Vipshop Holdings Ltd (VIPS) 2024 Q4 法說會逐字稿

Ladies and gentlemen, good day, everyone, and welcome to the Vipshop Holdings Limited fourth quarter and full year 2024 earnings conference call. At this time, I would like to turn the call to Ms. Jessie Zheng, Vipshop's Head of Investor Relations. Please proceed.

女士、先生們，大家好，歡迎參加唯品會控股有限公司2024年第四季及全年財報電話會議。現在，我想將電話轉給唯品會投資者關係主管 Jessie Zheng 女士。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining the Vipshop fourth quarter and full year 2024 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 US Private Securities Litigation Reform Act of 1995.

謝謝您，接線生。大家好，感謝您參加唯品會2024年第四季及全年業績電話會議。今天與我們在一起的有我們的共同創辦人、董事長兼執行長 Eric Shen；以及我們的財務長 Mark Wang。在管理階層開始發表準備好的發言之前，我想提醒大家，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

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 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 that any forward-looking statements may be made.

前瞻性陳述受風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異。潛在風險和不確定性包括但不限於我們收益報告中的安全港聲明和向美國證券交易委員會提交的公開文件中概述的風險和不確定性，這些風險和不確定性也適用於本次電話會議中可能做出的任何前瞻性陳述。

Please note that certain financial measures used on this call, such as non-GAAP operating income, non-GAAP net income attributable to Vipshop's shareholders and non-GAAP net income ADS are not presented in accordance with GAAP. Please refer to our earnings release for details relating to the reconciliations of our non-GAAP measures to GAAP measures.

請注意，本次電話會議中使用的某些財務指標，例如非公認會計準則營業收入、非公認會計準則歸屬於唯品會股東的淨收入和非公認會計準則淨收入ADS，均不符合公認會計準則。有關我們的非公認會計準則 (non-GAAP) 指標與公認會計準則 (GAAP) 指標的調節詳情，請參閱我們的收益報告。

With that, I would now like to turn the call over to Mr. Eric Shen.

說完這些，我現在想把電話轉給 Eric Shen 先生。

Okay. Good morning and good evening, everyone. Welcome, and thank you for joining our fourth quarter and full year 2024 earnings conference call. We delivered a set of results well above our expectations in the fourth quarter to finish a challenging year. While consumers still spend cautiously in this central categories, our team has proactively driven changes to address those priorities with a focus on retail fundamentally and strong execution. At the category level, we saw some strength in apparel, which turned into positive growth in the fourth quarter off a high base.

好的。大家早安，晚上好。歡迎您，感謝您參加我們的 2024 年第四季和全年財報電話會議。我們在第四季取得了遠超預期的業績，為充滿挑戰的一年畫上了圓滿的句號。雖然消費者在這些核心類別上的消費仍然很謹慎，但我們的團隊已經積極推動變革，以解決這些優先事項，並專注於零售根本和強有力的執行。從類別層面來看，我們看到服裝業表現出一定優勢，在高基數的基礎上，第四季實現了正成長。

Our team moved swiftly to include more unique off-price seasonal offerings that meet customer needs, especially in sportswear and outdoor products. For the full year, apparel categories was up 2% from a year ago, accounting for 75% of our total GMV, the highest level in our history that helped us once again cross RMB200 billion in total annual sales.

我們的團隊迅速採取行動，推出更多獨特的折扣季節性產品，以滿足客戶的需求，尤其是運動服和戶外產品。全年服飾品類比年增2%，佔75%，創歷史新高，助力雅居樂全年銷售總額再次突破2,000億元。

Our non-apparel business also clearly narrowed its loss of sales in the fourth quarter, driven in part by the outperformance in home appearance and digital products as we capture growth opportunities from the government's trade-in program.

我們的非服裝業務在第四季度的銷售損失也明顯縮小，部分原因是我們抓住了政府以舊換新計劃帶來的成長機會，導致家居外觀和數位產品表現優異。

On the customer front, Super VIP membership extended its double-digit growth, which is a strong validation of our team's commitment to delivering a differentiated experience. In the fourth quarter, active Super VIP increased by 50% from a year ago and accounted for 51% of our online spending.

在客戶方面，超級VIP會員數量延續了兩位數的成長，這有力地證明了我們團隊致力於提供差異化體驗的承諾。第四季度，活躍超級VIP比去年同期成長了50%，占我們線上支出的51%。

On an annual basis, we had a total 8.8 million active SVIP members who contributed 49% of our online spending last year. We are encouraged by this initial improvement after we identified key near-term actions in each area and moved with urgency.

