Vipshop Holdings Limited

ladies and gentlemen good day everyone and welcome to vip shop holdings limited first quarter 2025 earnings conference call at this time i would like to turn the call to miss jessie chang vip shop's head of investor relations please proceed thank you operator hello everyone and thank you for joining vip shop's first quarter 2025 earnings conference call

With us today are Eric Shen, our co-founder, chairman, and CEO, and Mark Wong, 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 and are not limited to those outlined in our safe harbor statements in our earnings release and the 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 poll, such as non-GAAP operating income, non-GAAP net income attributable to VIP shop shareholders, and non-GAAP net income per ADA, are not presented in accordance with the 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 first quarter 2025 earnings conference call. Our first quarter results came in largely as expected. We continue to make progress on our path to return to growth. Our team stayed ahead of trends to offer more unique and quality of price seasonal items that were more relevant to customer preference, we see apparel category achieved positive growth in the first quarter. Super VIP membership extends its double-digit growth. In the first quarter, active SVIP customers increased by 18% from a year ago and accounted for 51% of our online spending. This hardcore cohort of customers show clear strength in terms of sales and revenue growth. We are keeping a close eye on the broader customer trend. We still see customers show more willingness to spend on family and seasonal essentials, and they are gradually catching up on spending in most discretion categories. We remain anchored to the value proposition of discount retail for brands. Certainly upon our long standing merchandising strategy, we are also making change throughout the organizations in how we align with those priorities. Operator in greater synergy and the driver unique compelling customer value. Our teams are restricted in the way that are more aligned and efficient so that they can act with speed to turn potential into growth. We will highlight the strategic priorities to grow the share of brand supply at exceptional value to invest in custom engaging initiatives that drive traffic, frequency, and multi-category purchases. and to speed up technology advancement that's driven value creation for business. Starting with merchandising, we are focused on the brand and the products where we have made the biggest differences for customers. It's key factors in driven traffic and customer growth. That's why we believe in the power of merchandising capabilities. which we are leveraging to quickly adapt to trends across fashion appellants, as leisure and family lifestyle categories, continuously giving customers more reasons to stay here. One of the best examples in our Made for VIP shop business, which continued to outperform in the first quarter, a total of more than 200 brands joined this program by the end of March. We are close to the brand partner in transforming customized offering based on customer insights and changing trends. We are moving fast to deliver a more compelling brand of quality and value. We also have a prominent channel for Made for VIP shops. We expect it to become the to-go place for customers to discover affordable, on-trend products that they cannot find anywhere else. In the first quarter, we also unveiled more unexpected high fashion selections to keep customers coming back to see what's new. Customers were overjoyed with some of the best deals they got, such as Beverly Coach and more. or through the invite only provides sales. We are trying to gain traction with customers as a place for fresh sales and the trailer hunting. Turning to customers, we aspire to bring together the best of what they want in the unique shopping experience. On top of the compelling Alloy product offering, customers know that we stand behind what we sell. That's why our SVIP customers are clearly growing more attracted to our platform because of the affordable and reliable nature in our business. We have planned to make the loyalty program bigger and better. We are focused on how we could further differentiate it. For example, our customers are often family shoppers who love travel. So new as second quarter, SVIP members receive more relevant and rewarding life privileges such as Gold Card upgrade for Changlong theme park and hotel accommodations and so on. We are also increase the power of AI throughout the customer experience in many ways. We will be improve our AI powered algorithm to enhance the logic behind the search and the recommendations. We were leveraging general AI to create high-impact content, including smart mix-and-match content that make product page more compelling, and automatic customer review summary that highlight key insights to help shoppers. We also applied AI to customer service, handling product inquiries, generating personalized recommendations, and potentially acting as a smart shopping assistant. Also, by leveraging general AI, we generate target marketing creatives for diverse platforms and audience, helping enhance customer acquisition efficiencies. So we will continue to invest in opportunities for long-term success. We look to set ourselves apart, provide more than what customers expect, and building the unique experience. Against a backdrop of ongoing uncertainty, I'm confident in our team who have navigated through several years of volatility to keep pace with customer trends, double down on execution of strategy, and regain close track. At this point, Let me hand over the call to our CFO, Mark Wang, to go over our financial results.