Ladies and gentlemen, everyone, welcome to Vipshop Holdings Limited fourth quarter and full year 2022 earnings conference call. At this time, I would like to turn the call to Ms. Jessie Zheng, Vipshop Head of Investor Relations. Please proceed. Thank you operator. Hello everyone, and thank you for joining Vipshop fourth quarter and full year 2022 earnings conference call. With us today are Eric Shen, our Co-founder, Chairman, and CEO, and David Cui, 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 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. Potential risks and uncertainties include, but are 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 any forward-looking statements may be made. 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 for 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. With that, I would now like to turn the call over to Mr. Eric Shen. Good morning and good evening, everyone. Welcome and thank you for joining our fourth quarter and full year 2022 earnings conference call. In the fourth quarter, we once again demonstrated strong earnings power amid a choppy backdrop. The top-line recovery was impacted by the short-term disruption on economic activities from the surge of COVID-19 infections nationwide. Apparel-related GMV fared better than expected, slightly down year-over-year as we proactively worked out merchandising selection to satisfy seasonal demand. Customer trends continued to recover year-over-year. The desire to spend remained healthily with customer visits clearly picking up and the active Super VIP customers increased by 13%, accounting for 42% of our online spending. Overall, we accomplished quality development in 2022, delivering record level net income at RMB 6.8 billion, while navigating through a extremely challenging year. Our business fundamentals has been stronger after we incrementally a series of enhancement on merchandising, operations and technology. On merchandising, we now have a upgrade portfolio of brands and products, offering that reinforce the value proposition of our platform with hundreds of brands at the core of our business, new trending and the high-end brands and a lot more selections, integration styles bring a new look to our platform. For the full year of 2022, core brands has positive growth on Vipshop with greater contributions to total GMV. Apparel related GMV outperforming non-apparel categories. The Made for Vipshop customized line developing into the more selective collection that enjoyed higher conversions than general merchandise. Operationally, we are more efficient in deploying resource to best support brand partners. Launching innovation- Innovate. Launching innovative channels to build sales momentum and increasing customer engagement in a cost-effective way. That's how we managed to grow the base of quality customers with 6.7 million SVIP members repeatedly shopping with us last year. Technologies become more instrumental in every aspect of our business. For example, our fully upgraded merchants platform enabled brand partners to engage in a more measurable way through data analysis, such as offering customers incentive and the generation sale lead. Our strong execution in 2022 gives us confidence as we look ahead for the post-pandemic opportunity. We are set to take advantage of pent-up inventory. Our professional buyer team continue to be the great advantage as they work more effectively with brand partners. Though uncertainties still remain follow China's reopening, we did see some recovery in spending on apparel and other discretionary items since the beginning of this year. There is opportunities for us to attract new customers and capture more customer