Vipshop Holdings Limited (VIPS) Q4 2020 Earnings Call Transcript

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Vipshop Holdings Limited (VIPS 0.13%)
Q4 2020 Earnings Call
Feb 25, 2021, 7:30 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, good day, everyone, and welcome to Vipshop Holdings Limited's Fourth Quarter and Full Year 2020 Earnings Conference Call.

At this point, I would like to turn the call to Ms. Jessie Fan, Vipshop's Director of Investor Relations. Please proceed.

Jessie Fan -- Head Of Investor Relations

Thank you, operator. Hello, everyone, and thank you for joining Vipshop's Fourth Quarter and Full Year 2020 Earnings Conference Call. Before we begin, I will read the safe harbor statement. During this conference call, we will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations, assumptions, estimates and projections about Vipshop Holdings Limited and its industry. All statements other than statements of historical facts we may make during this call are forward-looking statements. In some cases, these forward-looking statements can be identified by words or phrases such as anticipate, believe, continue, estimate, expect, intend, is or are likely to, may, plan, should, will, aim, potential or other similar expressions. These forward-looking statements speak only as of the date hereof and are subject to change at any time. And we have no obligation to update these forward-looking statements. Joining us on today's call are Eric Shen, our Co-Founder, Chairman and CEO; and David Cui, our CFO.

At this time, I would like to turn the call over to Mr. Eric Shen.

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

Good morning, and good evening, everyone. Welcome, and thank you for joining our fourth quarter and full year 2020 earnings conference call. We finished the year of 2020 with strong financial and operational results in the fourth quarter. During the quarter, our total GMV increased by 25% year-over-year to CNY59.3 billion from CNY47.6 billion in the same period last year. Continuing the trend of accelerated growth, specifically, GMV for our core apparel-related categories increased even faster by 28% year-over-year, driven by the robust growth in our numbers of active customers, which increased by 37% year-over-year in the fourth quarter. Our new customers grew fast than total active customers during the quarter, showing that our differentiated offerings procured by our professional merchandising team are becoming more attractive to customers who did not shop with us before. We believe this strong customer acquisition trends are driven by the superior value and the convenience shopping experience we offer our customers as compared to the marketplace platform. The reason we are able to see continued robust growth momentum in our key operational and financial metrics is due to our focus on and expertise in the discount retail industry. We have over a decade of experience in the inventory clearance industry in China and have deep expertise in this field. We offer superior value to consumers looking for deals, particularly in apparel-related categories, while at the same time, helping brands achieve faster inventory turnover, grow their business and reach new customer segments. Looking into 2021 and beyond, we are deeply devoted to continue to execute on our merchandising strategy, aiming to acquire more top brands while increasing our share in the business of our existing brand partners, which will enable us to offer more diversified, desirable product to our customers and attract new customers. In addition, we will continue to enhance our big data capabilities and the technology know-how in order to service a broader customer base, enabling customers from different age group demographic and income levels to shop with us and enjoy our product offering.

At this point, let me hand over the call to our CFO, David Cui, so that he may discuss our strategy in more detail and go over our operational and financial results.

David Cui -- Chief Financial Officer

Thanks, Eric, and hello, everyone. We are glad to have delivered another quarter with strong financial results. In the fourth quarter of 2020, we delivered accelerated top line growth driven by the strong 37% year-over-year growth in our number of active customers. Importantly, our non-GAAP net income attributable to Vipshop shareholders also demonstrated robust growth in the quarter, increasing by 33% year-over-year to CNY2.6 billion from CNY1.9 billion in the prior year period. Additionally, for the trailing 12 months ended December 31, 2020, we generated a robust free cash inflow of CNY8.3 billion, which increased significantly from CNY2.5 billion in the prior year period. We are dedicated to offering our customers with desirable merchandise at a big discount on a daily basis, while providing them with superior logistics services and post-sales customer service as compared to marketplace platforms. As a result, our conversion rate in the fourth quarter of 2020 increased by 10% from the same period in the prior year. Going forward, we will continue to enhance our product assortment and balance our top line growth and profitability. We are confident that the healthy customer acquisition and retention trends will continue to drive our growth in the future. By continuously offering value to our customers and providing unparalleled inventory management solutions to our suppliers, we will ultimately generate sustainable long-term value for all of our shareholders. Now moving on to our quarterly financial highlights. Before I get started, I would like to clarify that all the financial numbers presented today are in renminbi amounts and all the percentage changes refer to year-over-year changes unless otherwise noted. Total net revenue for the fourth quarter of 2020 increased by 22% year-over-year to CNY35.8 billion from CNY29.3 billion in the prior year period, primarily driven by the growth in the number of total active customers. Gross profit for the fourth quarter of 2020 increased by 12.1% year-over-year to CNY7.8 billion from CNY7.0 billion in the prior year period.

