Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited's first quarter of 2019 earnings conference call. At this point, I'd like to turn the call to Ms. Jessie Fan, VIP Shop's Land Rector of Investor Relations. Please proceed.

Thank you, Operator. Hello, everyone, and thank you for joining VIP Shop's first quarter 2019 earnings conference call. Before we begin, I will read the Safe Harbor Statement. During this conference 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 make during this call are forward-looking statements. These forward-looking statements can be identified by words or phrases such as anticipate, believe, 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 point, 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 first quarter 2019 earnings conference call. We delivered robust operational and financial results during the first quarter of 2019. The successful execution of our merchandising strategy is starting to bear fruit. During the quarter, our total active customers grew by 14% year-over-year, driven by the healthy growth in both the number of repeat customers and new customers. Our strategic partners also continued to bring us new customers. In the quarter, around 25% of our new customers came from the WeChat mini program and the JD flagship store. These successes are the result of our strategic focus on the discount apparel segment, where we are a dominant player in China. Our total GMV increased by 11% year-over-year during the quarter. More importantly, apparel-related categories, which are our bread and butter, grew even faster at 16% year-over-year. In addition, we continued to make good progress on cost reduction. On the logistic side, we begin to shift Approaching of our orders to third party delivery companies. So far, we have not seen any notable difference in customer experience as a result of the change. In the coming quarter, we will continue to transfer more packages to our third party delivery partners in order to reduce fulfillment cost over time. We are making solid progress. in the change of our strategic direction and are pleased to see positive results at an early stage. Looking ahead, we will continue to focus on profitability growth coupled with healthy top-line growth. We are deeply committed to delivering long-term, sustainable shareholders' return. At this point, Let me hand over the call to our CFO, Donghao Yang, so that he may discuss our strategies in more detail and go over our operational and financial results.