以年度計算，我們共有 880 萬活躍 SVIP 會員，他們貢獻了去年我們線上支出的 49%。在我們確定了每個領域的關鍵近期行動並緊急採取行動後，這項初步改善令我們感到鼓舞。

In merchandising, we are getting shaped on brand and productive portfolio to stay highly relevant to customer needs. Value is on the full display through a series of operational adjustment and target incentives that help our customers shop for holidays and seasonal promotions, and we are engaging more with family shoppers with a more balanced assortment of apparel and non-apparel products to drive in sentimental growth in frequency and multi-category purchases.

在商品銷售方面，我們正在塑造品牌和生產組合，以高度貼近客戶的需求。透過一系列營運調整和目標激勵措施，價值得到充分展示，幫助我們的客戶在假日和季節性促銷時購物，並且我們透過更均衡的服裝和非服裝產品組合與家庭購物者進行更多互動，以推動頻率和多類別購買的情感成長。

With these challenges -- with these changes, we are better positioned going into 2025. Importantly, we remain very committed to our long-term strategy in this kind of retail for brands. And we dedicate our efforts to the long-standing status that have been successful in driving quality growth, that includes our unique business model, a merchandising approach with no compromise on quality and authentic, a strong focus on value that include low price and compelling views and the suits of the service that highlights reliabilities, all these are put together through a differentiated strategy.

有了這些挑戰、有了這些變化，我們將能更好地迎接 2025 年。重要的是，我們仍然致力於這種品牌零售的長期策略。我們致力於保持長期以來成功推動高品質成長的地位，包括我們獨特的商業模式、不妥協品質和真實性的營銷方式、高度重視包括低價和引人注目的觀點在內的價值以及強調可靠性的服務套裝，所有這些都是透過差異化策略整合在一起的。

More specifically, of the business highlights, we continue to invest in our merchandising capabilities to become even more reliable destination for our customers. Following three years initial enhancement program, our team has been shaped, developed new expertise and master how to work in more impactful way.

更具體地說，在業務亮點中，我們繼續投資於我們的行銷能力，以成為客戶更可靠的目的地。經過三年的初始強化計劃，我們的團隊得到了鍛煉，發展了新的專業知識，並掌握瞭如何以更有影響力的方式工作。

We brought in over 1,500 new brands last year, including officially partners with many high-profile global brands. We build deeper relationships with several hundred co-brands, secured great in demand value for money offering throughout the year and managed our productive portfolio and on a great level of spreads and dips. Most recently, our team has started dive deeper categories by category to seek opportunities by further expanding in the brand supply that we expect customers to truly fill their hunting excitement.

去年我們引進了 1,500 多個新品牌，其中包括與許多知名全球品牌的正式合作夥伴。我們與數百個聯合品牌建立了更深的關係，確保了全年提供物有所值的產品，並管理了我們的生產組合以及極大的利差和跌幅。最近，我們的團隊開始逐一深入研究類別，透過進一步擴大品牌供應來尋找機會，我們希望客戶能夠真正滿足他們的狩獵興奮。

Another area of focus has been adding more unique supply to make our differentiated product offering even better and bigger. The Made for VIP line did become a meaningfully driver for more than 200 brands who have joined this program last year. We saw preist strength in sales all year long, benefiting from quality customer and repeat orders as well as clearly better conversions and compared to the general merchandising within the same brand categories and price range with some brands up to 20% of their sales on our platform came from Made for VIP last year.

另一個重點領域是增加更多獨特的供應，以使我們的差異化產品更優質、更強大。Made for VIP 系列確實為去年加入該計劃的 200 多個品牌產生了有意義的推動作用。我們看到全年銷售都表現強勁，受益於優質客戶和重複訂單以及明顯更好的轉換率，與同一品牌類別和價格範圍內的一般商品相比，去年我們平台上一些品牌高達 20% 的銷售額來自 Made for VIP。

Turning to customers, we remain largely pressured, but are willing to spend when they find the right balance of quality products and a compelling price. Our SVIP customers are clearly more resilient and have a strong response to promotions and the sub-Cs because the real value we provide for them. In addition, the fund is enticing to get even better deals through the provide sales and special offers. We are happy to see that SVIPs continue to spend much more and more frequency than the regular customer. And the vast majority of them have renewed their memberships with us.

