Total Net Revenues

Q3 2025

no prior guidance [N/A]

Expected to be between RMB 20.7 billion and RMB 21.7 billion, representing a 0% to 5% increase "

no prior guidance

Competitive Pressure

Described in Q1 2025 as operating in a highly competitive and hypercompetitive market with a strong focus on deep discount retail. "

Q2 2025 discussion noted that competitive pressure and quick commerce dynamics have not materially impacted the business. "

Stable focus on core discount retail; less worry about emerging quick commerce challenges. " "

Quick Commerce Dynamics

Briefly alluded to in Q1 2025 as part of industry dynamics, without explicit negative impact. "

Q2 2025 explicitly stated that quick commerce options have had no meaningful impact on the business. "

Consistent non-impact; reassurance that quick commerce is not a threat. " "

SVIP Membership Performance

Consistently strong performance noted in Q1 2025, Q3 2024, and Q4 2024 with double-digit growth and high contribution to online spending. " " "

Q2 2025 reported sustained double-digit growth with a 15% increase in active SVIP customers contributing 52% of online spending. " "

Steady and positive performance with growing importance of high-value members. " "

ARPU Trends

Mentioned in Q1 2025 and Q4 2024 with a slight decline due to dilution from new SVIP members, yet resilience in core cohorts was highlighted. " "

No specific discussion on ARPU trends in Q2 2025. " "

Omitted this period, suggesting a potential deprioritization of ARPU commentary. " "

Revenue Growth Outlook & Short-term Revenue Challenges

Q1 2025 and Q4 2024/Q3 2024 described near-term revenue declines and challenges (weather, pricing, competitive factors) while maintaining an optimistic longer-term outlook. " " "

Q2 2025 noted a slight decline in net revenues and short-term challenges, yet provided positive guidance for upcoming quarters. " "

Cautious optimism persists: short-term challenges remain amid a stable long-term growth outlook. " "

Share Buybacks & Capital Allocation

Q1 2025, Q3 2024, and Q4 2024 outlined steady capital returns and commitments (e.g. returning 75% of non-GAAP net income), with established buyback programs in place. " " "

Q2 2025 reported the highest share repurchase in two years ($350 million) and reiterated strong shareholder return commitments. " "

Increased emphasis on capital returns, signaling robust cash flow and shareholder focus. " "

Rising Return Rates & Margin Pressure

Q1 2025 and Q3 2024 noted a slight 2–3 percentage point increase in return rates and modest margin pressure due to investments and diluted spending. " " "

Q2 2025 mentioned structural factors leading to a 2–3 percentage point annual increase in returns while margins remained healthy. " "

Reminder of structural return rate increases with manageable margin pressure maintained through disciplined investments. " "

Marketing Efficiency & Expense Management

Q1 2025 and Q4 2024 highlighted increased marketing expenses (with percentages around 2.8–3.0%) along with efforts at improving ROI; Q3 2024 noted a reduction in expenses. " " " "

Q2 2025 reported a 3.3% decline in marketing expenses year-over-year, with stability in relative expense ratios. "

Improving efficiency as marketing spend is reduced while maintaining customer growth focus. " "

Gross Margin Performance & Profitability

Q1 2025, Q3 2024, and Q4 2024 discussed slightly declining gross and operating margins due to investment in growth, yet maintained healthy profitability levels. " " "

Q2 2025 showed a marginal decline in gross margin (23.5% vs. 23.6%) and operating margins, while profitability remained healthy. " "

Margins remain stable although slightly pressured by investments; profitability continues to be solid. " "

Consumer Sentiment Recovery & Delayed Purchases

Q1 2025 reported signs of recovery with improved sentiment and value-driven, need-based purchasing; Q3 2024 noted cautious sentiment with delayed purchases; Q4 2024 saw slight improvement. " " " "

No specific mention of consumer sentiment recovery or delayed purchases in Q2 2025. " "

Focus on sentiment recovery diminished; previous focus on cautious recovery and delayed purchases is less prominent this period. " "

Integration of AI & Technological Innovations

Q1 2025 presented multiple AI initiatives (algorithms, content creation, customer service), while Q3 2024 and Q4 2024 described internal AI tools and process improvements. " " "

Q2 2025 emphasized expanding AI applications with measurable results across reviews, pre-sales, and marketing content. "

Growing integration with an increased focus on measurable AI outcomes, reflecting an evolution from experimentation to scaling. " "

Shifting Emphasis away from Promotional Event-led Growth

Q1 2025 explicitly discussed shifting away from relying on promotional events to drive growth, while Q3 2024 maintained reliance on them and Q4 2024 did not explicitly mention a shift. " "

No discussion in Q2 2025 on shifting emphasis away from promotional-led growth [N/A].

The Q1 discussion on reducing reliance on promotions was not continued in Q2, suggesting the emphasis might be context-dependent or transitional " [N/A].