ATRenew Inc.

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to ATRI News Incorporated first quarter 2022 earnings conference call. At this time, all participants are in listening mode. We'll be hosting a question and answer session after management's prepared remarks. Please note that this event is being recorded. I'd like to turn the call over to the first speaker today, Mr. Jeremy Gee, Director of Corporate Development and Investor Relations of the company. Please go ahead, sir.

Thank you. Hello, everyone. Welcome to ATU News first quarter 2022 earnings conference call. Speaking first today is Kerry Chen, our founder, chairman, and CEO. And he'll be followed by Rex Chen, our CFO. After that, we'll open the call to questions from analysts. Our first quarter 2022 financial results were released earlier today. The earnings release and investor slides accompanying this call are available on our IR website at ir.atmnew.com. There will also be a transcript following this call for your convenience. For today's agenda, Kerry will share his thoughts on our quarterly performance and business strategy, followed by Rex, who will address the financial highlights. Both Kerry and Rex will join the Q&A session. Please know that since Shanghai is under lockdown, management joined today's conference call via different lines in Shanghai. Kindly excuse us if there is any connectivity issue during the call. Some of the information you will hear during our discussion today will consist of forward-looking statements, and I refer you to our safe harbor statements in the earnings press release. Any forward-looking statements that AT Renew makes on this call are based on assumptions as of today, and that AG Renew does not take any obligations to upgrade our assumptions on these statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures. 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. I do not like to turn the call over to Kerry for business and strategy updates.

Okay. Hello everyone and thank you for joining us on our first quarter earnings conference call. The national epidemic is frequent. Under the challenging environment, our business has still gained rapid growth. In the first quarter, GMV reached 9.3 billion RMB, with a growth of 51.6%. Income reached 2.2 billion RMB, with a growth of 45.7%. It exceeded previous expectations. Starting in mid-March, Shanghai, Shenzhen and other places were seriously affected by the epidemic. Even with the impact of the Spring Festival and the impact of the epidemic for about half a month, we still obtained the operating profit of Nungap in the first quarter. After the fourth quarter, we obtained profit again, and our cash flow transfer of business activities reached 1.2 billion RMB.