對於客戶，我們仍然面臨很大的壓力，但當他們找到優質產品和誘人價格之間的適當平衡時，我們願意花錢。我們的 SVIP 客戶顯然更具彈性，並且對促銷和子 C 有強烈的反應，因為我們為他們提供了真正的價值。此外，該基金還透過提供銷售和特別優惠來吸引人們獲得更好的交易。我們很高興地看到，SVIP 的消費金額和頻率都遠高於一般顧客。其中絕大多數已與我們續簽了會員資格。

Given how fast thing are changing, it is all the more important to put technology to work to drive growth and efficiency. We have made relentless efforts to optimize search and recommendations, which starts to incrementally improve customer experience and conversions. In addition, we are using the latest general AI model to help our team work in a more productivity way, enables them to serve brand partners and customers with greater efficiency. We have made initial attempts and applications cases such as shopper guide, marketing contents, customer service and analyze tools for brand partners.

鑑於事物變化的速度，利用科技來推動成長和效率就顯得更為重要。我們不懈努力優化搜尋和推薦，開始逐步改善客戶體驗和轉換率。此外，我們正在使用最新的通用AI模型來幫助我們的團隊以更有效率的方式運作，使他們能夠更有效率地服務品牌合作夥伴和客戶。我們已在購物引導、行銷內容、客戶服務、品牌合作分析工具等方面做出了初步的嘗試與應用案例。

Despite ongoing uncertainty, we are confident in our long-term development of our business given the continuing of our strategy, the merchandising strength we are building upon and the growth initiatives we are taking in merchandise expansion and deepened engagement with different customer cohorts. Most importantly, we have infused more flexibility into our business to compete and win in an environment where our customers are focused on value. We are confident in our ability to move beyond the current situations and return to sustainable and profitable growth in the long term.

儘管存在持續的不確定性，但鑑於我們策略的持續實施、我們正在建立的商品推銷實力以及我們在商品擴展和深化與不同客戶群體的接觸方面採取的增長舉措，我們對我們的業務的長期發展充滿信心。最重要的是，我們為業務注入了更大的靈活性，以便在客戶專注於價值的環境中競爭並獲勝。我們有信心擺脫當前的困境，並長期恢復可持續的獲利成長。

At this point, let me hand over the call to our CFO, Mark Wang, to go over our financial results.

現在，請允許我將電話交給我們的財務長馬克王 (Mark Wang)，來討論我們的財務結果。

Okay. Thanks, Eric, and hello, everyone. In the fourth quarter, we achieved a better balance in our business. We took sweeps and disciplined actions to reallocate resources to maximize growth while preserving solid profitability. Top line came in better than our guidance as our team has made early endeavor to cease growth opportunity in both apparel and nonapparel business.

好的。謝謝，埃里克，大家好。第四季度，我們的業務實現了更好的平衡。我們採取全面而有紀律的行動重新分配資源，以實現成長最大化，同時保持穩健的獲利能力。由於我們的團隊已儘早努力抓住服裝和非服裝業務的成長機會，因此營業收入優於我們的預期。

Leading into categories where we know customers were trying to get ready for holidays, seasonal or family needs. Gross margin decreased year-over-year, but remained at a decent level of 23%, reflecting our step-up investments in customer incentives to drive quality growth. On a full year basis, gross margin is an eight year high of 23.5%, benefiting from the all-time high contribution from our apparel business.

我們了解到，客戶正在為假期、季節或家庭需求做準備。毛利率年減，但仍維持在23%的合理水平，反映出我們加強對客戶激勵措施的投資，以推動品質成長。從全年來看，毛利率達到八年來的最高水準 23.5%，這得益於服裝業務的歷史最高貢獻。

With the improved business scale and consistent execution of operating efficiency, our bottom line held up pretty well in both absolute profit and margin in the quarter. This helped us record over RMB9 billion in full year non-GAAP net profit attributable to Vipshop's shareholders at a solid margin of 8.3%, which was largely comparable to a year ago.

隨著業務規模的提升和營運效率的持續執行，我們本季的絕對利潤和利潤率均保持了相當好的水平。這有助於我們實現全年歸屬於唯品會股東的非美國通用會計準則淨利潤超過人民幣90億元，利潤率穩定在8.3%，與去年同期基本持平。

As we await consumer discretionary spending to normalize over time, we believe we are on the right side to returning to healthy growth in the foreseeable future. We continue to move at pace and align our focus around merchandising for categories, value offering and customer impact. These growth initiatives are well supported by the spend, our profit and cash generation capability.