spend. We believe we are now in the healthier position than before to achieve both growth and profitability and continue delivering value to our shareholders. At this point, let me hand over the call to our CFO, David Cui, who will go over our financial results. Thanks, Eric. Hello, everyone. In the fourth quarter, we did our level best to keep the business on track despite the spike of COVID-19 infections in China. We are pleased that our revenues continue to recover, while another quarter of strong profitability demonstrated the resilience and strength of our business. Gross margin increased by 2 percentage points to 21.7% from a year ago, and actually improved across all categories, thanks to enhanced merchandising strategy, strengthened cost control, as well as dedicated management of business processes. Operating margin achieved an all-time high as we consistently focus on operational discipline. As a result, we had the most profitable quarter in two years, with non-GAAP net income up by 24% to RMB 2.2 billion and net margin at 7%. That helped us finish off the full year of 2022 at a record level of profitability. Last year, we generated more than RMB 7.8 billion free cash flow. We purchased a total of $952 million of our ADS under our buyback programs. We are committed to delivering value to our shareholders by steadily executing the programs. As we entered the post-pandemic era, following China's reopening, we are moving quickly but rationally to seize the opportunities for growth while allocating our resources where they will provide the best returns over time. At the same time, we maintain our focus on everyday operations to generate synergies and efficiency gains. We are positive on regaining growth momentum whilst sustaining healthy profitability. 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 changes, unless otherwise noted. Total net revenues for the fourth quarter of 2022 were RMB 31.8 billion, as compared with RMB 34.1 billion in the prior year period, primarily attributable to short-term disruptions on economic activities from the surge of COVID-19 infections nationwide. Gross profit increased by 2.8% year-over-year to RMB 6.9 billion from RMB 6.7 billion in the prior year period. Gross margin increased to 21.7% from 19.7% in the prior year period. Total operating expenses decreased by 6.5% year-over-year to RMB 4.6 billion from RMB 5.0 billion in the prior year period. As a percentage of our total net revenues, total operating expenses was 14.6%, which stayed flat as compared with the prior year period. Fulfillment expenses were RMB 2.2 billion, which largely stayed flat as compared with prior year period. As a percentage of our total net revenues, fulfillment expenses was 6.8%, as compared with 6.4% in the prior year period. Marketing expenses decreased by 17.6% year-over-year to RMB 944.1 million from RMB 1.1 billion in the prior year period. As a percentage of our total net revenues, marketing expenses decreased to 3.0% from 3.4% in the prior year period, primarily attributable to more prudent marketing strategy. Technology and content expenses decreased by 7.8% year-over-year to RMB 408.5 million from RMB 443.0 million in the prior year period. As a percentage of our total net revenues, technology and content expenses was 1.3%, which stayed flat as compared with the prior year period. General and administrative expenses decreased by 5.2% year-over-year to RMB 1.1 billion as compared with RMB 1.2 billion in the prior year period. As a percentage of our total net revenues, general and administrative expenses was 3.6% as compared with 3.5% in the prior year period. Income from operations increased by 37.1% year-over-year to