Hello everyone. Thank you for joining our second quarter 2026 results call. So in the second quarter of 2026, we continue to execute our core mandate of high-quality resilient growth while navigating a profound structural adjustment in the domestic two-wheeler market and accelerating the strategic realignment of our international business. For Q2 2026, we achieved a total sales volume of $434,000 units, representing a robust year-over-year increase of 24%. So this expansion was propelled by the China sales reaching a 400,000 units, up 26% year-over-year, and the overseas shipment scaled to 32,000 units, up 3.6% year-over-year, signaling a steady operation recovery in the international business. Total revenue for the quarter reached R&D $1.44 billion, representing a year-over-year growth of 14.7%. Growth margins stood at the 16%. This primary trajectory was driven by three main factors. First, the active promotional sales clearance and inventory write-off of our international micromobility business. Second, the structural product makes shift towards the higher-volume electric motorcycles in China, which carries relatively lower margins compared to our historical premium e-bicycle And third, ongoing cost pressure from elevated raw material prices. Crucially, those collective headwinds were partially offset by our ongoing components platformization and the commercial cost reduction initiatives. Now, I would now like to provide more details on our performance and strategic executions caused both China and the international market. First, let's talk about China market. In Q2, 2026, the China sales volume grew 26% year-over-year to 400,000 units. This strong volume growth was achieved against the challenging regulatory and the macroeconomic backdrop. Now with the full enforcement of new national standard for electric bicycles coupled with broader consumer demand decline in the top tier cities, the domestic two-wheeler markets undergoing a significant structural transformations. Specifically, the premium e-bicycle segment, historically our strongest category, experienced a meaningful industry-wide contraction with the first-half decline estimate between 25-30%. Concurrently, consumer demand has effectively expanded towards electric motorcycles, especially in lower-tier cities where the motorcycles are not banned, a category with lower average selling prices, and a margin than the premium e-bicycles. We will actively reallocate our R&D and the product resources in advance, aggressively pivoting towards the high-growth electric motorcycle segment. The structural momentum of the electric motorcycle business is now directly offsetting the pressure in the premium e-bicycles, establishing a strong foundation for our next growth phase. Now, first talk about the product portfolios. During the second quarter, our execution focused on decisive structural engineering of our product portfolios. In terms of electric motorcycles, the electric motorcycle category contribute approximately 60% of our China sales volume in Q2, serving as the primary growth engine of our domestic business. We continue to strategically concentrate resources here, building our comprehensive product matrix across key consumer user cases. First, following the strong exceptional windstorm series, we spent aggressively with the N-Fung Chi series, a high performance model purposefully built for delivering professionals and high frequency cargo use. Delivering 0 to 50 km per hour acceleration in just 5.4 seconds and top speed of 70 km per hour, and support for mainstream battery swapping. A price at the accessible RMB3399 achieved a record-breaking online pre-order of 32,000 units on its very first day. In April, we also launched an NX Marathon series to directly eliminate the range, anxiety, and the charging constraint. Equipped with a high-capacity 72-volt, 15-amp-power battery, it delivers a verified full throttle range of 146 kilometers. In Q2 alone, the NX Marathon contribute 11% of our total domestic sales volume. Now, building on this momentum, we further expand the line up in July with the NX100 and NX70, expanding our price point coverage and solidifying our leadership in the family commuting segments. Now, in terms of e-bicycle segments, we maintain a strong long-term commitment to market while systematically strengthening our product matrix under the new national standard. First, we enhance our entry-level offerings led by the Y-Series to effectively broaden the consumer access. Second, we are actively in the process of reintroducing key models in the RMB 5000 to 7000 price range to reestablish our technological leadership in the premium e-bicycle space. Now, while maintaining a prudent discipline during the current market condition, we're fully prepared to capitalize on market recovery when demand returns, leveraging our complete and diversified compliance portfolio. Now second, let me talk about R&D and technology. The technology and continuous innovation remains core to news long-term strategy. Following our March vision announcement to redefine mobility and enter the air of AI-powered two-wheel electric vehicles, we move decisively in Q2 alongside leading technology partners to convert hardcore AI capabilities into tangible mass market user experience. Core features including the new AIOS screen navigations, integrated triple camera recorder system, AI test, and AI voice interaction are now fully integrated across multiple mass production models. Our user data confirm those features have been frequently used. For example, in terms of sweep our sweep screen navigations, they reach approximately 190,000 monthly active users. Now adding to those technology momentum, our new OIO offers for interface and user experience design. This marks the first time two-wheeler operating system has received international recognition serving as a powerful global validation of our design and technological leadership. Now let me talk about the brand and marketing. On the On the brand front, we continue to execute our strategy of brand-driven growth, deliberately expanding news position from a niche top-tier urban geek brand towards a broader mass premium market. We are driving a full funnel brand awareness and