隨著我們等待消費者可自由支配的支出隨著時間的推移逐漸正常化，我們相信，我們在可預見的未來將有望恢復健康成長。我們將繼續穩步前進，並將重點放在品類行銷、價值提供和客戶影響上。這些成長計劃得到了支出、利潤和現金創造能力的有力支持。

Turning to capital allocation. In 2024, we returned a total of approximately USD 770 million to our shareholders through annual dividend and buyback. For 2025, as we consistently communicated, we will return to less than 75% of our full year 2024 non-GAAP net income attributable to Vipshop's shareholders in a combination of annual dividend and buyback. This reinforce our commitment to shareholder value creation in the long term.

轉向資本配置。2024年，我們透過年度股利和回購向股東返還總計約7.7億美元。正如我們一貫傳達的那樣，對於 2025 年，我們將透過年度股息和回購相結合的方式，將 2024 年全年非 GAAP 淨收入的 75% 以下返還給唯品會股東。這加強了我們對長期創造股東價值的承諾。

Now moving to our detailed quarterly financial highlights. Before I get started, I would like to clarify that all financial numbers presented below are in RMB and all the percentage changes are year-over-year change, unless otherwise noted.

現在來看看我們詳細的季度財務亮點。在開始之前，我想澄清一下，除非另有說明，以下顯示的所有財務數字均以人民幣計算，所有百分比變化均為同比變化。

Total net revenues for the fourth quarter of 2024 were RMB33.2 billion compared with RMB34.7 billion in the prior year period. Gross profit was RMB7.6 billion compared with RMB8.2 billion in the prior year period. Gross margin was 23.0% compared with 23.7% in the prior year period. Total operating expenses was RMB5.1 billion compared with RMB4.9 billion in the prior year period. As a percentage of total net revenues, total operating expenses was 15.2% compared with 14.0% in in the prior year period.

2024年第四季總淨收入為人民幣332億元，去年同期為人民幣347億元。毛利為人民幣76億元，去年同期為人民幣82億元。毛利率為23.0%，去年同期為23.7%。總營業費用為51億元人民幣，去年同期為49億元。總營運費用佔總淨收入的百分比為 15.2%，而去年同期為 14.0%。

Fulfillment expenses decreased by 2.5% year-over-year to RMB2.46 billion from RMB2.53 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses was 7.4% compared with 7.3% in the prior year period. Marketing expenses increased by 10.3% year-over-year to RMB930.3 million from RMB843.2 million in the prior year period. As a percentage of total net revenues, marketing expenses was 2.8% compared with 2.4% in the prior year period.

履行費用由去年同期的25.3億元下降至24.6億元，年減2.5%。履行費用佔總淨收入的百分比為 7.4%，而去年同期為 7.3%。行銷費用由去年同期的8.432億元增至9.303億元人民幣，較去年同期成長10.3%。佔總淨收入的百分比為 2.8%，而去年同期為 2.4%。

Technology and content expenses decreased by 5.5% year-over-year to RMB469.2 million from RMB496.4 million in the prior year period. As a percentage of total net revenues, technology and content expenses was 1.4%, which stays flat as compared with that in the prior year period. General and administrative expenses increased by 20.0% year-over-year to RMB1.2 billion from RMB1.0 billion in the prior year period. As a percentage of total net revenues, general and administrative expenses were 3.6% compared with 2.9% in the prior year period.

科技和內容費用從去年同期的4.964億元年減5.5%至4.692億元。技術和內容費用佔總淨收入的百分比為 1.4%，與去年同期相比持平。一般及行政開支由去年同期的人民幣10億元增至人民幣12億元，較去年同期成長20.0%。作為總淨收入的百分比，一般及行政開支為 3.6%，而去年同期為 2.9%。

Income from operations was RMB2.9 billion compared with RMB3.7 million in the prior year period. Operating margin was 8.6% compared with 10.6% in the prior year period. Non-GAAP income from operations was RMB3.4 billion compared with RMB4.0 billion in the prior year period. Non-GAAP operating margin was 10.2% compared with 11.4% in the prior year period.

營業收入為29億元人民幣，去年同期為370萬元。營業利益率為 8.6%，去年同期為 10.6%。非美國通用會計準則營業利潤為34億元人民幣，去年同期為40億元。非公認會計準則營業利益率為 10.2%，去年同期為 11.4%。

Net income attributable to Vipshop's shareholders was RMB2.4 billion compared with RMB3.0 billion in the prior year period. Net margin attributable to Vipshop's shareholders was 7.4% compared with 8.5% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS was RMB4.69 compared with RMB5.35 in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders was RMB3.0 billion compared with RMB3.2 billion in the prior year period.

