GUANGZHOU, China, May 15, 2017 /PRNewswire/ -- Vipshop Holdings
Limited (NYSE: VIPS), a leading online discount retailer for brands
in China ("Vipshop" or the
"Company"), today announced its unaudited financial results for the
first quarter ended March 31,
2017.
First Quarter 2017 Highlights
- Total net revenue for the first quarter of 2017
increased by 31.1% to RMB15.95
billion (US$2.32 billion) from
RMB12.17 billion in the prior year
period.
- The number of active customers[1] for the
first quarter of 2017 increased by 32% year over year to 26.0
million.
- Total orders[2] for the first quarter of 2017
increased by 23% year over year to 72.1 million.
- Gross profit for the first quarter of 2017 increased by
25.0% to RMB3.69 billion
(US$536.7 million) from RMB2.96 billion in the prior year
period.
- Net income attributable to Vipshop's shareholders for
the first quarter of 2017 increased by 16.3% to RMB551.9 million (US$80.2
million) from RMB474.6 million
in the prior year period.
- Non-GAAP net income attributable to Vipshop's
shareholders[3] for the first quarter of 2017
increased by 28.2% to RMB799.4
million (US$116.1 million)
from RMB623.4 million in the prior
year period.
"We are pleased to have reported continued robust operational
results with solid customer gains in the first quarter of 2017,
starting the year on a strong note," said Mr. Eric Shen, chairman and chief executive officer
of Vipshop. "Our strong results highlight the effectiveness of our
strategic focus on expanding our customer base and gaining
additional market share in China's
fragmented discount retail market. Specifically, we are delighted
to witness that our total active customers for the trailing twelve
months ended March 31, 2017 increased
by 38% to over 55.5 million. In the past quarter, we made a number
of strides in improving the end-to-end user experience across our
platform, including our strengthened merchandising capability with
various new international brands and the further expansion in the
variety and selection of our product offerings, as well as the
continued enhancement of the customization across the Vipshop
platform. Our achievements were further recognized by independent
third parties such as BrandZ, which served as endorsements of the
value of our brand and the increasing influence of our
platform."
Mr. Donghao Yang, chief financial
officer of Vipshop, further commented, "We are delighted to have
delivered another quarter of strong topline growth with steady
margins in addition to improved free cash flow in the first quarter
of 2017. Importantly, we are pleased to announce that our Board of
Directors authorized the Company to explore a proposed spin-off of
our Internet finance business, which could significantly strengthen
the Company's cash flow, positively impact our earnings, and enable
us to further invest in our core e-commerce business. Looking
ahead, we are confident that we will continue to gain market share
in our core categories while maintaining our stable and sustainable
profitability as China's leading
discount retailer."
Recent Business Highlights
- On May 11, 2017, Vipshop's Board
of Directors authorized the Company to explore a proposed spin-off
of its Internet finance business into a dedicated entity. The
objective of the proposed spin-off is to alleviate the Internet
finance business' financial impact on the Company's core e-commerce
business and shift any associated incentives and risks to this
dedicated entity. Additionally, it may enable the Internet finance
business to accelerate its growth as an independent entity going
forward. It has been proposed that Vipshop will inject all of its
Internet finance business and related assets into the dedicated
entity and restructure the existing variable interest entity
arrangement with that dedicated entity. Certain key management
personnel of the Internet finance business may acquire minority
equity interests in the dedicated entity. Vipshop's Board of
Directors has authorized the directors and officers of the Company
to further explore, negotiate and finalize the terms and
arrangements of the proposed spin-off for its final approval.
- On May 11, 2017, Vipshop's Board
of Directors authorized the formation of a new entity dedicated to
the Company's logistics business, aiming to open up Vipshop's
logistics services to a broader market to lower costs for both
Vipshop and its business partners, to explore a new initiative of
online and offline retail integration, as well as to provide
consistent delivery services with its more comprehensive nationwide
network coverage.
- During the first quarter of 2017, the Company duly notified all
holders of its 1.50% convertible senior notes due 2019 (of which
US$632.5 million aggregate principal
amount was outstanding at the time of such notification) of their
one-time put right under the terms of the indenture for the notes.
