Vipshop Holdings Limited

Ladies and gentlemen, good day everyone and welcome to VIPSHOP's Holdings Limited Third Quarter 2020 Earnings Conference Call. At this point, I would like to turn the call to Ms. Jessie Fan, VIPSHOP's Director of Inventor Relations. Please proceed.

Thank you, Operator. Hello, everyone, and thank you for joining VIPSHOP's Third Quarter 2020 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 were 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 policy statements. Joining us on today's call are Eric Shen, 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 third quarter Sunday-Tunday earnings conference call. Before I go into business update, I would like to welcome our new CFO David Tsui who is with us here at today's call. David joined us last month and will officially succeed Song Hao as our CFO today. After today's call, Song Hao will transition into his new role as our non-executive director and continue to contribute to our future growth. in a different capacity. Now I will turn to our results for the third quarter of 2020. During the quarter, we believe in stronger financial and operations results, driven by the robust 36% year-over-year growth in the number of the active customers, further accelerating from the growth rate in the second quarter. This was made possible because we consistently offered great products at a deep discount to our valued customers. We are especially glad to see that both new and repeat customers demonstrated robust growth momentum, which was the result of our focus on merchandising and some reinvestment into branding so that our Our specialty in discount retail can be known to a broad customer base. As a result, we recently added a lot of new customers and old customers that have not shopped with us for a long time. These customers typically spend a lot less than our existing loyal customers, which drag down our output in the short term. tracking the shopping behaviors of different cohorts of customers. We are glad to see the up-pull for our core customers continues to increase, while new customers and reactive old customers have shown better repeat purchase and up-pull trends as compared to the in-global of the customers in a prior period. This means our merchandising strategy is working well, and our customers recognize the value of our differentiated offerings, especially in our core category. Going forward, we will continue to focus on pursuing high-quality and differentiated products at this discount and deepening our expertise in made-for-VIP products. leveraging our strong merchandising capability and solid supply chain network. We remain focused on providing our customers with products of deep value on a daily basis, while improving our operations to provide more personalized experience to meet different customer needs. We recently hired a new co-CTO, Peng Jun Lu, who have over a decade of solid experience in big data and personalization in China's Internet space. He will focus on improving the customer experience through optimizing the match between our already-accrued products to different customer personalized tastes. This will help our suppliers monetize their inventory more efficiently and Glow themselves more quickly. We are confident we can continue to expand our customer base and positive trends in customer acquisition and retention will also continue, further driving our growth and profitability and enabling us to deliver solid shareholder returns over time. Let me hand over the floor to our CFO, Dong Haoyang, so that he can discuss our strategy in more detail and go over our operational and the financial results.