Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited Second Quarter 2019 Earnings Conference Call. At this point, I would like to turn the call to Ms. Jessie Fan, VIP Shop's Director of Investor Relations. Please proceed.

Thank you, operator. Hello, everyone, and thank you for joining VIP Shop Second 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 will be made during this call are forward-looking statements. In some cases, 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 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 second quarter 2019 earnings conference call. We delivered strong operational and financial results for the second quarter of 2019. During the quarter, our total active customers continued to grow at a healthy pace, increasing by 11% year-over-year. Since we refocused on discount retail, the thickness of both our existing and new customers has improved significantly. We are pleased to see our existing customers becoming a lot more active, while at the same time, new customers' repeat purchase rate in the quarter after first purchase has increased. These successes are the result of our focus on merchandising. Since we refocused on discount apparel and our profits, we have seen Strong improvement in our financial results and key operating metrics prove our strategy is very effective. We remain committed to executing on our merchandising strategy and further expanding our market share in the discount apparel sector in China. We are confident that we can continue to deliver and Zeng. We strive to be the one stop discount retail platform for our suppliers, solving all their inventory management issues in the off price segment within our ecosystem. We have over a decade of Experience in Online Discount Retail, and we believe in this age and time, online and offline are closely linked. Shoppers will increasingly demand only channel shopping experience, given that we begin to enter the offline discount retail segment this year, and our acquisition of Shanshan Outlets is an important part of our new retail strategy. Shanshan Outlet is a profitable business with a healthy operating cash flow. Importantly, they have a top-notch management team with decades of experience in managing and operating outlets in China, who will stay with VIPShop after the acquisition. We will continue to focus on our online business, while our offline strategy, including our investment into Shanshan Outlets, VIP Shop Offline Stores, and VIP Max Offline Stores, is complementary to our online business. Our goal is to help our suppliers manage their inventory cycles Thank you Eric and hello everyone. We finished the second quarter of 2019 with robust financial results. Our top line grew by