Good day and thank you for standing by. Welcome to the Niu Technologies Second Quarter 2022 Earnings Release Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your first speaker today, Wendy Zhao. Please go ahead.

Thank you, operator. Hello, everyone. Welcome to today’s conference call to discuss Niu Technologies’ results for the second quarter 2022. The earnings press release, corporate presentation and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from company’s IR website as well and a replay of the call will be available soon. Please note today’s discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions and other factors. The company’s actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company’s public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required by law. Our earnings press release and this call include discussions of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou. Now let me turn the call over to Yan.

Thanks, Wendy and thanks everyone for joining us on the call today. In Q2 2022, we delivered a mixed result in the China and international markets. Total sales volume was down by 17.4% year-over-year. The total sales volume in an international market were up by impressive 200% year-over-year, reaching nearly 29,000 units, mainly driven by the growth in the new category of kick-scooters. However, the total sales volume in the China market was down by 26.7% year-over-year for China market was severely affected by the COVID-19 resurgence. Now in the China market, COVID infection spiked starting in early April and affected throughout the entire quarter. The lockdown paused pretty much all business operations in cities like Shanghai and severely slowed down the most in others like Beijing. Niu’s sales are highly concentrated in the higher tier cities, which were impacted by the COVID most significantly as top-tier cities account for 35% to 55% of total sales in China market. In addition, the lockdown in Shanghai also caused months of delay in new product development, as our R&D center is based in Shanghai. This has impacted our sales performance in quarter two as well as in Q3 as quite a few key Niu products that are originally scheduled in Q2 were delayed to late August. For the international market, in Q2, sales of kick-scooters continue to grow rapidly in the overseas market, growing by 112% quarter-over-quarter. During the Amazon Prime Day promotions, Niu was ranked one on bestsellers in the kick-scooter categories in Canada, Germany and France and the ranked top three in Spain, U.S. and Italy market. We are excited to see that in less than year since we launched the first kick-scooter product, we have already established our reputation as top sellers in the European, U.S. market online. With…

Thank you, Yan, and hello, everyone. Before going through the financials, we are pleased to present our inaugural ESG report on the IR website today, highlighting our ESG achievements made over the past several years. While it details the company’s performance in several key areas, including low carbon operations, green manufacturing, technology innovation, cooperate governance, care for employees and cooperation with partners and peers, valuing this report as the symbol of entering to the new chapter of ESG development for Niu, we have been acknowledging our responsibilities as a member of community, and we continue to make conscious contribution to society in a number of ways going forward. While dedicating to economic growth, we also hope to enhance our communication with stakeholders to make a constructive input on environmental protection and low carbon economy promotion. Back to the financial results. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded excel format figures to our IR website for your reference. As I review our financial performance, we are referring to the second quarter figures on otherwise and that all figures are RMB unless otherwise noted. In the second quarter, we delivered mixed results. Total sales volume fell 17.4% to 209,000 units on a year-over-year basis, out of which 180,000 was from China market, representing a 26.7% decrease year-over-year. We were more exposed to and adversely affected by lockdown in top-tier cities. Unlike peers, our retail network is a lot more concentrated among them, where strict control measures mostly happen. International markets contributed to robust growth by kick-scooters sales ramped up. Total sales volume reached nearly 29,000 units, increased by more than threefold year-over-year, among which kick-scooters sales volume doubled to 21,000 quarter-over-quarter, a record high since it’s launched in the third…

Great. Thank you, operator, and thank you all for participating in today’s call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.

That does conclude our conference for today. Thank you for participating. You may all disconnect. Have a nice day.