RMB 2.5 billion as compared with RMB 1.8 billion in the prior year period. Operating margin increased to 7.9% from 5.4% in the prior year period. non-GAAP income from operations increased by 33.6% year-over-year to RMB 2.8 billion from RMB 2.1 billion in the prior year period. non-GAAP operating income margin increased to 8.7% from 6.1% in the prior year period. Net income attributable to Vipshop's shareholders increased by 57.9% year-over-year to RMB 2.2 billion from RMB 1.4 billion in the prior year period. Net margin attributable to Vipshop's shareholders increased to 7.0% from 4.1% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS increased to RMB 3.66 from RMB 2.07 in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders increased by 23.9% year-over-year to RMB 2.2 billion from RMB 1.8 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders increased to 7.0% from 5.3% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to RMB 3.65 from RMB 2.64 in the prior year period. As of December 31st, 2022, we had cash and cash equivalents and restricted cash of RMB 23.1 billion, and short-term investments of RMB 1.6 billion. Now, I'd like briefly walk through the highlights of our full year results. Total net revenues for the full year of 2022 were RMB 103.2 billion as compared with RMB 117.1 billion in the prior year. Gross profit was RMB 21.6 billion as compared with RMB 23.1 billion in the prior year. Gross margin increased to 21.0% from 19.7% in the prior year. Income from operations increased by 11.0% year-over-year to RMB 6.2 billion from RMB 5.6 billion in the prior year. Operating margin increased to 6.0% from 4.8% in the prior year. Non-GAAP income from operations increased by 12.1% year-over-year to RMB 7.4 billion from RMB 6.6 billion in the prior year. Non-GAAP operating income margin increased to 7.2% from 5.6% in the prior year. Net income attributable to Vipshop's shareholders increased by 34.6% year-over-year to RMB 6.3 billion from RMB 4.7 billion in the prior year. Net margin attributable to Vipshop's shareholders increased to 6.1% from 4.0% in the prior year. Net income attributable to Vipshop's shareholders per diluted ADS increased to RMB 9.83 from RMB 6.75 in the prior year. Non-GAAP net income attributable to Vipshop's shareholders increased by 13.7% year-over-year to RMB 6.8 billion from RMB 6.0 billion in the prior year. non-GAAP net margin attributable to Vipshop's shareholders increased to 6.6% from 5.1% in the prior year. non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to RMB 10.67 from RMB 8.67 in the prior year. Looking forward to the first quarter of 2023, we expect our total net revenues to be between RMB 25.2 billion and RMB 26.5 billion, representing a year-over-year increase of approximately 0%-5%. Please note that this forecast reflects our current and preliminary view of the market and operational conditions, which is subject to change. With that, I would now like to open the call to Q&A. Thank you. If you'd like to ask a question, please press star one one. If your question has been answered and you'd like to remove yourself from the queue, please press star one one again. We ask that you please ask your questions in English and in Spanish. I mean, I'm sorry, English and in Chinese. Our first question comes from Alicia Yap with Citi. Your line is open. Alicia Yap, your line is open. Hello, can you hear me? Yes, we can hear you, Alicia. Please go ahead. Okay. Thanks management for taking my question. This is Vicky Wei on behalf of Alicia Yap. I have two questions. First, how would management view the current competition landscape? Will the recent step-up marketing campaigns by e-commerce peers have any impact on Vipshop to step up on promotional discounts as well? My second question is: What is the company plans for this year in terms of new user acquisition? How will that impact margins trend for 2023? Thank you. 