Vipshop Holdings Ltd (VIPS) 2021 Q4 法說會逐字稿

Ladies and gentlemen, good day, everyone, and welcome to Vipshop Holdings Limited Fourth Quarter and Full Year 2021 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.

女士們、先生們，大家好，歡迎來到唯品會控股有限公司2021年第四季度及全年業績電話會議。現在我想轉給唯品會投資者關係部負責人鄭洁女士。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining Vipshop fourth quarter and full year 2021 earnings conference call. With us today are Eric Shen, our Co-Founder, Chairman and CEO; and David Cui, our CFO.

謝謝你，接線員。大家好，感謝大家參加唯品會2021年第四季度及全年財報電話會議。今天與我們一起出席的還有我們的聯合創始人、董事長兼首席執行官 Eric Shen；以及我們的首席財務官 David Cui。

Before management begins their prepared remarks, I would like to remind you that the discussion today will contain forward-looking statements made under 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.

在管理層開始準備好的發言之前，我想提醒您，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。前瞻性陳述受到以下風險和不確定性的影響：可能導致實際結果與我們當前的預期存在重大差異。

Potential risks and uncertainties include, but are not limited to, those outlined in our Safe Harbor statements in our earnings release and the public filings with the Securities and Exchange Commission, which also applies to this call to the extent any forward-looking statements may be made.

潛在的風險和不確定性包括但不限於我們的收益發布中的安全港聲明以及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，只要任何前瞻性陳述可能存在製成。

Please note that certain financial measures used on this call such as non-GAAP operating income, non-GAAP net income 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 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 GAAP 營業收入、非 GAAP 淨利潤和非 GAAP 每份美國存託股淨利潤，並非按照美國 GAAP 列報。請參閱我們的收益發布，了解有關我們的非公認會計原則措施與公認會計原則措施的調節的詳細信息。

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

現在我想把電話轉給沉先生。

Good morning and good evening to everyone. Welcome and thank you for joining our fourth quarter and the full year 2021 earnings conference call.

大家早上好，晚上好。歡迎並感謝您參加我們的第四季度和 2021 年全年收益電話會議。

We are delighted with our solid business performance in 2021, despite a slower fourth quarter impacted by the challenging external environment.

儘管受充滿挑戰的外部環境影響，第四季度業績放緩，但我們對 2021 年穩健的業務表現感到高興。

For the full year, total active customers increased by 12% year-over-year to 93.9 million. GMV rose by 16% to RMB 191.5 billion. Notably Super VIP active customers grew by 50% to 6 million and contributed 36% of online net GMV.

全年活躍客戶總數同比增長 12%，達到 9,390 萬。 GMV增長16%至人民幣1,915億元。值得注意的是，超級 VIP 活躍客戶增長了 50%，達到 600 萬，貢獻了在線淨 GMV 的 36%。

Driven by steadily growth in both customer base and average revenue per customer, our total revenue for the year increased by 15% year-over-year to RMB 117.1 billion. Non-GAAP net income for the year exceeded RMB 6 billion and the net margin remained above 5%.

受客戶規模和客均收入穩步增長的推動，全年總收入同比增長15%至人民幣1,171億元。全年非美國通用會計準則淨利潤超過人民幣60億元，淨利潤率保持在5%以上。

Our solid operational and the financial performance was led by continuous business upgrade based on our strategic positioning and as a discount platform for branded products at exceptional value.

我們穩健的運營和財務業績得益於基於我們戰略定位的持續業務升級以及作為超值品牌產品的折扣平台。

To further enhance our core competencies, during the second half of 2021, we focused more on core brands and the high value customers to further strengthen our value proposition with them.

為了進一步增強我們的核心競爭力，2021年下半年，我們更加關注核心品牌和高價值客戶，以進一步強化我們與他們的價值主張。

Among many things, we revived and upgrade various, channels on our platform to better empower brand partners and enhance shopping experience for customers. We are encouraged by the business synergies generated from these initiatives.

其中，我們對平台上的各類渠道進行了復興和升級，更好地為品牌合作夥伴賦能，提升顧客的購物體驗。我們對這些舉措所產生的業務協同效應感到鼓舞。

For example, multiple brands recorded their highest single-day GMV in recent years during the "Super Brand Day" and "Today's Top Brands" sales events. Many more brands came to us providing our customers with more unique and price-competitive products.

例如，多個品牌在“超級品牌日”、“今日品牌”銷售活動中創下近年來單日最高GMV。更多的品牌來找我們，為我們的客戶提供更獨特、更具價格競爭力的產品。

We are pleased to see that the contribution from core brands for the past year significantly improved from a year ago with their GMV growing faster than the overall GMV on our platform.

我們很高興地看到，過去一年核心品牌的貢獻比一年前有了顯著提升，其 GMV 增長速度快於我們平台整體 GMV。

Though these deepened relationships with our brand partners, we were able to better cooperate with core brands on Made-for-Vipshop products. In addition, to address the need of younger customers, we also constantly added new and trendy brands to our platform.

雖然這些加深了我們與品牌合作夥伴的關係，但我們能夠更好地與核心品牌在唯品會產品上進行合作。此外，為了滿足年輕消費者的需求，我們還不斷在平台上添加新的時尚品牌。

As we brought in more quality brands and products, we were better positioned to leverage, integrated [customer] (added by the company after the call) operations to improve customer stickiness and ARPU.

