business scenarios, star swapping in the universe is becoming an increasingly mainstream purchasing method.

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Speaker Change: The innovative Apple-for-Apple model, jointly developed by JD Communications, has been widely praised by users.

Speaker Change: In May, the trade-in recycling amount through JD channels increased by 97.6% year-on-year. During the 618 promotion period, the number of trade-in orders for mobile phones and 3G digital products through JD channels increased by 100% year-on-year.

Speaker Change: Among primary recycling scenarios, treaties have become an increasingly mainstream way to shop. We collaborated with JD.com on their old Apple product for new Apple products initiative, which received widespread praise from users. In May, the recycling value of used products created in through JD.com grew 97.6% over year. During the June 18th shopping festival, the treaty volume of used consumer electronic products from JD.com increased by 100% over year. In our platform business, revenue grew 14.6% over year to 370 million RMB. PJT and pipeline marketplaces maintained healthy tech rates, with an increasing number of third-party merchants leveraging our inspection capabilities and adopting our confinement model. The GNV of our multi-catch green recycling service business increased by nearly 400% over year, serving as the main driver of platform business growth and reflecting that in the current micro-environment and increasing number of users are willing to explore recycling services beyond consumer electronics categories. [inaudible]

Jeremy Ji: I'd now like to turn the call over to Kerry for the news and strategy update.

Kerry Chen: 各位投资者和分析师大家好 欢迎各位参加万无新生集团 2024第二季度业绩电话会 我们很高兴与各位分享集团的业绩 交流本季度对于循环经济 促进消费的战略思想, Hello everyone and welcome to AT RENEW's second quarter 2024 earnings conference call. We are pleased to share our achievements this quarter and the strategies we have implemented in the evolving landscape where the circular economy has been driving consumer behavior.

Speaker Change: among primary recycl scenarios treating havebecom and increasingly mainstream way to shoarp we collaborated with dadies come on their oldion po product for new apfo product initiative which received widespread praise from users

Jeremy Gee: Speaking first today is Kerry Chen, our Founder, Chairman, and CEO.

Jeremy Gee: And he will be followed by Rex Chen, our CFO.

Kerry Chen: 二季度雖然居民的消費, 意愿持续低迷 在生活支出上节省预算 但是万物新生仍然实现了扎实的增长 在回收端和二手零售端 都出现了积极的增长趋势 我们看到国家通过大规模消费品 以就换新政策拉动内需消费 更多的闲置商品进入到二手循环扭转中 政策驱动下,短期内我们已经在一些城市,比如深圳,看到了回收量的显著受益,长期来看,我们更看到这些政策对于提升广大用户的二手闲置回收的认知,政策的支持有利于我们业务长期发展的确定性。 In the second quarter, we achieved solid growth, especially at the recycling end and in value for money retail business, even though consumers are more prudent with spending. To boost domestic consumption, the government has taken actions to encourage large-scale trade-ins of consumer goods. As a result, more products have entered the pre-owned market through e-commerce platforms and physical retailers. In the near term, we have already witnessed a significant increase in reflux volumes in cities like Shenzhen. More importantly, we believe such policies and support will have a long-lasting impact by raising awareness of sustainable consumption and the reflux of second-hand goods. Such support provides greater certainty to our sustained growth outcomes.

Speaker Change: In May, the recycling value of used products traded in through JD.com grew 97.6% year-over-year. During the June 18th Shopping Festival, the trading volume of used consumer electronic products from JD.com increased by 100% year-over-year.

Kerry Chen: 具體來看,萬物新生在二季度的增長表現,集團的總收入達37.8億元人民幣,同比增長27.4%,超過直映的高端。其中,一批產品的收入達34億元人民幣。 同比增長29%,貢獻了增長的主要動力 值得一提的是, 主营手机3C数码品类的回收订单量同比增长27.8% 包含了部分低客单价商品的自营业务的订单总量同比增长38.9% 临跑二手行业, Looking specifically at our business performance in the second quarter, our total revenue reached 3.78 billion RMB, up 27.4% year-over-year, exceeding the high end of our guidance.

Speaker Change: In terms of platform business, revenue increased by 14.6% year-on-year to 370 million RMB.

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Speaker Change: Sustained health

Speaker Change: Warehouse quality inspection and consignment model are being accepted by more third-party merchants.

Jeremy Gee: After that, we will open the call to questions from analysts.

Speaker Change: In addition, the transaction scale of the multi-category recycling business on the platform has increased nearly fourfold year-on-year, contributing more momentum to the platform's growth. This also reflects that in the current consumer environment, more and more users are willing to try recycling services for a wider range of categories.

Kerry Chen: Product revenue was $3.4 billion, up 29% year-over-year, serving as the main growth driver, no problem, Other volume related to our core self-operated consumer electronics recycling business grew 27.8%, while other volume of the overall self-operated business that included low-ASD business grew 38.9% year-over-year, leading in the second-hand industry.

Speaker Change: In our platform business, revenue grew 14.6% year-over-year to 370 million RMB. PJT and PaiPai marketplaces maintained healthy tick rates, with an increasing number of third-party merchants leveraging our inspection capabilities and adopting our confinement model.

Kerry Chen: 核心业务场景中宇宙换星成为越来越主流的购买方式, AiHuiShou 联合京东通讯创新的苹果换苹果的模式 广受用户好评, 5月京东渠道已旧换新的回收额同比增长达97.6% 618大促期间,京东渠道的手机3G数码的已就换新订单量同比增长达100% Among primary recycling scenarios, trading has become an increasingly mainstream way to shop. We collaborated with JD.com on their old Apple product for new Apple product initiative, which received widespread praise from users. In May, the recycling value of used products traded in through JD.com grew 97.6% year-over-year. During the June 18th Shopping Festival, the trading volume of used consumer electronic products from JD.com increased by 100% year-over-year.

Speaker Change: The GMV of our multi-category recycling service business increased by nearly 400% year-over-year.

Kerry Chen: 平台业务方面收入同比增长14.6%到3.7亿元, 其中拍地团和拍拍的收费率 持续健康, 入仓质检和寄卖模式被更多的第三方商家所接受 此外,平台模式的多品類回收業務的交易規模同比增長近四倍,貢獻了平台增長的更多動力,也反映了在當前消費環境下,越來越多的用戶願意嘗試更多品類的回收方式。 In our platform business, revenue grew 14.6% year-over-year to 370 million RMB. PJT and PaiPai marketplaces maintained healthy tick rates, with an increasing number of third-party merchants leveraging our inspection capabilities and adopting our confinement model.

Speaker Change: serving as the main driver of platform business growth and reflecting that, in the current micro-environment, an increasing number of users are willing to explore recycling services beyond consumer electronics categories.

Kerry Chen: The GMV of our multi-category recycling service business increased by nearly 400% year-over-year, serving as the main driver of platform business growth, and reflecting that, in the current micro-environment, an increasing number of users are willing to explore recycling services beyond consumer electronics categories.

Kerry Chen: 毛利层面,二季度我们有效的将苹果官方已就换新业务的毛利率转正,促进了产品收入毛利率整体回升至12.1%,环比一季度提升了1.2个百分点。 相比2023年同期 由於產品收入佔比提升了1.1個百分點 集團的整體毛利率同比小幅收窄到20.0% 在经营利润层面,更大的业务规模促成了费用效率的优化,Mungap的履约费用率同比下降0.3个百分比。 Mangab的營銷費率、費用率同比下降1.1個百分比 综合实现了Nangab金银利润率 同比提升0.7个百分点至2.5% On the growth margin front, we successfully turned the growth margin of the Apple trading business positive in the second quarter, raising the overall product revenue growth margin to 12.1%, an increase of 1.2 percentage points from the first quarter of 2024.

Jeremy Gee: The second quarter 2024 financial results were released earlier today. The earnings release and investor slides accompanying this call are available at our IR website, ir.atrenew.com.

Jeremy Gee: There will also be a transcript following this call for your convenience.

Jeremy Gee: For today's agenda, Kerry will share his thoughts of our quarterly performance and business strategy,

Speaker Change: In terms of gross profit, in the second quarter, we effectively turned the gross profit margin of the business that Apple is concerned about positive.

Jeremy Gee: followed by Rex, who will address the financial highlights.

Jeremy Gee: Both Kerry and Rex will join the Q&A session.

Speaker Change: Promoted the overall recovery of product revenue gross margin to 12.1%, an increase of 1.2 percentage points compared to the first quarter.

Jeremy Gee: Let me cover the six Harvard statements.

Speaker Change: Compared to the same period in 2023, due to the increase in the proportion of product revenue by 1.1 percentage points, the group's overall gross profit margin slightly narrowed to 20.8% year-on-year.

Jeremy Gee: Some of the information you'll hear during this conversation today will consist of forward-looking statements, and I refer you to our six Harvard statements in the earnings press release.

Jeremy Gee: Any forward-looking statements that management makes on this call today are based on assumptions as of today, and that ATRenew does not take any obligations to upgrade our assumptions on these statements.

Jeremy Gee: Also, this call includes discussions of certain non-GAAP financial measures.

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Jeremy Gee: Please refer to our earnings press release, which contains a reconciliation of non-GAAP measures to GAAP measures.

Speaker Change: Nangab's marketing expense ratio decreased by 1.1 percentage points year-on-year, resulting in an overall increase in Nangab's operating profit margin by 0.7 percentage points to 2.5% year-on-year.

Jeremy Gee: Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB, and all comparisons are on a year-over-year basis.

Jeremy Gee: I'd now like to turn the call over to Kerry for business and strategy updates.

Speaker Change: On the growth margin front, we successfully turned the growth margin of the Apple trading business positive in the second quarter, raising the overall product revenue growth margin to 12.1%.

Kerry Chen: Thank you.

Kerry Chen: Hello, everyone, and welcome to ATRenew's second quarter 2024 earnings conference call.

Speaker Change: an increase of 1.2 percentage points from the first quarter of 2024. Gross margin at the group level slightly dropped to 20.8%.

Kerry Chen: We are pleased to share our achievements this quarter and the strategies we have implemented in the evolving landscape,

Kerry Chen: Growth margin at the group level slightly dropped to 20.8%, as the proportion of product revenue increased by 1.1 percentage points compared with the second quarter of 2023.

Kerry Chen: where the circular economy has been driving consumer behavior.

Speaker Change: as the proportion of product revenue increased by 1.1 percentage points compared with the second quarter of 2023.

Kerry Chen: Even though the economies of scale have also led to improved cost efficiency, the non-gap fulfillment expense as a percentage of total revenues decreased by 0.3 percentage points year over year, while the non-gap selling and marketing expense as a percentage of revenue fell by 1.1 percentage points year over year.

Speaker Change: even though the economies of scale have also led to improved cost efficiency.

Speaker Change: The Non-Gap Fulfillment Expense as a percentage of total revenues decreased by 0.3 percentage points year-over-year, while the Non-Gap Selling and Marketing Expense as a percentage of revenue fell by 1.1 percentage points year-over-year.

Kerry Chen: This overall resulted in a 0.7 percentage points improvement year over year in the non-gap operating profit margin, bringing it to 2.5% in the second quarter of 2024. 以上业绩得益于我们扎实的场景和供应链能力的核心优势。长期来看,我们会基于这些核心优势,持续做能力的沉淀和延伸。 The achievements we've discussed so far are rooted in our core strengths in recycling scenarios and supply chain capability. Going forward, we will continue to build on these strengths to drive further growth and success.

Speaker Change: This overall resulted in a 0.7 percentage point improvement year-over-year in the non-gap operating profit margin, bringing it to 2.5% in the second quarter of 2024.

Kerry Chen: 二季度,雖然居民的消費意願持續低迷,在生活支出上節省預算,但是萬物新生仍然實現了紮實的增長,在回收端和二手零售端都出現了積極的增長趨勢。 我們看到,國家通過大規模消費品與舊換新政策拉動內需消費,更多的閒置商品進入到二手循環扭轉中。政策驅動下,短期內我們已經在一些城市,比如深圳,看到了回收量的顯著受益。長期來看,我們更看到這些政策對於提升廣大用戶的二手閒置回收的認知,政策的支持有利於我們業務長期發展的確定性。 Among primary recycling scenarios, trading has become an increasingly mainstream way, to shop.

Speaker Change: The achievements we've discussed so far are rooted in our core strengths in recycling scenarios and supply chain capabilities. Going forward, we will continue to build on these strengths to drive further growth and success. On one hand, we have strengthened our service capabilities in our core business of consumer electronics recycling and transaction services. In June , we renewed our strategic agreement to deepen our business collaboration with JD.com in areas such as consumer electronics recycling and the retail of valuable money they can hand products. This renewal also introduced new trading methods for Apple products. We continue to meet the high standards and specific needs of JD users through our industry leading fulfillment and supply chain capabilities. [inaudible] Our trading business through JD has experienced a rapid growth. In the first half of the year, the recycling value of products treated in by JD users increased by over 60% year over year. In June , the recycling value of products fulfilled by trading programs surpassed that of regular recycling for the first time, establishing it as leading recycling methods through JD. Trillions provide a better user experience than regular recycling effectively capturing users' amount for upgraded devices and receiving growing acceptance and adoption by our users. [inaudible]

Speaker Change: The above performance benefits from our core advantages in solid scenarios and supply chain capabilities. In the long term, we will continue to build and extend these core advantages.

