Vipshop Holdings Limited

ladies and gentlemen good day everyone and welcome to vip shop holdings limited second quarter 2025 earnings conference call at this time i would like to turn the call over to miss jessie zing vip shops head of investor relations please proceed thank you operator hello everyone and thank you for joining vip shop second quarter 2025 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 Mitigation 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 filing through the Securities and Exchange Commission, which also apply 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 attributable to VIP shop shareholders, and non-GAAP net income per ADS, 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 merits to GAAP 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 second quarter 2025 earnings conference call. In the second quarter, our team acted swiftly to revive customer activities and the sales momentum, driving stabilization in our business. These efforts deliver the measurable progress against our key priorities for renewed growth. Total GMV return to growth, driven by clear strengths in apparel-related category, reflecting our refined adjustment in the merchandising portfolio. Total active customers also showed clear signs of recovery. Super VIP membership sustained its double-digit growth. In the second quarter, active SVIP customers increased by 15% year-over-year, contributing 52% of our online spending. This high-value custom segment continued to outperform in terms of sales and revenue growth. With the fast-moving industry dynamic, we remain anchored to the vision of the discount retail for brands. We believe at its heart, discount retail for brands is about offering customers beloved brands and high-quality products at its exceptional value, while the execution many innovate. The fundamentals stay true, great brand, great quality, and great value. To achieve this, we are making change to sharpen our merchandising strategy, which is key to deliver unique, compelling value to brand partners and customers. We are relying our merchandising team to better capitalize on evolving customer trends and lifestyles while enhancing cross-category synergies. Additionally, we are taking a more holistic approach to plan and manage our brand and customer interactions to maximize platform-wide value creation. We will also unified marketing, customer growth, and engagement efforts to advance customer value through each lifecycle stage across customer segments. We hope these initiatives will inject great agility and efficiency into our business model, creating a self-reinforcing firewall that advances our growth priority from merchandising operations to customer engagement so start with merchandising we are pursuing a path that is unique VIP shop we focus on the three pillars of our merchandising strategy relevancy differentiation and specialization in the in a competitive environment We're standing out by consistently offering custom high-value brands that they love, exclusively made for VIP shops, customized products, and carefully curated portfolios of highly sought-after items. In the meantime, we keep up with new trends, new styles, and innovative fabrics and materials in each category. This ensures a steady and sustainable flow of inventory that aligns with shifting customer demands. In the first half, we added close to 500 brands to our platform, which are gaining traction among customers. The Made for VIP Shop line is a key part of our differentiation. It's delivering a more compelling brand of the quality and the value that results in high-value customers. Repeat purchase and the best conditions. In the second quarter, it maintains strong sales momentum, contributing a meaningful portfolio of our apparel sales. For many brands, this customized product accounted for more than 20% of their sales on our platform. In the second quarter, we added more high-session selections, achieving improved sales flow. We saw growing customer recognizations of our platform as the go-to place for fresh sales and trailer huntings. Leveraging our global sales capabilities, we will have the steadily stream of differentiated items that flows into our assortment, so that shoppers always have something to discover as they come back. For our customers, we continue to create a unique experience that not only reinforce the affordability and the reliability they love, but also inspire them to discover the value and the freshness we offer. This is coming from optimized traffic allocation, along with the customer journey enhanced through improved search and the recommendations for both existing and new offerings. A good example of our custom-centric approach is the SVIP loyalty program. In the second quarter, we upgrade our private sales for SVIP members, offering high-level blended products to create a great sense of exclusive and delight. we expect the loyalty program to deliver a more differentiated and personalized experience for our top-tier customers. Lastly, we continue to develop and leverage AI capabilities as part of our overall technology advancement to drive growth and efficiency. We are deepening collaboration with business teams to expand AI application cases and deliver measurable results. We see promising early traction across our AI initiatives. AI-generated reviews and Q&As are contributing to enhance customer journey. AI-driven per-cell support is showing initiative benefits to conventions and the issue resolution. Besides, AI-powered marketing contents demonstrate effective reach to potential customers. Despite the near team challenges, we are investing in multiple ways to grow share across our merchandising portfolio and the customer segments. Our roadmap for sustainable Portfolio of profitable growth in the long term relies on the consistent and collaborative execution every day. It stays true to who we have always been while adapting to evolving trends, enhancing our capabilities, and always thinking about our unique role in retail for today's customers. At this point, let me hand over the call to our CFO, Mark Wang, to go over our financial results.