回答 Alicia Yap 的 第 一个 问题 啊, 就是 关于 竞争. 我们 看 其实 最近 整个 电商 的 竞争 格局 啊, 我们 讲 的 是 货架 电商 的 竞争 格局 也 在 加剧, 包括 大家 要 做 补贴, 准备 要 PK. 对 我们 而言 呢, 我们 其实, 我们 等于 不是 这种 叫 标品 比较 多 的, 我们 是 靠, 我们 是 穿戴 的 电商, 我们 说 的 也 比较 难 卷入 这种 价格战 吧. 另外 呢, 我们 如果 在 标品 方面, 我们 有 一些 我们 自己 的 专供, 很多 品牌 给 我们 做 这种 特别 的 专供, 但是 我们 可能 款式 SKU 没有 这么 多, 但是 呢 我们 有 我们 自己 的 特色. 另外 呢, 我们 其实 应该 也 不会 卷入 这种 价格战, 因为 我们 包括 我们 追求 健康 成长, 我们 也 不会 说 今天 瞎 补贴, 我们 说 补贴 来 换 用户, 我们 认为 还是 要 健康 的, 就 用户 是 觉得 你 Vipshop 整体 的 你 的 特卖 优势 好, 我们 说 的 用户 会 长期 在 我们 这 活跃, 而 不是 说 看到 我们 在 今天 有个 补贴 就 来 一下, 然后 下 一次 别的 平台 有个 补贴 又 跑 那 去了, 是 吧? 这 是 我们 Okay. First, to answer your question on competition, obviously there is some buzz in the e-commerce industry, especially in the shelf model e-commerce. Some peers have launched subsidy campaigns. Remember, Vipshop remain highly focused on apparel, not standardized items. That apparel does not only depend on pricing, but also depends on a lot of other factors like styles, sizes. It's a much sophisticated segment. Second, even on standardized items, we are trying to secure unique product supply from our top brands with unique styles and SKUs. We are not looking for as many SKUs as possible. We are trying to build a much more selective SKU, so we will not get involved in a pricing war. We are trying to grow our business in a healthier way. We are not going to set sacrifice profitability by using a lot of the subsidies in exchange for customer growth. I think the key point for Vipshop to grow its customers, to grow its business, is to reinforce this unique value proposition in discount retail. Naturally, customers will have a better perception about Vipshop and will keep top of mind with customers as well. On live streaming, actually the competition has been already there, but we don't feel any additional pressure on that front. The competitive landscape has largely moderated. On your second question on new user growth strategy. In this year, our goal is to achieve quality customer growth. We are definitely take this opportunity after during the post-pandemic era to try more proactively to acquire new customers. But at the same time, we'll continue to stick to the LTV model to evaluate the ROI from different channels to ensure that we are indeed acquiring high quality customers. Overall, we probably will have to spend a little bit more to acquire customers in absolute amount, but as a percentage of revenue, our marketing expenses should be should stay at a very healthy level as comparable as we had for last year. This is going to continue. We'll continue to stick to our practice last year in terms of customer acquisition. It won't have a big drag on our overall profitability. Thank you. Our next question. Thank you. Comes from Joyce Ju with Bank of America. Your line is open. Hello? Hello. Hello, could you hear me? Hey, hello, Jesse. Hi, hello, Joyce. We can hear you. Please go ahead. Cool. Sure. Good evening, Shen Zong, David, and Jesse. Congrats on the solid results. I have two questions. The first one is regarding the overall apparel demand we observed year to date. Have we observed any trend of pent-up demand or any behavior change, such as consumption upgrade, downgrade, or frequency change, or like, you know, whatever, like, you know, trends we observe from the supplier side, like brand side, you know, is there any clear goals of clearing the stocks or like, you know, they have a plan of launching new products? Any colors will be good. The second question is, we have observed this in the fourth quarter, the platform GMV actually grow a little bit faster than our 1P revenue. Is this because of like previously we mentioned we have some like, you know, mix change in our marketplace? Is there any specific plan in terms of in our like 3P marketplace? 