隨著我們引入更多優質品牌和產品，我們能夠更好地利用、整合[客戶]（由公司在通話後添加）運營來提高客戶粘性和 ARPU。

In particular, Super VIP members outperformed in [almost all] (corrected by the company after the call) operation metrics. They had a very high retention rate, with their annual ARPU at around 8x than that of non-SVIP customers. We expect this paid membership program to cover more high-value customers on our platform.

特別是，超級 VIP 會員在[幾乎所有]（由公司在電話會議後更正）運營指標方面表現出色。他們的保留率非常高，年 ARPU 約為非 SVIP 客戶的 8 倍。我們希望這項付費會員計劃能夠覆蓋我們平台上更多的高價值客戶。

Looking into 2022 and beyond, we will firmly execute on our merchandising strategy to secure and increasing share of quality products from carefully selected brand partners.

展望2022年及以後，我們將堅定執行我們的銷售策略，以確保並增加來自精心挑選的品牌合作夥伴的優質產品的份額。

To achieve this, we will keep allocating more resource to accelerate the growth of the core brands, differentiate our offerings further through [Made-for-Vipshop] (corrected by the company after the call) products, and introduce more popular and high-end brands.

為實現這一目標，我們將繼續投入更多資源，加速核心品牌的成長，通過【專為唯品會定制】（公司在通話後更正）產品進一步差異化，推出更多大眾化、高端化的產品。品牌。

In addition, we will continue to optimize our operations. We will improve the [efficiency of] (corrected by the company after the call) customer acquisition, through personalized recommendations, enriched the shopping experience and effective targeted marketing for new and existing customers.

此外，我們還將繼續優化我們的運營。我們將提高[效率]（由公司致電後糾正）獲客，通過個性化推薦、豐富新老客戶的購物體驗和有效的針對性營銷。

We expect these efforts to collectively drive the quality and sustainable growth of our customers and revenue for the long term, while consistently delivering steady and the healthy profits.

我們期望這些努力能夠共同推動客戶和收入的長期質量和可持續增長，同時持續提供穩定和健康的利潤。

At this point, let me hand over the call to our CFO, David Cui, who will go over our financial results.

現在，讓我將電話轉交給我們的首席財務官 David Cui，他將審查我們的財務業績。

Thanks, Eric. Hello, everyone.

謝謝，埃里克。大家好。

2021 was a year of challenge and uncertainty. Despite this, we achieved a solid performance, thanks to our continuous efforts in executing the merchandising strategy and refining operations. Our total revenue for 2021 increased by 15% year-over-year, driven by steady growth in both customer base and average revenue per customer, although the fourth quarter came under some pressure.

2021年是充滿挑戰和不確定性的一年。儘管如此，由於我們在執行銷售策略和精煉業務方面的持續努力，我們仍取得了穩健的業績。儘管第四季度面臨一些壓力，但在客戶群和每位客戶平均收入穩定增長的推動下，我們 2021 年的總收入同比增長 15%。

Net margin attributable to Vipshop's shareholders for the year remained resilient with sequential improvement in the fourth quarter due to disciplined operations, evidenced by more prudent marketing strategy through integrated customer acquisition.

由於紀律嚴明的經營，唯品會股東的淨利潤今年保持彈性，第四季度環比改善，通過整合客戶獲取採取更審慎的營銷策略證明了這一點。

Going forward, we remain committed to delivering steady profitability with quality topline growth and creating long-term value to our shareholders.

展望未來，我們仍然致力於提供穩定的盈利能力和優質的營收增長，並為股東創造長期價值。

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 renminbi and all the percentage changes are year-over-year changes, unless otherwise noted.

現在，我們來看看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，下面列出的所有財務數據均以人民幣為單位，所有百分比變化均為同比變化。

Total net revenue for the fourth quarter of 2021 was RMB 34.1 billion as compared with RMB 35.8 billion in the prior year period, primarily attributable to soft consumer demand for discretionary categories impacted by the [macroeconomy] (corrected by the company after the call) and COVID-19 pandemic.

2021 年第四季度的淨收入總額為人民幣 341 億元，而上年同期為人民幣 358 億元，主要歸因於受[宏觀經濟]影響，消費者對非必需品類別的需求疲軟（公司在電話會議後進行了修正）和2019冠狀病毒病大流行。

Gross profit was RMB 6.7 billion as compared with RMB 7.8 billion in the prior year period. Gross margin was 19.7% as compared with 21.9% in the prior year period.

毛利潤為人民幣67億元，去年同期為人民幣78億元。毛利率為 19.7%，去年同期為 21.9%。

Total operating expenses decreased to RMB 5.0 billion from RMB 5.4 billion in the prior year period. As a percentage of total net revenue, total operating expenses decreased to 14.6% from 15.2% in the prior year period.

總營業費用從去年同期的人民幣 54 億元下降至人民幣 50 億元。總運營費用佔總淨收入的百分比從去年同期的 15.2% 下降至 14.6%。

Fulfillment expenses was RMB 2.2 billion, which largely stayed flat as compared with the corresponding period in 2020. As a percentage of the total net revenue, fulfillment expenses was 6.4% as compared with 6.1% in the prior year period.

履約費用為人民幣22億元，與2020年同期基本持平。履約費用佔總淨收入的比例為6.4%，而上年同期為6.1%。

Marketing expenses decreased to RMB 1.1 billion from RMB 1.7 billion in the prior year period. As a percentage of total net revenue, marketing expenses decreased to 3.4% from 4.8% in the prior year period, primarily attributable to more prudent marketing strategy.