Approximately US$3.1 million
aggregate principal amount of the notes were validly and timely
surrendered and not withdrawn and the Company accepted all of these
notes for repurchase. The Company believes the result of the put
right exercise of its notes, together with its BBB+ rating by
Fitch, Baa1 rating by Moody's, and BBB rating by Standard &
Poor's, reflected Vipshop's financial strength and high credit
quality. Further, the Company believes it is also a vote of
confidence from the capital markets for its future growth prospects
and market potential.
- In the first quarter of 2017, the Company's CRM team began to
experiment with a new Super VIP paid membership program, which
offers many features including early and exclusive access to
selective sales events, privileged discounts, and free shipping and
returns. Trial program members who enrolled as Super VIPs showed
significant improvements in average order frequency and average
revenue per user.
- Vipshop is in the process of developing a new generation of
intelligent customer service chatbots that provide shopping guides
prior to purchases and after-sales services. Through this
initiative, the Company will be able to substantially enhance user
experience, improve administrative efficiency, and reduce
costs.
- In the first quarter of 2017, Vipshop added approximately
160,000 square meters of warehouse space in Jianyang, China and currently has approximately 2.1
million square meters of warehouse capacity nationwide. In order to
be closer to its customers, shorten delivery time, and improve the
efficiency of its distribution, in addition to its five regional
and centralized warehouses, the Company added two local warehouses
in Guiyang, China and Kunming, China during the quarter, increasing
the total number of local warehouses to seven as of March 31, 2017.
- Vipshop scaled up the application of intelligent transportation
robot system in its southern warehouse and rolled out its
proprietary Warehouse Control System (WCS) in its southern and
central warehouses. The Company also introduced automated systems
in its central and southern warehouse facilities during the first
quarter, which include conveyor belts and automatic systems for
product sorting and storage, aiming to ultimately improve the
Company's logistics efficiency and reduce costs.
- The Company added approximately 3,000 last mile delivery staff
in the first quarter of 2017 and now has a total of more than
23,000 last mile delivery staff nationwide. It now has
approximately 2,800 self-operated delivery stations and is able to
deliver 93% of its orders through its last mile network as compared
with 83% in the same period last year, covering all provinces in
China. In addition, Vipshop
further strengthened its logistics services by having its own
delivery staff collect returns from customers directly, which
currently covers 67% of the Company's total returns, up from 30%
from the same period in the prior year.
- In the first quarter of 2017, Vipshop added a number of popular
international brands and now works directly with Giorgio Armani, Guess, Versace, and many
others.
- At the February 28 Beauty and
Cosmetics Festival, Vipshop collaborated with over 300
international and domestic beauty brands. Orders for the event
exceeded one million in just 1.5 hours. At the same time, Vipshop
executed joint marketing with 70 major beauty and cosmetics brands
on social media. At the March 8
Spring New Collection Event, Vipshop partnered with eight major
apparel brands and published eight fashionable trends for 2017
spring and summer collections.
- In the first quarter of 2017, BrandZ ranked Vipshop as number
40 on the list of "Top 100 Most Valuable Chinese Brands 2017." In
addition, the Company was ranked number 15 on the list of "Top 50
Chinese Listed Private Companies by Brand Value 2017," jointly
published by Tsinghua University's China Enterprise Research Center
and the Daily Economic News. These third party endorsements
demonstrate the influence of Vipshop's growing brand and the power
of the Vipshop platform.
First Quarter 2017 Financial Results
REVENUE
Total net revenue for the first quarter of 2017 increased by
31.1% to RMB15.95 billion
(US$2.32 billion) from RMB12.17 billion in the prior year period,
primarily driven by the growth in the numbers of total active
customers, repeat customers, and total orders.
The number of active customers for the first quarter of 2017
increased by 32% to 26.0 million from 19.7 million in the prior
year period. The number of total orders for the first quarter of
2017 increased by 23% to 72.1 million from 58.7 million in the
prior year period.
GROSS PROFIT
Gross profit for the first quarter of 2017 increased by 25.0% to
RMB3.69 billion (US$536.7 million) from RMB2.96 billion in the prior year period. Gross
margin was 23.2% as compared with 24.3% in the prior year period.
The Company expects its gross margin to remain stable in the short
term as it balances its promotional activities and sales with its
marketing expenses.