Speaker Change: The achievements we've discussed so far are rooted in our core strengths in recycling scenarios and supply chain capabilities. Going forward, we will continue to build on these strengths to drive further growth and success.

Kerry Chen: We collaborated with JD.com on their old Apple product for new Apple product initiative, which received widespread praise from users.

Kerry Chen: 一方面,对于业务的基本盘及手机3C回收和交易业务, 我们在今年的6月份完成了与京东的战略合作续约, 在二手手机3C回收、宇宙换新、二手优品零售等核心业务上深化合作, 并且增加了新的苹果换新的交付方式。 萬戶新生以行業領先的履業能力、供應鏈能力持續服務京東主宰優質且精準的用戶需求, On one hand, we have strengthened our service capabilities in our core business of consumer electronics, recycling, and transaction service. In June, we renewed our strategic agreement to deepen our business collaboration with JD.com in areas such as consumer electronics recycling, trade-ins, and the retail of valuable money second-hand products. This renewal also introduced new trading methods for Apple products. We continue to meet the high standards and specific needs of JD users through our industry-leading fulfillment and supply chain capabilities.

Speaker Change: On one hand, regarding the core business and the mobile phone 3C recycling and trading business.

Speaker Change: We completed the strategic cooperation renewal with JD.com in June this year in the second-hand business.

Kerry Chen: In May, the recycling value of used products traded in through JD.com grew 97.6% year-over-year. During the June 18th Shopping Festival, the trading volume of used consumer electronic, products from JD.com increased by 100% year-over-year.

Speaker Change: Deepen cooperation in core businesses such as second-hand mobile phone 3C recycling, trade-in for new devices, and retail of high-quality second-hand products, and added a new Apple trade-in delivery method.

Kerry Chen: In our platform business, revenue grew 14.6% year-over-year to 370 million RMB.

Kerry Chen: PJT and PaiPai marketplaces maintained healthy tick rates with an increasing number of third-party, merchants leveraging our inspection capabilities and adopting our confinement model.

Kerry Chen: The GME of our multi-category recycling service business increased by nearly 400% year-over-year, serving as the main driver of platform business growth and reflecting that in the current micro-environment, an increasing number of users are willing to explore recycling services beyond consumer electronics categories.

Speaker Change: Wanhuxinsheng continuously serves JD's dominant, high-quality, and precise user needs with industry-leading operational capabilities and supply chain capabilities.

Speaker Change: On one hand, we have strengthened our service capabilities in our core business of consumer electronics, recycling, and transaction services.

Speaker Change: In June , we renewed our strategic agreement to deepen our business collaboration with JD.com in areas such as consumer electronics refining, trade-ins, and the retail of value-for-money second-hand products.

Speaker Change: This renewal also introduced new trading methods for Apple products.

Speaker Change: We continue to meet the high standards and specific needs of JDE users through our industry-leading fulfillment and supply chain capability.

Kerry Chen: 京东渠道已旧换新服务的渗透和发展保持了高速的增长 上半年,服务京东用户的已旧换新回收额同比增长超过50% 並且,AiHuiShou在京東渠道的宇宙歡心在今年6月首次超越該渠道普通回收的交易額。 宇宙歡心提供了更好的用戶體驗,鎖定了用戶的購心需求,充分體現了用戶對於宇宙歡心服務方案會更廣泛的認可。 Our trade and business through JD has experienced a rapid growth. In the first half of the year, the recycling value of products traded in by JD users increased by over 50% year-over-year. Notably, in June, the recycling value of products fulfilled by trading program surpassed that of regular recycling for the first time, establishing it as the leading recycling method through JD. Trillions provide a better user experience than regular recycling, effectively capturing users' demand for upgraded devices, and receiving growing acceptance and adoption by our users.

Speaker Change: The penetration and development of JD.com's trade-in service have maintained rapid growth, with the trade-in recycling amount for JD.com users in the first half of the year increasing by more than 50% year-on-year.

Speaker Change: Moreover, the trade-in value of Ahui's boat exchange on the JD.com channel surpassed the regular recycling transaction value on that channel for the first time this June .

Speaker Change: Cosmic Joy provides a better user experience, targets users' purchasing needs, and fully reflects the broader recognition of users for the Cosmic Joy service plan.

Speaker Change: our treat business through jv has experienced record growth

Speaker Change: In the first half of the year, the recycling value of products traded in by JD users increased by over 50% year-over-year.

Speaker Change: Notably, in June , the recycling value of products fulfilled by trading program surpassed that of regular recycling for the first time, establishing it as the leading recycling method through JD.

Speaker Change: Trillions provide a better user experience than regular recycling, effectively capturing users' demand for upgraded devices, and receiving growing acceptance and adoption by our users.

Kerry Chen: In the second quarter of the year, we effectively reversed Apple's trading volume of recycling, services and promoted a 12.1% return on product revenue, which increased by 1.2% year-over-year.

Kerry Chen: Compared to the same period in 2023, due to a 1.1% increase in product revenue, the, company's overall trading volume increased by 20.8% year-over-year.

Speaker Change: In the second quarter, we successfully reversed the gross profit performance on Apple's official universe star exchange service.

Kerry Chen: In terms of operating profit, a larger business scale has facilitated efficiency optimization.

Kerry Chen: Non-GAAP's retail cost rate fell by 0.3%, and non-GAAP's retail cost rate fell by 1.1%.

Speaker Change: The second quarter is the off-season for Apple's official business. While we confirmed revenue of 160 million RMB during the quarter, operating profit turned positive.

Kerry Chen: In total, non-GAAP's operating profit rate increased by 0.7% to 2.5%.

Speaker Change: The medium to long-term goal is an operating profit of 3% to 4%. The front-end fulfillment and marketing promotion costs of this business are very light, which can make a good positive contribution to the group's ability to achieve operating profit.

Kerry Chen: On the growth margin front, we successfully turned the growth margin of the Apple Trading, Business positive in the second quarter, raising the overall product revenue growth margin to 12.1%, an increase of 1.2 percentage points from the first quarter of 2024.

Speaker Change: In our official trade operations at Apple, we successfully turned the growth range positive, as expected in the second quarter. During this consistently smooth period, we achieved a profit of $16 billion. Specifically, we ensured a positive operating range in the second quarter, targeting a long-term operating profit range of 3% to 4%. We continue to build our offline fulfillment capabilities, enhancing the moat of our AiHuiShou business. By the end of the second quarter, we operated 1,516 AiHuiShou stores in 260 cities nationwide. During the quarter, we added 19 new AiHuiShou self-operated stores and 64 AiHuiShou companies. Additionally, to meet users' needs for multi-category recycling, we updated the store image or location of over 50 AiHuiShou self-operated stores. Furthermore, by the end of the second quarter, we operated an on-site service team of over 600 people nationwide, primarily to meet customer needs and adapt to users' demands for multi-category recycling. Additionally, by the end of the second quarter, we operated an on-site service team of over 600 people nationwide, primarily to meet users' diverse delivery fulfillment needs. The on-site team operated by AiHuiShou maintains a unified brand image and service standards, with face-to-face transactions and immediate payment, offering a significantly better experience compared to traditional mail-in recycling. We continue to build our online fulfillment capabilities to strengthen our business model. By the end of the second quarter, we operated 1,516 online stores in 260 cities nationwide and strengthened 19 self-operated customers. By the end of the second quarter, we operated 6,516 online stores in 260 cities nationwide and operated 69 self-operated customers. By the end of the second quarter, we operated 6,516 self-operated customers in 266 cities nationwide. By the end of the second quarter, we operated 720 self-operated customers in 266 cities nationwide. By the end of the second quarter, we operated 720 self-operated customers in 266 cities nationwide. By the end of the second quarter, we operated 720 self-operated customers in 266 cities nationwide. [inaudible]

Kerry Chen: Growth margin at the group level slightly dropped to 20.8% as the proportion of product, revenue increased by 1.1 percentage points compared with the second quarter of 2023.

Kerry Chen: 在蘋果官方已就換新服務上,二季度我們如期扭轉了毛利表現,二季度是蘋果官方業務的淡季,我們在季度內確認了1.6億元人民幣收入的同時,運營利潤轉正。 中長期的目標是運營利潤3%到4%,該業務前端履約和推廣營銷費用很輕,對於集團能夠實現運營利潤的良好正向貢獻。 For our Apple's official trading business, we successfully turned the growth margin positive as anticipated in the second quarter. During this typically off-peak period, we achieved 160 million RMB in revenue. Specifically, we ensured a positive operating margin for this segment in the second quarter while aiming at a long-term operating profit margin of 3% to 4%. The expenses at the operating level are simple, and we expect Apple's official trading business to bring more positive operating profits.

Speaker Change: for our Apple's official trading business.

Speaker Change: we successfully turned the growth margin positi have anticipated in the second quarter

Speaker Change: During this typically off-peak period, we achieved 160 million RMB in revenue. Specifically, we ensured a positive operating margin for this segment in the second quarter while aiming at a long-term operating profit margin of 3% to 4%.

Speaker Change: Expenses at the operating level are simple, and we expect Apple's official trading business to bring more positive operating profit.

Kerry Chen: 我们对于线下履约能力持续做建设,提升爱回收业务的护城河。 截止二季度末,我們在全國260個城市運營了1516間愛護壽門店。 記錄內新增了19間 愛荷華州自營門店 69間愛荷華州免疫門店, 并且适配用户对于多品类回收的需求。 对超过50间AiHuiShou自营门店进行了门店形象或者位置的更新。 除此之外,截至二季度末,我們在全國範圍內,運營了超過六百人的上門服務團隊。 主要用於滿足用戶對交付履約方式的多樣化需求, AiHuiShou运营的上门团队保持统一的品牌形象和服务标准,面对面业绩当场增加。 相对传统邮寄回收的体验优势明显, 阿基努勒 我们上门回收业务保持与C2B业务大盘基本一致的增速 到店和上门两种线下履约方式为用户提供便捷的回收服务选项, We continue to build our offline fulfillment capabilities to strengthen our business model. As of the end of the second quarter, we operated 1,516 AHS offline stores in 260 cities nationwide, with a net increase of 19 self-operated stores and 69 jointly-operated stores in the quarter. To meet users' demand for multi-category recycling, we upgraded the store image for location of over 50 self-operated stores.

Speaker Change: We continue to build our offline fulfillment capabilities to enhance the moat of the Aihuishou business.

Speaker Change: By the end of the second quarter, we operated 1,516 Recycle 2 stores in 260 cities nationwide. During the quarter, we added 19 self-operated Recycle 2 stores and 69 joint-operated Recycle 2 stores.

Speaker Change: And to meet the users' needs for multi-category recycling, we have updated the store image or location for over 50 self-operated recycling stores.

Speaker Change: In addition, as of the end of the second quarter, we operated an on-site service team of over 600 people nationwide.

Speaker Change: Mainly used to meet the diverse needs of users for delivery fulfillment methods.

Speaker Change: The on-site team of the second-hand recycling operation maintains a consistent brand image and service standards, conducts face-to-face device inspections, and makes payments on the spot, offering a significantly better experience compared to traditional mail-in recycling.

Speaker Change: Our door-to-door recycling business maintains a growth rate consistent with the overall C2B business. Both in-store reporting and door-to-door services offer convenient recycling options for users.

Speaker Change: We continue to build our offline fulfillment capabilities to strengthen our business mode. As of the end of the second quarter, we operated 1,516 AHS offline stores in 260 cities nationwide.

Speaker Change: with a netincrease of nineteenself oper stores and sixty-nine joint to the operated of sourresce in the quarter

Speaker Change: To meet users' demand for multi-category recycling, we upgraded the store image for location of over 50 self-operated stores. Additionally, we have a nationwide doorstep service team of over 600 staff to address users' diverse fulfillment needs.

Kerry Chen: Additionally, we have a nationwide doorstep service team of over 600 staff to address users' diverse fulfillment needs. Our service team maintains a consistent brand image and service standard, offering face-to-face device inspections and on-the-spot payments, which provide several advantages over traditional mail-in recycling.

Speaker Change: Our service team maintains a consistent brand image and service standard.

Speaker Change: Offering face-to-face device inspections and on-the-clock payments.

Speaker Change: which providide several advantages over traditional male in recycling in the second quarter the door staff re secondc business su stsaying the same yearoveryear growth rate as the overall c will b business

Kerry Chen: In the second quarter, the doorstep recycling business sustained the same year-over-year growth rate as the overall C2B business. Our in-store and doorstep fulfillment options offer users flexible and convenient recycling choices.

Speaker Change: Our in-store and doorstep fulfillment options offer users flexible and convenient recycling choices.

