Xing Jin: Thank you for your question. It has been just one year since the launch of So-Young Prime last August. Over the past one year, we streamlined the process and adjust the operational strategies while building So-Young Prime out to scale. With one year of operational history behind us, So-Young Prime now covers over 140 institutions into 28 cities, providing a premium service experience for a large number of users. As a one-stop nonsurgical medical aesthetic solution, we established in collaboration with institutions, So-Young Prime is still in the early stages of development. We launched a series of promotional campaigns in Q2 to gain significant mile share among users, strengthening its brand and recognition as a professional nonsurgical medical aesthetic platform and has steadily expanded size and reach.
In each Q1 and Q2 of this year, fulfilled orders through So-Young Prime increased by over 80% sequentially, building upon sound word of mouth. In Q2, revenue generated by So-Young Prime began increasingly contributing towards revenue. Looking forward to the second half of this year, So-Young Prime will continue to strictly access — assesses the quality of institutions and services on the platform as it grows in size, improve operational efficiency of participating institutions and strengthen its professional nonsurgical medical aesthetic brand image. We are also exploring opportunities to build partnerships with upstream players along the supply chain to reduce product operating costs, improving operational efficiency and establishing synergies between our various business segments.
Operator: Thank you. And our next question today comes from Chloe Wei with CICC. Please go ahead.
Chloe Wei: Okay, thanks management for taking my question. So my question is for Nick. And could you give us some color on the reason for the year-over-year decrease in the gross margin and as well as the trends so as going on? [Foreign Language]
Hui Zhao: Okay. Thanks for the question. The decrease in gross margin was mainly due to changes in our revenue mix. In Q2 2023, our information and reservation services maintained high margin. The gross margin for sales of medical products and maintenance services is lower than our information and reservation services. Our So-Young Prime business is still in the early stage of development with a lower gross margin. In addition, we’ve launched promotional campaign for So-Young Prime during this quarter, resulting in a decrease in gross margin. In the short term, we expect gross margins to remain at approximately similar level as we continue to invest in So-Young Prime’s promotional activities and expand sales of medical products and maintenance services. As we build our supply chain capabilities and operational efficiency improvements for So-Young Prime at scale, gross margin will begin improving again. Thank you.
Operator: Thank you. We are now approaching the end of the conference call. Thank you for your participation in today’s conference. You may now disconnect, and have a good day.
