Financial Data and Key Metrics Changes - Total net revenues for Q2 2025 were RMB 25.8 billion, a decrease from RMB 26.9 billion in the prior year period [17] - Gross profit was RMB 6.1 billion compared to RMB 6.3 billion in the prior year, with a gross margin of 23.5% versus 23.6% [17] - Operating income decreased to RMB 1.7 billion from RMB 2.2 billion in the prior year, resulting in an operating margin of 6.6% compared to 8.3% [20][21] - Net income attributable to Vipshop shareholders was RMB 1.5 billion, down from RMB 1.9 billion, with a net margin of 5.8% compared to 7.2% [21][22] - Non-GAAP net income attributable to Vipshop shareholders was RMB 2.1 billion, a slight decrease from RMB 2.2 billion in the prior year [22] Business Line Data and Key Metrics Changes - Active Super VIP (SVIP) customers increased by 15% year over year, contributing 52% of online spending [6] - Customized products accounted for more than 20% of sales on the platform, with strong sales momentum in the apparel category [11][12] Market Data and Key Metrics Changes - The company added close to 500 brands to its platform in the first half of the year, enhancing customer engagement and sales [9] - The company reported stable customer behavior regarding return rates, with a potential increase of 2-3 percentage points annually due to structural factors [40] Company Strategy and Development Direction - The company is focusing on a merchandising strategy centered on relevancy, differentiation, and specialization to stand out in the competitive environment [8] - There is an emphasis on leveraging AI capabilities to enhance customer experience and operational efficiency [13] - The company aims to maintain a commitment to return at least 75% of its full-year 2024 non-GAAP net income to shareholders through dividends and share buybacks [16][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to a growth trajectory, with Q3 revenue guidance projected to increase by 0% to 5% year over year [23][32] - Despite challenges such as weather conditions and competition from quick commerce, management does not foresee a significant impact on business performance [26] Other Important Information - The company distributed over US$640 million in the first half of the year through dividends and share buybacks, reflecting strong cash flow generation [16] - As of June 30, 2025, the company had cash and cash equivalents of RMB 24.7 billion and short-term investments of RMB 3.0 billion [22] Q&A Session Summary Question: Impact of quick commerce on Vipshop - Management noted no material impact from quick commerce on their business, emphasizing their focus on apparel sales [26] Question: Effect of weather on apparel demand - Management indicated that weather conditions have not significantly affected apparel purchasing demand [26] Question: Q3 revenue guidance and growth trajectory - Management confirmed guidance for Q3 revenue growth of 0% to 5%, attributing this to recent organizational changes and improved customer engagement [32] Question: Share repurchase increase - Management clarified that the increase in share buyback was part of their commitment to return value to shareholders, with no special reason for the jump [35] Question: Return rate trends and outlet business outlook - Management reported stable return rates and positive momentum in the Shenzhen outlet business, with plans for further expansion [41]