A：The highlights of VIP Shop Holdings' third quarter 2025 earnings conference call include the company's progress in debt growth, top line expansion, notable improvement in customer trends across core categories, year-over-year growth in total active customers, and the continued double-digit growth of Super VIP membership.

A：VIP Shop Holdings' merchandising strategy, which highlights high value brands, trending categories, and popular selling points, is aligned with customer priorities against a dynamic industry backdrop.

A：Being a 'merchandising lead company' means that VIP Shop Holdings competes by offering an affordable and differentiated assortment of products.

A：The company is enhancing its category specialization by curating product offerings that deliver great relevance and distinct value, as seen in the new momentum in customer and sales by engaging细分市场的表现。

A：Examples of effective collaboration include a leading running shoe brand that generated 50% of September sales on the platform from products made exclusive to VIP, and a leading women apparel brand that built sales momentum with customized, deep discount items from its inventory.

A：The company is experimenting with new marketing formats such as content and short-form dramas to improve customer engagement.

A：The system upgrades to the search and recommendations systems led to a tangible increase in conversions and a direct contribution to sales growth, improving the customer experience and boosting the loyalty of Super VIP members.

A：The immediate focus for deploying AI at VIP Shop Holdings is to enhance key areas including search and recommendations, customer service, external marketing, and business and analytics.

A：The overall financial result is a set of healthy financial results with total net revenues exceeding expectations and solid earnings expansion. The company's focus is on disciplined growth investments in merchandising expansion, consumer facing marketing, better customer engagement, and AI-centered technology advancement to achieve high-quality growth.

A：The company has returned over 730 million US dollars to shareholders through a combination of dividend payments and share buybacks.

A：For the third quarter of 2025, the company's total net revenues increased by 3.4% year over year to RMB 21.4 billion. The gross profit was RMB 5.6 billion, with a gross margin of 23.0%, compared to 24.0% in the prior year period.

A：The company's total operating expenses were RMB 3.9 billion in the third quarter of 2025, compared with RMB 3.8 billion in the prior year period. As a percentage of total net revenues, they were 18.5%, compared with 18.2% in the prior year period.

A：Fulfillment expenses were under RMB 1.9 billion, or 8.7% of total net revenues, compared with RMB 1.7 billion or 8.4% in the prior year period. Marketing expenses were RMB 667.2 million, or 3.1% of total net revenues, compared with RMB 617.8 million or 3.0% in the prior year period.

A：The company expects total net revenue for the fourth quarter of 2025 to be between RMB 33.2 billion and RMB 34.9 billion, representing a year-over-year increase of approximately 0% to 5%.

A：The company is focusing on customer convenience in various Ecos and has made progress in integrating convenience as part of worry-free value to customers. The delivery metrics, next delivery for in aerating of in the, and lastly, the logistics have been optimized for customer returns, warehousing, and overall business growth and operating efficiency. The company has seen decent growth momentum in GMV sales in October and November and is positive about the business performance for the fourth quarter with a projected revenue growth of 0 to 5%. Looking at 2026, there are opportunities in price retailer brands, and the company expects consumer sentiment to normalize, maintaining reasonable expectations for growth while preserving a roadmap for balanced profitability and high-quality development.

A：The company has not elaborated on the specific ways AI is helping to target churn users and attract them back to the VIP platform. However, the use of AI in this context is likely intended to support financial growth and user retention strategies.

A：The recent organizational changes involve realigning the entire organization across different teams such as merchandising, customer operations, and technology to enhance agility and efficiency. Senior leaders in major merchandising teams have been replaced with new talent to refresh the organization and allow teams to collaborate at new levels.

A：The company is trying to build a reshaped assortment across apparel and non-apparel categories with an integrated approach from marketing, growth, and engagement to be more efficient in attracting, activating, and retaining customers through a series of adjustments.

A：The company is focusing on building teams for the next phase of technology advancement to stay ahead of market trends and customer expectations.

A：AI is being used to enhance the customer experience, such as with visualized models for trying on clothes, conversion rates, AI-generated content in marketing campaigns, and AI agents to solve customer issues and improve platform experience. This has brought benefits to conversion and customer acquisition efficiency.

A：Management expects the gross profit margin to be comparable to 2024 levels and largely stable around 23% depending on product mix changes. As for operating profit and margin recovery, there is an expectation that these will improve as the economic scale takes effect, although specific timing was not provided.

A：Management mentioned that they have been closely following capital market changes and will update the market if there are any developments regarding the potential Hong Kong listing.

A：The company expects customer growth to accelerate, particularly in the fourth quarter compared to the third, and continues to believe revenue growth will be driven by an increase in the customer number and ARPU. New strategies in marketing formats and channel investments aim to acquire high-quality new customers and reactivate dormant ones, while also expanding the SVIP base.

A：The company has returned over 3.4 billion US dollars to shareholders in the form of buybacks and dividends since April 2021. For 2025, the commitment is to return at least 75% of the full year 2024 non-GAAP net income to shareholders, with over 730 million US dollars returned through dividends and buybacks as of the date of the third quarter results. The company intends to continue investing in business growth, improving profits, and generating cash to support dividend payments and further buybacks, evaluating the appropriate level for next year.