mainstream consumer acquisition through a multi-touchpoint approach. First, support of our global celebrity ambassador large-scale brand campaign, influencer content, and user engagement programs. We actively shifting brand perception from single brand recognition to a deeper consumer understanding and engagement. Second, we sustain a target brand of visibility investment across 37 key cities, occupying high-traffic touch points including outdoor digital screens, major transit hubs, cinemas, and the Central Commercial District, generating over 5.9 billion total impressions. And last, we successfully launched a targeted offline community event such as Earth Day campaign that generated 250,000 explorers and also Shanghai outdoor exhibitions which generated 3.25 million impressions. Now, on the retail channel side, in light of broader market uncertainties, we focused on things for sales increase and prioritized the operational health and the profitability of retail ecosystem. In terms of network footprint, by end of Q2, our store network stood at 4,570 stores nationwide with lower tier cities accounts for 36% of our total footprint. Now, by concentrating our resources to our existing retailers, the sales for sale surge by 24% year a year, driving a consecutive operation efficiency gains across our store network. And we'll focus on online channels. The online channel delivers standout performance and Q2 online sales grow by 50% year-over-year and accounts for 64% of our total domestic retail sales. Besides the traditional team on JD.com, we also opened on Douyin powered by nine official flagship accounts and 1,600 dealer-operated accounts. We executed 57,000 live streams and produced 90,000 short-form video clips in Q2 and generating over 720 million impressions. Let me talk about the international business. In Q2 2026, the overseas sales reached at 32,485 units representing a 3.6% year-over-year growth and this demonstrates our international business has steadily acted as a structural adjustment phase to re-enter the growth trajectory. Now, first talk about the international electric motorcycle business. Our overseas electric motorcycle business maintain a powerful momentum, deliver a 4,800 units in Q2, a substantial year-over-year increase of 50%. This performance directly validates efficacy of our direct-to-retailer strategy. In terms of networks, our dealer network successfully expanded from 307 stores at beginning of the year to 417 active locations by NLQ2. In terms of product mix, following the successful introduction of our high-performance models, such as NLX500, NLX300, FX200, the 125cc-plus category has roughly climbed to accounts for approximately 50% of our total European sales volume. So this premium mix optimization structurally lifts the gross margin profiles and we continue to achieve a team of local . Now in the emerging market like Asia-Pacific and other areas, we made steady progress through an asset-led profitability first approach and we had made the first approach for example Algeria with sales across over a thousand units and Thailand with sales over a thousand units. Now, we'll maintain this discipline asset-like expansion models, first validate the product market fit and local profitability, then selectively scale into additional high-potential markets. Now, in our micromobility business internationally, Q2 marked a successful completion of two-channel transition, bringing the terminal sales velocity firmly back to an undergrowth path. While the wholesale shipment reached 27,000 units, the end-user retail activation, which truly measured the organic consumer demand, exceeded 36,000 units, represents a 21% year-over-year growth in Q2. And this activation trend accelerated month over month, for example, it grew at 21% in May and also and the 37% in June proving our inventory clearance initiative are working effectively. And our promotional strategy for legacy models yield a highly positive result in term of channel clearing as anticipated those inventory clearance program created short-term compression on micro mobility growth margin. But we view this as necessary prudent and deliberate investment to restore a long-term operation impact. Now look ahead, the second quarter in 2026 served as a pivotal period for deliberate operation adjustments. In China, our momentum was anchored by the rapid acceleration of our electric motorcycle category, which successfully offset market-wide regulatory and macroeconomic headwinds in the electric bicycle segments. Now, moving into Q3, we'll continue to lean aggressively into the electric motorcycle course momentum. We're expanding into new consumer segments by launching a female-focused product lines while systematically deepen our market penetration with our Wernstorm and Marathon product families. At the same time, while the broader market-wide recovery electric bicycle depends on market conditions and consumer sentiment, we're taking proactive internal steps to structurally improve our revenue NISP in the e-bike segment today. In Q3, we're reintroducing a fresh line of mid-to-high-end compliant e-bicycles targeting the RMB 5,000 to 7,000 price range. By upgrading our product mix with the premium features and advancing the integration of new AIOS and AI-assisted riding features, we aim to lift our ASP and define our margin profile while broader markets stabilize. On the channel front we'll continue to amplify our online traffic generation across social commerce platforms driving public domain traffic directly into our retail store network to support itself across all categories. Now in the international market our core electric motorcycle business will maintain steady structural growth and our direct to retail strategy leveraging a higher of 125cc plus model penetration to lift the regional margins. Concurrently, our macromobility segment remains firmly on track with our distribution transition largely complete. The active promotion clearance in Q3 will bring the overseas inventory back towards a healthy normal baseline at the end of the year. So in summary, 2026 was the important year for structural transformation for new by capturing the volume growth in electric motorcycle, reestablishing our premium agile e-bicycle and advancing our AI ecosystem and normalizing our overseas inventory while building a more resilient operation base. We remain disciplined and realistic about the market condition and focused entirely on execution. Now I'll turn over to our CFO, Sian Zhou, to talk about the financials.