OPERATING INCOME AND EXPENSES
Total operating expenses for the first quarter of 2017 were
RMB3.13 billion (US$454.4 million), as compared with RMB2.39 billion in the prior year period. As a
percentage of total net revenue, total operating expenses decreased
to 19.6% from 19.7% in the prior year period.
- Fulfillment expenses for the first quarter of
2017 were RMB1.44 billion
(US$208.7 million), as compared with
RMB1.08 billion in the prior year
period, primarily reflecting an increase in sales volume and number
of orders fulfilled. As a percentage of total net revenue,
fulfillment expenses were 9.0% as compared with 8.9% in the prior
year period, primarily attributable to the Company's expansion to
support an increase in the last mile business outside of the
Vipshop platform.
- Marketing expenses for the first quarter of 2017
were RMB729.5 million (US$106.0 million), as compared with RMB603.8 million in the prior year period,
reflecting the Company's strategy to drive long-term growth through
sustainable investments to strengthen its brand awareness, attract
new users and expand market share. As a percentage of total net
revenue, marketing expenses decreased to 4.6% from 5.0% in the
prior year period, primarily attributable to the Company's
strategic balance between promotional activities and sales with its
broader marketing efforts.
- Technology and content expenses for the first
quarter of 2017 were RMB419.5 million
(US$61.0 million), as compared with
RMB326.7 million in the prior year
period, reflecting the Company's continuing efforts to invest in
human capital, advanced technologies such as data analytics as well
as new business opportunities including the Internet finance
business. As a percentage of total net revenue, technology and
content expenses decreased to 2.6% from 2.7% in the prior year
period.
- General and administrative expenses for the first
quarter of 2017 were RMB542.2 million
(US$78.8 million), as compared with
RMB382.3 million in the prior year
period. As a percentage of total net revenue, general and
administrative expenses were 3.4% as compared with 3.1% in the
prior year period, primarily attributable to an increase in share
based compensation as well as the impact from building out the
Internet finance business.
Income from operations for the first quarter of 2017 increased
by 23.6% to RMB736.6 million
(US$107.0 million) from RMB596.1 million in the prior year period.
Operating margin was 4.6% as compared with 4.9% in the prior year
period.
Non-GAAP income from operations[4], which excludes
share-based compensation expenses and amortization of intangible
assets resulting from business acquisitions, increased by 31.2% to
RMB1.00 billion (US$145.9 million) from RMB765.2 million in the prior year period.
Non-GAAP operating income margin[5] remained stable at
6.3% year over year.
NET INCOME
Net income attributable to Vipshop's shareholders increased by
16.3% to RMB551.9 million
(US$80.2 million) from RMB474.6 million in the prior year period. Net
margin attributable to Vipshop's shareholders was 3.5% as compared
with 3.9% in the prior year period. Net income attributable to
Vipshop's shareholders per diluted ADS[6] increased
to RMB0.92 (US$0.13) from RMB0.80 in the prior year period.
Non-GAAP net income attributable to Vipshop's shareholders,
which excludes share-based compensation expenses, impairment loss
of investments, and amortization of intangible assets resulting
from business acquisitions and equity method investments, increased
by 28.2% to RMB799.4 million
(US$116.1 million) from RMB623.4 million in the prior year period.
Non-GAAP net margin attributable to Vipshop's
shareholders[7] was 5.0% as compared with 5.1% in the
prior year period. Non-GAAP net income attributable to Vipshop's
shareholders per diluted ADS[8] increased to
RMB1.31 (US$0.19) from RMB1.04 in the prior year period.
For the quarter ended March 31,
2017, the Company's weighted average number of ADSs used in
computing diluted income per ADS was 625,339,078.
BALANCE SHEET AND CASH FLOW
As of March 31, 2017, the Company
had cash and cash equivalents of RMB4.43
billion (US$644.3 million) and
held-to-maturity securities of RMB746.2
million (US$108.4
million).
