Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Third Quarter 2025 Earnings Conference Call. At this time, I would like to turn the call over to Ms. Jessie Zing, VIP Shop Holdings Head of Investor Relations. Please proceed.

Thank you, Operator. Hello, everyone, and thank you for joining VIP Shop Third 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 Security 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 statement in our earnings reviews and public filing with the Securities and Exchange Commission, which also applies to this call to extend any forward-looking statements may be made. Please note that certain financial matters 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 U.S. GAAP. Please refer to our earnings release for details relating to the reconciliations 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 third quarter 2025 earnings conference call. Our third quarter results demonstrated tangible progress on our path back to growth. We are pleased with the clear top-line expansion, lead primarily by notable improvement in custom trend and across our core categories. Total active custom regained year-over-year growth. Super VIP membership continued to deliver double-digit growth. In the third quarter, active Super VIP customers grew by 11% year-over-year, contributing 51% of our online spending. This sustained growth was primarily driven by continuous upgrades to SVIP's exclusive product and service benefits, coupled with more target engagement initiatives. which effectively convert regular custom. In terms of category performance, we saw accelerated momentum in apparel-related categories through the quarter. Our team successfully delivered a powerful blend of quality, value, and style. This was achieved through the merchandising strategy that highlight high-value brands, trending categories, and popular selling points, all of which are deeply aligned with customer priorities. Against the dynamic industry backdrop, we were navigating this operational environment with agility and efficiency. We are strategically realigned the organization for long-term success, implementing changes to strengthen our unique position as an off-price retailer for brands. We focus on reinforcing the flywheel from merchandising custom engagement to operation. At our core, we are a merchandising lead company. We compete through offering affordable and differentiate assortment. We continue to enhance our leadership in a deep discount product offering. And we are deepening our category specialization to curate product offering that deliver great relevance and distinct value. We start to see new momentum in customer and sales. by acting upon engaging bright spots and customer performance. As an example, we are rebuilding our maternal and child care division to better integrate relevant apparel and non-apparel categories. This reshaped assortment in design to foster cross-category growth and create lasting value for customers as they journey through different life stages. We are bringing this level of specialization across each category in our business. In addition, we have an opportunity to scale through our differentiated product portfolio. One is made for VIP shops, which again delivered strong sales growth in the quarter. We are deepening Our collaboration with more high-value brand partners, the team is capitalizations on our category insights to motivate brands to allocate and create more in-season and on-trend supplier and at competitive price. A compelling case in Pond is a leading running shoe brand which draw 50% of its September sales on our platform from Made for VIP after making select popular items exclusive to us. Another case is a leading woman apparel brand, which builds sales momentum by customized more deep discount, high demand offering from its inventory fabrics. The other line of differentiate is a carefully curated portfolio of popular items which we proactively source from both domestic and global brand partners. We've seen strong momentum when we offer the right brand of the quality, value, and style. And given the fashion relevance, it generates wide apparel to young and middle-class customers. who increasingly come back to enjoy the fun of fresh sale and the trailer hunts. Beyond the merchandising is how we do better to apparel to customers. In addition to sustaining strong mind share with our customer cohorts, we are actively experimenting with new marketing formats such as in-flux contents and short-form dramas By adopting an integrated strategy across marketing, growth, and engagement, we are seeing early wins. This approach enables a disciplined balance of cost efficiency and strategic reinvestment, improving our performance in acquiring, actively, and retaining customers. To further engage our customers along their journey, we focus on facilitating the broadening and the discovering of the broad range of new and existing offerings. Our notable area of improvement is searching and recommendations, our systemic upgrade of relevant models. Our green and the product operations have translate into the measurable gains. In the third quarter, enhancement in our search and the recommendations systems lead to a tangible increase in commissions, directly contribution to sales growth. We also continue to elevate the experience for our SVIP customers. We want them to feel special, valued, and delighted with every visit, and we are delivering on this promise more consistently. In the third quarter, we launched a series of buy invitation private sales. SVIP customers were granted exclusive access to the current selection of major brands at a deep discount, which delivered a powerful sense of value and successful, boasted membership loyalty. Lastly, we expect technology to play a strong role to type into the potential of growth and efficiency. We are clear on the path to accelerate the AI application across our business. Our immediate focus is on deploying AI agents to enhance key areas, including search and recommendations, customer service, external marketing and business analytics. We expect these innovations to create more engaging customer experience, empower brands with advanced tools, improve marketing efficiency, and generate actionable business insights. As an example, we are seeing good adaption of our try-it-all AI feature. Customers really enjoy using it to virtually try to close, save looks, and share with friends before buying. We are also gaining traction with AI ads, as a glowing share of campaign new leverage AI to upgrade marketing creatives and media placements, boosting customers acquisition efficiency. We are encouraged by the momentum in our business. Our operations are better aligned and our teams are collaboration at new level to unlock synergies. and we continue to adapt to stay ahead of market trends and the customer experience expansions. The entire organization is leaning into the opportunities ahead of us. We have great confidence in our long-term roadmap for sustainable, profitable growth. At this point, let me hand over the call to our CFO, Mark Wang, to go over our financial results.