Kerry Chen: 另一方面,我们在购买场景与供应链这两个核心能力上做延伸,提供更多优品好货给到用户挑选。 加强AiHuiShou严选品牌的用户薪金, On the other hand, we are further enhancing our core capabilities in client shopping scenarios and supply chain management. These improvements aim to provide users with a wider selection of premium products while strengthening the brand recommendation of AHS Select.

Speaker Change: On the other hand, we are extending our core capabilities in purchasing scenarios and supply chain, providing more high-quality products for users to choose from.

Speaker Change: On the other hand, we are further enhancing our core capabilities in applying shocking scenarios and supply chain management. These improvements aim to provide users with a wider selection of premium products while strengthening the grand recognition of AHA transactions. [inaudible] We are witnessing a clear trend that consumers are increasingly looking for value-for-money high-quality pre-owned products. We offer a curated selection of premium second-hand products in our offline stores, allowing consumers to directly access the quality of certified pre-owned items that are 95% and 90% new, stimulating their interest in trying and purchasing these products. By linking in-store inventory with our nationwide online inventory, we provide consumers with cost-effective options for buying second-hand items. This capability has successfully gained the trust and recognition of our AHA selection brand. In the second quarter, product revenue from AHA selection in our offline stores and on our official website has 210 million RMB, marking an increase of 31% year-over-year. Excuse me, marking a 31% increase from the previous quarter and an age-fold increase year-over-year. Product revenue brought by our 1P2C retail business increased by 125% year-over-year to 960 million RMB. Retail channels included pipized election, AHA's recycle websites and physical stores, though in etc. [inaudible]

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Speaker Change: On the other hand, we are further enhancing our core capabilities in client shopping scenarios and supply chain management. These improvements aim to provide users with a wider selection of premium products while strengthening the brand recognition of AHS selections.

Kerry Chen: 很明确的趋势是,消费放缓时期,消费者对于优质二手商品的挑选和购买需求不降反升。 我們在艾輝中門店鋪設精選的二手郵票 让消费者直观地看到有品质保证的准芯机 95芯与九成芯商品的品质保证, 激发用户的试玩和购买欲望 通过线下门店内存库存与线上全国库存打通的销售方式 为消费者提供具有性价比的二手购买选择 同時收穫用戶對於 AiHuiShou嚴選品牌的信任和認同, 二季度,AiHuiShou門店和官網的嚴選商品銷售收入突破2.1億元人民幣,環幣增長31%,同幣增長8倍 综合拍拍严选 爱回收官网和门店 抖音等多渠道的自营严选, 自營援選銷售零售收入達9.6億元人民幣 同比增長125% We are witnessing a clear trend that consumers are increasingly looking for valuable money, high quality, pre-owned products. We offer a curated selection of premium second-hand products in our offline stores, allowing consumers to directly access the quality of certified pre-owned items that are 95% and 90% new, stimulating their interest in trying and purchasing these products. By linking in-store inventory with our nationwide online inventory, we provide consumers with cost-effective options for buying second-hand items.

Speaker Change: A very clear trend is that during periods of slowed consumption, consumer demand for selecting and purchasing high-quality second-hand goods does not decrease but instead increases.

Speaker Change: We offer a selection of premium second-hand goods at our store in Edison.

Speaker Change: Allow consumers to intuitively see the quality-assured core machines, the quality of 95% core and 90% core products, and stimulate users' desire to try and purchase.

Speaker Change: Through offline stores

Speaker Change: The sales method of integrating in-store inventory with online nationwide inventory provides consumers with cost-effective second-hand purchasing options, while also earning users' trust and recognition for the Aihuishou Select brand.

Kerry Chen: This capability has successfully gained the trust and recognition of our AHS selection brand. In the second quarter, product revenue from AHS selection in our offline stores and on our official website surpassed 210 million RMB, marking an increase of 31% year-over-year. Excuse me, marking a 31% increase from the previous quarter and an eight-fold increase year-over-year.

Speaker Change: In the second quarter, the sales revenue of selected products at the Aihesong store and official website exceeded 210 million RMB, with a quarter-on-quarter growth of 31% and a year-on-year growth of 8 times.

Speaker Change: Comprehensive selection from AiHuiShou official website and stores, Douyin, and other multi-channel self-operated selections achieved a self-operated selection retail sales revenue of 960 million RMB, a year-on-year increase of 125%.

Speaker Change: We are witnessing a clear trend that consumers are increasingly looking for value for money high quality pre-owned products.

Speaker Change: We offer a curated selection of premium second-hand products in our offline stores.

Speaker Change: allowing consumers to directly access the quality of certified pre-owned items that are 95% and 90% new, stimulating their interest in trying and purchasing these products.

Speaker Change: By linking in-store inventory with our nationwide online inventory, we provide consumers with cost-effective options for buying second-hand items.

Speaker Change: This capability has successfully gained the trust and recognition of our AHS selection brands.

Speaker Change: In the second quarter, product revenue from AHS selection in our offline stores and on our official website surpassed 210 million RMB, marking an increase of 31% year-over-year.

Speaker Change: Marking a 31% increase from the previous quarter and an 8-fold increase year-over-year.

Kerry Chen: Product revenue brought by our 1P2C retail business increased by 125% year-over-year to 960 million RMB. Retail channels included PiPi Selection, AHS Recycle websites and physical stores, Douyin, etc.

Speaker Change: Product revenue brought by our 1P2C retail business increased by 125% year-over-year to 960 million RMB. Retail channels included PiPi Selection, AHS Recycle websites and physical stores, Douyin, etc.

Kerry Chen: 基于成熟的供给、处置和销售的供应链能力,除了拍拍线上销售、 AiHuiShou自营销售、加盟店销售、直播销售之外, 我们还联合零售渠道伙伴探索供应链的输出能力。 今年六月,我们的B2B交易平台拍鸡堂联合抖音电商以拍鸡堂行业领先的二手消费电子产品的供应链 赋能更多行业中小商家做好奥顺新民宿 主要从两个方面切入 一,由万无新生运营中心支持商品代制检 二, 拍鸡汤向抖音电商提供二手手机3C商品购买 同時 派系黨與下層市場的領先企業 惠東達 形成戰略合作, 在其线下零售门店网络内 探索二手商品的零售下层通路 近期已经启动试点销售, Building on our robust end-to-end supply chain capabilities from sourcing to processing to sales, we are exploring synergies with retail partners in addition to the established retail channels of PiPi, AHS Store, and live streaming platforms.

Speaker Change: Based on mature supply chain capabilities in supply management and sales

Speaker Change: In addition to Paipai online sales, Aihuishou self-operated sales, Zhang Meng store sales, and live broadcast sales, we are also collaborating with retail channel partners to explore the output capacity of the supply chain.

Speaker Change: This June , our B2B trading platform Petit.com, in collaboration with Douyin E-commerce, will leverage Petit.com's industry-leading supply chain for second-hand consumer electronics.

Speaker Change: Empower more small and medium-sized businesses in various industries to better serve the new Aoshun public. This is mainly approached from two aspects: first, supported by the Wanwu New Life Operation Center for product substitution.

Speaker Change: Pai Ji Tang provides second-hand mobile phones and 3C products to Douyin E-commerce.

Speaker Change: At the same time, Parker Tang has formed a strategic cooperation with Huidongda, a leading company in the lower-tier market, to explore the retail channels for second-hand goods within its offline retail store network. Recently, pilot store sales have been launched. In June, we collaborated with Douyin Commerce on the B2B trading platform PJT Marketplace to provide a new sales environment for PJT's leading second-hand retail electronics supply chain. Key elements of our cooperation include our administrative center, supporting quality inspections, and PJT providing second-hand retail through Douyin's electronic supply chain. Additionally, PJT has also established a strategic partnership with Huidongda, a leading retail company in the large market. Together, we are exploring opportunities for second-hand retail products through Huidongda's extensive indoor retail network. The initial retail plan has been launched recently. Finally, I would like to share some thoughts on our commitment to building a national recycling brand. Since last year, on the recycling end, we have invested a certain market budget in upgrading the categories and services of the second recycling brand to enhance user awareness of the brand and understanding of recycling and trade-in circular consumption. We have published content about recycling and trade-ins on platforms such as Douyin, Xiaohongshu, and WeChat Channels, and placed some brand placement advertisements. The second recycling brand has also partnered with more consumer brands to launch the Return to New Life campaign. In the second quarter, we collaborated with PJT to launch more recycling brands. Since last year, we have placed some brand placement advertisements for recycling and trade-in content. We have published content about recycling and trade-ins on platforms such as Douyin, Xiaohongshu, and WeChat Channels, and placed some brand placement advertisements. We have published content about recycling and trade-ins on platforms such as Douyin, Xiaohongshu, and WeChat Channels, and placed some brand placement advertisements. We hope to encourage more consumers to adopt the Return to New Life plan, give back to more users, and receive rewards.

Speaker Change: At the same time, TSMC and the leading company in the lower-tier market, Huidongda, have formed a strategic partnership to explore the retail channels for second-hand goods within its offline retail store network. Recently, trial store sales have already been initiated.

Speaker Change: Building on our robust end-to-end supply chain capabilities from sourcing to processing to sales, we are exploring synergies with retail partners in addition to the established retail channels of PiPi, AHS Store, and live streaming platforms.

Kerry Chen: In June, our B2B transaction platform, PJT Marketplace, partnered with Douyin E-commerce to empower more small and medium-sized businesses to thrive in the new retail landscape by leveraging PJT's leading second-hand consumer electronics supply chain. Key elements of our collaboration include our operation center, which supports product quality inspections and PJT supplying second-hand consumer electronics to Douyin e-commerce.

Speaker Change: In June , our B2B transaction platform, PJT Marketplace, partnered with Douyin E-commerce to empower more small and medium-sized businesses to thrive in the new retail landscape by leveraging PJT's leading second-hand consumer electronics supply chain.

Speaker Change: Key elements of our collaboration include our operations center, which supports product quality inspections, and PJT supplying second-hand consumer electronics to Douyin e-commerce.

Kerry Chen: Additionally, TJP has established a strategic partnership with Huitongda, a leading retailer in mass-market cities. Together, we are exploring opportunities for second-hand products through Huitongda's extensive offline store network.

Speaker Change: Additionally, TJP has established a strategic partnership with Huitongda, a leading retailer in mass market cities. Together, we are exploring opportunities for second-hand products through Huitongda's extensive offline store network.

Kerry Chen: Initial Sales Pilot Programs have already been launched recently, 最后分享一些我们致力于打造国民回收品牌新制的视频, In closing, we would like to share our perspective on establishing our brand as the top-of-mind choice for consumers nationwide when it comes to recycling.

Speaker Change: Initial sales pilot programs have already been launched recently.

Speaker Change: Finally, we would like to share some of our thoughts on our efforts to create a new national recycling brand.

Speaker Change: closing we would like to share our prospective on establishing our brand as the top of mine choice for consumers nationwide when it comes to reflectcling

Kerry Chen: 从去年开始,在回收端,我们围绕品类和服务升级的爱回收品牌进行了一定的市场预算投放,加强用户对品牌的认知,对回收和以召唤心循环消费的理解。 我们在抖音,小红书,视频号等平台发布关于回收和已经换新的内容,投放一定的品牌植入网站。 AiHuiShou也联合更多消费者, 推出返航新生活動 二季度,我們與京東,京兆,猛牛,bilibili,耐雪的茶,奧勒奇超市等20多個品牌共同發起舊物換新品的活動。 倡導綠色的循環消費力, Starting last year, we have increased our marketing efforts to promote our upgraded services in recycling to raise the awareness of our brand and to improve public understanding of recycling trade-ins and circular consumption.

Speaker Change: t ch has jo wasoan on a world out he met her fion to the iwas by changein a eating the set out yu to upck jge ang yong po te in evidence there so jo anine she find himself in the legit

Speaker Change: We publish content about recycling and renewing on platforms like TikTok, Xiaohongshu, and WeChat Channels, and place certain brand placement advertisements.

Speaker Change: Erhuo Zhou also teamed up with more consumer brands to launch the 'Return to New Life' campaign. In the second quarter, we, along with over 20 brands including JD.com, Jingzhao, Mengniu, Bilibili, Nayuki's Tea, and Ole Supermarket, jointly initiated an event to exchange old items for new ones.

Speaker Change: Scalded by the green circular consumption concept

Speaker Change: Starting last year, we have increased our marketing efforts to promote our upgraded services in recycling to raise the awareness of our brand and to improve public understanding of recycling trade-ins and circular consumption.

Kerry Chen: We have distributed educational content about recycling and trade-ins on popular social media platforms including Douyin, Xiaohongshu, Weixin video platform while partnering with key influencers to advertise our brand name.

Speaker Change #100: We have distributed educational content about recycling and trade-ins on popular social media platforms including Douyin, Xiaohongshu, Weixin video platform while partnering with key influencers to advertise our brand name.