For the quarter ended March 31,
2017, operating cash was RMB0.74
billion, and free cash flow[9], a non-GAAP
measurement of liquidity, was as follows:
For the three months
ended
|
|
Mar 31,
2016
RMB'000
|
Mar 31,
2017
RMB'000
|
Mar 31,
2017
US$'000
|
Net cash from
operating activities
|
153,211
|
736,744
|
107,035
|
|
Add: Impact from
Internet financing activities[9]
|
309,209
|
277,524
|
40,319
|
|
Less: Capital
expenditures
|
(660,594)
|
(585,462)
|
(85,057)
|
|
Free cash flow (out)
in
|
(198,174)
|
428,806
|
62,297
|
|
|
|
|
|
|
Free cash flow
trailing twelve months ended
|
|
|
Mar 31,
2016
RMB'000
|
Mar 31,
2017
RMB'000
|
Mar 31,
2017
US$'000
|
Net cash from
operating activities
|
1,575,008
|
3,414,946
|
496,128
|
|
Add: Impact from
Internet financing activities[9]
|
881,925
|
2,557,169
|
371,509
|
|
Less: Capital
expenditures
|
(4,388,147)
|
(2,715,495)
|
(394,510)
|
|
Free cash flow (out)
in
|
(1,931,214)
|
3,256,620
|
473,127
|
|
Business Outlook
For the second quarter of 2017, the Company expects its total
net revenue to be between RMB17.0 billion
and RMB17.5 billion, representing a year-over-year growth
rate of approximately 26% to 30%. These forecasts reflect the
Company's current and preliminary view on the market and
operational conditions, which is subject to change.
Exchange Rate
This announcement contains currency conversions of certain
Renminbi amounts into U.S. dollars at specified rates solely for
the convenience of the reader. Unless otherwise noted, all
translations from Renminbi to U.S. dollars are made at a rate of
RMB6.8832 to US$1.00, the effective noon buying rate for
March 31, 2017 as set forth in the
H.10 statistical release of the Federal Reserve Board.
Conference Call Information
The Company will hold a conference call on Tuesday, May 16, 2017 at 8:00 am Eastern Time or 8:00 pm Beijing Time to discuss its financial
results and operating performance for the first quarter of
2017.
United
States:
+1-845-675-0438
International Toll Free:
+1-855-500-8701
China
Domestic:
400-1200-654
Hong Kong:
+852-3018-6776
Conference ID:
#17647828
The replay will be accessible through May
24, 2017 by dialing the following
numbers:
United States Toll Free:
+1-855-452-5696
International:
+61-2-9003-4211
Conference ID:
#17647828
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.vip.com.
About Vipshop Holdings Limited
Vipshop Holdings Limited is a leading online discount retailer
for brands in China. Vipshop
offers high quality and popular branded products to consumers
throughout China at a significant
discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a
sizeable and growing base of customers and brand partners. For more
information, please visit www.vip.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Vipshop's strategic and operational plans,
contain forward-looking statements. Vipshop may also make written
or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission (the "SEC"), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about Vipshop's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: Vipshop's goals and strategies; Vipshop's
future business development, results of operations and financial
condition; the expected growth of the online discount retail market
in China; Vipshop's ability to
attract customers and brand partners and further enhance its brand
recognition; Vipshop's expectations regarding demand for and market
acceptance of flash sales products and services; competition in the
discount retail industry; fluctuations in general economic and
business conditions in China and
assumptions underlying or related to any of the foregoing. Further
information regarding these and other risks is included in
Vipshop's filings with the SEC. All information provided in this
press release and in the attachments is as of the date of this
press release, and Vipshop does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is
prepared in conformity with accounting principles generally
accepted in the United States of
America ("U.S. GAAP"), except that the consolidated
statement of shareholders' equity, consolidated statements of cash
flows, and the detailed notes required by Accounting Standards
Codification 270 Interim Reporting ("ASC270"), have not been
presented. Vipshop uses non-GAAP net income attributable to
Vipshop's shareholders, non-GAAP net income attributable to
Vipshop's shareholders per diluted ADS, non-GAAP income from
operations, non-GAAP operating income margin, non-GAAP net margin
attributable to Vipshop's shareholders, and free cash flow, each of
which is a non-GAAP financial measure. Non-GAAP net income
attributable to Vipshop's shareholders is net income attributable
to Vipshop's shareholders excluding share-based compensation
expenses, impairment loss of investments, and amortization of
intangible assets resulting from business acquisitions and equity
method investments. Non-GAAP net income attributable to Vipshop's
shareholders per diluted ADS is computed using non-GAAP net income
