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Min, Jane, James and Jenny will share our business update, operating highlights, industry outlook and financial performance for second quarter of 2012, as well as an outlook for the third quarter of 2012. We will also have a Q&A session towards the end of this call.

With that I will turn to Min for our business update.

Min Fan

Thanks, Michelle, and thank you to everyone for joining us on the call today. In the second quarter of 2012, Ctrip delivered historic results. Net revenues grew by 17% year over year, within the range of our guidance of 15% to 20% year over year. Net income decreased by 55% year over year, mainly due to the intensified investments in product development and marketing campaigns, as well as the withholding tax related to the USD300 million stock buyback plan announced in June.

China travel market enjoys explosive growth, yet the competition still intensified, particularly in the low-end leisure travel market. Today I would like to take this opportunity to share with you Ctrip's strategy to win over the competition and enhance our leadership.

Ctrip aims to build our business for the long term, where we strive to create most compelling value for our customers and partners. We will achieve our goal to comprehensive [and broad] offerings, convenient customer experience, competitive pricing, and confidence in Ctrip brands. We're investing heavily in product development this year. From comprehensiveness to diversity, we are very creative in new models and consistently improving our platforms faster than ever before. Our Smart Choice Hotels, new international air ticketing platform, luxury travel sites, HH Travel, Tujia vacation rentals, and [Sungko] hostel booking have all planted the seeds for the future growth and for long-term success.

We are continuously improving our customer online experience. Beyond efficient online transactions, we also strive to provide the latest travel information available. Our team has made great efforts to enhance the edited content and pictures. The number of reviews posted by travelers has increased significantly. In addition to the online website, mobile platform is a clear priority in Ctrip's business development map. All these investments fuel the increase in online transactions. By end of the second quarter, hotel online transaction exceeded 50% of total bookings. On average, online transactions accounted for about 45% of Ctrip's total bookings.

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