Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to Vipshop Holdings Limited's third quarter 2022 earnings conference call. At this time, I would like to turn the call to Ms. Jessie Zheng, Vipshop's head of investor relations. Please proceed.

Thank you, operator. Hello, everyone, and thank you for joining VIP Shop's third quarter 2022 earnings conference call. With us today are Eric Shin, our co-founder, chairman, and the CEO. and David Tsui, our CFO. Before management begins your prepared remarks, I would like to remind you that the discussion today will contain forward-looking statements made under the 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 details relating to the reconciliations of our non-debt merits to debt merits. 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 third quarter 2022 earnings conference call. We believe the strong earnings growth on narrowed revenue decline in the third quarter as we carefully execute on our proven business model. During the quarter, micro and pandemic uncertainly weighed on the top-line recovery, but customers' trends improved month by month, and overall repeat orders and purchase frequencies hold up well. Through further optimization of operations, we achieved 50% profit growth and meaningful margin expansion year-over-year. As we moved quickly to adapt to external changes, we also pushed ahead with initiatives to reinforce the strengths of our platform for the long run. Let me share some of our business progress in the third quarter. First, we continue to enhance our merchandising capabilities. We attract more diverse and high-quality partners to our platform and expanded our product offering. Especially in the trendy and high-end segments, we deep-diverted into different categories to capture the emerging customer trend as people revved up spending on guo chao or Chinese fashion styles, outdoor and isolation outfits, etc. Apparel-related GMV booked positive growth year-over-year during the quarter. We also worked more closely with key partners on the made-for-VIP shop, customized offerings, which become an important line for many brands to achieve greater sales efficiency. And most of the products had better conventions than the average level of the certain brand or category. Second, we gained better customer traction. In addition to prudent investing in external channels, we increasingly leverage our upgrade product selection to acquire and return customers. Increasing proportions of customers are gained there. and male customers who are appealed to more brands that reflect their values. And paid members continue to grow nicely as more high-value customers enjoy sensible membership privileges. Active super VIP customers grew by 21% year-over-year and contributed 40% of online net GMV. Third, we worked hard to unlock technological capabilities throughout our business processes. We made great efforts to further digitalize our merchant platform, adding tools like membership system and customer review for brand partners to better identify opportunities for growth. We also made continuously improvements in personalization, refining search, feed, and seeing basic recommendations for customers to discover their desired selections while typing into their underlying needs. Looking ahead, our business has been consistently based on the premise that customers love value for money. which holds even more truth today. We are committed to offering exceptional values on the wide area of branded quality products. And we will continue to win new customers and elevate the trust and the loyalty of existing ones. We are confident in our prospections for quality and sustainable growth in the long term. At this point, let me hand over the call to our CFO, David Cui, who will go over our financial results.