Kerry Chen: Moreover, we have collaborated with leading consumer brands to launch the Revive Fanhang XinSheng initiative. In the second quarter, we rolled out trading programs in partnership with 20 brand owners, championing the concept of sustainable circular consumption, to name a few, Jingdong Jingzao, Mengniu, Bilibili, Naixue, and Audi, which jointly encouraged more consumers to pick up a Quest, return more used goods, and claim the reward.

Speaker Change #100: Moreover, we have collaborated with leading consumer brands to launch the Revive Fanhang XinSheng initiative. In the second quarter, we rolled out trading programs in partnership with 20 brand owners, championing the concept of sustainable circular consumption.

Speaker Change #101: To name a few, Jingdong Jingzao, Mengniu, Bilibili, Naixue, and Audi. We jointly encouraged more consumers to pick up a Quest, return more used goods, and claim the rewards.

Speaker Change: We believe that based on current consumer behavior trends, we should be more proactive in seizing opportunities in the circular economy. We should consistently invest in the Aihuishou main brand over the long term, through advertising investments in the main brand, cross-brand collaborations, and the construction of store scenarios, to make the Aihuishou brand and services occupy a broader user mindset. In the third quarter, we are actively preparing for the upcoming nine targets. In the third quarter, we are actively preparing for the upcoming new device sales season in September and October , looking forward to providing higher quality services to meet more users' needs for second-hand goods recycling and transactions. Now, let's have the company's CFO Rex introduce the financial situation. In the third quarter, we are actively preparing for the upcoming nine targets.

Speaker Change #102: We believe based on current consumer behavior trends

Speaker Change #103: on the inkenj to don the cl to sho change into the jway where up i wasalso j by changancy chan jen uout

Speaker Change #104: Through advertising investment in the main brand, cross-brand cooperation, and the construction of store scenarios, let the Aier Recycling brand and services occupy a broader user mindset.

Kerry Chen: 我们认为,基于当前的消费行为趋势,我们应更加主动地抓住循环经济的机会,围绕AiHuiShou主品牌长期,长期坚持投入,通过主品牌的广告投入,跨品牌合作,门店场景的建设等方式,让AiHuiShou品牌和服务占据更广泛的用户心境。 Given the clear shift in consumer behaviors, we believe it is crucial to proactively seize the opportunities presented by the circular economy.

Speaker Change #105: Given the clear shift in consumer behaviors, we believe it is crucial to proactively seize the opportunities presented by the circular economy.

Kerry Chen: We will continue to invest in our brands. We aim to acquire greater mindshare for our brands and services among consumers through strategic brand marketing, cross-brand partnerships, and revamping our stores.

Speaker Change #106: We will continue to invest in our brands. We aim to acquire greater mindshare for our brands and services among consumers through strategic brand marketing, cross-brand partnerships, and revamping our stores.

Speaker Change #107: In the third quarter, we are actively preparing for the upcoming new product sales release season in September to October .

Speaker Change #108: We look forward to serving more users' needs for second-hand goods recycling and trading with higher quality service.

Kerry Chen: 在第三季度,我們正在積極準備即將到來的九到十月的新機銷售發行紀錄, 期待以更優質的服務服務更多用戶的二手商品回收和交易, As we enter the third quarter, we are preparing for the upcoming launch season for new cell phone models in September and October. We look forward to serving even more users by facilitating the recycling and transactions of their second-hand products through our enhanced service offering.

Speaker Change #109: as we enteer the third quarter we are preparing for the upcommon launch season for new cellphone model in september and october we look forward to serving even more users by facilitating the recycling and transactions of their second-hand product through our inhonped service offerings

Speaker Change #110: i into conserv therefore rex just such at wing qu

Operator: 下面请公司的CFO Rex介绍一下产物简介, Now I'd like to turn the call over to our CFO, Rex, for financial update.

Speaker Change #111: Now, I'd like to turn the call over to our CFO , Rex, for financial updates.

Rex Chen: Okay.

Speaker Change #112: Okay, hello everyone. We are pleased to report another profitable quarter under the GAAP measures , on revenues that once again exceed the top end of our guidance.

Rex Chen: Hello, everyone.

Speaker Change #113: Before taking a detailed look at the financials, please note that all figures are in R&D and all comparisons are on a year-over-year basis, unless otherwise stated.

Rex Chen: We are pleased to report another profitable quarter under the GAP measures on revenues that once again exceed the top end of our guidance. Before taking a detailed look at the financials, please note that all figures are in RMB and all comparisons are on a year-over-year basis, unless otherwise stated. In the second quarter, total revenues increased by 27.4 percent to $3,776.7 million, primarily driven by the strong growth in net product revenues. Net product revenues increased by 29 percent to $3,401.8 million, while net service revenues increased by 14.6 percent to $374.9 million. Both the net product revenues were primarily driven by an increase in the sales of pre-owned consumer electronics, both through the company's online and offline channels.

Speaker Change #113: in the second quarter total revenues increase the pi coming seven point four percent

Speaker Change #113: to 3,776.7 million, primarily driven by the strong growth in net product revenues.

Speaker Change #113: Net product revenues increased by 29% to $3,401.8 million, while net service revenues increased by 14.6% to $374.9 million.

Speaker Change #113: Both in-net product revenues were primarily driven by an increase in the sales of pre-owned consumer electronics, both throughout the company's online and offline channels.

Rex Chen: The increase in service revenues was primarily due to an increase in the service revenue generated from PJT marketplace and the multi-category recycling business.

Speaker Change #114: The increase in service revenues was primarily due to an increase in the service revenue generated from PJT marketplace and the multi-category recycling business.

Rex Chen: The overall gross transaction value of marketplaces increased consistently with service revenues and the take rate of our marketplaces was 5.28% in the second quarter of 2024.

Speaker Change #115: The overall gross transaction value of marketplaces increased consistently with service revenues and the takeover of our marketplaces.

Speaker Change #116: was 5.28% in the second quarter of 2024. About 30 million were directly attributable to our multi-category recycling business.

Rex Chen: About $30 million was directly attributable to our multi-category recycling business with an average service take rate of 3%. Multi-category recycling business accounted for 8% of total service revenues in the second quarter of 2024, while the figure was 1% in the same period of 2023.

Speaker Change #117: with an average service take rate of 3%. Multicategory recycling business accounted for 8% of total service revenues in the second quarter of 2024, while the figure was 1% in the same period of 2023.

Rex: Now let's talk about our operating expenses. To provide more clarity, in addition to our actual operating base expenses, we will also discuss our NAMGAP operating expenses. These expenses will better impact the management's use of our operating results. The reconciliation of NAMGAP and GAP operating results has already been included in our earnings study and is synthesized with SEC in 6K currency. Excluding product profit expenses, which we refer to as SPC expenses, NAMGAP expenses increased by 22.9% to 32.17 billion. The growth in NAMGAP expenses is mainly due to, firstly, the percentage increase in expenses relative to the operating results of product profit and the organizational level of product profit. Secondly, the increase in product profit expenses relative to the organizational level of product profit. The satisfaction of NAMGAP expenses is due to the percentage decrease in product profit from 8.8% to 8.5%. The growth in NAMGAP product profit is due to the organizational level of product profit increasing from 5.6% to 35.4 billion. Excluding product profit expenses, NAMGAP product profit increased from 26.1% to 7.25 billion. Excluding product profit expenses, NAMGAP product profit increased from 41.9% to 5.62 billion, mainly due to the growth in product profit. The growth in NAMGAP product profit is due to the percentage increase in product profit relative to the organizational level of product profit. The product profit expenses increased from 10.6% to 4.98 billion. Excluding product profit expenses and product profit expenses, NAMGAP product profit increased relative to the organizational level of product profit. NAMGAP product profit expenses increased from 12.6% to 4.37 billion, mainly due to the increase in product profit expenses relative to the organizational level of product profit. NAMGAP product profit expenses increased relative to the organizational level of product profit from 1.3% to 1.2%.

Kerry Chen: Even though the economies of scale have also led to improved cost efficiency, the non-GAAP, fulfillment expense as a percentage of total revenues decreased by 0.3 percentage points year-over-year, while the non-GAAP selling and marketing expense as a percentage of revenue fell by 1.1 percentage points year-over-year. This overall resulted in a 0.7 percentage point improvement year-over-year in the non-GAAP, operating profit margin, bringing it to 2.5% in the second quarter of 2024.

Rex Chen: Now let's discuss our operating expenses to provide greater clarity on the trends in our actual operating based expenses.

Speaker Change #118: Now let's discuss our operating expenses. To provide greater clarity on the trends in our actual operating-based expenses, we will also discuss our NGAP operating expenses, which better reflect how management views our results of operations.

Rex Chen: We will also discuss our main gap operating expenses, which better reflect how management views our results of operations.

Rex Chen: The reconciliations of GAFN and the GAFN results are available in our earnings studies and is a corresponding Form 6K furnished with CSCC.

Speaker Change #119: The reconciliations of GAFN and the GAFN results are available in our earnings studies and is a corresponding Form 6K furnished with CSCC.

Rex Chen: Merchandise costs increased by 28.6% to 2,990.6 million, in line with the growth in product revenues. Gross margin at the group level was 28.8% in the second quarter.

Kerry Chen: The achievements we've discussed so far are rooted in our core strengths in recycling, scenarios and supply chain capabilities.

Speaker Change #120: Merchandise costs increased by 28.6% to 2,990.6 million, in line with the growth in product values.

Kerry Chen: Looking forward, we will continue to build on these strengths to drive further growth and success.

Rex Chen: Product revenues gross margin, which we also refer to as 1P business gross margin, was 12.1%.

Kerry Chen: On the one hand, we have completed a strategic cooperation agreement with JD in June this year on the basic business of business and mobile phone 3C recycling and transaction business. In the core business of 2nd-hand mobile phone 3C recycling and 2nd-hand high-end retail, we have deepened cooperation and increased the new way of exchanging Apple. On one hand, we have strengthened our service capabilities in our core business of consumer electronics recycling and transaction services.

Speaker Change #121: Gross margin as a group level was 28.8% in second quarter. Quarter revenues gross margin, which we also refer to as 1P business gross margin, was 12.1%.

Kerry Chen: In June, we renewed our strategic agreement to deepen our business collaboration with JD.com in areas such as consumer electronics recycling, trade-ins, and the retail of valuable money 2nd-hand products. This renewal also introduced new trading methods for Apple products.

Kerry Chen: We continue to meet the high standards and specific needs of JD users through our industry-leading fulfillment and supply chain capabilities.

Kerry Chen: The penetration and development of JD Recycling services has maintained a high rate of growth. In the first half of the year, the recycling revenue of JD users has increased by more than 50%. In addition, the recycling revenue of JD Recycling surpassed the revenue of the regular recycling channels for the first time in June this year.

Rex Chen: Fulfillment expenses increased by 22.1% to $328.3 million, excluding share-based compensation expenses, which we will refer to as SPC from PL. And the debt fulfillment expenses increased by 22.9% to 321.7 million.

Speaker Change #121: Fulfillment expenses increased by 22.1% to $328.3 million, excluding share-based compensation expenses, which we will refer to as SPC from TR.

Kerry Chen: Our trading business through JD has experienced rapid growth. In the first half of the year, the recycling value of products traded in by JD users increased by over 50% year-over-year. Notably, in June, the recycling value of products traded in by JD users increased by more than 50% year-over-year.

Kerry Chen: Notably, in June, the recycling value of products fulfilled by the trading program surpassed that of regular recycling for the first time, establishing it as the leading recycling method through JD. Trade-ins provide a better user experience than regular recycling, effectively capturing users' demand for upgraded devices and receiving growing acceptance and adoption by JD users. Effectively capturing users' demand for upgraded devices and receiving growing acceptance and adoption by our users.

Kerry Chen: In the second quarter of the year, we turned the tide of the recycling service.

Kerry Chen: The second quarter was the peak of Apple's official business.

Speaker Change #122: In the gap fulfillment expenses increased by 22.9% to 321.7m. Under the GAAP measures , the increase was primarily due to first an increase in personnel costs.

Kerry Chen: In the second quarter of the year, we confirmed 1.6 billion yuan in revenue, while operating profits turned positive.

Kerry Chen: The business is easy to manage and the sales and marketing costs are low, which is a positive sign for the company.

Rex Chen: Under the debt measures, the increase was primarily due to first an increase in percentage cost, as a commonly conducted mode of cycling and transaction activities compared with the same period of time-traveling street.

Kerry Chen: For our Apple's official trading business, we successfully turned the growth margin positive, as anticipated in the second quarter.

Kerry Chen: During this typically off-peak period, we achieved 160 million RMB in revenue. Specifically, we ensured a positive operating margin for this segment in the second quarter, while aiming at a long-term operating profit margin of 3% to 4%.

Speaker Change #123: as the company conducted more recycling and transaction activities compared with the same period of 2003, and second, an increase in operating center-related expenses as the company expanded its store and operating station networks.