歸屬於唯品會股東的淨利為24億元人民幣，去年同期為30億元。歸屬於唯品會股東的淨利率為 7.4%，去年同期為 8.5%。唯品會股東每股攤薄淨利為4.69元人民幣，去年同期為5.35元。非美國通用會計準則下歸屬於唯品會股東的淨利為30億元人民幣，去年同期為32億元。

Non-GAAP net margin attributable to Vipshop's shareholders was 9.0% compared with 9.2% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS was RMB5.70 compared with RMB5.79 in the prior year period. As of December 31, 2024, we had cash and cash equivalents and restricted cash of RMB27.0 billion, and short-term investments of RMB1.9 billion.

歸屬於唯品會股東的非美國通用會計準則淨利率為 9.0%，去年同期為 9.2%。非美國通用會計準則下，唯品會股東每股攤薄淨利為5.70元人民幣，去年同期為5.79元。截至 2024 年 12 月 31 日，我們擁有現金及現金等價物及受限現金為人民幣 270 億元，短期投資為人民幣 19 億元。

Now I will briefly walk through the highlights of our full year results. Total net revenues were RMB108.4 billion compared with RMB112.9 billion in the prior year. Gross profit was RMB25.5 billion compared with RMB25.7 billion in the prior year. Gross margin increased to 23.5% from 22.8% in the prior year.

現在我將簡要介紹我們全年業績的亮點。總淨收入為人民幣1084億元，去年同期為人民幣1129億元。毛利為255億元人民幣，上年為257億元。毛利率由上年的22.8%上升至23.5%。

Income from operations increased by 0.8% year-over-year to RMB9.2 billion from RMB9.1 billion in the prior year. Operating margin increased to 8.5% from 8.1% in the prior year. Non-GAAP income from operations increased by 0.9% year-over-year to RMB10.7 billion from RMB10.6 billion in the prior year. Non-GAAP operating margin increased to 9.9% from 9.4% in the prior year.

營業收入由上年的91億元增加至92億元人民幣，較去年同期成長0.8%。營業利益率從去年的8.1%上升至8.5%。非美國通用會計準則營業利潤由上年的106億元增加至107億元人民幣，較去年同期成長0.9%。非公認會計準則營業利益率從去年的 9.4% 上升至 9.9%。

Net income attributable to Vipshop's shareholders was RMB7.7 billion compared with RMB8.1 billion in the prior year. Net margin attributable to Vipshop's shareholders was 7.1% compared with 7.2% in the prior year. Net income attributable to Vipshop's shareholders per diluted ADS was RMB14.35 compared with RMB14.42% in the prior year.

歸屬於唯品會股東的淨利為77億元人民幣，去年同期為81億元。歸屬於唯品會股東的淨利率為 7.1%，去年同期為 7.2%。唯品會股東每股攤薄淨利為14.35元人民幣，去年同期為14.42%。

Non-GAAP net income attributable to Vipshop's shareholders was RMB9.0 billion compared with RMB9.5 billion in the prior year. Non-GAAP net margin attributable to Vipshop's shareholders was 8.3% compared with 8.4% in the prior year. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS was RMB16.75 compared with RMB16.90 in the prior year.

非美國通用會計準則下歸屬於唯品會股東的淨利為90億元人民幣，上年度為95億元。歸屬於唯品會股東的非美國通用會計準則淨利率為 8.3%，去年同期為 8.4%。非美國通用會計準則下，唯品會股東每股攤薄淨利潤為16.75元人民幣，去年同期為16.90元。

Looking forward to the first quarter of 2025, we expect our total net revenues to be between RMB26.3 billion and RMB27.6 billion, representing a year-over-year decrease of approximately 5% to 0%. Please note that this forecast reflects our current and preliminary view of the market and operational conditions, which is subject to change.

展望2025年第一季，我們預期總淨收入在人民幣263億元至人民幣276億元之間，年減約5%至0%。請注意，此預測反映了我們對市場和營運狀況的當前和初步看法，可能會發生變化。

With that, I would now like to open the call to Q&A.

現在，我想開始問答環節。

(Operator Instructions)

（操作員指令）

Thomas Chong, Jefferies.

傑富瑞 (Jefferies) 的托馬斯張 (Thomas Chong)。

Congratulations on very solid fourth quarter results. My first question is about our Q1 revenue guidance. Can management comment about our year-to-date performance so far? Are we actually seeing we are more towards the low end or the high end of the guidance? And can management also comment about the recent consumer sentiment? That's my first question.