營銷費用從去年同期的人民幣17億元減少至人民幣11億元。營銷費用佔總淨收入的百分比從去年同期的4.8%下降至3.4%，這主要歸功於更加審慎的營銷策略。

Technology and content expenses increased to RMB 443.0 million from RMB 272.4 million in the prior year period. As a percentage of the total net revenue, technology and content expenses was 1.3% as compared with 0.8% in the prior year period.

技術和內容費用從去年同期的人民幣2.724億元增至人民幣4.430億元。技術和內容支出佔總淨收入的百分比為 1.3%，而上年同期為 0.8%。

General and administrative expenses were RMB 1.2 billion as compared with RMB 1.3 billion in the prior year period. As a percentage of the total net revenue, general and administrative expenses was 3.5%, which stayed flat as compared with the corresponding period in year 2020.

一般及行政費用為人民幣 12 億元，上年同期為人民幣 13 億元。一般及管理費用占淨收入總額的比例為3.5%，與2020年同期持平。

Income from operations was RMB 1.8 billion as compared with RMB 2.6 billion in the prior year period. Operating margin was 5.4% as compared with 7.2% in the prior year period. Non-GAAP income from operations was RMB 2.1 billion as compared with RMB 2.8 billion in the prior year period. Non-GAAP operating income margin was 6.1% as compared with 7.9% in the prior year period.

營業收入為人民幣18億元，上年同期為人民幣26億元。營業利潤率為 5.4%，上年同期為 7.2%。非公認會計準則運營收入為人民幣 21 億元，上年同期為人民幣 28 億元。非 GAAP 營業利潤率為 6.1%，上年同期為 7.9%。

Net income attributable to Vipshop's shareholders was RMB 1.4 billion as compared with RMB 2.4 billion in the prior year period. Net margin attributable to Vipshop's shareholders was 4.1% as compared with 6.8% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS was RMB 2.07 as compared with RMB 3.51 in the prior year period.

歸屬於唯品會股東的淨利潤為人民幣14億元，而上年同期為人民幣24億元。唯品會股東淨利潤為4.1%，去年同期為6.8%。每股攤薄後歸屬於唯品會股東的淨利潤為人民幣2.07元，而去年同期為人民幣3.51元。

Non-GAAP net income attributable to Vipshop's shareholders was RMB 1.8 billion as compared with RMB 2.6 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders was 5.3% as compared with 7.2% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS was RMB 2.64 as compared with RMB 3.70 in the prior year period.

非美國通用會計準則歸屬於唯品會股東的淨利潤為人民幣18億元，而上年同期為人民幣26億元。非美國通用會計準則歸屬於唯品會股東的淨利潤率為5.3%，而去年同期為7.2%。非美國通用會計準則每股攤薄後歸屬於唯品會股東的淨利潤為人民幣 2.64 元，而去年同期為人民幣 3.70 元。

As of December 31, 2021, the company had cash and cash equivalents and restricted cash of RMB 17.2 billion and short term investments of RMB 5.4 billion.

截至2021年12月31日，公司擁有現金及現金等價物和限制性現金172億元，短期投資54億元。

Now, I will briefly walk through the highlights of our full year results.

現在，我將簡要介紹一下我們全年業績的亮點。

Total net revenue for the full year of 2021 increased by 14.9% year-over-year to RMB 117.1 billion from RMB 101.9 billion in the prior year, primarily driven by the growth in the number of total active customers.

2021年全年總淨收入同比增長14.9%，從上年的人民幣1,019億元增至人民幣1,171億元，主要受到活躍客戶總數增長的推動。

Gross [profit] (corrected by the company after the call) increased by 8.6% year-over-year to RMB 23.1 billion from RMB 21.3 billion in the prior year. Gross margin was 19.7% as compared with 20.9% in the prior year.

毛[利潤]（經公司電話會議後修正）同比增長8.6%，從上年的人民幣213億元增至人民幣231億元。毛利率為 19.7%，上年為 20.9%。

Income from operations for the full year of 2021 was RMB 5.6 billion as compared with RMB 5.9 billion in the prior year. Operating margin was 4.8% as compared with 5.8% in the prior year.

2021年全年營業收入為人民幣56億元，上年為人民幣59億元。營業利潤率為 4.8%，上一年為 5.8%。

Non-GAAP income from operations was RMB 6.6 billion as compared with RMB 6.8 billion in the prior year. Non-GAAP operating income margin was 5.6% as compared with 6.7% in the prior year.

非公認會計原則運營收入為人民幣 66 億元，而上一年為人民幣 68 億元。非 GAAP 營業利潤率為 5.6%，上一年為 6.7%。

Net income attributable to Vipshop's shareholders was RMB 4.7 billion as compared with RMB 5.9 billion in the prior year. Net margin attributable to Vipshop's shareholders was 4.0% as compared with 5.8% in the prior year. Net income attributable to Vipshop's shareholders per diluted ADS was RMB 6.75 as compared with RMB 8.56 in the prior year.

