Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited's third quarter 2023 earnings conference call. At this time, I would like to turn the call to Miss Jessie Zheng, VIP Shop's head of investor relations. Please proceed.

Thank you, operator. Hello, everyone, and thank you for joining VIP Shop's third quarter 2023 earnings conference call. With us today are Eric Shen, our co-founder, chairman, and CEO, and Mark Wang, our CFO. Before management begins their 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 Court 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 for ADS are not presented in accordance with U.S. GAAP. Please refer to our earnings release for details relating to the reconciliation of our non-GAAP measures to GAAP measures. 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 2023 earnings conference call we continued to see decent momentum throughout the third quarter with sales and profit growth ahead of expectations while we accelerate our efforts on strategic priority to capture customer mindshare among the drivers Apparel categories continued to outperform with over 16% growth in GMV year-over-year. High-value customers increasingly relied on us as they looked for great deals. Active Super VIP members grew 17% from a year ago and accounted for 45% of our online spending in the third quarter. We continue to execute well and drive changes for the long term. We made it clear that we'd like to be the first go-to online shopping destination for Appello. To that end, we are pushing forward with a strategic improvement related to merchandise expansion, best value for money, and the worry-free service for our customers. Our merchandise team is more skilled at developing rich and diverse mix of branded products. Up to date, we have added several hundred trendy and high-end brands this year. And we have a complete system to help new brands grow their business faster by providing the right mix of resource support. including traffic allocation, customer analytics, and the channel promotion. Also, as a buyer-based platform that highlights carefully selected products, we will launch the contents like buyer's must-haves, which is tailored for a pedal category, and the customer behaviors on VIP shop to interest different types of users. On Made for BIP Shop, our team has done a better job of identifying product opportunities together with brand partners. We now have an enlarged supply of customized offerings with SKUs available for sale trending up every month. The customized series performs better in categories like clothing and shoes and bags. This has motivated brand partners to deepen their collaboration of customized products with us. While we are growing our merchandise selection, we are committed to providing our customers with effort ability. We are focused on seeking out the best deal for our customers to make sure they get value with great everyday price and also through unique and customized products and we provide additional saving opportunities through our popular loyalty programs. Lastly, we are improving customer shopping experience that includes an overall set of enhanced capabilities from the worry-free quality guarantee, enriched product detail page, integrated customer service together with brand partners to improve fulfillment efficiency through seamless process management. For example, as part of our enhanced quality assurance program, We recently reached a strategic collaboration with China Inspect and Certification Group to upgrade our quality control system. With all of these competencies at the core of our business, we are in a better shape to deepen engagement with our customers. Our super VIP members recognize our big strengths more than the others because of the trust, value, and ease they've enjoyed at every interaction. Super VIP members have consecutive quarters of double-digit growth. Overall, retention and the renewal rates are trending higher. Average spending is also ticking up. As we look ahead, We are confident that our business will stand firm in the face of a still challenging environment. We are encouraged to see a deepening level of trust we will establish with our brand partners and customers. And we are uniquely positioned to secure consistent product supply that is aligned with customer performance for value spending. We are confident about being a long-standing player with stable, sustainable, close prospects. At this point, let me hand over the call to our CFO, Mark Wang, to go over our financial results.