那 个 货 品 的 供 给 跟 那 个 合 作 伙 伴 的 配 合 ， 那 么 还 有 整 个 市 场 的 趋 势 ， 总 体 都 还 算 蛮 好 。 嗯 。 嗯 。 啊 ， 这 - 第 二 个 问 题 是 ？ 第 二 个 问 题 请 翻 译 。 哦, OK. Okay. Joyce, on your question on the recent consumption trend, apparently, post the pandemic, we did see a faster than expected recovery in spending in apparel and other discretionary items. On the ground, you will see a lot of people feeling more comfortable with moving or traveling around. They do have strong demand for apparel categories. We've seen positive growth of customer numbers as well as conversion rate. That's on the consumption side. On the supply side, actually, there is a plentiful inventory out there, because a lot of brand partners had a very tough year last year, especially a lot of offline stores, were actually locked down, due to the COVID impact. Both on the demand side and on the supply side, we've seen a stronger momentum than expected. Yeah. Your second question, regarding the GMV and the revenue, change, changes. Actually our GMV narrowed down our revenue narrowed down by to 7%, right? Then GMV is down by 4.6%. The reason for that is because of the towards the year-end post the pandemic, the exchange and the return items were actually up. That is the primary reason for that, yeah. Got it. Got it. Thanks. Thank you. Our next question comes from Wei Xiong with UBS. Your line is open. 谢谢管理层接受我的提问，也恭喜这个季度很强劲的业绩。我有2个关于这个 margin 方面的问题想要请教。第一个是关于咱们的 net margin，因为 4Q 的这个 net margin 已经是第二个季度连续做到了 7% 以上哈，的确是非常强劲。那想请教一下，如果咱们看 2023 年的话，这个费用端还有多少继续优化的空间？那我们是不是预计 2023 年的这个 net margin 还能继续地提高？那咱们是不是也基于这个 2022 年一年的准备，会对长期的 net margin 的水平更加有信心？那第二个也想请教一下毛利这边，那关于 gross margin，如果咱们来看这个第一季度，包括 2023 年全年的趋势的话，应该怎么考虑？尤其是未来会不会有进一步这个结构性提高的机会？那谢谢管理层，我也自己翻译一下。Thank you management for taking my questions. I have two questions regarding the margin side. First is on the net margin. Looking at 2023, how much room can we further optimize our expenses and costs? Do we expect that the net margin in 2023 continue to improve year-on-year? Are we becoming more confident on the long-term net margin target? My second question is on the gross margin. How should we think about the trends in the first quarter as well as 2023? How does management think about the opportunity to further improve the gross margin longer term? Thank you. I will combine the two questions together. Our objective for both net margin, gross margin is to remain stable over the year. There could be a room for us to improve the net margin because of the volume, leverage the volume, for procurement cost, that there might be a room over there. For in terms of the gross margin, our aim is to remain stable. Net margin there's a room. Oh, got it. Thank you management. Thanks。 Thank you. Our next question comes from Thomas Chong with Jefferies. Your line is open. Thanks management for taking my question. Could you please provide some updates on the business development, GMV and consumer sentiment in recent months? How do we see the monthly trend and what's our outlook for the full year 2023? 嗯 。 总 体 我 们 看 就 是 春 节 后 ， 就 是 ， 嗯 ， 那 个 其 实 主 要 是 大 量 的 人 回 来 嘛 ， 再 者 包 括 没 有 疫 情 的 问 题 ， 那 么 我 们 说 整 体 ， 呃 ， 刚 刚 也 提 到 ， 就 复 苏 还 是 蛮 明 显 的 。 那 么 我 们 预 估 ， 那 么 其 实 比 如 说 在 Q2， 那 么 我 们 整 体 也 应 该 是 比 较 好 的 。 那 么 因 为 是 我 们 在 去 年 的 Q2 啊 ， 其 实 跌 得 最 惨 的 ， 那 么 尤 其 是 三 月 、 四 月 、 五 月 ， 供 应 链 封 控 的 问 题 ， 发 不 出 货 的 问 题 ， 疫 情 的 问 题 ， 上 海 的 问 题 ， 我 们 其 实 跌 了 百 分 之 十 几 ， 所 以 说 我 们 对 Q2 的 整 体 的 增 长 还 是 蛮 有 信 心 。 