Gross margin for the fourth quarter of 2020 was 21.9% as compared with 23.9% in the prior year period. Total operating expenses for the fourth quarter of 2020 were CNY5.4 billion as compared with CNY5.4 billion in the prior year period. As a percentage of the total net revenue, total operating expenses for the fourth quarter of 2020 decreased to 15.2% from 18.3% in the prior year period. Fulfillment expenses for the fourth quarter of 2020 were CNY2.2 billion as compared with CNY2.1 billion in the prior year period. As a percentage of total net revenue, fulfillment expenses for the fourth quarter of 2020 decreased to 6.1% from 7% in the prior year period, primarily attributable to the change in fulfillment logistics arrangement. Marketing expenses for the fourth quarter of 2020 were CNY1.7 billion as compared with CNY944.1 million in the prior year period. As a percentage of the total net revenue, marketing expenses for the fourth quarter of 2020 were 4.8% as compared with 3.2% in the prior year period, primarily attributable to increased investment in customer acquisition. Technology and content expenses for the fourth quarter of 2020 decreased to CNY272.4 million from CNY362.2 million in the prior year period. As a percentage of total net revenue, technology and content expenses for the fourth quarter of 2020 decreased to 0.8% from 1.2% in the prior year period. General and administrative expenses for the fourth quarter of 2020 were CNY1.3 billion as compared with CNY1.7 billion in the prior year period. As a percentage of total net revenue, general and administrative expenses for the fourth quarter of 2020 decreased to 3.5% from 5.9% in the prior year period. Our net -- our income from operations for the fourth quarter of 2020 increased by 45.9% year-over-year to CNY2.6 billion from CNY1.8 billion in the prior year period. Operating margin for the fourth quarter of 2020 increased to 7.2% from 6.1% in the prior year period.

Non-GAAP income from operations, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions increased by 30.2% year-over-year to CNY2.8 billion from CNY2.2 billion in the prior year period. Non-GAAP operating income margin for the fourth quarter of 2020 increased to 7.9% from 7.4% in the prior year period. Our net income attributable to Vipshop's shareholders for the fourth quarter of 2020 increased by 67.7% year-over-year to CNY2.4 billion from CNY1.5 billion in the prior year period. Net margin attributable to Vipshop's shareholders for the fourth quarter of 2020 increased to 6.8% from 5% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS for the fourth quarter of 2020 increased to RMB 3.51 from RMB 2.14 in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders for the fourth quarter of 2020, which excluded the share-based compensation expenses, tax effect of share-based compensation expenses, impairment loss of investments, amortization of intangible assets resulting from business acquisitions, tax effect of amortization of intangible assets resulting from business acquisitions, investment gain and revaluation of investments excluding dividends, tax effect of investment gain and revaluation of investments excluding dividends, and share of loss in investment of limited partnerships that are accounted for as equity method investees, increased by 33.4% year-over-year to CNY2.6 billion from CNY1.9 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders for the fourth quarter of 2020 increased to 7.2% from 6.6% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS for the fourth quarter of 2020 increased to RMB 3.70 from RMB 2.84 in the prior year period. As of December 31, 2020, our company had cash and cash equivalents and restricted cash of CNY12.8 billion and short-term investment of CNY7.3 billion for the fourth quarter of 2020. Net cash from operating activities was CNY7.2 billion. Looking at our business outlook for the first quarter of 2021, we expect our total net revenue to be between RMB 27.2 billion and RMB 28.2 billion, representing a year-over-year growth rate of approximately 45% to 50%. This forecast reflects our current and preliminary view on the market and operational conditions, which is subject to change.