Kerry Chen: Our objectives at the operating level are simple, and we expect Apple's official trading business to bring in more positive operating profit.

Rex Chen: And second, an increase in operating center-related expenses as a company's expenditure is stored in the operating station network.

Kerry Chen: 我们对于线下履约能力持续做建设,提升爱汇收业务的护城河。 截止二季度末,我们在全国260个城市运营了1516间爱汇收门店, 季度内新增了19间爱汇收自营门店,69间爱汇收联营门店, 并且适配用户对于多品类回收的需求, 对超过50间爱汇收自营门店进行了门店形象或者位置的更新。 除此之外,截止二季度末,我们在全国范围内运营了超过600人的上门服务团队, 主要用于满足用户对交付履约方式的多样化需求。 爱汇收运营的上门团队保持统一的品牌形象和服务标准, 面对面验机,当场付款,相对传统邮寄回收的体验优势明显。 二季度内,我们上门回收业务保持与CTB业务大盘基本一致的增速, 到店和上门两种线下履约方式为用户提供便捷的回收服务选项。 我们继续建立我们的上线满足能力以加强我们的商业模式。 二季度末,我们在全国260市区内运营了1516家上线店, 并在四季度内增加了19家上线店和69家统一上线店。 为了符合使用者需求的多层次回收,我们升级了店的图像和地点为超过50家上线店。 此外,我们有超过600名员工的国际门路服务团队,以应对使用者的多元满足需要。 我们的服务团队保持着一致的品牌图像和服务标准, 并提供了面对面的设备检查和图表付费, 并提供了传统上线回收服务的几个优势。 在第二季度,门路回收项目持续了一年以上的增长, 相当于整体的C2B项目。 我们的店铺和门路满足选项目提供了使用者柔软和方便的回收选择。 另一方面,我们在购买场景与供应链这两个核心能力上做延伸, 提供更多优品好货给到用户挑选, 加强爱回收严选品牌的用户心情。

Kerry Chen: On the other hand, we are further enhancing our core capabilities in client shopping scenarios and supply chain management. These improvements aim to provide users with a wider selection of premium products while strengthening the brand recommendation of AHS selections.

Kerry Chen: 很明确的趋势是,消费放缓时期,消费者对于优质二手商品的挑选和购买需求不降反升。 我们在AHS门店铺设精选的二手优品,让消费者直观地看到有品质保证的准星基95星与9成星商品的品质,激发用户的试玩和购买欲望。 通过线下门店内存库存与线上全国库存打通的销售方式,为消费者提供具有性价比的二手购买选择,同时收获用户对于AHS严选品牌的信任和认可。 我们提供消费者选购二手产品的有效选择。这种能力成功赢得我们AHS严选品牌的信任和认可。 同時,派克唐與下層市場的領先企業惠東達形成戰略合作,在其線下零售門店網絡內探索二手商品的零售下層通路,近期已經啟動試店銷售。 在6月,我們在B2B交易平台PJT Marketplace與抖音商務合作,為PJT的領先二手零售電子供應鏈提供新的銷售環境。 我們合作的關鍵元素包括我們的行政中心,支援品質檢查和PJT在抖音電子供應鏈提供二手零售。 此外,PJT也與惠通達建立了戰略夥伴,是大型市場中的領先零售企業。 我們一起探索二手零售產品的機會,通過惠通達的廣泛的室內零售網絡。 最初的零售計劃已經在最近推出。 最後,分享一些我們致力於打造國民回收品牌心智的思考。 從去年開始,在回收端,我們圍繞品類和服務升級的二回收品牌進行了一定的市場預算投放,加強用戶對品牌的認知,對回收和以舊換新循環消費的理解。 我們在抖音、小紅書、視頻號等平台發佈關於回收和以舊換新的內容,投放一定的品牌植入廣告。 二回收也聯合更多消費品牌,推出返航新生活動。 二季度,我們與PJT合作,推出更多的回收品牌。 從去年開始,我們在回收和以舊換新的內容,投放一定的品牌植入廣告。 我們在抖音、小紅書、視頻號等平台發佈關於回收和以舊換新的內容,投放一定的品牌植入廣告。 我們認為,基於當前的消費行為趨勢,我們應更加主動地抓住循環經濟的機會,圍繞 AiHuiShou 主品牌長期堅持投入,通過主品牌的廣告投入,跨品牌合作,門店場景的建設等方式,讓 AiHuiShou 品牌和服務佔據更廣泛的用戶心智。

Rex Chen: The gap fulfillment expenses as a percentage of total revenues decreased to 8.5% from 8.8%, selling and marketing expenses increased by 5.6% to $354 million, excluding SPC expenses and amortization of intangible assets and deferred costs resulting from assets and business acquisitions.

Kerry Chen: 接下來,我將轉接到我們的 CFO REX 為財務更新。

Speaker Change #124: The gap for payment expenses as a percentage of total revenues decreased to 8.5% from 8.8%.

Rex Chen: 該服務利潤增長主要是由於該公司的網上和宣傳頻道。

Rex Chen: Now let's discuss our operating expenses. To provide greater clarity on the trends in our actual operating based expenses, we will also discuss our NAMGAP operating expenses, which better reflect how management views our results of operations.

Speaker Change #124: Seven marketing expenses increased by 5.6% to $354 million, excluding SPC expenses and amortization of intangible assets.

Speaker Change #124: And for the costs resulting from assets and business acquisitions and debt-selling and marketing expenses increased by 11.7% to $283.3 million, primarily due to an increase in advertising expenses and promotional campaign-related expenses.

Rex Chen: The recalculations of NAMGAP and NAMGAP results are available in our earnings studies and is, corresponding from 6K furnished with CSEC.

Rex Chen: In depth, selling and marketing expenses increased by 11.7% to $283.3 million, primarily due to an increase in advertising expenses and promotional campaign related expenses.

Rex Chen: Merchant bank costs increased by 28.6% to 2,990.6 million in line with the gross product revenues.

Rex Chen: Gross margin as a group level of 28.8% in second quarter.

Rex Chen: Product revenues gross margin, which we also refer to as 1P business gross margin, was 12.1%. Fulfillment expenses increased by 22.1% to 328.3 million, excluding share based compensation expenses, which we will refer to as SPC from PL. NAMGAP fulfillment expenses increased by 22.9% to 321.7 million.

Rex Chen: In a gap setting, marketing expenses as a percentage of total revenues decreased to 7.5% from 8.6%.

Speaker Change #124: In a gap setting, marketing expenses as a percentage of total revenues decreased to 7.5% from 8.6%.

Rex Chen: General and administrative expenses increased by 26.1% to $72.5 million, excluding SBC expenses. And gap GNA expenses increased by 41.9% to $56.2 million, primarily due to an increase in personnel costs.

Rex Chen: NAMGAP measures increased with primary due to first an increase in percentage costs as a company conducted more recycling and transaction activities compared with the same period of time industry. And second, an increase in operating center related expenses as a company expanded its store and operating station networks.

Rex Chen: NAMGAP fulfillment expenses as a percentage of total revenues decreased to 8.5% from 8.8%.

Speaker Change #124: General and administrative expenses increased by 26.1% to 72.5 million.

Speaker Change #125: excluding SPC expenses, and GAPG&A expenses increased by 41.9%, to 36.2 million, primarily due to an increase in personnel costs.

Rex Chen: Mencap Q&A expenses as a percentage of total revenues was 1.5%, compared with 1.3% in the same period of 2020-03.

Speaker Change #125: The gap between the expenses as a percentage of total revenues was 1.5%, compared with 1.3% in the same period of 2023.

Rex Chen: Technology and content expenses increased by 10.6% to 49.8 million, excluding SPC expenses and amortization of intangible assets and deferred costs resulting from assets and business acquisitions. MNGAP technology and content expenses increased by 12.6% to 43.7 million. The increase was primarily due to an increase in personnel costs in connection with the ongoing upgrade of the company's operations center and system.

Speaker Change #126: Acknowledging the content expenses increased by 10.6 percent.

Rex Chen: Selling and marketing expenses increased by 5.6% to 354 million, excluding SPC expenses and, amortization of intended assets and deferred costs resulting from assets and business acquisitions.

Rex Chen: NAMGAP selling and marketing expenses increased by 11.7% to 283.3 million, primarily due to an, increase in advertising expenses and promotional campaign related expenses.

Rex Chen: NAMGAP selling and marketing expenses as a percentage of total revenues decreased to 7.5% from 8.6%.

Speaker Change #125: twoto fifty nine andeight meeting

Rex Chen: General and administrative expenses increased by 26.1% to 72.5 million, excluding SPC expenses.

Speaker Change #125: including SPC expenses and amortization of intangible assets.

Rex Chen: NAMGAP, G&A expenses increased by 41.9% to 56.2 million, primarily due to an increase in personnel costs.

Rex Chen: NAMGAP G&A expenses as a percentage of total revenues was 1.5% compared with 1.3% in the same, period of time industry.

Speaker Change #125: and to further cost resulting from assets and business acquisitions.

Rex Chen: Technology and content expenses increased by 10.6% to 49.8 million, excluding SPC expenses and amortization of intended assets and deferred costs resulting from assets and business acquisitions. NAMGAP technology and content expenses increased by 12.6% to 43.7 million. The increase was primarily due to an increase in personnel costs in connection, with the ongoing upgrade of the commons operation center and system.

Speaker Change #125: The gap technology and content experiences increased by 12.6% to 43.7 million.

Speaker Change #127: The increase was primarily due to an increase in personnel costs in connection with the ongoing upgrade of the common operation center and system, and gap technology and content expenses as a percentage of total revenues decreased to 1.2% from 1.3%.

Rex Chen: MNGAP technology and content expenses as a percentage of total revenues decreased to 1.2% from 1.3%. As a result, our MNGAP operating income was 94.1 million in the second quarter of 2024, representing a significant increase of 81% year-on-year.

Rex Chen: NAMGAP technology and content expenses as a percentage of total revenues decreased to 1.2% from 1.3%.

Rex Chen: As a result, our MNGAP operating income was $94.1 million in Q2 2024, representing a significant, increase of 81% year-on-year, MNGAP operating profit margin was 2.5% compared to 1.8% in Q2 2023, and our ongoing share repurchase program, which the Board of Directors approved, was uplifting the limit to purchase $15 million US dollars through June 27, 2025. We have returned approximately $8 million US dollars to our shareholders for a total number of 3.3 million ADSes as of June 30, 2024. As of June 30, 2024, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled $2.8 billion.

Rex: The result is that our business funds in the second quarter of 2024 are 9.41 billion yuan, representing an 81% growth over the year. The business fund amount is 2.5%, compared to 1.8% in the second quarter. Our ongoing purchase plan is approved by the headquarters. Our purchase funds, shared by three enterprises and service enterprises, total 280 million US dollars. Our ongoing purchase limit is maintained by the purchase amount. Now, back to the business amount. In the third quarter of 2024, we predict total revenue will be between 397 billion and 407 billion US dollars, representing a 21.9% to 25% year-on-year growth. Please note that this forecast already reflects our current and assumed market and operational conditions, which may change. This concludes our prepared agenda. Managers, we are now ready to take questions. Thank you. We will now start the Q&A session. To ask a question, you can press 1 on your phone's touch tone. If you are using a speakerphone, please pick up the handset before pressing the keypad. If your question has already been addressed and you wish to withdraw it, please press ** and then 2. When asking a question, please first ask in Chinese and then repeat your question in English. For the convenience of everyone on the call, we will pause to organize the team. The first question comes from Joyce Zhu with Bank of America. Please go ahead. Good morning, I am Joanna from Bank of America, asking on behalf of Joyce. First of all, congratulations on achieving excellent results this quarter, and thank you for taking my question. We have noticed that recently, domestic policies have increased support for large-scale consumer goods exchanges, such as the subsidies announced in July this year to strengthen the promotion of exchanges. Could you please explain how these policies impact the group's business? Thank you. Let me translate. I am Joanna, asking on behalf of Joyce from Bank of America. Thank you for taking my question and congratulations on achieving excellent results this quarter. We have noticed that recently, domestic policies have increased support for large-scale consumer goods exchanges, such as the subsidies announced to strengthen the promotion of exchanges. How do these policies impact the group's business? Thank you. Thank you for the question. I will answer. Since the State Council released the action plan for large-scale consumer goods exchanges in March this year, we have seen that in addition to central policy support, the main local government policies are focused on...

Speaker Change #127: As a result, our women's death operating income was 94.1 million in the second quarter of 2024.

Speaker Change #127: representing a significant increase of

Rex Chen: MNGAP operating profit margin was 2.5%, compared to 1.8% in the second quarter of 2023, and our ongoing share repurchase program, which the Board of Directors approved as uplifting the limit to purchase US$15 million through June 27, 2025.

Speaker Change #128: 81% year-on-year. The gap operating profit margin was 2.5% compared to 1.8% in the second quarter of 2023.

Speaker Change #128: and our ongoing share repurchase program, which the Board of Directors approved.

