Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited Second Quarter 2022 Earnings Conference Call. At this time, I would like to turn the call to Ms. Jessie Zheng, VIP Shop's Head of Investor Relations. Please proceed.

Thank you, Operator. Hello, everyone, and thank you for joining VIP Shop's Second Quarter 2022 Earnings Conference Call. With us today are Eric Zheng, our co-founder, chairman, and CEO. and David Tsui, our CFO. Before we begin, I would like to remind you that a discussion today will contain forward-looking statements made under safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our safe harbor statements in our earnings release and public filings with the Securities and Exchange Commission, which also applies to this call to the extent any forward-looking statements may be made. Please note that certain financial measures used on this call, such as non-GAAP operating income, non-GAAP net income, and non-GAAP net income per ADS, are not presented in accordance with U.S. GAAP. please refer to our earnings release for the reconciliation of our non-GAAP mayors to GAAP mayors. With that, I would now 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 2022 earnings conference call. Our second quarter results came in better than expected, driven by improving micro-conditions. Towards the end of the quarter, with the COVID-19 pandemic effectively under control, supply chain and logistic efficiency largely recovered, and consumer sentiment also picked up gradually. Our top-line performance was helped by a month-on-month recovery in consumption, especially a more resilient trend in June. Even though sales were still under pressure, our bottom line increased and the margins improved year over year, thanks to greater discipline in operations. This data result demonstrates the resilience of our business model, as well as the strong execution and flexibility of the entire company to address external uncertainties. Notably, we are doing a good job supporting the co-brands that appeal to the value of our consumers. This has translated into strong brand partnerships and improved customer loyalty. During the quarter, co-brands continued to outperform in sales momentum. Our buyer's team worked more closely than ever to engage with brand partners. We helped them navigate through an uncertain environment with extensive support from customer engagement, category planning to marketing campaigns. Brand partners were pleased to use our merchant platform with new features to manage and grow their business. In turn, we secured more supply of unique and quality products at competitive price. In addition, we have been consistently refreshing our brand mix. We added more new trendy and high-end brand in both apparel and non-apparel categories, targeting different customer groups. Accordingly, we load out several new channels such as Little Pink Box, VIP Trends, and VIP Luxury to support the growth of these new brands while creating a new field of shopping for our customers. In the second quarter, we successfully turned more high-value customers into paid members. Active super VIP customers grew by 21% year-over-year and contributed 38% of online net GNV. They once again showed their superior value with stable repeat purchase and outside made a few quotient statements. With the future recovery highly dependent on the micro development, We are strategically anchored in discount retail for the long term. We are convinced that consumers always desire for great brands, great selection at great values, especially as they become more rational in spending today. We will continue to enhance our value proposition, adapting our business as needed to best serve our brand partners and customers. At this point, let me hand over the call to our CFO, Barry Tree, who will go over our financial results.