With that, I would now like to open the call to Q&A. Operator?

Questions and Answers:

Operator

[Operator Instructions] Your first question comes from the line of Eddy Wang of Morgan Stanley. Please ask your question.

Eddy Wang -- Morgan Stanley -- Analyst

Hi, [Foreign Speech]. Good evening and congratulations on the very great results. So my question is on the user growth. We have seen very strong user growth to sustain in the fourth quarter, actually accelerate from third quarter. So my question is that except for the efforts you have made in terms of the customer acquisition in the third quarter, any new initiatives you have made in the fourth quarter? Can you give us some examples, especially, I think, on the brand partner side as well as -- you mentioned that on the technology side? So that's my question on the user growth. Thank you.

Jessie Fan -- Head Of Investor Relations

Thank you, Eddy. [Foreign Speech]

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Eddy, on your question on customer acquisition. Since last year's third quarter, we started to increase our marketing expenses to acquire new customers as well as retain existing customers. So we use various customer acquisition channels, including digital advertising, TV show and reality show endorsement, mobile ring pre-installation and so on. So on those fronts, in terms of marketing expenses, the pace at which we went in 4Q is very similar to what we have done in the third quarter and in previous quarters. We believe that there is lots of opportunities in -- to acquire new customers in this market, particularly as we've readjusted to focus on discount retail. So we will continue to invest into customer acquisition, but we'll use the lifetime value model to evaluate the efficiency and effectiveness of how and where we're spending our marketing dollars. So we will continue to spend, but disciplined spending. On top of marketing, we also are much more focused on merchandising, offering our customers really good products and deep discounts on a daily basis. And on the operational side and the technology side, we're also investing to improve the conversion rate and improve the efficiency at which customers can find products that they like and that are suitable to their taste on our platform. So all around, we believe there is a flywheel effect in everything that we're doing. And as long as all these parts of the business stay intact and we continue to improve on each element, we will continue to acquire customers that will contribute to our long-term growth.

Operator

Your next question comes from the line of Alicia Yap of Citigroup. Please ask your question.

Alicia Yap -- Citigroup -- Analyst

Hi, good evening.[Foreign Speech] Thanks for taking my question. Congratulations on the strong quarter. My question is actually related to a little bit the month-over-month 4Q trend and also the first quarter guidance. So did you actually see some slowdown in December after the very strong Singles Day promotion? And as we go into first quarter, how would you describe the situation this year given the stay-in-the-city Chinese New Year period? So did that actually stimulate more spending budget on the clothing? Or did that actually have negative impact on spending willingness given people are not traveling that much and not needing as many relative as before? So just wondering how is this Chinese New Year given these encouragement to stay at the city changes in terms of the demand? Any differences that you see this year versus the previous year? And any colors in terms of direction that you think this strong first quarter guidance could carry through to the rest of the year? Thank you.

Jessie Fan -- Head Of Investor Relations

Thank you, Alicia. [Foreign Speech]

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Alicia, on your question regarding the trend that we've seen. Fourth quarter is always a key season for e-commerce, particularly for us as we are predominantly apparel retailer. And we have Singles Day promotional event as well as our anniversary sales event on December 8, both of which we saw solid results and the trend of robust growth lasted into January. As compared to December, January did decelerate a little bit, but mostly due to the weather change as we stepped out of winter. So when you look at January into February, as you mentioned, as a lot of people are staying in their respective cities and not going back to their hometowns during this year's Chinese New Year, we are seeing better business results than we were originally anticipating. Particularly, as compared to previous years, where people were very much spending their time with their families rather than shopping. This year, we're seeing pretty solid results, and we believe that should be the industrywide trend. Looking ahead, we believe that the structural changes of people shopping more online and more people learning to shop online that was resulted from the COVID-19 pandemic will continue into 2021 and beyond. And therefore, we continue to believe that there's a lot of opportunities for us to continue to grow and gain customers as with the rest of the e-commerce peers into 2021 and beyond.