歸屬於唯品會股東的淨利潤為人民幣47億元，而上年同期為人民幣59億元。唯品會股東淨利潤為4.0%，上年為5.8%。每股攤薄後歸屬於唯品會股東的淨利潤為人民幣6.75元，而上年為人民幣8.56元。

Non-GAAP net income attributable to Vipshop's shareholders was RMB 6.0 billion as compared with RMB 6.3 billion in the prior year. Non-GAAP net margin attributable to Vipshop's shareholders was 5.1% as compared with 6.2% in the prior year. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS was RMB 8.67 as compared with RMB 9.08 in the prior year.

非美國通用會計準則歸屬於唯品會股東的淨利潤為人民幣60億元，而上一年為人民幣63億元。非美國通用會計準則歸屬於唯品會股東的淨利潤率為5.1%，而上一年為6.2%。非美國通用會計準則每股攤薄後歸屬於唯品會股東的淨利潤為人民幣 8.67 元，而上一年為人民幣 9.08 元。

Looking forward to the first quarter of 2022, we expect our total net revenue to be between RMB 27.0 billion and RMB 28.4 billion, representing a year-over-year decrease rate of approximately 5% to 0%. Please note that this forecast reflects our current and preliminary review of the market and operational conditions, which is subject to change.

展望2022年第一季度，我們預計總淨收入將在人民幣270億元至人民幣284億元之間，同比下降約5%至0%。請注意，這一預測反映了我們對市場和運營狀況的當前和初步審查，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) Our first question comes from the line of Thomas Chong from Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Thomas Chong。

My first question is relating to the consumer sentiment that we are seeing right now. Can we comment about how it is different in Q4 and so far right now in Q1? Because when I look at the guidance, it seems that it is a negative 5% to 0%, which is similar to the guidance in Q4. So just want to see if any changes in terms of our thoughts on macro headwinds?

我的第一個問題與我們現在看到的消費者情緒有關。我們能否評論一下第四季度和第一季度到目前為止有何不同？因為當我看指導時，似乎是負的5%到0%，這與第四季度的指導類似。所以只是想看看我們對宏觀逆風的看法是否有任何變化？

And, secondly, I also want to get a sense about how we should think about the recovery momentum in Q2 and coming quarters?

其次，我還想了解我們應該如何看待第二季度和未來幾個季度的複蘇勢頭？

And then, finally, that is more relating to competition, can management comment about live streaming online shopping competition in China and how it affects our business? Any thoughts on how -- whether we can separate out or quantify the impact on competition and macro headwinds to (inaudible)?

最後，這與競爭更相關，管理層能否評論一下中國的直播網購競爭以及它如何影響我們的業務？關於如何——我們是否可以分離或量化對競爭和宏觀逆風的影響（聽不清）有什麼想法嗎？

[Interpreted] In terms of your first question on consumer sentiment, actually we have seen that it's really weak in the fourth quarter because of the warmer weather as well as sporadic COVID-19 cases. And in the first quarter, it's getting slightly better because of the -- because the weather is getting colder and -- but still we are naturally impacted by the COVID-19 cases here and there. So seasonality still plays some role in our business performance, because we are a pretty much apparel category and focused platform.

[解讀]關於你關於消費者信心的第一個問題，實際上我們已經看到，由於天氣變暖以及零星的COVID-19病例，第四季度消費者信心非常疲軟。在第一季度，情況略有好轉，因為天氣變冷，但我們仍然自然地受到各地 COVID-19 病例的影響。因此，季節性因素仍然在我們的業務表現中發揮著一定作用，因為我們幾乎是一個服裝類別和專注的平台。

In terms of the recovery trend in the coming quarters, we -- it's really hard to predict for now given the many uncertainties going on, especially we see that there are still cases of COVID-19 and it's still too early to tell whether the consumer trend is growing, whether -- when the consumption is coming back. But, overall, we should see a relatively stable growth for 2022. We don't expect too much swings in our business performance. It's going to be quite stable.

就未來幾個季度的複蘇趨勢而言，鑑於存在許多不確定性，我們目前確實很難預測，特別是我們看到仍然存在 COVID-19 病例，現在判斷消費者是否會受到影響還為時過早。趨勢正在增長，無論消費何時恢復。但總體而言，2022 年我們應該會看到相對穩定的增長。我們預計我們的業務表現不會出現太大波動。它將非常穩定。

In terms of competition, we haven't seen too much change recently. We believe it's getting relatively stable. I think -- we think that live streaming platforms, they have take what they can take in the past from shelf space to e-commerce platforms. We didn't see competition is getting worse. So we are actually not worried, because as long as we get the right merchandising -- merchandises for customers, they will always come to us. In terms of the impact from macro and the competition, it's really hard to quantify, because you cannot predict reliably whether macro is going to play out. But on the competition side, we are pretty sure that the impact is already there.

在競爭方面，我們最近沒有看到太大的變化。我們相信它正在變得相對穩定。我認為，我們認為直播平台已經把過去可以利用的東西從貨架空間轉移到了電子商務平台。我們沒有看到競爭變得更加激烈。所以我們實際上並不擔心，因為只要我們得到正確的商品——為顧客提供的商品，他們總是會來找我們。就宏觀和競爭的影響而言，確實很難量化，因為你無法可靠地預測宏觀是否會發揮作用。但在競爭方面，我們非常確定影響已經存在。

Our next question comes from Alicia Yap from Citigroup.

我們的下一個問題來自花旗集團的 Alicia Yap。

I have couple of questions here. The first one is a question related to the inventory status for the Winter Olympics merchandising. So have you been discussing with your brand partners or maybe your merchandising partners regarding the demand and the inventory situation? Do you see any opportunity that Vipshop can get some of these product that is kind of leftover? And given the timing, do you think you will be benefit more for the fall and winter season later -- in late 2022, or do you think there could be some winter clearance activity that you can leverage later in March or the April promotion period?