Thank you, Yan. Hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded Excel form and figures to our IR website, very easy reference. As I review our financial results, I'm referring to the second quarter figures unless I say otherwise. And all monetary figures are in our list not specified. As Yan just mentioned, our total sales volume for the second quarter was over 434,000 units, up 24% compared to the same period of last year. 402,000 units were sold in China while the remaining $32,000 was sold overseas. Nearly 60% of our sales in China came from the top five best sellers. The total revenue for the second quarter amounted to $1.44 billion, an increase of $185 million or 15% compared to the same period of last year. China revenue were $1.32 billion, accounting for 92% of total revenue. Of this, the scooter revenue was $1.21 billion and year-over-year increase of 15%. And this growth was primarily driven by the higher sales volume, but partially offset by the decrease of revenue for e-scooters. China's scooter ASP was R&D in 3,010, down 9% year-over-year, and this decline in ASP was primarily attributable to a shift in the product mix with a higher preparation of the electronic motorcycles. During this quarter, these models were primarily sold within a narrow retail price range of R&B 4500 to R&B 7000 including the models such as FX and X windstorm versions and this kind of shift towards models within this price range resulted in a lower ASP compared with the same career of last year. Overseas revenue were $116 million representing eight percent of the total revenue. Scooter revenue including electronic motorcycle, mopeds, kick scooters, and e-bikes amounted to $106 million, slightly increased from $103 million in the same year of last year. And this increase was driven by the higher sales volume. The ASP of overseas scooters were R&D 3,270. Revenue from accessories, spare parts, and services were $124 million, a 29% increase compared to the same period of last year, mainly driven by the growth in new AATP services and higher sales of accessories and spare parts in China market. The growth profit for this quarter was 230 million, declined from 252 million during the same period of last year. The growth margin was 16%, 4.1 ppt lower than the same period of last year, of which 2.5 ppt decreased driven by the change in the product mix and higher cost in China market, and the rest the 1.6 ppt decrease due to the lower margin on overseas kick scooters. In China market, as mentioned previously, the electronic motorcycles accounted for a greater share of the domestic sales, and these models carry lower growth margins compared with the e-bicycle models. And meanwhile, higher product costs across the upstream supply chain puts additional of pressure on the domestic gross margin and internationally the inventory clearance of the key scooters resulted in a lower margin which also contributed to the overall gross margin decline. The operating expenses for the second quarter were $341 million, increased to $76 million or 29% compared to the same period of last year. The OPEX ratio was 24%, up from 21% in the same period of last year, but down from 29% in the last quarter. Selling and marketing expenses rose by $36 million year-over-year to $239 million, primarily driven by the increase of R&B $21.9 million in intensified marketing plans in the domestic market starting from the beginning of this year, including the e-commerce, advertisement, and branding. The R&B $12.2 million in depreciation and amortization expenses related to the new store expansion. Selling and marketing expenses accounted for 17% of revenue, up from 16% in the same period last year but down from 20% in last quarter. R&D expenses increased by $8 million year-over-year to $52 million, primarily due to an increase in design, testing costs, as well as the staff cost. R&D expenses represented 3.6% of revenue compared to 3.5% in the century of last year and 4.5% in last quarter. G&A expenses increased by $31 million year-over-year to R&D $51 million, primarily due to the foreign exchange losses related to the re-measurement of the foreign currency dominated assets, mainly the accounts receivable. At the overall earnings level, the impact of these foreign exchange losses were partially offset by the interest income. G&A expenses represented 3.5% of revenue compared with 1.5% in the same period of last year, but down from 4.7% in the previous quarter. Excluding the impact of foreign exchange losses, G&A expenses were R&B 32 million compared with R&B 44 million in the same period of last year. In the second quarter, we had a net loss of 102 million with a net loss margin of 7.1% under the GABA accounting compared to a net income of 5.9 million with a net income margin of 0.5% for the same period of last year, and the non-DAB net loss was $98 million, with the non-DAB net loss margin of 6.8%. Turning to our balance sheet and cash flow, we ended the quarter with R&B $1.7 billion, increased $36 million compared to the end of last year in cash, restrictive cash, term deposit, and short-term investments. Our operating cash was inflow amounted to 392 million. The capex for the second quarter amounted to 53 million, reflecting an increase of 21 million compared to the same period of last year. And this can be primarily attributed to an increase in the opening of new stores and modules cost in China. And now let's turn to guidance. We expected the third quarter revenue to be in the range of R&B 1.86 billion to 2.03 billion, an increase of 10% to 20% year over year. And please be aware that this outlook is based on the information available as of the date and reflect the company's current and preliminary expectation, which is subject to change due to uncertainties related to various factors. And with that, we'll now open the call for any questions that you may have for us. Operator, please go ahead.