Operator

Your next question comes from the line of Ronald Keung of Goldman Sachs. Please as your question.

Ronald Keung -- Goldman Sachs -- Analyst

Thank you. Thank you, David and Jessie. I think my question kind of following on the growth in the apparel market. Basically, we see very strong growth and you've shared your GMV growth for apparel, in particular, was 28%. It seems like this is a lot faster than the overall apparel market. And therefore, I think, are we kind of benefiting from the increased supply of discounted apparel over the past, say, one year or two years, be it kind of the buildup of inventory, increased demand of brands and clearing the inventory? And so how have we seen that in our market share, say, in discounted apparel? And as this kind of inventory cycle maybe lapse later this year, how do we see -- or how do we tap into the ongoing growth of the business, say, maybe private labels or other drivers? Thank you.

Jessie Fan -- Head Of Investor Relations

Thank you, Ronald. [Foreign Speech]

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Ronald, we've been in the discount retail business for over a decade, and there has not been a shortage of off-price inventory in the market. Of course, the pandemic did result in a bit of a tailwind. I'm surprised by this since apparel is a very nonstandardized category and there are thousands of apparel brands, and they're constantly making new seasons of products and launching new products. So there will always be inventory or excess inventory in the apparel market as it's almost impossible to predict exactly how much to make for each FTE. And so that's on the existing inventory market. On top of that, we are also more actively investing and looking into made for Vipshop products. These products are on suppliers, especially the top suppliers are making and designing, especially for the Vipshop platform. And so far, the contribution has already reached double digits. And in the future, we will continue to collaborate with more top suppliers and increase the contribution from these made for Vipshop products. These products will ensure that we will always have supply and supply that is attractive to our consumer base. Going forward, we will continue to look into enhancing our merchandising capability on both the made for Vipshop front as well as the existing off-price market in order to bring the best products to our customers as well as serve more suppliers and help to grow their business.

Operator

Your next question comes from the line of Thomas Chong of Jefferies. Please ask your question.

Thomas Chong -- Jefferies -- Analyst

Thanks, management for taking my question. Can you comment about the trend in marketing expenses as well as the margin outlook for this year? Thank you.

Jessie Fan -- Head Of Investor Relations

Thank you, Thomas. [Foreign Speech]

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Thomas, on your question on user growth and the marketing expenses as well as how it leads to the margin outlook in 2021 and beyond. As we continue to grow more customers and gain customers and accelerating customer growth, we are spending a little more on marketing into the second half of 2020. And we believe that trend should be similar in 2021 and beyond. However, that is given that there is an approximately 300 million potential customers that will be interested in discount retail and could become Vipshop's customers. So from that perspective, we believe that there's still a lot of opportunity in the market. And we're still very small as compared to the potential opportunity in this market. So growth will be our top priority. However, we have always been very focused on the balance between our top line growth as well as our margin profile. Our bottom line will continue to be very solid. As we've mentioned previously, we are maintaining our non-GAAP net margin at a mid- single-digit range, and we'll try to grow top line as fast as possible on top of that. So going forward, we will continue to balance the two but strive to grow users, grow healthy users that could contribute to our long-term growth sustainability.

Operator

Your next question comes from the line of Joyce Ju of Bank of America. Please ask your question.

Joyce Ju -- Bank of America -- Analyst

[Foreign Speech] Yes. I will translate my question. Basically, I'm asking for the strategic focus for the management team for this year. Back to 2019, the company has been focused on the merchandising strategy and also the efficiency improvement. And for the last year, the focus was on the recovery from the COVID. Just want to know for this year what's the new driver or any new initiatives we should expect? Thank you.

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Joyce, looking into 2021 and beyond, we will continue to pursue healthy and fast growth by healthy growth, meaning that we will acquire high-quality customers who will contribute to our long-term growth and profitability. We believe that compared to our current size, there is a lot of opportunity and potential to continue to grow. And at the same time, we will continue to maintain a sustainable healthy net margin profile. As we continue to grow fast, the operating leverage will come out even more and improve our profitability as well. So that will continue to be our top priority into 2021 and beyond.