我這裡有幾個問題。第一個問題是有關冬奧會商品庫存狀況的問題。那麼您是否一直在與您的品牌合作夥伴或銷售合作夥伴討論需求和庫存情況？您認為唯品會有機會獲得這些剩餘產品嗎？考慮到時間安排，您是否認為您會在 2022 年末的秋冬季節受益更多，或者您認為可能會在 3 月晚些時候或 4 月的促銷期利用一些冬季清倉活動？

[Interpreted] In terms of the inventory related to Olympic -- Winter Olympics, we haven't seen a very strong buildup in such inventory. So we do see that sports companies have been growing their business on our platform very fast in recent years, but they do not provide any dedicated inventory in terms of -- such as the skiing, of sportswear, et cetera. We think that they have a normal level of inventory for sportswear. So there is no anticipation that we are going to benefit from any excess inventories related to Winter Olympics.

【解讀】就與奧運會、冬奧會相關的庫存而言，我們還沒有看到此類庫存的強勁增長。因此，我們確實看到近年來體育公司在我們平台上的業務增長非常快，但他們沒有提供任何專門的庫存，例如滑雪、運動服等。我們認為他們的運動服庫存處於正常水平。因此，預計我們不會從與冬奧會相關的任何過剩庫存中受益。

Yes. Can I follow up one question on user growth strategy. So can you elaborate what are the current plans that you are thinking in terms of -- to help to boost your new user acquisitions later this year?

是的。我可以跟進一個關於用戶增長策略的問題嗎？那麼，您能否詳細說明一下您目前正在考慮哪些計劃，以幫助您在今年晚些時候增加新用戶？

[Interpreted] In terms of our user growth strategy, I think from the fourth quarter of last year we had been focused on acquiring quality users in a more efficient and effective way. We don't want to blindly spend money in all the channels to acquire low quality customers, instead we are trying to do it in a balance and a prudent way through integrated customer acquisition. This year, we're going to continue to invest a lot of efforts in acquiring new customers. But at the same time, we're going to improve the retention of our existing customers. We will maintain a decent level of marketing spend in new user acquisition.

【解讀】從我們的用戶增長策略來看，我認為從去年第四季度開始，我們就一直專注於以更高效、更有效的方式獲取優質用戶。我們不想盲目地在各個渠道上花錢去獲取低質量的客戶，而是通過綜合獲客來平衡、審慎地去做。今年，我們將繼續投入大量精力來爭取新客戶。但與此同時，我們將提高現有客戶的保留率。我們將在新用戶獲取方面保持適當的營銷支出水平。

Alicia, I had a couple of more things. Number one is, we have seen a number of our Super VIP increase year-over-year, so that's one of the key indicators that are the quality of our customer base is getting better and then we were also seeing that our ARPU stabilized and have a slight increase actually starting last quarter, so we're seeing that trend.

艾麗西亞，我還有幾件事。第一個是，我們看到我們的超級 VIP 數量逐年增加，所以這是我們客戶群質量越來越好的關鍵指標之一，然後我們還看到我們的 ARPU 穩定並增加了實際上從上個季度開始略有增加，所以我們看到了這種趨勢。

I see. Okay.

我懂了。好的。

(Operator Instructions) Our next question comes from Ronald Keung from Goldman Sachs.

（操作員指令）我們的下一個問題來自高盛的 Ronald Keung。

(foreign language) My first question is on gross margins. Fourth quarter is traditionally a higher -- high margin quarter with apparel -- higher apparel mix. So given this year is not the highest kind of quarter, margin quarter, just want to hear how are we thinking about the gross margin trends and the implications for 2022?

（外語）我的第一個問題是關於毛利率。傳統上，第四季度是服裝利潤率較高的季度，服裝組合也較高。因此，鑑於今年不是利潤率最高的季度，只是想听聽我們如何看待毛利率趨勢以及對 2022 年的影響？

My second question is, as our business reaches a more mature stage, we have a very strong net cash balance sheet and a sizable earnings per share, we'd love to hear management's thoughts on whether there could be any potential plans even for rewarding shareholders like paying dividends?

我的第二個問題是，隨著我們的業務達到更加成熟的階段，我們擁有非常強勁的淨現金資產負債表和可觀的每股收益，我們很想听聽管理層的想法，是否有任何潛在的計劃甚至獎勵股東喜歡支付股息？

[Interpreted] In terms of the gross margins, although Q4 is a roughly lower level as compared to the full year in the same quarter of last year, it's really because of the promotions and the subsidies we did in -- during the quarter. But, however, because -- during the quarter, the weather was relatively warmer and it didn't effectively motivate consumers to spend more on winter clothing. So the return on the marketing spend is not desirable. But the current level of gross margin is not something that we want for the long term. We will gradually bring our gross margin to more normal level in the coming quarters. You don't have to worry about the gross margin going ahead.

