Vipshop Holdings Limited

Ladies and gentlemen, good day everyone and welcome to VIPShop's Holdings Limited Second Quarter 2026 Earnings Conference Call. At this time, all participants are in the listen-only mode. I would now like to turn the call over to Miss Jessie Zheng, VIPShop's Head of Investor Relations. Please proceed.

Thank you, operator. Hello, everyone, and thank you for joining VIPShop's Second Quarter 2026 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 Integration 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 urgent release and public filing 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 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 Chen.

Good morning and good evening everyone. Welcome and thank you for joining our second quarter 2026 earnings conference call. The second quarter presents a challenging retail environment defined by a customer who is not just value conscious but highly selective across the multi-media promotional landscape. Shoppers were intensely focused on clear Utility and Real Value, prioritize, essentially meet great cautions in discretion categories like apparel, waging on our near-term top-line performance. In this climate, rather than chasing unprofitable, rather than chasing unprofitable, Unprefutable Value Growth, we stayed true to our core value proposition, delivering a highly-created select of high-demand, deeply-discounted banned products to our loyal customer base. While overall traffic was muted, our SVIP cohort served as a resilient anchor for our business. During the quarter, Active SVIP grew by 8% year-over-year, driving 54% of our online spending, showing that as customer budget tightened, high-intent shoppers prioritized platforms offering trust value, quality, and service. At the strategic level, our 1P model gives us a distant edge. By leveraging deep category expertise, we built greater trust with brand partners to the point when they actively adjust their merchandise allocations for our platform. For instance, closer collaborations with key partners in fashion apparel has helped offered against the board market awareness. This level of brand integration strength our mode and protects our co-business. On top of this, our merchandising team has been moving quickly to align our product mix with more selective customers. We have sharpened our creation along the co-apparel and lifestyle essentials, matching our assortment to real-life occasions to capture immediate demands. This target approach ensures that we always deliver clear utility, recognize the brand, and compelling value. Our opportunities sourcing strategy adds another layer of inventory flexibility. As brand partners manage inventory in a software market, we serve as a reliable off-price partner. locking in unique high-demand inventory at deep discounts. This reinforced our differentiated merchandise pipeline and forced deep brand collaborations. At the same time, we continue to advance the repositioning of our exclusive made-for-VIP shop line to drive stronger customer mindshare and loyalty by raising product spend and Alain, the seasonal launches close with brand partners. We are seeing high-quality, high-quality products emerging, living convention rate and support overall portfolio stability. As we kick off the upcoming season, we are pleased to see that our SVIP membership has hit the 10 million milestone. To continue the momentum, We are launching an integrated campaign paired with the full collection and the major upgrade to provide sales. At the core of this push, we are refreshing our signature slogan, dress the best for 70% less, which has long risen deep with our loyal base. To ensure we keep evolving alongside the modern Chinese shopper, We are refreshing our campaign reach to both younger and mature demographic while reinforced enduring through across every market cycle. That shoppers consistently demand great high quality fashion at unbeatable price. Grounding our mindshare in smart value allow us to double down on our off-price advantage attract high value shoppers. and drive high-quality clothes. Alongside our branding refresh, our customer engagement strategy focused on retention and the lifetime value, rail 70% less, saving power our core apparel, delivering present supplies affordability that convince new shoppers, providing a tailored paired service model to our SVIP along us to capture greater wallet share over time, making SVIP loyalty as the primary engines of operational stability and the profitable growth. Turning to our technology roadmap, we are deepening AI integration across our business. On the customer side, our AI product is driving tangible results. Virtual try-on thickness is steadily up. Intelligent customer service with AI voice, interactions, and predictive capabilities is lifting convention rate. and AIGC is enable faster discovery. Marketing remain our most impactful app case to date. Our upgrade AI marketing agent now enable optimized from placement planning to AIGC creative matching across the right channels. We see clear room for this integrated approach to further drive Acquisitions efficiency while improving customer quality. Operationally, we are scaling AI beyond the individual tools into a unified, secured intelligence layer across the business. We are already seeing early win in supply chains, optimizations, and the daily operational workflows. Overall, we remain focused on this print execution today while building towards our long-term vision. While we continue to navigate near team, Michael Hedwin, with caution, I have full confidence in our proven model, solid foundations and team. As we sharpened our merchandising, elevate the customer experience, and scale technology, we are firmly positioned on our best way the pace back to the sustainable growth. Finally, I would like to briefly cover Shanshan Outline, a key part of our omni-channel discount retail strategy. Since our acquisitions in 2019, we have driven disciplined expansion across emerging tier one, tier two, and key cities. Today, Shanshan has scaled from 5 to 22 operational outlets more, becoming China's largest outlet chain by store count and maintain a top-tier position by total GMV. In the first half, Shanshan Outlets continued its strong-scale momentum with over 20% year-over-year growth. capitalizing on the value-seeking trend and the unique in-person shopping experience of offline retail. Looking ahead, we expect its business contributions to the globe to increase steadily. At this point, let me hand over the call to our CFO, Mark Wang, to go over our financial results.