Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited's fourth quarter and full year 2018 earnings conference call. At this point, I'd like to turn the call to Ms. Jessie Fan, VIP Shop's head of investment relations. Please proceed.

Thank you, operator. Hello, everyone, and thank you for joining VIP Shop's fourth quarter and full year 2018 earnings conference call. Before we begin, I will read the Safe Harbor Statements. During this earnings call, we will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations, assumptions, estimates, and projections about VIP Shop Holdings Limited and its industry. All statements other than statements of historical fact we may make during this call are forward-looking statements. In some cases, These forward-looking statements can be identified by words or phrases such as anticipate, continue, estimate, expect, intend, is or are likely to, may, plan, should, will, aim, potential, or other similar expressions. These forward-looking statements speak only as of the date hereof and are subject to change at any time. and we have no obligation to update these forward-looking statements. Joining us on today's call are Eric Shen, our co-founder, chairman and CEO, and Donghao Yang, our CFO. At this time, I would like to turn the call over to Mr. Eric Shen.

Good morning and good evening, everyone. Welcome and thank you for joining our fourth quarter and full year 2018 earnings conference call. We delivered solid operation results in the first quarter of 2018, with total active customers growing by 13% year-over-year. Our collaboration with Tencent and JD continued to bring us high-quality new customers. In the first quarter, new customers from WeChat and JD accounted for 23% of our total new customers. Our existing customers are also becoming more loyal to our platform. As of the end of 2018, around 3.2 million customers joined our Super VIP paid membership, which is a 38% increase quarter over quarter. The initial renewal rate for customers who joined the program before 2018 was over 70%. We are glad that our customers realize the value of this membership. All these successes are the result of our focus on merchandising and the shift back to deep discount products. In the fourth quarter, we also delivered good results during the two promotion events. The number of active customers who purchased during the year single day increased by 23% year-over-year. In addition, our suppliers are now even more willing to partner with us as a result of the change to focus on discount retailing. More than 5,500 brands joined the December 8th anniversary sale, representing a 14% year-over-year increase. Looking ahead, we will continue to focus on discounted retailing and our merchandising strategy, which have already shown some positive results in the fourth quarter. We are committed to getting the best products that meet our customers' needs by becoming the dominant player in the appellate discount retail segment. to further drive our profitability and deliver robust shareholder returns in the long run. At this point, let me hand over the call to our CFO, Dong Haoyang, so that he may discuss our strategy in more detail and go over our operational and financial results.