Aug 25, 2026 earnings call — SVIP growth and tax adjustment focus
Company guided third-quarter revenue to between RMB 20.3 billion and RMB 21.4 billion.
Revenue $3.6B (est $3.6B) · EPS $0.12 (est $0.59)
Key quotes
"During the quarter, active SVIP grew by 8% year-over-year, driving 54% of our online spending, showing that as customers' budgets tightened, high-intent shoppers prioritized platform, offering trust, value, quality and service."
"Our upgrade AI marketing agent now enable optimized from placement planning to AIGC creative matching across the right channels."
"In addition, to unlock the value of our high-quality assets and optimize capital efficiency, we successfully launched 2 public REITs backed by 3 mature Shan Shan outlet properties, a consumer infrastructure REIT and a commercial REIT."
Analyst Q&A 4
consumer sentiment and revenue trend
Q (Thomas Chong · Jefferies): The analyst asked how consumer sentiment is evolving, the monthly revenue trend since April, whether current revenue is at the low or high end of guidance, and for a comment on the second half outlook.
A: Management said consumers are not enthusiastic and are value-seeking and selective. They reported pressure from July to August with only a slight sales recovery. They expect similar consumer sentiment in the second half and full year, which will bring total revenue for the full year to be slightly negative from last year.
"That will bring our total revenue for the full year to be slightly negative from last year." — Jessie Fan
margins and expenses outlook
Q (Alicis a Yap · Citi): The analyst asked why operating margin is declining year-over-year and how to think about gross margin, operating expenses, and margin trends for Q3 and Q4.
A: Management said Q2 saw a slight year-over-year operating margin decline mainly from deleverage in fulfillment expense as return rates rise. They said gross profit margin is flattish or even growing, showing strong gross margin management. They expect operating margin to remain resilient and NP margins relatively stable in the second half because of structural cost and expense discipline.
"But overall, we expect operating margin will continue to be quite resilient given our structural cost and expense discipline." — Jessie Fan
withholding tax and shareholder returns
Q (Weijia Wu · CICC): The analyst asked why there was an adjustment to withholding this quarter, whether it was a tax penalty, and if it will affect buybacks and dividends.
A: Management said the adjustment is not a penalty and the company is in full compliance with tax laws. They described the change as a prudent compliance step to reduce risk and give greater tax certainty, and said withholding tax on dividends is a transaction cost, not an operational expense. They said they expect minimal impact on future net margin and remain committed to long-term shareholder returns.
"Accordingly, we anticipate an impact on our future net margin to be minimal." — Mark Wang (CFO)
outlets growth, REITs, and buybacks
Q (Sardonna Fong · UBS): The analyst asked about Shan Shan Outlets' outlook for the second half, the pace of securitizing remaining outlet projects after two REITs listed, and the level and pace of shareholder returns in the second half.
A: Management said Shan Shan Outlets grew over 20% GMV in the first half and they expect similar momentum in the second half, with existing outlets growing at least double digits in same-store sales. They said they listed a commercial REIT on June 18, 2026 with RMB 7.7 billion using 3 outlets as underlying assets, and they hold another 18 outlet projects for future evaluation based on strategy and market conditions. They said they returned USD 3.7 billion to shareholders from 2021–2025, distributed about USD 400 million in the first half of 2026, the Board approved a new USD 1 billion repurchase program, and they will continue buybacks opportunistically while targeting a payout ratio of no less than 75% of 2025 non-GAAP net income for 2026.
"For 2026, we remain fully committed to our full year shareholder return policy, which targets total payout ratio of no less than 75% of our 2025 non-GAAP net income." — Mark Wang (CFO)