Operator

Your next question comes from the line of Natalie Wu of Haitong International. Please ask your question.

Natalie Wu -- Haitong International -- Analyst

[Foreign Speech] I will translate myself. Thanks for taking my question and congratulations on a very solid result. My question is regarding the off-line contribution, just wondering how much of the GMV and revenue contribution comes from off-line in the fourth quarter? And what's management expectation for 2021? And also maybe if there's mid to longer term expectation for that? Thank you.

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Natalie, on your question regarding off-line strategies. On the off-line side, we have three different businesses. One is Shan Shan Outlets. Its GMV is around 5% contribution, and this business is very profitable. So we'll continue to grow that at a healthy pace. And our own 1P off-line stores. We have two models. One is called Vipshop and the other is called Vipmaxx, and they are quite different in terms of pricing targets. One of these businesses is still slightly loss-making, while the other is almost breakeven. And the total GMV contribution of these two 1P off-line stores is still quite small today, slightly over 1% contribution. We will continue to explore how to grow these off-line stores and explore the online to off-line strategy and how to make these stores more digitized. But all of these stores will focus on discount retail. So we are serving our core customers and core suppliers through our off-line channel as well. And we're exploring for new ways to create value for our members and customers. Currently, our off-line stores are also more actively exploring WeChat group and how to utilize the traffic and the customers potentially buying more within the WeChat ecosystem. Currently, around 1/3 of the GMV contribution of Vipshop and Vipmaxx are coming from the more digitized revenues such as WeChat group, and we will continue to explore how to bring up the profitability as well as grow these businesses more healthily going forward.

Operator

Your next question comes from the line of Jerry Liu of UBS. Please ask your question.

Jerry Liu -- UBS -- Analyst

[Foreign Speech] My question is related to the earlier comments about live streaming and short video. Just wondering if the main purpose here is to use these channels as a way to acquire customers or are we seeing some opportunities to maybe operate through some of these streaming and video platforms? Especially, when we look at WeChat, we've been operating on WeChat for a while, but maybe there are some new opportunities in recent times? Thanks.

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Thank you, Jerry. On your question regarding live streaming and short video. We do believe that live streaming app and short video apps are where a lot of our customers are spending a lot of time. And we are and have been actively investing and exploring customer acquisition methods in these newer channels. However, we do think that the results are not up to our expectations. And therefore, we still have more room to improve how we're targeting the content as well as how we are acquiring customers in these newer formats. On our own Vipshop app, the live streaming customers would be 100% our own. However, for example, like [Indecipherable] stores, about half of these customers would come to our app afterwards, whereas the other half would retain and remain shopping with us and maybe going forward in the [Indecipherable] store. So we will continue to work with these various channels in order to improve the efficiencies, and we will continue to look at the ways to best invest into customer acquisition in the live streaming and short video apps.

Operator

Your next question comes from the line of Feitong Zhang of CICC. Please ask your question.

Feitong Zhang -- CICC -- Analyst

Yes. Hi. [Foreign Speech] Thanks for taking my question. Congratulations on the robust results. It's a follow-up question. As Shen mentioned, the Vipshop product. How are the Vipshop products as a special addition will impact our business? Can we have better price or better profitability or the special addition helps us to gain more consumers? Any elaboration on that would be very helpful. And do you have any target for the Vipshop product? Thanks.

Jessie Fan -- Head Of Investor Relations

Thank you, Feitong. [Foreign Speech]

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Feitong, regarding your question on make for Vipshop products and how it's different and how it will impact Vipshop as a platform. The take rate or the gross margin for the make for Vipshop products are actually the same as other products or a given brand. However, when we go work with brands, make for Vipshop products, we ask for more value, meaning the prices that they offer should be similar to other products that they're giving us on a consignment basis and their natural off-price products. And we also give additional traffic support to these make for Vipshop products as these products are more differentiated and should result in better conversion rates for customers as well as help us acquire new customers because these products could only be found on our own platform. And going forward, we will continue to look into ways to best invest into the make for Vipshop products.

Operator

Your next question comes from the line of Veronica Shen of China Renaissance. Please ask your question.