那 么 另 外 呢 ， Q3、Q4 我 们 目 前 看 应 该 都 还 是 乐 观 的 啊 ， 主 要 我 们 看 如 果 那 个 ， 因 为 现 在 疫 情 的 问 题 基 本 解 决 了 嘛 ， 消 费 的 需 求 也 大 量 出 来 ， 所 以 我 们 总 体 对 2023 的 整 个 发 展 趋 势 还 是 比 较 乐 观 的 。 Overall, we are pretty optimistic about the outlook for this year in terms of growth. After the Spring Festival, actually a lot of people are coming back and we've seen a stronger momentum than expected in terms of their spending on apparel and other categories. This momentum is going to continue into the second quarter, which we expect to have a stronger recovery, partially because of a low base last year especially, if you remember, last year, from March to May, we had a lot of problems such as supply chain disruption, lockdowns and the Shanghai incident. A lot of drag downs for the same period of for the second quarter of last year. For the second half, for Q3 and Q4, with the COVID thing cleared away, we think the momentum should continue into the second half, and we are quite optimistic about our growth outlook. Thank you. Our next question comes from Natalie Wu with HCI. Your line is open. Is that me? Sorry. Good evening. Thanks for taking my question. My question is related with spending power or AOV of the existing users. Just wondering post the pandemic reopen, is there any chance that can be observed regarding that kind of operating metrics? Also the second question is regarding the active paying customers. I think that the number of the active paying customers should return to positive growth in the first quarter, if that is true, I'm just wondering if they are target of your active paying customer growth this year. 我 简 单 用 中 文 翻 译 一 下 吧 。 主 要 是 两 个 问 题 ， 第 一 个 的 话 ， 是 想 问 一 下 ， 在 COVID-19 之 后 咱 们 有 没 有 观 察 到 老 用 户 的 一 个 购 买 力 ， 或 者 说 一 个 他 们 一 个 客 单 价 的 一 个 变 化 。 那 么 第 二 个 的 话 ， 想 问 一 下 ， 关 于 活 跃 购 买 用 户 数 ， 在 first quarter 应 该 是 回 归 到 了 一 个 同 比 正 增 长 ， 不 知 道 在 这 个 指 标 上 面 咱 们 有 没 有 一 个 年 终 增 长 的 一 个 ， 一 个 计 划 。 谢 谢 管理层 。 第 一 个 问 题 ， 我 们 看 到 用 户 活 跃 度 ， 那 么 我 们 讲 整 体 在 增 强 ， 但 是 客 单 价 基 本 会 差 不 多 啊 ， 不 会 有 大 幅 的 增 长 。 那 么 我 们 看 也 希 望 就 是 那 个 现 在 的 情 况 下 ， 包 括 他 们 的 购 物 频 次 增 要 增 加 ， 那 么 因 为 他 可 能 会 我 们 说 的 如 果 活 动 增 加 ， 他 们 应 该 会 买 更 多 的 衣 服 啊 ， 这 服 饰 穿 搭 ， 那 么 这 是 我 们 看 到 的 目 前 的 趋 势 ， 那 么 我 们 也 希 望 这 个 趋 势 全 年 能 持 续 啊 。 第 二 个 问 题 是 ， 啊 这 第 二 个 问 题 是 用 用 户 正 增 长 ， 我 们 目 前 是 能 实 现 用 户 正 增 长 ， 就 是 在 Q, Q1 的 时 间 ， 那 么 我 们 目 前 看 在 Q2 的 时 候 实 现 用 - 用 户 增 - 正 增 长 也 容 易 ， 因 为 去 年 的 我 们 是 用 户 跌 了 百 分 之 十 七 ， 大 概 十 七 啊 ， 去 ， 不 是 去 年 的 Q2， 我 们 就 用 户 是 平 白 无 故 跌 了 百 分 之 十 七 嘛 ， 所 以 我 们 认 为 Q2 也 没 问 题 ， 那 么 全 年 我 们 对 全 年 的 趋 势 也 比 较 看 好 ， 所 以 说 我 们 希 望 在 今 年 我 们 整 个 也 实 现 用 户 的 一 个 呃 ， 比 较 好 的 一 个 增 长 。 但 是 呢 ， 我 们 说 的 我 们 还 是 要 求 要 非 常 健 康 的 用 户 增 长 。 On customer trend, we're seeing apparently customers are becoming more active than before, because of the lifting of the COVID restrictions and they have become more comfortable with moving around or traveling around. We've seen they shop a lot more than before, but the order size, average order size remains quite stable. Yes, we are seeing that customer active customer numbers are going to book positive growth in the first quarter and it will continue to grow in the second quarter, because we have other low base for the second quarter of last year, which we had a 17% decline in customer numbers because of the COVID impact. For the full year, we are pretty positive on the customer trend, where we have achieved quality customer growth. Thank you. As a reminder, to ask a question, please press star one one. Our next question comes from Tian Hou with TH Data Capital. Your line is open. 有 一 个 问 题 呢 ， 就 是 关 于 我 们 topline。 我 看 过 去 这 三 年 呢 ， 可 能 也 跟 疫 情 有 关 吧 ， 我 们 的 topline 实 际 上 呢 ， 并 没 有 怎 么 实 现 一 个 增 长 。 那 margin 做 的 是 非 常 好 。 