Greetings and welcome to the Natural Health Trends Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ariel Papermaster, with ADDO Investor Relations. Thank you, you may begin.

Thank you and welcome to Natural Health Trends second quarter 2019 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 Investor Relations section of the Company's corporate website at 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 9:00 AM 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. To begin, I would like to discuss our second quarter performance, as well as our initiatives to restore top-line growth. I would then hand the call over to Scott to discuss our financials in greater detail. Beginning with our second quarter results, total revenue was down 54% to $23.4 million compared to the second quarter of 2018. As we previously disclosed, we voluntarily suspended our member activities during the vast majority of the first quarter and extended that further to the entirety of the second quarter in response to the Chinese Government January 8th announcement of its 100 day campaign. Throughout this campaign which included a thorough review of certain food, equipment, small appliance manufacturers, and service providers that claim to promote beneficial health function. Our cooperation with the Chinese Government's inspection, investigation and document request has been our top priority. So the campaign expire in late April. There has been no official conclusion to formally end the program. The operating environment in China remains difficult for a company like ours. However we were pleased with our leader's capability to come together and adapt our business operations to this new environment. As a result our second quarter revenue was up 21% compared to the first quarter of 2019. Following the 100 days, we are maintaining our member activity moratorium in Mainland China for the foreseeable future. This entails a voluntary suspension of company sponsored business meetings and product roadshows. I would reiterate my comments from our last call that we strongly support the actions taken by the Chinese Government to root out bad products and deceptive practices in order to protect Chinese consumers. I still believe…

Thank you, Chris. Total revenue for the second quarter was $23.4 million, a decline of 54% compared to $50.9 million in the second quarter of 2018 and an increase of 21% compared to $19.3 million from the first quarter of 2019. The year-over-year decline was primarily the result of the 100 days campaign in China. Our active member base decreased 10% to 70,280 at June 30 from 87,300 at March 31 and was down 16% from 93,000 at June 30 of last year. Turning to our cost and operating expenses. Gross profit margin of 76.9% declined from 79.6% in the second quarter last year and improved from 73% in the first quarter of 2019. The year-over-year decline in gross profit margin reflects product promotions and a higher logistics costs. Commissions expensed as a percent of total revenue of 48.7% increased from 43.8% in the second quarter last year and decreased from 49.1% in the first quarter of 2019. The year-over-year increase as a percentage of net sales was largely due to higher costs of a special incentive program to help ease qualification status for our members during this extraordinary period. Selling, general and administrative expenses for the quarter decreased 18% to $6.6 million from $8.1 million a year-ago and decreased 9% from $7.3 million in the prior quarter. The decrease versus the same quarter a year-ago was primarily due to a decrease in both employee-related costs and credit card fees, partially offset by member-related costs, event costs, and professional fees. The decrease versus the prior quarter is due to less event cost as our first major event at the year occurred in March. As a result, operating loss for the quarter was $4,000 compared to operating income of $10.1 million in the second quarter last year and our operating loss…