Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited Second Quarter 2020 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, and thank you for joining VIP Shop's Second Quarter 2020 Earnings Conference Call. Before we begin, I will read the safe hardware statement. During this conference call, we will make forward-looking statements within the meaning of the Private Security 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. 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 they are of 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 Zhonghao 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 2020 earnings conference call. We believe the robust financial Financial and operational results in the second quarter of 2020. Due to our solid execution on the merchandising strategy, in the beginning of May, we saw strong recover in apparel demand and act quickly to help our suppliers destock their inventories after COVID-19. We launched a successful promotion campaign in June, offering customers the best view while helping our suppliers monetize their inventory more efficiently. During the quarter, total active customers grew by 17% year-over-year to 38.8 million from 33.1 million in the prior year period. In addition, our conversion rate and the customer's thickness both improved. In the second quarter, The convention rate for our app increased by 10% year-over-year, and the repeat customers as a percentage of total active customers increased to 90% from 87% in the prior year period. Looking into the second half of the year and beyond, we will continue to focus on enhancing the product offering on our platform, providing our customers with a differentiated experience as compared to other marketplace platforms. We believe we are well positioned to continue to gain shares in China's discount retail market, delivering solid shareholder returns over time. Lastly, today we announced that our CFO, Dong Haoyang, will step down from his current position in November. I want to take some time to thank Dong Hao for his years of hard work and the contribution to VIPshops. Our board has appointed Dong Hao as a new non-executive director, effective from the day of the change of his position. We are delighted that he will continue to be a part of the VIPshop family as a member of our board. Dong Hao has served our CFO since 2011. In the past nine years, he made significant contributions to our transformation from the private health company into the public listed company. We have helped the company build a solid finance team with effective internal control systems in our IPO. On behalf of all of us at VIPshop, I would like to thank Dong Hao for his leadership, professionalism, and strong work ethic. I wish him the best of luck with his future endeavors. We have already started to search process for a new CFO.