恭喜您在第四季度取得了非常穩健的業績。我的第一個問題是關於我們第一季的營收預期。管理層能否對我們今年迄今的表現作出評論？我們實際上是否看到我們更接近指導的低端或高端？管理階層能否評論一下最近的消費者情緒？這是我的第一個問題。

And my second question is about the 2025 outlook. Yes, I think it is a bit early right now, but it would great if management can comment about how we should think about the revenue and the margin trend throughout the rest of the year?

我的第二個問題是關於 2025 年的展望。是的，我認為現在有點早，但是如果管理層可以評論一下我們應該如何看待今年剩餘時間的收入和利潤趨勢，那就太好了？

(interpreted) Okay. As for Q1 revenue guidance in terms of the year-to-date trend, because of the different timing of the spring festival, it's not that idea to look at a single month in January or February. If we look at January plus February to date, I think that actually our business is on track within our guidance. And when we assess consumer sentiment, we believe it's actually slightly better than expected, although still, we observed it takes time to be fully back on the recovery trend. But apparently, we think it is marginally better than prior quarters.

（翻譯）好的。至於從年初至今的趨勢來看，第一季的收入指引，由於春節的時間不同，因此不能只看一月或二月的單月份。如果我們回顧一月份和二月迄今為止的情況，我認為我們的業務實際上正在按照我們的預期發展。當我們評估消費者信心時，我們認為它實際上略好於預期，儘管我們仍然觀察到完全恢復復甦趨勢需要時間。但顯然，我們認為它比前幾季略好。

And since it's still early into the quarter, and we have upcoming promotions in March when we start to sell our spring apparel, and until then, we may have a clear picture of how the quarter is going to end, whether it's lower or higher end of the guidance. But for sure, we are on track for now.

由於現在仍處於季度初期，我們將在 3 月開始銷售春季服裝，屆時我們將推出促銷活動，在此之前，我們可能會清楚地了解本季的收尾情況，無論是低於預期還是高於預期。但可以肯定的是，我們現在已經步入正軌。

As for the full year of 2025, we think everything should get back to the positive trajectory. That's what we hope. Whether it's GMV or revenue, last year, we did note that so where our GMV was just slightly up. And because of the return rate, there is still some gap between GMV and revenues. So revenue is slightly down, but we believe this year, we will make every endeavor to bringing the business back from every -- in terms of every operating metric.

至於 2025 年全年，我們認為一切都應該回到積極的軌道。這正是我們所希望的。無論是 GMV 還是收入，去年我們確實注意到了這一點，我們的 GMV 略有上升。而且因為退貨率的原因，GMV和收入之間還是有一定差距的。因此，收入略有下降，但我們相信，今年我們將盡一切努力使業務從各個營運指標上恢復過來。

Of course, we are going to pursue a high-quality growth strategy as we have done consistently, and we will try to make efforts to maximize our growth opportunities in terms of customer and revenue under the condition that we will maintain a solid profitability as well. We have an opportunity to invest a portion of our profit into growth opportunities, and we will do that. But overall, we will try to make sure we will maintain solid profitability and maximize our growth.

當然，我們會一如既往地堅持高品質的成長策略，在維持穩健獲利能力的前提下，努力實現客戶和收入的成長機會最大化。我們有機會將部分利潤投資於成長機會，我們會這樣做。但總體而言，我們將盡力確保保持穩定的獲利能力並實現成長最大化。

Alicia Yap, Citigroup.

花旗集團的 Alicia Yap。

(spoken in foreign language) So two quick questions. First is that regarding your 4Q outperformance. Just wanted to know a little bit more the drivers. So is that mainly because of your effective marketing promotion? Or is that also benefiting some improvement of the macro environment? And then second question is, in your 4Q GMV, how much of that is actually benefiting or related to the trade-in benefits?

（用外語說）那麼有兩個快速問題。首先是關於您第四季的優異表現。只是想多了解一些司機。那麼這主要是因為你們有效的行銷推廣嗎？或者這也有利於宏觀環境的改善？第二個問題是，在您的第四季 GMV 中，有多少實際上受益於或與以舊換新優惠有關？

(interpreted) To your first question on Q4, it turns out to be we are ahead of expectations due to a couple of a few factors. First, I think it helps a little bit because we start to see consumers became a bit more active from the end of November into December when we see normalized weather conditions that helped our winter clothing sales. And also on consumer sentiment, this was not as bad as we have sold. It turned slightly better than prior quarters. And of course, we did a lot of proactive actions in terms of the merchandising portfolio and more in-demand value for money product offerings. And also, we did some decent promotions in the subsidies targeting our high-value customers, which brought in additional growth opportunities.

