Vipshop Holdings Limited Q4 FY2025 earnings call

• Strategic realignment: 2025 saw strategic reorganization of merchandising and customer engagement teams for agility and long-term competitiveness. • Merchandising strategy: Focused on three pillars - enhancing customer relevance, building differentiations, deepening category expertise. Made-for-VIP line sales grew over 40% in 2025, accounting for 5% of online apparel sales. Optimistic buying axis and dynamic sale experiences drive customer excitement. • SuperVIP program: Cornerstone of growth, active SVIP members grew 11% in 2025 to 9.8 million, contributing 52% of online spending. • Operations: Enhanced search engine and recommendation engine capabilities. Deployed AI across business for customer service, marketing, etc. AI-powered customer service automates interactions, and AI-generated content is used in marketing. • Customer experience: One team manages the entire customer journey, enhancing targeting and engagement for full lifecycle strategy.

Fourth quarter 2025 total net revenues were RMB 32.5 billion, compared with RMB 33.2 billion in the prior year period. Gross profit was RMB 7.4 billion compared with RMB 7.6 billion in the prior year period. Gross margin was 22.9% compared with 23.0% in the prior year period. Full-year 2025 total net revenues were RMB 105.9 billion, compared with RMB 108.4 billion in the prior year. Gross profit was RMB 24.5 billion, compared with RMB 25.5 billion in the prior year. Gross margin was 23.1%, compared with 23.5% in the prior year. Income from operations in fourth quarter was RMB 2.90 billion, up 1.7% year-over-year, and full-year income from operations was RMB 8.1 billion, down from RMB 9.2 billion in the prior year.

• 2026 first quarter expected total net revenues between RMB 26.3 billion and RMB 27.6 billion, representing year-over-year increase of approximately 0% to 5%. • For 2026, intends to distribute no less than 75% of 2025 non-GAAP net income attributable to VIP shareholders through increased annual dividend of approximately $300 million and continuation of share repurchase program.

• Discussion of forward-looking statements subject to risks and uncertainties outlined in Safe Harbor provisions, including those in earnings release and SEC public filings. Potential risks include factors that may cause actual results to differ materially from current expectations.

Q: About seasonality of Spring Festival and 2026 margin outlook.

A: Q1 2026 has good growth expectation despite Spring Festival timing impact. For 2026 margins, management expects stability and efforts to outperform.

Q: About user growth and AI impact.

A: User growth is top priority, expected to return to normal track in 2026. AI has impact but business model relying on merchandising and supply chain reliability is resilient; also expanding offline business like Shenzhen Outlets.