Veronica Shen -- China Renaissance -- Analyst

[Foreign Speech] Thanks for taking my question. My question is regarding the ARPU. Well, I remember the management mentioned that the ARPU from new users is relatively low. So could you please provide us some color about the trend of ARPU from new users who joined Vipshop since the second quarter of last year. And have you ever seen their spending on our platform increase since they have joined us for more than half year? And how should we look at the ARPU going forward considering the new user mix? Thank you.

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

[Foreign Speech]

Jessie Fan -- Head Of Investor Relations

Veronica, the ARPU for new customers usually doubles in year two from our historical numbers. And from the customers that we've acquired in the past few quarters, we continue to see solid retention and solid ARPU growth on a quarterly basis. So we are quite confident about the long-term sustainability and healthy contribution from these newer customers. And the reason that ARPU is seen decline year-over-year in 2020 versus 2019 is because we are acquiring a lot more new customers and old customers who have not shopped with us for a while. And therefore, by adding them to the mix, the ARPU for these customers is usually lower, driving down the average ARPU for the total customer pool. Additionally, we've also made changes to the free shipping method, lowering the free shipping from RMB 288 to RMB 88, which has impacted the short-term ARPU of some of our super VIPs as well as customers who are still getting used to these newer adjustments as they are shopping more frequently, but not enough to cover the slight decrease in the ticket size. From historical trends, we're confident that all of these issues will continue to go away as the comp becomes more apples to apples, and these high-quality new customers will buy more in the future as well as these existing super VIPs and old customers are already buying more frequently. So we will continue to see better trends into 2021 and beyond on the ARPU side.

Operator

Your last question comes from the line of Han Joon Kim of Macquarie. Please ask your question. Please ask your question.

Han Joon Kim -- Macquarie -- Analyst

Great. Thank you for your time today. I've noticed that your other revenues have been growing a bit faster than the product revenues, and I presume this is advertising revenue. So should we assume that the tighter relationship that we have with brands is helping them put more advertising on to that platform? And as our kind of user growth continues, should we continue to see kind of other revenues grow at a faster clip than product revenue? Is that the way to think about the outlook? Thank you.

David Cui -- Chief Financial Officer

Other revenues represents our off-line revenues -- from -- off-line revenue and advertising revenues. And our off-line it only represents a very small portion of total revenues, right? So it doesn't change that much, right?

Jessie Fan -- Head Of Investor Relations

Yes. So on the other revenues line, it grew slightly faster for a few reasons. I will give the breakdown. In the fourth quarter, third-party marketplace contribution is around 14%. Compared to last year, that came down a little bit. But the advertising is growing slightly faster. This is due to us being more focused on the primary first-line business and not as focused in the marketplace. And therefore, the commission rate has decreased as contribution of GMV from third-party platforms has decreased slightly to around 5% in the fourth quarter. The increase is primarily due to contribution actually from Shan Shan Outlets. As in last year's fourth quarter, it only contributed to around 7% of other revenues. But in the fourth quarter of this year, Shan Shan Outlets Outlets contributed to around 13% of other revenues.

Operator

I see there are no further questions. I will now hand the call back to the management for the closing remarks.

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

Thank you for taking the time to join us, and we look forward to speaking with you next quarter. Thanks.

Jessie Fan -- Head Of Investor Relations

Thank you all.

David Cui -- Chief Financial Officer

Thank you.

Operator

[Operator Closing Remarks]

Duration: 50 minutes

Call participants:

Jessie Fan -- Head Of Investor Relations

Eric Ya Shen -- Chairman of the Board of Directors and Chief Executive Officer

David Cui -- Chief Financial Officer

Eddy Wang -- Morgan Stanley -- Analyst

Alicia Yap -- Citigroup -- Analyst

Ronald Keung -- Goldman Sachs -- Analyst

Thomas Chong -- Jefferies -- Analyst

Joyce Ju -- Bank of America -- Analyst

Natalie Wu -- Haitong International -- Analyst

Jerry Liu -- UBS -- Analyst

Feitong Zhang -- CICC -- Analyst

Veronica Shen -- China Renaissance -- Analyst

Han Joon Kim -- Macquarie -- Analyst

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