【解讀】就毛利率而言，雖然第四季度比去年同季度的全年水平大致較低，但這實際上是因為我們在該季度所做的促銷和補貼。但是，然而，因為——本季度天氣相對溫暖，並沒有有效激勵消費者在冬季服裝上花更多的錢。因此營銷支出的回報並不理想。但目前的毛利率水平並不是我們長期想要的。我們將在未來幾個季度逐步將毛利率恢復到正常水平。您不必擔心未來的毛利率。

In terms of the cash use, as you know, we -- our Board has approved a share buyback plan last year. So we have executed partially in the last year and given that, we made quite good profit in the year and then we still see a healthy profitability in the coming year, in this year 2020. So the Board and the management is considering alternatives among the share buyback and distribution of the dividend. So it's within the process, we are considering and evaluating the options right now.

在現金使用方面，如您所知，我們的董事會去年批准了一項股票回購計劃。因此，我們去年已經部分執行了，鑑於這一點，我們在這一年取得了相當不錯的利潤，然後我們仍然看到來年（即 2020 年）的健康盈利能力。因此，董事會和管理層正在考慮以下替代方案：股票回購和股息分配。因此，在這個過程中，我們現在正在考慮和評估各種選擇。

Our next question comes from the line of Natalie Wu from Haitong International.

我們的下一個問題來自海通國際的Natalie Wu。

I have 2 here. First one is following up with Alicia's last question about the user acquisition. Can management elaborate more on your latest user acquisition strategy? For last quarter, we can see that your sales and marketing is quite controlled, especially considering the seasonal pattern. Just wondering any particular spending channel has been typically changed branding performance based debt or whatever? And on kind of the sale and marketing budget you're preparing for this year, will it be more of an absolute number or fixed revenue ratio depending on the timing of the improvement of the economy of the consumer confidence. Just curious, how shall we see the change?

我這裡有2個。第一個是跟進 Alicia 關於用戶獲取的最後一個問題。管理層能否詳細說明一下你們最新的用戶獲取策略？對於上個季度，我們可以看到您的銷售和營銷得到了很好的控制，特別是考慮到季節性模式。只是想知道任何特定的支出渠道通常已經改變了基於品牌績效的債務或其他什麼？至於您今年準備的銷售和營銷預算，它會更多地是絕對數字還是固定收入比率，具體取決於消費者信心經濟改善的時間。只是好奇，我們將如何看到變化？

And the second one is related with our Super VIP. Just wondering, what's the current percentage of your Super VIP and also the related gross profit margin profile contributed by them because they have -- obviously have a higher ARPU, which is, I think, favorable to the cost of the margin maybe, but in the meanwhile they enjoy a deeper discount. So just it'd be great if management can share some color on that? (foreign language)

第二個是和我們的超級VIP有關的。只是想知道，您的超級 VIP 目前的百分比是多少，以及他們貢獻的相關毛利率概況是多少，因為他們顯然有更高的 ARPU，我認為這可能有利於利潤成本，但在同時他們享受更大的折扣。如果管理層能就此分享一些看法那就太好了？ （外語）

[Interpreted] In terms of the latest update on user acquisition strategy, I think what we do differently from the fourth quarter is that we strictly follow the LTV model to evaluate the marketing efficiency of our spending and as well as how many days to recover in terms of new customers as well as existing customers.

【解讀】就最新的獲客策略而言，我認為我們與第四季度的做法不同的是，我們嚴格按照LTV模型來評估我們的支出的營銷效率以及多少天可以恢復。新客戶和現有客戶的條款。

In the past, we tend to see it takes longer time for us to recover the spend on new customers, so we do less. And for the existing customers we tended to send out many coupons and did a lot of advertising, but it turns out not to be very effective, so we also did less on that front.

過去，我們往往會發現需要更長的時間才能收回新客戶的支出，因此我們做得較少。對於現有的客戶，我們傾向於發送很多優惠券並做了很多廣告，但事實證明效果不是很好，所以我們在這方面做得也比較少。

In general, we apply this LTV model in all the channels, including our branding as well as TV drama sponsorships as well as advertising on short videos, et cetera. So we actually did see some positive results from the fourth quarter. This year, we are continue -- we will continue to use the LTV model to manage all our marketing spend in across different channels. We do not look at a certain absolute number of marketing spend as well as certain percentage of the -- as total net revenues as long as the LTV model shows this is a healthy way to do to acquire customers, we will keep doing so. So we are going to take this balance in the prudent approach to our marketing strategy.

總的來說，我們在所有渠道都採用了這種LTV模式，包括我們的品牌推廣、電視劇贊助、短視頻廣告等等。所以我們實際上確實看到了第四季度的一些積極成果。今年，我們將繼續使用 LTV 模型來管理跨不同渠道的所有營銷支出。我們不會考慮營銷支出的絕對數量以及總淨收入的一定百分比，只要 LTV 模型表明這是獲取客戶的健康方式，我們就會繼續這樣做。因此，我們將在營銷策略中採取謹慎的態度來保持這種平衡。

In terms of the margin profile for SVIP members, we've just mentioned the SVIP already accounted for roughly 36% of our online net GMV last year. In the future, we are going to continue to convert more high value customers into SVIP members. In terms of the gross margin, SVIP members have a slightly lower gross margin than the overall level of our gross margin for the company and a slightly higher return rate, but SVIP proves to be spent much more than a non-SVIP member. So it is definitely a very profitable model for the company and we expect as long as more high value customers are successfully becoming SVIP members, they tend to come to shop more and spend more.