Rex Chen: We have returned approximately US$8 million to our shareholders for a total number of 3.3 million ADSes as of June 30, 2024.

Speaker Change #129: Thus uplifting the limit to purchase US$15 million through June 27, 2025. We have returned approximately US$8 million to our shareholders for a total number of 3.3 million ADSes as of June 30, 2024.

Rex Chen: As of June 30, 2024, cash and cash equivalents, restricted cash, short-term investments and funds receivable from third-party payment service providers totaled 2.8 billion. Our strong cash position safeguards our sustainable growth outlook.

Speaker Change #130: As of June 30, 2004, cash and cash equivalents, restricted cash, short-term investments, and funds receivable from third-party payment service providers totaled $2.8 billion. All strong cash position safeguards are sustainable across the outlook.

Rex Chen: Our strong cash position safeguards are sustainable across outlook.

Rex Chen: Now turning to the business outlook for the third quarter of 2024, we anticipate total, revenues to be between $3,970 million RMB and $4,070 million RMB, representing an increase of 21.9% to 25% year-over-year. Please note that this forecast already reflects our current and preliminary views on the market and operation conditions, which are subject to change.

Rex Chen: Now turning to the business outlook for the third quarter of 2024, we anticipate total revenues to be between 3,970 million RMB and 4,070 million RMB, representing an increase of 21.9% to 25% year-over-year. Please note that this forecast already reflects our current and preliminary views on the market and operation conditions, which are subject to change.

Speaker Change #131: Now turning to the business outlook for the third quarter of 2024.

Speaker Change #132: we anticipate put the revenues to be between three some nine hundred and seventy minutute on the end of four sound and seventy me ib representing an increase of twenty or nine percent to twenty five percent yearover year

Speaker Change #133: Please note that this forecast already reflects our current and preliminary views on the market and operation conditions, which are subject to change. This concludes our prepared remarks. Operator, we are now ready to take questions.

Rex Chen: This concludes our prepared remarks.

Rex Chen: This concludes our prepared remarks.

Operator: Operator, we are now ready to take questions.

Operator: Operator, we are now ready to take questions.

Operator: Thank you.

Operator: Thank you.

Speaker Change #134: thank you we will now begin the question-and-answer session

Speaker Change #135: To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.

Operator: We will now begin the question and answer session.

Operator: We will now begin the question and answer session.

Operator: To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.

Operator: To ask a question, you may press star then 1 on your touch-tone phone.

Operator: If you're using a speaker, phone, please pick up your handset before pressing the keys.

Speaker Change #136: If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2.

Speaker Change #137: When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone in the call. And at this time, we'll pause momentarily to assemble our roster.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Operator: If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2.

Operator: When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone in the call.

Operator: When asking the question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone in the call.

Operator: And at this time, we'll pause momentarily to assemble our roster.

Operator: And at this time, we'll pause momentarily, to assemble our roster.

Speaker Change #138: And the first question will come from Joyce Ju with Bank of America. Please go ahead.

Joyce Ju: And the first question will come from Joyce Ju with Bank of America, please go ahead.

Speaker Change #139: to much sureon how issuing the draw that they to a sesu it

Joyce Ju: 非常好 我是美聯儲的Joanna 代表Joyce提問 首先非常恭喜 這個季度取得了非常好的業績 也非常感謝接受我的提問 我們看到最近國內的政策 對於大規模消費品 以求換新的支持率度有所增加 例如今年7月發布的 加強推進以求換新的補貼 想請教一下這些政策 對於集團業務有怎樣的影響 謝謝 我來翻譯 我是Joyce 來自美國銀行的Joyce 謝謝你接受我的問題 謝謝, 感謝提問 我來回答一下, 隨著今年3月份國務院發佈大規模消費品的 已就換新的行動方案以來 我們看到除了中央政策的支持以外 各主要地方政府的政策主要圍繞在, 电脑、汽车、家电、家居展开。今年7月,发改委与财政部发布了加大。 加大支持大规模消费品就关心的措施文件 我们看到在地方层面有更多的城市在提供落实家电与电脑等消费电子商品, 万物新生与京东共同服务了用户的移植换衣需求,并锁定了更多优质的衣手回收活跃。 Thank you for the questions.

Speaker Change #140: First of all, congratulations on achieving excellent performance this quarter. Thank you very much for accepting my question.

Operator: And the first question will come from Joyce Zhu with Bank of America.

Speaker Change #141: We have observed that recent domestic policies seem to show increased support for large-scale consumer goods exchange periods. For example, the subsidies for promoting exchange periods that were announced in July this year. Could you please explain how these policies impact the group's business? Thank you.

Joyce JW: i'll translate myself this is joy an i on behalf of joyce from bunk of america thank you for taking my question on congrress on the solall that resul this quarter

Joyce Zhu: Please go ahead.

Joanna: I'll translate myself.

Speaker Change #143: We see there are recent domestic policies that have increased support for large-scale consumer goods trading, such as the subsidies announced by the National Development and Reform Commission in July . How do these policies impact your business? Thank you.

Joanna: This is Joanna on behalf of Joyce from Bank of America.

Speaker Change #144: aggett law

Kerry Chen: Since the State Council released its action plan for large-scale consumer goods trading in March, we've observed both central and local policy support, mainly focusing on computers, cars, and home appliances. In July, the NDRC and Ministry of Finance issued measures to further support these trade-ins. We've seen more cities implementing specific subsidies for electronic products, including home appliances and computers.

Speaker Change #145: Let me answer that

Speaker Change #146: Since the State Council released a large-scale action plan for the replacement of old consumer goods in March this year, we have seen that in addition to the support of central policies, the main policies of various local governments are mainly focused on

Aihuishou representative: Computers, cars, home appliances, and home furnishings are expanding. In July this year, the National Development and Reform Commission and the Ministry of Finance issued a document to increase support for large-scale consumer goods trade-in measures. We have seen more cities at the local level implementing special subsidies for the recycling and trade-in of consumer electronics such as home appliances and computers. Aihuishou and JD.com jointly served users' trade-in needs and secured more high-quality first-hand recycled goods. Thank you for your question. Since the National Congress released the large-scale consumer goods trade-in plan, we have seen central and regional policy support mainly focused on computers, cars, and home appliances. In July , the Ministry of Finance issued measures to increase support. We have seen more cities implementing specific subsidies for electronic products, including home appliances and computers. Aihuishou and JD.com jointly served users' trade-in needs and secured more high-quality first-hand recycled goods. Currently, the special subsidies for mobile phones are local. For example, in the July Shenzhen trade-in subsidy, Aihuishou served JD.com users' trade-in orders for second-hand electronic products. The effective trade-in order volume for that month increased by 2.5 times compared to June , receiving enthusiastic responses from urban residents. In the second half of the year, we expect more cities to follow up and promote the issuance of such subsidies, further facilitating the effective flow of pre-owned electronic products into the recycling system. Currently, specific subsidies for mobile phones are being implemented at the local level. For example, in Shenzhen's July subsidy plan, we handled JD.com's subsidy orders. The number of successful participants in this subsidy plan increased by 2.5 times compared to June . Although June was the highest month for rewards, the number of successful participants in this subsidy plan increased by 2.5 times. In the second half of the year, we expect more cities to follow up and promote the issuance of such subsidies, further facilitating the effective flow of pre-owned electronic products into the recycling system. We mainly understand policy subsidies as a catalyst for users' recycling concepts. Some studies suggest that this round of government subsidies may have a longer cycle than the previous home appliance trade-in. Therefore, we must seize the opportunity to strengthen the construction of the recycling system, enhance the recognition of second-hand brands, and guide users to convert their trade-ins into cash. We look forward to the introduction of national and local subsidy policies, the improvement of user recognition, and the enhancement of Aihuishou's service fulfillment capabilities, jointly promoting the further penetration and strengthening of this unique service model under the circular economy.

Speaker Change #147: Computers, cars, home appliances, and furniture are expanding. In July this year, the National Development and Reform Commission and the Ministry of Finance issued an upgrade.

Speaker Change #148: Increase support for measures to replace the core components of large-scale consumer goods. We see more cities at the local level providing special subsidies for the recycling and replacement of core components in home appliances, computers, and other consumer electronics.

Speaker Change #149: Everything New and JD jointly served users' needs for clothing transplantation and exchange, and secured more high-quality sources for clothing recycling.

Joanna: Thank you for taking my question, and congrats on a solid result this quarter.

Speaker Change #150: Thank you for the question. Since the State Council released its action plan for large-scale consumer goods trading in March, we've observed both central and local policy support, mainly focusing on computers, cars, and home appliances.

Joanna: We see there are recent domestic policies that have increased support for large-scale consumer, goods trading, such as the subsidies announced by the National Development and Reform Commission in July.

Joanna: How do these policies impact your business?

Speaker Change #150: In July , the NDRC and Ministry of Finance issued measures to further support these trade-ins.

Speaker Change #151: We've seen more cities implementing specific subsidies for electronic products, including home appliances and computers. Ethereum and JD.com have collaborated to meet users' trading needs, securing more high-quality first-hand recycling products.

Kerry Chen: AT Renew and JD.com have collaborated to meet users' trade-in needs, securing more high-quality first-hand recycling products.

Kerry Chen: 目前針對手機的專項補貼是地方性, 以7月深圳的宇宙幻星補貼為主 萬物新生服務京東用戶已就換新訂單中的二手電子產品的救濟回收, 整理&字幕):三马兄 当月的有效旧机回收单量缓比6月大初月份提升了2.5倍, 受到了城市居民的热烈欢迎 下半年我们期待有更多的城市 跟进推动此类补贴的发放 进一步促进闲置二手电子产品的 有效流入到循环界, Currently, phone-specific subsidies are being implemented at the local level. For instance, in Shenzhen's July trading subsidy program, we processed used consumer electronics products from JD's trading orders. The number of successful recycling transactions increased 2.5 times compared with the number in June, even though June was the peak month considering the grand promotion season, reflecting the popularity of such an initiative.

Kerry Chen: Thank you.

Speaker Change #152: Currently, the special subsidies for mobile phones are local. For example, in July , Shenzhen's trade-in subsidy allows JD.com users to trade in their old electronic devices for new ones through the Wanwu New Life service.

Kerry Chen: 电脑、汽车、家电、家具展开。 今年7月,发改委与财政部发布了加大支持大规模消费品就换芯的措施文件。 我们看到在地方层面有更多的城市在启动落实家电与电脑等消费电子商品的回收与就换芯的专项补贴。 万物新生与京东共同服务了用户的已就换芯需求,并锁定了更多优质的一手回收货源。 谢谢您的提问。 自从国际委员会在3月份发布了大规模消费品交易计划的行动计划, 我们看到了中央和地区的政策支持,主要集中在电脑、车、家电等。 目前针对手机的专项补贴是地方性的, 以7月深圳的已就换芯补贴为主要目标。 我们也看到了中国和澳大利亚的企业和企业企业的企业企业的企业企业的企业企业的企业企业的企业企业的企业企业的企业企业的企业企业的企业企业的企业企业的企业。 目前针对手机的专项补贴是地方性的, 以7月深圳的已就换芯补贴为主要目标。 万无新生服务京东用户已就换芯订单中的二手电子产品的救济回收, 当月的有效救济回收单量缓比6月大促月份提升了2.5倍,受到了城市居民的热烈欢迎。 下半年,我们期待有更多的城市跟进推动此类补贴的发放, 进一步促进闲置二手电子产品的有效流入到循环体系。 目前针对手机的专项补贴是地方性的, 以7月深圳的已就换芯订单为主要目标。 万无新生服务京东用户已就换芯订单中的二手电子产品的救济回收, 当月的有效救济回收单量缓比6月大促月份提升了2.5倍, 受到了城市居民的热烈欢迎。 下半年,我们期待有更多的城市跟进推动此类补贴的发放, 进一步促进闲置二手电子产品的有效流入到循环体系。 我们更主要地把政策补贴理解为用户回收理念的催化剂。 有一些研究认为,本轮政府补贴有可能周期比家电下乡更长, 因此我们更要抓住机会加强回收体系的建设, 提升二手品牌的认知,引导用户换新转化。 我们期待随着国家与地方补贴政策的推出, 用户认可度的提升,万无新生服务履约能力的加强, 共同促进这种循环经济下独特服务方式的进一步渗透和加强。 However, we primarily view these policy subsidies as catalysts for enhancing users' recycling, awareness.

Speaker Change #152: wo

Speaker Change #153: tang gu a sorry

Speaker Change #154: The number of valid old device recycling orders this month increased by 2.5 times compared to early June .

Speaker Change #154: solct s jimila earlier pi salmanir moment that your convoted ter should benjin play let in a af jbo choosing she enter out of time in the yo sh ludo sh pteship

Speaker Change #155: currently from specific subid subsidies are being implemented at the local level for instance eshould just dly trading subsidd program we processed use conmer electronics products from jd's treadating orders

Speaker Change #156: the number of successful reacting transactions increased two point five times compared with the number in june even though during was a peak monls consuering the grand promotion season reflecting the popularity of such an initives

Kerry Chen: In the second half of the year, we expect more cities to introduce similar subsidies, further promoting the effective recycling of idle electronic products within the circular economy.

