Cango Inc. Q2 FY2021 Earnings Call

Operator: Good morning, and good evening, everyone. Welcome to Cango Inc.'s Second Quarter 2021 Earnings Conference Call. [Operator Instructions] This call is also being broadcast live on the company's IR website. Joining us today are Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Michael Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct the Q&A session. Before we begin, I refer you to the safe harbor statement in the company's earnings release, which also applies to the conference call today as management will make forward-looking statements. With that said, I'm now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Mr. Lin, the floor is yours, sir. Jiayuan Lin : Good morning and good evening, everyone. Welcome to Cango's 2021 Q2 Earnings Call. In the first half of 2021, China's auto market still recovering from the impact of the COVID-19 pandemic faced renewal pressure due to the persistent global chip shortage. In the wake of this shortage, OEMs have had to slow down production and dealers have slashed promotions, leading to a significant decline in car production and sales. The volatility in the automotive market stemming from uneven chip supplies is unlikely to ease in the short term and is widely expected to linger in the second half of 2021. Meanwhile, price increases in other key components and raw materials have further intensified cost pressure on OEMs and fueled uncertainty in their production plants.