Good morning everyone and welcome to the First Quarter 2020 Earnings Conference Call for LightInTheBox Holding Company, Ltd. Today's conference is being recorded. At this time, I would like to turn the call over to Mr. Christian Arnell for opening remarks and introductions. Please go ahead, sir.

Thank you. Hello everyone and welcome to LightInTheBox's first quarter 2020 earnings conference call. The Company's results were released earlier today and are available on the IR website as well as through PR Newswire. Today, you will hear from LightInTheBox's CEO, Mr. Jian He, who will give an overview of the Company's strategies and recent developments, followed by Ms. Wenyu Liu, the Company's acting Chief Financial Officer, who will go over financial results in more detail. Before we proceed, I'd like to remind you of our Safe Harbor statement. Please note that the discussions today may contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. To understand the factors that could cause results to materially differ from those in the forward-looking statements, please refer to our Form 20-F filed with the Securities and Exchange Commission on May 1, 2020. We do not assume any obligation to update any forward-looking statements, except as required under applicable law. At this point, I'd now like to turn the call over to Mr. He. Please go ahead.

Thanks, Christian, and thank you everyone for joining us today. The first quarter presented operated under charges for our business. Intention although consumer demand and fulfillment construction due to the impact of the coronavirus. This is created an opportunity to further test all our current strategies for driving our operational efficiency in the first half to makes strategic adjustments throughout the quarter to weather the economic disruption. I'm proud to say that all of our efforts to ensure the health and the safety of our employees, maintain business activity plan for the resumption of normal operations and the safeguard partnerships for fulfillment capacity, resulted in [indiscernible] consecutive quarter of GAAP profitability in 2014. Our strategy adjustments in the first quarter also lift our relationships with the suppliers, expanded our customer base and the further optimize our cost structure. All of which has helped to improve our market condition and ability to scale the business going forward. Despite the significant reduction in dividends activities globally, revenues still increased to $51.5 million during the quarter, up 1.3% year-over-year. Gross margin expanded significantly to 46.4% from 34.8% during the same quarter last year, once again driven by our continuous efforts to grow revenues from categories with higher margins as part of our efforts to improve the optimization of our product mix. This was also underpinned our ability to quickly negotiate with suppliers to secure fast-moving products in the PBE category, and realize cost savings through a disciplined approach to inventories management. Adjusted EBITDA also improved significantly, increasing to $1.4 million, compared with a loss of $7.9 million in the same quarter of 2019. As I mentioned earlier, we delivered our third consecutive quarter of GAAP profitability, while our cash and cash equivalents position remains healthy and 35.6 million which we're continuing to provide…

Thank you, Mr. He, and thank you everyone for joining the call. I will now review our financial results. Let me remind that all numbers quoted are in U.S. dollars. As Mr. He mentioned, we're very encouraged by the continued growth in our top and bottom lines, overall profitability and stronger balance sheet strength despite the significant adverse conditions due to the COVID-19. We are confident that our target operations and growth trajectory will use further increase in profitability when it comes to the management returns. Total revenue was $51.5 million, up 1.3% year-over-year from $50.9 million in the same quarter of 2019. This was mainly driven by stable product sales, which were $49.9 million, compared with $49.8 million in the same period in 2019, and growth in service sales which were $1.6 million, up 45.5% year-over-year. We will continue to prioritize high-quality growth, leverage the expansion and strength of our relationships with factories, as we cater to the needs of our growing user base and improve operational efficiencies in the long run. We will also continue to look for unique opportunities to optimize our category mix toward products. That's still now with the overall focus remaining rarely on margin expansion and attainable profitability. Gross profit was $23.9 million compared with $17.7 million during the same period last year. Gross margin improved to 46.4% compared with 34.8% in the same quarter of 2019. Primarily due to our continued efforts to drive revenue growth from the categories with the higher gross margins, total operating expenses in the first quarter were $27.1 million, marginal increased from $26.5 million during the same quarter of 2019. The increase was primarily due to an increase in selling and marketing expenses. Taking a closer look at the results this quarter, fulfillment expenditures were $5.0 million compared…

Thank you very much everyone for joining today's call. If you have any questions or further comments, please don't hesitate to reach out to LightInTheBox IR team. This concludes the call. Have a good night.

Thank you. Ladies and gentlemen, this concludes the conference calls for today. Thank you for participating. You may now all disconnect.