Speaker Change #156: In the second half of the year, we expect more cities to introduce similar subsidies, further promoting the effective recycling of idle electronic products within the circular economy.

Speaker Change #157: Then we should primarily understand policy subsidies as a catalyst for users' recycling concepts.

Speaker Change #158: Some studies suggest that this round

Speaker Change #159: Government subsidies may last longer than the bottom of the cycle, so we need to seize the opportunity to strengthen the construction of the recycling system, enhance the recognition of the Aihuishou brand, and guide users to convert their old devices into cash.

Speaker Change #160: We look forward to the introduction of national and local subsidy policies, the enhancement of user recognition, and the strengthening of Wanwu Xisheng's service fulfillment capabilities, all of which will jointly promote the further penetration and strengthening of this unique service model under the circular economy.

Aihuishou representative: However, we primarily view these policy subsidies as catalyst for enhancing users' recycling awareness. Some studies suggest this round of subsidy may last longer than previous programs, like home appliances going to the countryside. Therefore, we aim to see these opportunities through Drenson, the recycling system, enhance the interest of recycled brand recognition and guide users towards freedom. We anticipate that as national and local subsidy policies are introduced, user acceptance increases, and our fulfillment capabilities strengthen, these factors will collectively promote further penetration of this unique service model into the circular economy. Okay, thank you for your question. The next question will come from Jiao Wuan with CICC. Please go ahead. Congratulations on the service results, and I have two questions. The first one is about the top plan, what are the contributions of the compliance, refurbishment business, and your Apple trading business. And the second one could you please elaborate on how you improve the landscape operating market? Thank you. Okay, thank you. I will take your question. In terms of the compliance refurbishment, we saw a 50% year-over-year increase in the second quarter, reaching RMB 300 million in products revenue. In the first half of this year, we continued to enhance our selection of self- recycled goods, swiftly identifying suitable forms for refurbishment and improving efficiency across our value chain. Currently, we have a 95% comparison coverage in the mobile phone category, laying a solid foundation for future replication to other categories. At the same time, we have enhanced our per-coverage and capabilities in the processing capabilities for different phone conditions. Additionally, we have posted to our sales capabilities for Wuan P goods opening up channels for both retail and business buyers. Better connecting the end-to-end industry chain. Regarding Apple's official trading service, we have successfully optimized our gross margin as planned, achieving a positive gross margin in the second quarter. Although the overall gross margin for our Apple business in the second quarter was already low single digits, we have observed significant improvements in the gross margin for goods receiving during the second quarter. We will continue to refine this business in the second half of this year, aiming to provide an excellent trading experience for Apple's official users, while maintaining steady profitability. In the first half of this year, in addition to our consumer-end trading service, we also enhanced our service to Apple's corporate offerings. Based on Apple's orders from our number of Fortune 500 corporates, we expect to recover used devices from these corporates clients in next to 1-2-3 years. So, such a program, we can access the corporate service market a while, addressing the needs of leading international and domestic corporates, when they're disposing of used workplace iPhones and MacBooks of their employees.

Kerry Chen: 那我们更主要的把政策补贴理解为用户回收理念的催化剂, 有些研究認為本輪 政府補貼有可能比週期底加電下鄉更長, 因此,我们更要抓住机会加强回收体系的建设,提升AiHuiShou品牌的认知,引导用户换新转化。 我们期待随着国家与地方补贴政策的推出,用户认可度的提升,万无新生服务履约能力的加强。 共同促進這種循環經濟下 獨特服務方式的 進一步的滲透和加強, However, we primarily view these policy subsidies as catalysts for enhancing users' recycling awareness. Some studies suggest this round of subsidy may last longer than previous programs, like home appliances going to the countryside. Therefore, we aim to seize this opportunity to strengthen the recycling system, enhance AHS recycle brand recognition, and guide users towards trade-in. We anticipate that as national and local subsidy policies are introduced, user acceptance increases, and our fulfillment capabilities strengthen. These factors will collectively promote further penetration of this unique service model into the circular economy.

Speaker Change #161: However, we primarily view these policy subsidies as catalysts for enhancing users' recycling awareness.

Kerry Chen: Some studies suggest this round of subsidy may last longer than previous programs like home appliances going to the countryside.

Speaker Change #162: some studies suggest this runong of subidy may last longer than previous program like homa point is going to the countryside

Kerry Chen: Therefore, we aim to seize these opportunities to strengthen the recycling system, enhance AHS recycle brand recognition, and guide users towards trade-ins. We anticipate that as national and local subsidy policies are introduced, user acceptance increases and our fulfillment capabilities strengthen. These factors will collectively promote further penetration of this unique service model in the circular economy.

Speaker Change #163: Therefore, we aim to seize these opportunities to strengthen the recycling system, enhance AHS recycle brand recognition, and guide users towards trade-in. We anticipate that as national and local subsidy policies are introduced.

Speaker Change #163: user acceptance increases and our fulfillment capabilities strengthen. These factors will collectively promote further penetration of this unique service model in the circular economy.

Kerry Chen: Thank you for the question.

Operator: OK 谢谢提问, The next question will come from Jiao Wan with CICC.

Speaker Change #164: Okay, xièxiè t? wèi. Thank you for the question.

Jiao Wan: Please go ahead.

Operator: The next question will come from Jiao Wan with CICC.

j one: the next question will come from j one with ci c please go ahead

Jiao Wan: 管理层晚上好,我是中金公司的焦婉,感谢接受我的提问,首先恭喜RGB取得了一个比较稳定的业绩,我的问题是首先能否请管理层分享一下可规翻新业务和苹果业务的表现,另外也想请管理层拆解一下公司的新调整业务利润的优化路径,谢谢,我自己翻译一下。 第二,能否详细讲一下您如何改善业务额外的额外额率,谢谢。 Okay, thank you.

Jiao Wan: Please go ahead.

Speaker Change #166: Good evening, management. I am Jiao Wan from CICC. Thank you for taking my question. First of all, congratulations to RGB for achieving relatively stable performance. My question is, could the management please share the performance of the refurbishable business and the Apple business? Additionally, I would like the management to break down how the company's Ice Bridge utilizes the profit optimization path. Thank you, I will translate it myself.

Jiao Wan: Good evening, I am Jiao Wan from CICC.

Jiao Wan: Thank you for accepting my question.

Speaker Change #167: Congratulations on the solid results and I have two questions. The first one is about the top line. What are the contributions of the compliance refurbishment business and your Apple trading business? And the second one, could you please elaborate on how you improve the land gap operating margin? Thank you.

Rex Chen: I will take your question.

Jiao Wan: First of all, congratulations to RBW for achieving a relatively stable performance.

Speaker Change #168: Okay, thank you. I will take your question. In terms of the compliant refurbishment, we saw a 50% year-over-year increase in the second quarter, reaching RMB 300 million in product revenue.

Rex Chen: In terms of the compliant refurbishment, we saw a 50% year-over-year increase in the second quarter, reaching RMB 300 million in product revenue.

Rex Chen: In the first half of this year, we continued to enhance our selection of self-recycled goods, swiftly identifying suitable firms for refurbishment, and improving efficiency across our value chain.

Jiao Wan: My question is, first of all, could you please share with us the performance of the renewable business and the Apple business?

Speaker Change #169: In the first half of this year, we continued to enhance our selection of self-recycled goods, swiftly identifying suitable firms for refurbishment and improving efficiency across our value chain.

Rex Chen: Currently, we have achieved 95% comparison coverage in the mobile phone category, laying a solid foundation for future replication to other categories. At the same time, we have enhanced our repair coverage and processing capabilities for different phone conditions.

Jiao Wan: Also, I would like to ask the management team to break down the advantages and disadvantages, of the company's adjustments in terms of profits.

Speaker Change #170: Currently, we have achieved 95% comparison coverage in the mobile phone category, laying a solid foundation for future replication to other categories.

Jiao Wan: Thank you.

Jiao Wan: Congratulations on the solid results and I have two questions.

Speaker Change #171: at the same time we have enhanced our appir coverage and capabilities in the processing careabilities for different form conditions additionally we have a boster kared our sales conabities for one p goods open your channels forfore pos of retail and ben by us

Rex Chen: Additionally, we have bolstered our sales capabilities for 1P goods, opening up channels for both retail and business buyers, better connecting the end-to-end industry chain.

Jiao Wan: The first one is about the top line.

Jiao Wan: What are the contributions of the compliance refurbishment business and your Apple trading business?

Rex Chen: Regarding Apple's official trading service, we have successfully optimized our gross margin as planned, achieving a positive gross margin in the second quarter. Although the overall gross margin for our Apple business in the second quarter was only low single digits, we observed significant improvements in the gross margin for goods received during the second quarter. We will continue to refine this business in the second half of this year, aiming to provide an excellent trading experience for Apple's official users while maintaining steady profitabilities.

Speaker Change #172: Better Connecting the End-to-End Industry Chain

Speaker Change #173: Regarding apples...

Jiao Wan: And the second one is, could you please elaborate on how you improve the land gap operating margin?

Speaker Change #174: Official Trading Service, we have successfully optimized our gross margin as planned.

Jiao Wan: Thank you.

Speaker Change #175: at seeing a positive gross margin second quarter

Speaker Change #175: Although the overall cost margin for our Apple business in the same quarter was only $1.5 billion.

Rex Chen: Okay, thank you.

Speaker Change #176: We have observed significant improvements in the gross margin for goods received during the second quarter. We will continue to refine this business in the second half of this year, aiming to provide an excellent trading experience for Apple's official users.

Rex Chen: I will take your question.

Rex Chen: In the first half of this year, in addition to our consumer-end trading service, we also enhanced our service to Apple's corporate offerings. Based on Apple's orders from a number of Fortune 500 corporates, we expect to recover used devices from these corporate clients in next one to three years. Through such a program, we can access the corporate service market while addressing the needs of leading international and domestic corporates when disposing of used workplace iPhones and MacBooks of their employees.

Speaker Change #176: while maintaining steady profitabilities.

Speaker Change #176: In the first half of this year, in addition to our consumer-end trading service, we also enhanced our service to Apple's corporate offerings.

Speaker Change #176: based on Apple's orders from a number of Fortune 500 corporates.

Speaker Change #177: We expect to recover used devices from seized corporate clients in the next 1-3 years.

Speaker Change #178: Through such a program, we can access the corporate service market while addressing the needs of leading international and domestic corporates when disposing of used workplace iPhones and MacBooks of their employees.

Rex Chen: In terms of the compliant refurbishment, we saw a 50% year-over-year increase in the second quarter, reaching RMB 300 million in product revenue.

Speaker Change: In terms of profit, we reported positive profit in the eighth trade cycle report. In the second trade cycle, the positive profit was $9.4 billion. The profit margin was 2.5% during the promotional quarter of the trading platform, compared to 7.8% on March 23 of the second trade cycle. This concludes our main reasons for trade earnings. Thank you. Thank you. The next question is from Michael Kim and Isaac's research. Good morning, everyone. Good evening. Thank you for taking my question. First, I am curious about how trade earnings compare to brand trade earnings. Then, assuming mixed trade earnings, how will it affect the overall trade earnings? And I have a second question. Okay, first, currently, about 90% of the overall trade earnings come from brand sales, related cycles, quality checks, repairs, and sales of all products. The remaining 10% of the overall trade earnings come from brand trade earnings. Trade earnings are equivalent to overall trade earnings in our financial statements. This 8% of trade earnings can be used for our various types of cycle brands operating under the platform model. But under the operating profit margin, the cycle brand products will be similar to our electronic products. When we check the cycle brands of high-value goods, including luxury brands, we define them as our various types of cycle brands, similar to other electronic product cycle brands. This means that currently, the various types of cycle brands have limited impact on our overall profit margin. However, we believe that by expanding the scale and capacity of cycle brands, we can positively impact our overall profit margin and operating profit margin. Thank you.

Rex Chen: In the first half of this year, we continued to enhance our selection of self-recycled goods, swiftly identifying suitable firms for refurbishment and improving efficiency across our value chain.

Rex Chen: In terms of profitability, we reported in AISC, consecutive quarter with positive MNGAP operating profit. In the second quarter, MNGAP operating profit was 94 million RMB.

Rex Chen: Currently, we have achieved 95% comparison coverage in the mobile phone category, laying a solid foundation for future replication to other categories. At the same time, we have enhanced our repair coverage and processing capabilities for different phone conditions.

Rex Chen: Additionally, we have bolstered our sales capabilities for 1P goods, opening up channels for both retail, and business buyers, better connecting the end-to-end industry chain.

