Greetings, and welcome to the Natural Health Trends Fourth Quarter and Full Year 2018 Earnings Conference Call. At this time, all participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. Please note that this conference is being recorded. I will now turn the conference over to Ariel Papermaster with ADDO. Ms. Papermaster, please begin.

Thank you and welcome to Natural Health Trends Fourth Quarter and Full Year 2018 Earnings Conference Call. During today's call, there may be statements made relating to the future results of the Company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements due to the result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission. It should also be noted that today's call will be webcast live and can be found on the Investors section of the Company's corporate website at www.naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today's financial results press release, which was issued at approximately 4:05 PM Eastern Time. At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Thank you, Ariel, and thanks to everyone for joining us. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. As a result of the increasingly unpredictable macroeconomic environment, 2018 was a challenging year for our business. Total revenue was $191.9 million compared to $197.6 million in 2017. This decrease was primarily driven by factors beyond our control, including increased global trade tensions, China's slowing economy and a weaker Chinese currency, which resulted in a more difficult operating environment for our business. Despite these market conditions, our members maintained solid order volume during the year. The Chinese yuan's depreciation of 10% against the Hong Kong dollar since last February contributed to a 3% decline in revenue for 2018. Without the impact of the yuan devaluation, which effectively makes our products more expensive for our Chinese consumers, revenue for the full year of 2018 would have been flat with 2017. Importantly, despite the year-over-year decline in our top line, we were able to maintain strong margin profile. For 2018, our gross profit margin was 80% and operating income margin was 18%. Our ability to preserve healthy margins is due to strong consumer demand for our products and our continued proactive expense management to better align our cost structure with current sales levels. During the quarter, our momentum in Peru continued as December delivered a record number of orders for this market. We believe this demonstrates the high quality of our Peruvian member base and local leadership team. In addition to Peru, a number of our other markets achieved notable sales growth during the year. Our business in Japan, Korea, the United States and Canada all grew net sales over 2017 levels. As a result of this success and with the help of our Peruvian leadership team, we…

Thank you, Chris. Total revenue for the fourth quarter was $41.6 million, a 10% decrease compared to $46.1 million in the fourth quarter of 2017. Sales in Hong Kong, which accounted for 86% of our fourth quarter revenue, decreased 10% year-over-year to $35.8 million. Outside of Hong Kong, revenue decreased 10% year-over-year to $5.8 million. Our Active Member base increased 1% to 97,800 at December 31, up from 97,200 at September 30 and up 2% from 95,700 at December 31 last year. Turning to our cost and operating expenses. Our gross profit margin for the fourth quarter remained solid at 78.8% compared to 79.6% in the prior year quarter and 78.9% in the third quarter of 2018. Commissions expense as a percent of total revenue increased to 48.6% from 42.9% in the fourth quarter last year. On a full year basis, commissions expense was 45.6% of total revenue, up from 42.3% in 2017. The increase as a percent of net sales was primarily due to more benefits earned by our members under our ongoing cash and other incentive programs. Selling, general and administrative expenses for the quarter were $6.8 million versus $8.2 million a year ago, primarily due to a decrease in employee-related cost. As a result, operating income for the quarter totaled $5.7 million compared to $8.7 million in the fourth quarter of last year and $7.8 million in the third quarter of this year. Our operating income margin was 13.8% compared to 18.8% in the fourth quarter of last year and 16.7% in the third quarter of this year. We recorded an income tax provision of $500,000 for the fourth quarter of 2018, resulting in an effective tax rate of 8.2%. Our full year effective tax rate was 10.1%. Net income for the fourth quarter totaled $5.6 million…

Thank you, sir. This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation.