Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to VIP Shop Holdings Limited's first quarter 2026 earnings conference call. At this time, I would like to turn the call to Ms. Jessie Zhang, VIP Shop's Head of Investor Relations. Please proceed.

Thank you, operator. Hello, everyone, and thank you for joining VIP Shop's first quarter 2026 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, 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 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 earlier 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 Shenz.

Good morning and good evening, everyone. Welcome and thank you for joining our first quarter 2026 earnings conference call. Our first quarter performance reflected a significant calendar-driven shift caused by the later Chinese New Year. This lead to a successful holiday surge in active that effectively pulled forward demand resulting in a softer match. What is important to highlight is the sustained health of our customer base. Our holiday results were outstanding, driven by customers who actively sought out our seasonal collections and value promotions. This strength of that demand, especially in apparel, confirms that we remain a top priority for their spending and gives us real confidence in their long-term resilience. Our customer metrics, these cultures further prove that resilience. Total active customers show the positive momentum lead by our SVIP members who grew by 9% year over year. their paid members accounting for 55% of our online spending. We remain focused on the quality of our growth as we move further into the year. We are making steady progress in how we optimize merchandising portfolio, engage with customers, and integrate AI to reshape our off-price retail model. Since realigning our team last year, we are seeing the benefits of the faster, more fluid approach to merchandising. By staying focused on customer relevance and deepening category expertise, we will be able to move from market insight to product on shelf more quickly, ensure our deep discount brand inventory hits when demand peaks. We are also driven better cross-category engagement as we create our selection along the broad needs of our customers and develop more effective analytics and marketing tools for brand partners. We are helping shoppers easily discover products across apparel, childcare, and home category. Following our last update, we have transitioned our made-for-VIP line into the new face of globe by raising the bar for quality, style, and value. At the same time, we have tightened our planning with brand partners' seasonal calendars to stay in sync with real-time fashion trends. This approach ensures our line-up is always created and on-trend, looking ahead, We will continue to involve their exclusive offering into the primary driver of customer mindshare and brand loyalty. Building on our optimistic buying strategy, we will successfully speed up our buying cycle. Over the past few months, our teams have locked in a high value of exclusive low-priced inventory that is now flow through the platform. This has enhanced the treasure hunt experience for our customers. We are seeing strong daily habits from our high-value shoppers who are returning more frequently to discover our latest arrivals. This differentiates merchandising approach directly feeds in the stress of our SVIP program by offering exclusive access to private sales and unique inventory. We are driving both member acquisitions and loyalty. A great example is our recent event with global athletic brands, where curated selection deliver a surge in new SVIP signups, particularly among young male shoppers. And the sales value many times above the baseline. In line with the push of high-value engagement, we have shifted towards a more target acquisitions model using refined agreements that identify members with the highest long-term value. By replacing generalistic benefits with a tiered service system, we are directly rewarding higher spending with exclusive product access, deepened discount, one-stop customer support, and value-added benefits. This will further optimize conventions and individual spend. These integrated efforts ensure the SVIP program remains our primary engine for sustainable revenues and earnings growth. As the pace of the change in retail accelerate, We were excited to embrace the broad opportunities AI offers. Our initial journey focused on putting the customer first, enhancing experiences through virtual try-ons, smart search and recommendations, and automated customer support. we also leverage AIGC to reach potential customers more effectively with automated content. Having proven this use case, we are now shifting our focus towards scaling that capabilities for greater operational impact. For example, we are using generative AI to scale personalized marketing. by combining our operational expertise with real-time customer feedback, our AI marketing agent effectively generates tailored creative across video, photo, and text forms. This has already driven a clear lift in our customer acquisition efficiency. Beyond the marketing, AI is increasingly Empowering our brand partners with advanced business analysts, deeper customer cohort insights, and optimized merchandising strategy. By anchoring our strategy in the off-price model and leveraging best-in-class technology, we have identified more effective ways to serve our customers. From dynamic merchandising to the smart supply chain, This allows us to continue earnings custom loyalties through every interaction. We remain committed to investing in our people and our platform. We are confident that by continuously optimizing our operational strategies, we will driven steadily profitable growth for the long term. At this point, let me hand over the call to our CFO, to go over our financial results.