Stella, or Xinghe in Chinese, a premium device line with upscale st- styling, including leather, lace, and other fashionable materials. We will continue to monitor users experiences very closely and launch innovative, targeted products at the right time. We also made several advancements in user retention and engagement during the quarter. We successfully upgraded our membership system, enabling members to enjoy more benefits as they accumulate rewards points. A growing number of users are scanning the QR code on their cartridges to collect reward points, which will allow us to empower users with instant product authentication. Separately, we have established more effective communication channels to provide unbiased, fact-based, scientific e-vape product information to our users and the community. Finally, we are concentrating on distribution and retail channel optimization. Instead of engaging more distributors, and extending the number of our RELX branded stores, this quarter we prioritized our existing distributors organizational upgrade. We encouraged our distributors to hire exceptional talent and refine their team structure within each department. We optimized existing RELX branded partner stores' location by identifying areas with high retail sales potential and encouraging store owners to adjust their operations accordingly. In addition, we provided online and off-line trainings for store owners and sales personnel to enhance their communication skills and enrich their product knowledge in order to counter the adverse effects from misinformation regarding from periodic negative publicity in all categories. We have also upgraded our digitalization system for branded partner stores, provided improved fun- functionality, and additional user portals to assist store owners and sales personnel in their daily operations. For our other retail outlets, our focus in the third quarter was to identify prime outlets for expansion through trials and various channels. These trials resulted in several initial successes, including some momentum in lifestyle channels and other key accounts. In addition to our emphasis on high quality growth, we are deeply committed to fulfilling our corporate social responsibility. We believe a healthy relationship between our products, users, shareholders, and the community has been essential to the growth we have achieved over RELX's four year history. With this in mind, we'll work tirelessly to introduce new technologies to tackle industry pinpoints. For example, minor protection is one of, uh, RELX's highest priorities. We spare no effort in our minor protection initiative, from product labels to trade channels, and technology innovation. In June 2021, we began upgrading Sunflower Systems, our technology driven minor protection system, to version 3.0, and currently equipped all of our branded store with the upgraded software. On the Sunflower Systems 3.0, all users are required to complete name, plus ID number, plus face recognition, three step verification, before purchasing. After the amendment to China's National Standards become effective, we will strictly comply with any upgraded product requirements. For example, we are prepared to include minor protection features such as child safety locks, similar to the feature which we have incorporated into our RELX i product line back in 2019. As a company that values long term, high quality growth, our commitment to social corporate responsibility is at the core of our daily operations. To echo what Kate has pointed out previously, our game has entered the second half. With the state council's decision to amend the detailed implementation regulations of the tobacco monopoly law, and the subsequent release of a consultation paper regarding national electronic cigarette product standard by the state tobacco monopoly administration, as well as last night's release of a convul- consultation paper regarding an administrative measure on electronic cigarettes covering various aspects including production, distribution and retail sales, import and export, and inspections. Different from the first half of the game, when the sector lacked clear regulatory guidelines, this second half is marked by enhanced product quali- safety and quality, augmented social responsibility, and improved intellectual property protection. The investment we made in product, talent, research, and compliance in the third quarter and beyond, will place us in an advantageous position on the new regulatory paradigm. We expect these investments to yield steady and sustainable growth soon, and to reward us and our shareholders in the long term. Turning to our financial results for the third quarter of 2021, net revenues decreased by 34% to RMB1 .368 billion, equivalent to U.S. $260.2 million in the third quarter of 2021 from RMB2 .54 billion in the second quarter of 2021. The decrease was the result of watered down market conditions including one, negative e-vaping industry publicity since the latter half of the second quarter. Two, the fact that the new, draft new rules announced on March 22, 2021 had not been formally confirmed, and no new information implementation details had been revealed during the quarter. And three, evolving restrictions in response to COVID-19 outbreaks in China, which had adverse impact on our sales and channel inventory management. Gross profit decreased by 42.8% to RMB656 million, equivalent to U.S. $1, uh, $101.8 million in the third quarter of 2021. From RMB1 .15 billion in the second quarter of 2021. Gross margin was 39.1% in the third quarter of 2021 compared to 54, sorry, 45.1% in the second quarter of 2021. The decrease was primarily due to, one, an increase in direct costs related to promotional activities, and two, an increase in inventory provisions. Operating expenses were positive RMB241 .3 million, equivalent to U.S. $37.5 million, in the third quarter of 2021, representing a decrease of 244.4% for RMB167 .2 million in the second quarter of 2021. This significant decrease in operating expenses was primarily due to a recognition of share-based compensation expenses of positive RMB523 .7 million, equivalent to U.S. uh, $81.3 million, consisting of one, share-based compensation expenses of positive RMB90 .8 million, equivalent to U.S. $14.1 million, recognized in some expenses. Two, share-based compensation expenses of positive RMB320 .1 million, equivalent to U.S. $49.7 million, recognized in general… Equivalent to US dollars 49.7 million recognized in general and… and administrative expenses. And three: share-based compensation expenses of positive R&D, 112.8 million, equivalent to US dollar 17.5 million, recognized in research and development expenses. The signif-date… The significance fluctuation in share-based compensation expenses were primarily due to the changes in fair value of the share in inaudible, that the company granted to its employees as effective by significant fluctuation of the company's share price. Some expenses decreased 65.1% to R&D, 56.5 million, equivalent to US dollar 818 million in February of 2021. From R&D in the 2nd quarter of 2021. The decrease was primarily driven by, first the fluctuation of share-based compensation expenses and second, a decrease in salaries and well-fare based benefits, partially offset by an increase in branding materials expenses. General and administrative expenses decreased by 649.8% to positive R&D, 253.2 million equivalent to US dollar 39.3 million in the 3rd quarter of 2021 from R&D 46.1% in the 2nd quarter of 2021. The decrease was primarily driven by the fluctuation of share-based compensation expenses and a decrease in salaries and well-fare benefits. Research and development expenses decreased by 808.3% to positive R&D 44.6 million, equivalent to US dollar 619 million in the 3rd quarter of 2021 from positive R&D 419 million in the 2nd quarter of 2021. The decrease