(翻譯)關於您關於第四季度的第一個問題，事實證明，由於幾個因素，我們的業績超出了預期。首先，我認為這有一點幫助，因為我們開始看到消費者從 11 月底到 12 月變得更加活躍，因為我們看到正常的天氣條件有助於我們的冬季服裝銷售。而且從消費者情緒來看，這並不像我們銷售的那麼糟。與前幾季相比，情況略有改善。當然，我們在商品組合和更多受歡迎的物有所值的產品供應方面採取了很多積極主動的行動。此外，我們針對高價值客戶在補貼方面做了一些不錯的促銷，帶來了額外的成長機會。

And to your second question on the related category benefiting from the trading program, it did help a little bit because we managed to narrow the loss of sales in our nonapparel business. But in terms of the absolute GMV is still are not that meaningful. It's around RMB300 million to RMB400 million in terms of incremental from home appliances and the digital products in Q4.

關於您提到的第二個問題，即相關類別從交易計劃中受益，它確實有一點幫助，因為我們設法縮小了非服裝業務的銷售損失。但就絕對GMV而言，意義仍不大。第4季家電和數位產品的增量大概在3億到4億人民幣左右。

Wei Xiong, UBS.

瑞銀熊偉。

(spoken in foreign language) First, I want to ask about the gross margin trend in 2025. Are we seeing further room to improve year-on-year on the base of the very good results of full year '24? If there is, what are the drivers behind? And also just to follow up on the net profit margin for 2025, given that we are trying to pursue the goal of GMV and revenue turning positive as soon as possible, are we expecting stable net margin year-on-year? Or are we seeing further room to improve? And also, what's our latest judgment on the long-term sustainable net margin level for the company?

（外語）首先我想問2025年的毛利率趨勢。在24年全年業績非常好的基礎上，我們是否看到年比進一步提升的空間？如果有，背後的驅動因素是什麼？另外，只是想跟進 2025 年的淨利潤率，鑑於我們正試圖盡快實現 GMV 和收入轉為正值的目標，我們是否預計淨利潤率將同比穩定？或者說我們看到了進一步改進的空間？另外，我們對公司長期可持續的淨利潤水準的最新判斷是什麼？

(interpreted) In terms of the margin trend on GP margin, if I remember, we hit an eight year high GP margin of 23.5% in 2024. So we actually think that's a very good level, and we can afford to invest a portion of the gross profit, for example, to our brand partners to incentivise them to bringing more merchandising and more deep discount inventory so that we can grow together. So we are thinking about prudently reviewing the take rate levels with rent partners and allow them to have more opportunity for growing the business on our platform instead of just maintaining a fixed GP margin for the platform.

(解釋) 就毛利率趨勢而言，如果我沒記錯的話，我們在 2024 年達到了 8 年來的最高毛利率 23.5%。因此，我們實際上認為這是一個非常好的水平，我們可以將一部分毛利投資給我們的品牌合作夥伴，以激勵他們帶來更多的商品和更多折扣庫存，以便我們一起成長。因此，我們正在考慮與租賃合作夥伴審慎審查收費水平，並允許他們有更多的機會在我們的平台上發展業務，而不是僅僅維持平台固定的毛利率。

And turning to NP margin. We have pretty good command of managing the cost in the expense items. So we think in terms of the NP margin, we are pretty confident that we can achieve a flattish level as compared to the past two years. And in terms of the profit dollars, we try to grow our profit dollars as much as we can. If we can grow into a better scale and apparently that will take a lot of pressure on operating deleverage and then we can achieve a greater MP margin as well as a much better profit dollar level. So in terms of the margin profile, we have no concern on that. Actually, we had a pretty good amount of both GP margin and MP margin.

並轉向NP邊緣。我們對費用項目的成本管理比較熟練。因此，我們認為，就 NP 利潤率而言，我們非常有信心能夠實現與過去兩年相比持平的水平。就利潤而言，我們會盡力增加利潤。如果我們能夠發展到更好的規模，顯然這將減輕營運去槓桿的巨大壓力，然後我們就可以實現更大的 MP 利潤率以及更好的利潤水平。因此，就利潤率而言，我們對此並不擔心。實際上，我們的 GP 利潤和 MP 利潤都相當不錯。

Jialong Shi, Nomura.

史家龍，野村。

(spoken in foreign language) So I have two questions. First question is about generated AI. so the AI has become a popular trend these days. So just wondering if there are any areas in VIPS business where AI may help either improve profitability or reduce the costs? Just wonder if management can provide some colors. And the second question is wondering what is the trend for ARPU and the shopping frequency of Super VIP members?