就 SVIP 會員的利潤狀況而言，我們剛剛提到，去年 SVIP 已占我們在線淨 GMV 的約 36%。未來，我們將繼續將更多高價值客戶轉化為SVIP會員。從毛利率來看，SVIP會員的毛利率比我們公司毛利率的整體水平略低，回報率略高，但事實證明SVIP會員的花費比非SVIP會員高得多。因此，這對公司來說絕對是一個非常有利可圖的模式，我們預計，只要更多的高價值客戶成功成為 SVIP 會員，他們就會傾向於更多地購物和消費。

Our next question comes from Eddy Wang from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Eddy Wang。

(foreign language) My first question is also about the inventory destocking. So Shen you mentioned that for the non-sports apparel, there is no inventory issue. But I just want to ask if there is any inventory issue for the women's apparel or branded apparel given the weak sentiment of the apparel in China since the second half of last year? And if that's the case, do you have any opportunity for destocking in the coming quarters?

（外語）我的第一個問題也是關於去庫存的問題。那麼沉友提到，對於非運動服裝來說，不存在庫存問題。但我想問一下，鑑於去年下半年以來中國服裝市場情緒低迷，女裝或品牌服裝是否存在庫存問題？如果是這樣的話，您在未來幾個季度是否有去庫存的機會？

The second question is about -- if there is any plan for the category expansion on top of the apparel given that apparel sentiments is quite weak and if we have more SVIP on our platform, so we can meet their demands of different category, not just about apparel. If that is the case, what is the impact on the margin profile as a whole?

第二個問題是——考慮到服裝市場情緒相當低迷，是否有任何在服裝之外的品類擴張計劃，如果我們平台上有更多的SVIP，這樣我們就可以滿足他們不同品類的需求，而不僅僅是關於服裝。如果是這樣，對整體利潤狀況有何影響？

Among our sale -- the first question, among our sales, our business model is a sales of consignment inventories. So majority of our business were done through consignment. So on our balance sheet, we -- the inventory balance is quite small as compared to our total annual GMV. And you can also see the inventory balance is decreasing, thanks to our effort to clear some of our aged inventory. And to add some color to this and among the inventory balance, quite big portion of that is coming from both our Shop and Maxx offline stores. So they have to carry some inventories. So take out that and then the real inventory we carry for our online business is quite immaterial, I would say. Yes.

我們的銷售中——第一個問題，我們的銷售中，我們的商業模式是寄售庫存的銷售。所以我們的大部分業務都是通過寄售完成的。因此，在我們的資產負債表上，與我們的年度 GMV 總額相比，我們的庫存餘額相當小。您還可以看到，由於我們努力清理一些陳舊庫存，庫存餘額正在減少。為了給這個和庫存平衡增添一些色彩，其中很大一部分來自我們的商店和 Maxx 線下商店。所以他們必須攜帶一些庫存。因此，我想說，去掉這一點，我們在線業務的實際庫存就變得無關緊要了。是的。

Okay.

好的。

[Interpreted] Adding to David's point in terms of the inventory from non-sportswear apparel, we do see some building of inventory from the fourth quarter because of the weather conditions as well as COVID-19 cases. So it's going to be a good thing for us. But on top of clearing excess inventories for brands, we also -- customer product offerings with some of the core brands, so we are trying to secure the best supply from our brand partners.

[解讀] 補充 David 關於非運動服裝庫存的觀點，我們確實看到由於天氣狀況和 COVID-19 病例，第四季度庫存有所增加。所以這對我們來說將是一件好事。但除了清理品牌的過剩庫存之外，我們還為一些核心品牌提供客戶產品，因此我們正在努力確保我們的品牌合作夥伴提供最好的供應。

In terms of the category expansion, in the past we really were in the apparel-related categories, but it's not enough to meet the diversified needs of a vast range of our consumers. So we are really investing additional efforts in bringing more standardized products to our platform, such as -- for example, we've already built up SVIP special store. We have a dedicated channel for standardized products, we have a very good cosmetic channel. We have the Feng qiang channel to attract lot of the consumers to come to us, to us, to look for a unique offering with competitive pricing, to look for blockbuster standardized products.

從品類拓展上來說，過去我們確實是在服裝相關品類，但還不足以滿足廣大消費者的多元化需求。因此，我們確實投入了額外的努力，為我們的平台帶來更多標準化產品，例如，我們已經建立了 SVIP 專賣店。我們有專門的標準化產品渠道，我們有非常好的化妝品渠道。我們有豐強渠道，吸引很多消費者來找我們，來找我們，尋找具有競爭力價格的獨特產品，尋找重磅標準化產品。

So we are definitely going to increase our efforts on this front in terms of the gross margin for standardized products. Probably some of them may have relatively lower gross margin, but it's really helping to expand our brand portfolio and especially improve customer stickiness and the repeat orders. So the increase in the proportion of standard products, if any, will have limited impact on the overall level of gross margin. And adding to that, actually the conversion for standard products is actually higher than that of apparel related categories for the same amount of traffic. So that's something we'll look at this year.

所以我們肯定會在標準化產品的毛利率方面加大這方面的力度。也許其中一些毛利率相對較低，但這確實有助於擴大我們的品牌組合，特別是提高客戶粘性和重複訂單。因此，即使標準品佔比增加，對整體毛利率水平的影響也有限。除此之外，實際上，在相同的流量下，標準產品的轉化率實際上高於服裝相關類別的轉化率。這就是我們今年要關注的問題。

Our next question comes from Andre Chang from J.P. Morgan.

