A：VIP shop's first quarter 2026 performance was significantly influenced by a calendar-driven shift due to the later Chinese New Year, which led to a successful holiday surge in active customers, pulling forward demand. This performance is particularly notable given the sustained health of the customer base, with customers actively seeking out the seasonal collection and value promotions.

A：VIP shop's first quarter results highlighted an outstanding performance driven by customers actively seeking out their seasonal collection and value promotions. The strength of this demand, especially in Apollo, confirms the company's status as a top priority for customer spending and long-term resilience. Key metrics include a year-over-year growth of nine percent in SVIP members, who account for 50-55% of online spending.

A：VIP shop has been focused on optimizing the merchandising portfolio, engaging customers more deeply, and using AI to reshape its off-price retail model. The company has been making steady progress, evidenced by a more fluid approach to merchandising and a focus on customer relevance. This has resulted in quicker movement from market insight to product placement, ensuring deep discount brand inventory availability during peak demand periods. Additionally, the company is enhancing cross-category engagement and providing more effective analytics and marketing tools for brand partners.

A：VIP shop's latest financial results landed within guidance, reflecting a dynamic quarter with a late Chinese New Year. The surge in demand for winter and early spring apparel categories, where the company's merchandise aligns well with a broad consumer base, contributed to the performance. The holiday period's efforts translated into healthy and stable bottom-line margins, underpinned by a highly favorable category mix and continued operational discipline. The company maintained strategic investments in growth drivers such as differentiated merchandise offerings, SVIP engagement, and AI integration across operations. It also dynamically shifted resources to its most productive activities, enabling solid profitability despite macroeconomic uncertainties.

A：VIP shop is committed to returning at least 75% of full-year 2025 non-GAAP net income to shareholders. This was demonstrated by the completion of the annual dividend distribution in April, which amounted to approximately $300 million. The company remains on track to execute the remainder of its shareholder return program and has the financial capacity to meet its full-year allocation target.

A：The gross margin increased to twenty four point four percent from twenty three point two percent in the prior year period.

A：Total operating expenses increased to RMB four point two billion compared with a prior period total of RMB four point zero billion. As a percentage of total net revenues, total operating expenses were fifteen point seven percent compared with fifteen point three percent in the prior year period.

A：Marketing expenses decreased by one point eight percent year over year to RMB seven hundred ninety million from RMB seven hundred thirty two million in the prior year period. As a percentage of gross profit, marketing spending decreased to two point seven percent from two point eight percent in the prior year period.

A：Technology and content expenses degraded by zero point two percent over year to RMB four hundred forty eight million from RMB four hundred forty nine million in the prior year period. As a percentage of total net revenues, technology and content expenses were one point seven percent.

A：General and administrative expenses were RMB nine hundred and fifty million compared with RMB nine hundred and fifty eight million in the prior period. As a percentage of total net revenues, general and administrative expenses were three point six percent, a slight decrease from the prior year.

A：Income from operations increased by nine percent year over year to RMB two point five billion from RMB two point three billion in the prior year period. Non GAAP income from operations increased by three point five percent year over year to RMB two point six billion from RMB two point six billion in the prior year period.

A：Non GAAP income from operations increased to ten point two percent from ten point zero percent in the prior year period. Net income attributable to VIP shop shareholders increased by thirteen point six percent year over year to RMB two point two billion from RMB one point nine billion in the prior period.

A：As of March 31st, 2026, the company had cash and cash equivalents and restricted cash of RMB twenty eight point three billion and short-term investments of RMB two point seven billion.

A：The expected total net revenue range for the second quarter is RMB twenty four point five billion to RMB twenty five point eight billion, representing a year over year decrease of approximately five percent to ten percent, output to zero percent.

A：The outlook for the 618 event is expected to be平稳, with the company not seeing any significant improvement or decline. Consumer sentiment is currently being monitored, but overall, the company is not overly optimistic about the next few months. The company's conservative Q2 forecast is based on the assumption that the first half of the year has already passed, and the remainder of the year is expected to be relatively steady, with the hope for an improvement in consumption, especially in the clothing sector, in the下半年 (下半年展望) .

A：At the start of the year, there was a strong performance in January and February with a quality search leading to forward demand. However, sales moderated in March and April data was not improving, indicating a challenging period.

A：The company believes there are opportunities in the second half of the year, especially in discretionary spending like apparel. As consumer sentiment may be improving marginally, the company expects to capture these opportunities and maintain steady operational performance.

A：The Shenzhen online business had a strong first quarter with a 30% year-over-year growth in GMV. The commercial rights issuance was officially approved in late April, and pricing was completed on May 19. The company holds two underlying assets and has projects demonstrating strong potential for future expansion.

A：The company will book a one-time investment gain of approximately RMB 5.3 billion, an increase of RMB 1.7 billion in income tax expenses, and a significant increase in net cash inflow of RMB 1.7 billion in the second quarter.

A：The company's sales in April and May have been negative, contrasting with the expectation of positive growth. However, it was mentioned that the company saw an increase in offline sales while online sales declined.

A：The 3.6% growth in apparel sales in April is consistent with the company's previous year's data. However, the company noted a shift in consumer behavior with more sales moving offline. Factors include high online退货率, user migration to线下购物, and increased merchant presence in physical stores.

A：The growth of the sunshine outlet, especially in offline sales, is attributed to a high占比 of users who have shifted from online to offline shopping. The company is closely monitoring this trend and considering various factors such as increased merchant focus on线下销售 and the possibility of improving conditions in the future.

A：The discrepancy between the growth in sales and revenue could be attributed to a slight increase in the return rates and the revenue recognition method based on the net method, which results in a wider revenue to GMV gap.

A：The company anticipates that the near-term pressure on sales, specifically from March to May, remains within their control and is expected to be between -5% to zero%. They believe that their full-year target is still achievable and are optimistic about maintaining at least a steady business performance through the rest of the year by continuously optimizing operational strategies.

A：The recent softness in sales is related to several factors, including weather conditions, the timing of seasons, and some uncertainty regarding consumer sentiment and behavior. However, the exact reason for the drop in sales is not definitively clear and may need more time to assess, especially with respect to consumer purchases in apparel categories.