Rex Chen: Regarding Apple's official trading service, we have successfully optimized our gross margin as planned, achieving a positive gross margin in the second quarter. Although the overall gross margin for our Apple business in the second quarter was only low single digits, we observed significant improvements in the gross margin for goods received during the second quarter. We will continue to refine this business in the second half of this year, aiming to provide an excellent trading experience for Apple's official users while maintaining steady profitability.

Rex Chen: In the first half of this year, in addition to our consumer-end trading service, we also enhanced our service to Apple's corporate offerings.

Speaker Change #179: In terms of profitability, we reported in AISCOM's

Speaker Change #180: in a consecutive quarter, it was positive MinGAP operating profit. In the second quarter, MinGAP operating profit was 94 million RMB. MinGAP operating margin was 2.5 percent during the promotional season of eCommerce platforms compared with

Rex Chen: Based on Apple's orders from a number of Fortune 500 corporates, we expect to recover used devices from seized corporate clients in the next one to three years. Through such a program, we can access the corporate service market, while addressing the needs of leading international and domestic corporates when disposing of used workplaces, iPhones, and MacBooks of their employees.

Rex Chen: MNGAP operating margin was 2.5% during the promotional season of e-commerce platforms, compared with 7.8% in the second quarter of 2023. Such improved operating efficiency was a testament to the economy of scale-back by our end-to-end supply chain.

Speaker Change #180: 7.8% in the second quarter of 2023. Such improved operating efficiency was a testament

Rex Chen: In terms of profitability, we reported an 8th consecutive quarter with positive MNGAP, operating profit. In the second quarter, MNGAP operating profit was 94 million RMB.

Rex Chen: As I mentioned earlier, in the second quarter of 2024, MNGAP fulfillment expenses increased by 22.9% and MNGAP sales and marketing expenses increased by 11.7%.

Speaker Change #180: to the economy of scale-back by our end-to-end supply chain. As mentioned earlier, in the second quarter of 2024, the gap for film expenses increased by 22.9% and the gap for sales and marketing expenses increased by 11.7%. Both grow slower than our top-line.

Rex Chen: MNGAP operating margin was 2.5% during the promotional season of e-commerce platforms, compared with 7.8% in the second quarter of 2023. Such improved operating efficiency was a testament to the, economy of scale-back by our end-to-end supply chain.

Rex Chen: As mentioned earlier, in the second quarter of 2024, MNGAP performance expenses increased by 22.9% and MNGAP sales and marketing expenses increased by 11.7%.

Rex Chen: Both grow slower than our top-line.

Rex Chen: Both grow slower than our top line.

Rex Chen: Labor costs in relation to fulfillment as a percentage of total revenues decreased by 7.2% compared with the second quarter of 2023. Although promotion fees related to the brand promotion of AHS this cycle increased, but the commission fees and promotion fees of PJT Marketplace and PiPi in relation to sales and marketing as a percentage of total revenues dropped.

Rex Chen: Labor costs in relation to fulfillment as a percentage of total revenues decreased by 0.2% compared with the second quarter of 2023.

Speaker Change #181: Labour costs in relation to fulfillment as a percentage of total revenues decreased by 0.2% compared with the second quarter of 2023. Although promotion fees related to the brand promotion of AHS cycle increased.

Rex Chen: Although promotion fees related to the brand promotion of AHSS cycle increased, but the commission fees and the promotion fees of PGT marketplace and PiPi in relation to sales and marketing as a percentage of total revenues dropped. So above are the main reasons behind the improved margin.

Speaker Change #182: But the commission fees and promotion fees of PGT marketplace and PiPi in relation to sales and marketing as a percentage of total revenues dropped. So above are the main reasons behind the improved margin. Thanks.

Rex Chen: So above are the main reasons behind the COVID-19 Marching.

Rex Chen: Thanks.

Operator: Thank you.

Speaker Change #183: Thank you.

Michael Kim: The next question will come from Michael Kim with Zach's Research.

Michael Kim: The next question will come from Michael Kim with Zach's Research. Please go ahead.

Rex Chen: Thanks.

Michael Kim: Please go ahead.

Michael Kim: great good morning or good evening everyone thanks or taking my questions first just curious how the

Michael Kim: Great.

Michael Kim: Gross margins for the recycling of luxury goods compared to consumer electronics and then Assuming the mix continues to shift in favor of luxury items. Just wondering how that might impact

Michael Kim: overall gross margins, and then I do have a second question.

Rex Chen: Thank you.

Michael Kim: i

Michael Kim: Okay.

Speaker Change #185: So for the first question, currently approximately 90% of our total revenues comes from the product sales related to recycling, quality inspection, refurbishment, and resale of grown products.

Operator: The next question will come from Michael Kim with Zacks Research.

Michael Kim: Please go ahead.

Speaker Change #186: So the remaining 10% of our total revenues come from service revenues generated by our platform. Revenue is equivalent to the gross profit for this segment in our finance statements.

Michael Kim: Great.

Michael Kim: Good morning or good evening, everyone.

Michael Kim: Thanks for taking my questions.

Michael Kim: Good morning or good evening, everyone.

Michael Kim: First, just curious how the gross margins for the recycling of luxury goods compare to consumer electronics.

Speaker Change #186: Of this service revenues, 8% is attributable to our multi-category recycling business operated under the platform model. But in terms of the operating profit margin, selection goods,

Michael Kim: And then assuming the mix continues to shift in favor of luxury items, just wondering how that might impact overall gross margins.

Speaker Change #186: Products.

Speaker Change #186: will be similar to our electronic products.

Michael Kim: Thanks for taking my questions.

Speaker Change #186: so when we exin su of a cycling venues of high very goods including luxury items we categorized sunmize a part of our mo categor opinions alongside as and consumer electronic categories

Michael Kim: First, just, curious how the gross margins for the recycling of luxury goods compare to consumer electronics, and then assuming the mix continues to shift in favor of luxury items, just wondering how that might impact overall gross margins.

Michael Kim: And then I do have a second question.

Rex Chen: Okay. So for the first question, currently approximately 90% of our total revenues comes from the product sales related to the cycling, quality inspection, refurbishment, and the resale of grown products.

Speaker Change #187: missing the ates ' to the motorcgorated cycling venits countryren has a limit impact on our our overall across marg however we believe that by expanding the scope and access stability of our most ategorater cyclcleingof services

Rex Chen: So remaining 10% of our total revenues come from service revenues generated by our platform. Revenue is equivalent to the gross profit for this segment in our finance statements. Of this service revenues, 80% is attributable to our multi-category recycling business operated under the platform model.

Rex Chen: But in terms of the operating profit margin, the luxury goods products will be similar to our electronic products.

Rex Chen: So when we examine the recycling business of high-value goods, including luxury items, we categorize them as a part of our multi-category business alongside other consumer electronic categories.

Speaker Change #187: We can positively influence our overall gross profit mix and margins, as well as operating profit margin.

Rex Chen: This indicates that the multi-category recycling business currently has a limited impact on our overall gross margin. However, we believe that by expanding the scope and accessibility of our multi-category recycling services, we can positively influence our overall gross profit mix and margins, as well as operating profit margin.

Rex Chen: Thanks, and their partners.

Speaker Change: Understood, reasonable. Thank you. Second, regarding the strength of your balance sheet and your investment lighting business model, I would like to know your updated thoughts on capital management. I know you recently mentioned at the meeting that the committee has raised and extended the loan repurchase rights, but I would like to know your thoughts on future investments or potential M&A opportunities. Thank you. Okay, thank you. We will adopt a stable investment approach, and currently, there are no M&A plans. Thank you. Okay, thank you for taking my question. This concludes our Q&A session. I will hand the meeting back to the management. If you have any questions about the meeting, please speak up. Thank you. Thank you again for your participation. The report of today's meeting will soon be available on our IR website, and there will be a translation. If you have any additional questions, feel free to message us. Thank you. The meeting is now over. Thank you for participating in today's presentation. You may now hang up.

Michael Kim: Got it.

Michael Kim: Makes sense.

Michael Kim: And then I do have a second question.

Michael Kim: Appreciate that.

Michael Kim: So for the first question, currently, approximately 90% of our total revenues comes from the product sales related to recycling, quality inspection, refurbishment, and the resale of grown products.

Speaker Change #187: six

Michael Kim: And then second, just given the strength of your balance sheet and your asset-light business

Rex Chen: So the remaining 10% of our total revenues come from service revenues generated by our platform.

Rex Chen: Revenue is equivalent to the gross profit for this segment in our finance statement. Of this service revenues, 8% is attributable to our multi-category recycling business operated under the platform model.

Michael Kim: Got it.

Speaker Change #188: that it kes sense appreciate that and then second

Rex Chen: But in terms of the operating profit margin, the luxury goods.., products will be similar to our electronic products.

Rex Chen: So when we examined the recycling business of high-value goods, including luxury items, we categorized them as a part of our multi-category business alongside other consumer electronic categories.

Rex Chen: This indicates that the multi-category recycling business currently has a limited impact on our overall gross margin. However, we believe that by expanding the scope and accessibility of our multi-category recycling services, we can positively influence our overall gross profit mix and margins as well as operating profit margin.

Speaker Change #188: Just given the strength of your balance sheet and your asset-light business model.

Michael Kim: model, just curious to hear your updated thinking on the capital management front.

Michael Kim: Makes sense.

Speaker Change #189: Just curious to hear your updated thinking on on the capital management front. I know you you talked about the board

Michael Kim: Appreciate that.

Michael Kim: I know you talked about the board recently upsizing and extending the share repurchase, authorization, but just wondering how you might be thinking about potentially instituting a dividend down the road and or capitalizing on potential M&A opportunities.

Michael Kim: And then second.

Michael Kim: Just given the strength of your balance sheet and your asset-light business model.

Michael Kim: Thanks.

Speaker Change #190: recently upsizing and extending the share repurchase authorization, but you know just wondering how you might be thinking about potentially instituting a dividend down the road and or capitalizing on potential M&A opportunities. Thanks.

Rex Chen: Okay.

Rex Chen: Thank you.

Rex Chen: In terms of our shareholder returns, we'll maintain regular and open communication with, the board and the market to explore the feasibility of share buyback and dividend plans and our current plan to use most of our current year profit for share repurchase in current year.

Speaker Change #191: Okay. Thank you.

Michael Kim: Just curious to hear your updated thinking on the capital management front.

Speaker Change #192: In terms of our shareholder returns, we will maintain regular and open communication with the board and the marketer to explore the feasibility of buyback and dividend plans.

Speaker Change #193: and our current plan to use most of our current year profit for share repurchase in current year.

Michael Kim: I know you talked about the board recently upsizing and extending the share repurchase authorization, but just wondering how you might be thinking about potentially instituting a dividend down the road and or capitalizing on potential M&A opportunities.

Rex Chen: So considering the current capital market environment and the company's stage of development, we will adopt a prudent approach to capital utilization and we do not have any M&A plan, Thank you.

Speaker Change #194: So considering the current capital market environment and the company's stage of development, we will adopt a prudent approach to capital utilization, and we do not have any M&A plan now.

Michael Kim: Thanks.

Rex Chen: Okay, thank you.

Rex Chen: In terms of our shareholder returns, we will maintain regular and open communication with the board and the marketer to explore the feasibility of buyback and dividend plans, and our current plan to use most of our current year profit for share repurchase in current year.

Rex Chen: So considering the current capital market environment and the company's stage of development, we will adopt a prudent approach to capital utilization and we do not have any M&A plan now.

Rex Chen: Thank you.

Michael Kim: Great.

Operator: Thanks for taking my questions.

Michael Kim: Great.

Speaker Change #195: Thank you.

Operator: Thanks for taking my question.

Speaker Change #196: thanks for taking my questions

Operator: This will conclude our question and answer session.

Operator: This will conclude our question and answer session.

Operator: I would like to hand the conference back over to management for any closing remarks.

Operator: I would like to hand the conference back over to management for any closing remarks.

Speaker Change #197: This will conclude our question and answer session. I would like to hand the conference back over to management for any closing remarks. Please go ahead.

Operator: Please go ahead.

Operator: Please go ahead.

Operator: Thank you.

Operator: Thank you.

Operator: Thank you all again for joining us.

Operator: Thank you all again for joining us.

Operator: A replay of today's call will be available on our website shortly, followed by a transcript, when ready.

Operator: A replay of today's call will be available on our website shortly, followed by a transcript when ready.

Speaker Change #198: Thank you. Thank you all again for joining us. A replay of today's call will be available on our website shortly, followed by a transcript when ready. If you have any additional questions, please feel free to email us at ir at hvnu.com. Thank you.

Operator: If you have any additional questions, please feel free to email us at ir at hvnu.com.

Operator: If you have any additional questions, please feel free to email us at ir at hvnu.com.

Operator: Thank you.

Operator: Thank you.

Operator: The conference is now concluded.

Operator: Thank you for attending today's presentation.

Operator: The conference is now concluded.

Operator: You may now disconnect.

Operator: Thank you for attending today's presentation.

Speaker Change #199: the conference has now concluded thank you for asasssending today's presentation you may now disconnect

Operator: You may now disconnect.