那 一 个 假 设 就 是 说 我 们 的 margin 现 在 已 经 达 到 了 一 个 相 当 高 的 位 置 ， 要 让 它 再 往 上 走 也 是 不 是 特 别 现 实 的 。 那 么 从 topline 的 角 度 来 讲 ， 今 年 就 成 为 一 个 非 常 的 怎 么 说 呢 ， 一 个 核 心 的 问 题 。 那 沈总 能 不 能 讲 一 下 ， 今 年 我 们 在 topline 这 个 成 长 上 有 哪 些 策 略 ， 有 哪 些 战 略 和 想 法 ？ 这 是 我 的 问 题 ， 我 自 己 翻 译 一 下 吧 。 In the last three years, the topline growth maybe due to the COVID, really didn't grow up that much. The margin actually went up a lot. I assume the margin, the room to improve is limited going forward. Under this condition, the topline growth become critical. Can Mr. Shen share some details or your thoughts about how to improve the topline growth in 2023? What's the strategy? Thank you. 我 们 那 个 毛 利 的 空 间 ， 就 是 我 们 因 为 前 端 跟 品 牌 的 这 种 毛 利 的 空 间 ， 其 实 因 为 我 们 现 在 也 不 涨 价 ， 所 以 说 理 论 上 空 间 不 大 。 我 们 其 实 在 2022 年 我 们 也 没 有 做 一 些 那 个 没 有 用 的 补 贴 ， 整 体 而 言 呢 ， 2023 年 的 这 个 毛 利 基 本 会 差 不 多 。 我 们 的 净 利 空 间 呢 ， 就 是 我 们 希 望 是 比 如 说 我 们 继 续 降 本 增 效 啊 ， 包 括 我 们 认 为 里 面 还 有 一 些 空 间 ， 包 括 那 个 我 们 认 为 是 净 利 还 是 有 一 些 机 会 。 但 是 呢 ， 其 实 最 重 要 的 增 长 在 取 决 于 业 务 的 增 长 ， 就 是 我 们 的 用 户 ， 增 长 很 快 ， 生 意 增 长 很 快 ， 最 终 我 们 出 来 的 这 个 净 利 啊 ， 就 会 那 个 整 个 的 净 利 又 会 因 为 ， 因 为 销 售 额 的 增 长 ， 别 的 固 定 费 用 又 会 巨大摊减 。 所 以 说 总 体 而 言 呢 ， 我 们 是 两 手 都 要 抓 。 一 方 面 呢 自 己 还 是 问 自 己 管 理 要 效 益 ， 总 体 保 持 健 康 的 运 营 ， 最 重 要 的 是 我 们 怎 么 样 如 何 获 取 更 好 的 那 个 新 客 ， 然 后 呢 我 们 怎 么 样 让 我 们 现 在 的 老 客 ， 在 2023 年 继 续 在 Vipshop 常 购 买 ， 多 购 买 ， 实 现 我 们 讲 的 销 售 ， 用 户 和 销 售 的 增 长 ， 这 样 的 如 果 做 得 好 的 话 ， 我 认 为 净 利 还 是 有 很 大 空 间 。 啊 沈 总 ， 我 是 的 一 个 收 入 成 长 的 一 个 策 略 ， 就 是 销 售 成 长 的 一 个 策 略 。 销 售 成 长 的 策 略 是 - 就 是 说 销 售 ， 刚 才 你 说 销 售 额 嘛 ， 对 吧 ？ 刚 才 你 说 激 活 老 客 ， 那 还 有 没 有 什 么 其 他 的 方 法 呢 ？ 那 个 别 的, 就 关 于 我 们 说 产 品 扩 张. 我 们 会 扩 张, 但 是 呢 不 会 是 起 到 革 命 性 的 改 变. 另 外 呢, 我 们 比 如 说 要 求 我 们 的 货 品 的 价 格 要 更 好, 可 能 使 转 换 率 提 高. 另 外 呢, 比 如 说 我 们 个 性 化, 我 们 自 己 认 为 我 们 的 空 间 还 蛮 大, 就 整 个 个 性 化 的 这 个 空 间 很 大. 比 如 说 另 外 呢, 我 们 希 望 在 我 们 的 网 站 更 多 的 用 户 那 么 逛, 包 括 呢, 比 如 说 他 喜 欢 我 们 的 衣 服 的 穿 搭, 导 致 他 会 经 常 来. 这 些 其 实 都 是 很, 其 实 很 多 种 方 法. 所 以 如 果 要 提 升 我 们 的 最 终 的 销 售, 我 们 其 实 我 们 能 做 的 还 有 很 多 很 多, 我 们 自 己 认 为 很 多 做 得 还 远 远 不 够. 嗯 好 ， 谢 谢 沈 总 。 On the margin side, we think there is a limited room for us to improve gross margin, because we don't increase the take rates from brand partners in the past year. We also were very restrained about providing unnecessary subsidies. Gross margin would be remain, would be stable for the future. On net margin side, we think there is still some room for us to improve the cost structure and increase the efficiency gains. There is still opportunity for us to improve net profit margin. The most important thing is of course how to grow the customers and the GMV, and that should provide the most upside for any margin expansion. We will focus on delicate management of our business operations. We look at quality growth of customer base. We will continue to increase repeat orders from existing customers and add quality new customers and expand our Super VIPs to improve up on the average order size. Also we want to improve our customer stickiness through innovative use cases, channels and also improve you know conversions through personalization. There are a lot of ways to increase our business to build our business momentum. We are pretty confident that we can achieve a quality growth this year. 谢 谢. Thank you. Due to time constraints, that concludes today's question and answer session. At this time, I will turn the conference back to Jesse for any closing remarks. Thank you for taking the time to join us today. If you have any questions or follow-ups, please don't hesitate to contact our IR team. We look forward to speaking with you next quarter. Thank you. This concludes the conference. You may now disconnect. Everyone, have a great day. Have a great day. Bye.