（用外語說）所以我有兩個問題。第一個問題是關於生成的人工智慧。所以人工智慧現在已經成為一種流行趨勢。所以我想知道 VIPS 業務中是否存在 AI 可以幫助提高獲利能力或降低成本的領域？只是想知道管理層是否可以提供一些顏色。第二個問題，超級VIP會員的ARPU值和購物頻率有什麼變化趨勢？

(interpreted) In terms of the AI application, actually, internally, we are moving very fast to investing to AI applications, including personalization, Q&A generation and product recommendation, et cetera. And that's on a number of application cases. Specifically, actually, we are deploying DeepSeek internally as well. The immediate focus is, of course, to try to find opportunities to improve productivity as well as efficiency. For example, on customer service, we're trying to see whether DeepSeek can be integrated in our self-developed model to improve the analysis and the reasoning as the many dialogues that are taking place on customer service every day, we are trying to find if there is an area of improvement.

(翻譯) 在人工智慧應用方面，實際上，在內部，我們正在非常快速地投資人工智慧應用，包括個人化、問答生成和產品推薦等等。這就是一些應用案例。具體來說，實際上我們也在內部部署DeepSeek。當然，目前的重點是努力尋找機會來提高生產力和效率。例如在客服方面，我們在嘗試把DeepSeek整合到我們自己開發的模型中，以改進分析和推理，因為客服每天都會發生很多對話，我們正在尋找是否有可以改進的地方。

And to friend partners we're also launching new analytical tours to try to help them optimize their merchandising portfolio, to promote their sales campaigns, to see whether -- what kind of actions they should take to maximize business opportunities on our platform. So although we are not rolling out any to see application publicly, but we are deploying AI and the latest gen AI models into our internal business cases on a broad basis.

對於合作夥伴，我們也推出了新的分析之旅，試圖幫助他們優化商品組合，促進他們的銷售活動，看看他們應該採取什麼樣的行動來最大限度地利用我們平台上的商業機會。因此，雖然我們還沒有公開推出任何應用程序，但我們正在廣泛地將人工智慧和最新一代人工智慧模型部署到我們的內部業務案例中。

And on the customer front, we are also trying to see whether we can leverage the latest degenerative AI model to improve the generation of Q&A. And we are constantly upgrading the model and try to make our recommendation to customers even better and more precisely and more to their needs. So we are using AI applications in our internal business cases, and we are tracking the developments and we look to leverage AI on a constant basis to find opportunities to drive the growth and the efficiency.

在客戶方面，我們也在嘗試是否可以利用最新的退化人工智慧模型來改進問答的產生。而我們正在不斷升級模型，嘗試為客戶提供更好、更精準、更符合他們需求的建議。因此，我們在內部業務案例中使用人工智慧應用程序，並追蹤其發展，希望不斷利用人工智慧來尋找推動成長和效率的機會。

In your second question on SVIP customer. Last year, in terms of annual ARPU, we did see a slight decline in -- a slight decline. But that's more of a dilutive impact from a 16% increase in the annual active Super VIP customers. And it takes -- it normally takes some time for new SVIP member to ramp up spending. And if we look at the ARPU two year customer cohort of our SVIP customer base, actually the ARPU remains very resilient. We only see a slight drop in terms of annual ARPU. So we think that the overall SVIP customer base is still very healthy, and we look to expand the SVIP membership continuously and protect the overall health of the consumer group.

關於 SVIP 客戶的第二個問題。去年，就年度 ARPU 而言，我們確實看到略有下降。但這更多的是超級 VIP 年度活躍客戶數量增加 16% 帶來的稀釋影響。而且，新 SVIP 成員通常需要一些時間來增加支出。如果我們看一下 SVIP 客戶群的 ARPU 兩年客戶群，實際上 ARPU 仍然非常有彈性。我們僅看到年度 ARPU 略有下降。所以我們認為整體的SVIP客戶群還是很健康的，並且我們期待不斷擴大SVIP會員數量，並保障整個消費群的健康。

Due to time constraints that concludes today's question-and-answer session. At this time, I'll turn the conference back to Jesse for any closing remarks.

由於時間限制，今天的問答環節到此結束。現在，我將把會議交還給傑西，請他作結束語。

Thank you for taking the time to join us today. If you have any questions, please don't hesitate to contact our IR team. We look forward to speaking with you next quarter.

感謝您今天抽出時間參加我們的活動。如果您有任何疑問，請隨時聯絡我們的 IR 團隊。我們期待下個季度與您交談。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。該計劃確實結束了。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。