我們的下一個問題來自摩根大通的 Andre Chang。

(foreign language)

（外語）

I will answer the first question. So in this year, 2021, we -- our capital expenditure is about RMB3.5 billion, so a little bit over the half of that are actually for Shan Shan and then we also have some payments for completion of our existing warehouses, which is in the work-in-progress. And then also some upgrades of our technology and servers and the like. So that's pretty much the ballpark, but there is no additional other expenditures. Yes.

我來回答第一個問題。因此，在今年，即 2021 年，我們的資本支出約為 35 億元人民幣，所以其中一半多一點實際上是用於杉杉的，然後我們還有一些用於完成現有倉庫的付款，即正在進行的工作中。然後還有我們的技術和服務器等的一些升級。這就是大概的情況，但沒有額外的其他支出。是的。

[Interpreted] In terms of our expansion and for Shan Shan Outlets, actually the Shan Shan business is really doing very well, although last year same-store performance was relatively weaker because of the COVID-19 pandemic, but excluding that impact the same-store performance is actually trending very healthy. We believe that offline outlet is going to present a large addressable market and is going to grow very fast in the next couple of years. So we're going to continue our expansion plan, trying to add 2 to 3 offline outlets each year to capture the increasing consumer demand offline. We think this offline outlet business model is very solid, sustainable and very healthy for the long term.

【解讀】就我們的擴張而言，對於杉杉奧特萊斯來說，實際上杉杉的業務確實做得非常好，雖然去年因為COVID-19的大流行，同店業績相對較弱，但排除這一影響——商店的業績實際上趨勢非常健康。我們相信，線下商店將呈現一個巨大的潛在市場，並將在未來幾年內快速增長。所以我們將繼續我們的擴張計劃，嘗試每年增加2到3家線下門店，以抓住線下不斷增長的消費者需求。我們認為這種線下奧特萊斯商業模式非常穩固、可持續且長期健康。

Our next question comes from the line of Ashley Xu from Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Ashley Xu。

(foreign language) The first question is about our strategy shift to focus on the core brands. Is there any impact on some user stickiness and purchasing frequency? And my second question is related to the shipping and handling expense. We are seeing that the per order expense is increasing both Q-on-Q and year-on-year. Should we take this new level as a future reference? Is it driven by the structural trend in the industry?

（外文）第一個問題是我們的戰略轉向聚焦核心品牌。對部分用戶粘性和購買頻次是否有影響？我的第二個問題與運輸和裝卸費用有關。我們看到每份訂單的費用環比和同比都在增加。我們是否應該將這個新水平作為未來的參考？是行業結構性趨勢驅動的嗎？

[Interpreted] In terms of the customer behavior things, actually the second half of last year, especially from the fourth quarter, we began to focus more on core brands. We provided the core brands with certain support in a time of a lot of uncertainties. So we do see many positive developments. For example, customers who attended the sales event in our Super Brand Day sales or Today's Top Brand sales, they tend to a have much higher retention rate than those customers who didn't have the opportunity to join this event. So that actually gave us very strong confidence to continue to focus on the core brand to provide our customers with good high quality merchandises with competitive pricing as long as we have the right brand supply for our customers as they will come more and spend more.

【解讀】在客戶行為方面的事情，其實從去年下半年，特別是從第四季度開始，我們就開始更加關注核心品牌。在充滿不確定性的時期，我們為核心品牌提供了一定的支持。所以我們確實看到了許多積極的進展。例如，參加過我們的超級品牌日促銷或今日名牌促銷活動的客戶，他們的保留率往往比那些沒有機會參加該活動的客戶要高得多。因此，這實際上給了我們非常強大的信心，只要我們為我們的客戶提供合適的品牌供應，我們就會繼續專注於核心品牌，為我們的客戶提供優質的商品和有競爭力的價格，因為他們會更多地來，花更多的錢。

Yes. So we have been trying to improve our efficiencies over our fulfillment expenses over years. So the more volume we can achieve and then the more efficiencies we can get. So as you can see the number of orders in 2021 has increased as compared to year 2020. So also we try -- that includes -- we try to find ways to improve our efficiency in the warehouses and then try to reduce the number of returns and exchanges. Those who will all will affect the efficiencies. Having said all this, we have been trying this for years and then we believe that we pretty much achieved the optimized efficiency and we should be able to find ways, but it's going to be limited in future. Yes.

是的。因此，多年來我們一直在努力提高履行費用的效率。因此，我們能夠實現的產量越大，效率就越高。正如您所看到的，與 2020 年相比，2021 年的訂單數量有所增加。因此，我們也嘗試 - 包括 - 我們嘗試找到提高倉庫效率的方法，然後嘗試減少退貨數量和交流。那些誰都會影響效率。話雖如此，我們已經嘗試了很多年，然後我們相信我們幾乎實現了優化效率，我們應該能夠找到方法，但將來會受到限制。是的。

All right. Now that concludes today's question-and-answer session. At this time, I will turn the conference back to Jessie for any closing remarks.

好的。今天的問答環節到此結束。此時，我將把會議轉回由 Jessie 進行閉幕致辭。

Thank you for taking the time to join us today. If you have any questions or follow-up, please don't hesitate to contact me. We look forward to speaking with you next quarter.

感謝您今天抽出時間加入我們。如果您有任何疑問或後續事宜，請隨時與我聯繫。我們期待下個季度與您交談。

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.

謝謝。女士們、先生們，今天的會議到此結束。感謝您的參與。你們都可以斷開連接。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]