attributable to Vipshop's shareholders divided by weighted average
number of diluted ADS outstanding for computing diluted earnings
per ADS. Non-GAAP income from operations is income from operations
excluding share-based compensation expenses and amortization of
intangible assets resulting from business acquisitions. Non-GAAP
operating income margin is non-GAAP income from operations as a
percentage of total net revenue. Non-GAAP net margin attributable
to Vipshop's shareholders is non-GAAP net income attributable to
Vipshop's shareholders as a percentage of total net revenue. Free
cash flow is the operating cash flow adding back the impact from
Internet financing activities and less capital expenditures, which
include purchase of property and equipment, purchase and deposits
of land use rights, and purchase of other assets. The Company
believes that separate analysis and exclusion of the non-cash
impact of share-based compensation, impairment loss of investments
and amortization of intangible assets adds clarity to the
constituent parts of its performance. The Company reviews these
non-GAAP financial measures together with GAAP financial measures
to obtain a better understanding of its operating performance. It
uses these non-GAAP financial measures for planning, forecasting
and measuring results against the forecast. The Company believes
that non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of non-cash share-based compensation
expenses, impairment loss of investments, and amortization of
intangible assets. Free cash flow enables the Company to assess
liquidity and cash flow, taking into account the impact from
Internet financing activities and the financial resources needed
for the expansion of fulfillment infrastructure and technology
platform. Share-based compensation expenses and amortization of
intangible assets have been and will continue to be significant
recurring expenses in its business. However, the use of non-GAAP
financial measures has material limitations as an analytical tool.
One of the limitations of using non-GAAP financial measures is that
they do not include all items that impact the Company's net income
for the period. In addition, because non-GAAP financial measures
are not measured in the same manner by all companies, they may not
be comparable to other similar titled measures used by other
companies. One of the key limitations of free cash flow is that it
does not represent the residual cash flow available for
discretionary expenditures. In light of the foregoing limitations,
you should not consider non-GAAP financial measure in isolation
from or as an alternative to the financial measure prepared in
accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with U.S. GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "Vipshop Holdings Limited
Reconciliations of GAAP and Non-GAAP Results" at the end of this
release.
Investor Relations Contact
Vipshop Holdings Limited
Millicent Tu
Tel: +86 (20) 2233-0732
Email: IR@vipshop.com
ICR, Inc.
Jeremy Peruski
Tel: +1 (646) 405-4866
Email: IR@vipshop.com
[1]
"Active customers" are defined as registered members who have
purchased from the Company or the Company's online marketplace
platforms at least once during the relevant period.
|
[2] "Total
orders" are defined as the total number of orders placed during the
relevant period, including the orders for products and services
sold in the Company's online sales business and on the Company's
online marketplace platforms, net of orders returned.
|
[3] Non-GAAP net income
attributable to Vipshop's shareholders is a non-GAAP financial
measure, which is defined as net income attributable to Vipshop's
shareholders excluding share-based compensation expenses,
impairment loss of investments, and amortization of intangible
assets resulting from business acquisitions and equity method
investments.
|
[4]
Non-GAAP income from operations is a non-GAAP financial measure,
which is defined as income from operations excluding share-based
compensation expenses and amortization of intangible assets
resulting from business acquisitions.
|
[5]
Non-GAAP operating income margin is a non-GAAP financial measure,
which is defined as non-GAAP income from operations as a percentage
of total net revenues.
|
[6] "ADS"
means American depositary share, each of which represents 0.2 Class
A ordinary share.
|
[7]
Non-GAAP net margin attributable to Vipshop's shareholders is a
non-GAAP financial measure, which is defined as non-GAAP net income
attributable to Vipshop's shareholders, as a percentage of total
net revenues.
|
[8]
Non-GAAP net income attributable to Vipshop's shareholders per
diluted ADS is a non-GAAP financial measure, which is defined as
non-GAAP net income attributable to Vipshop's shareholders, divided
by weighted average number of diluted ADS outstanding for computing
diluted earnings per ADS.
|
[9]Free
cash flow is a non-GAAP financial measure, which means the
operating cash flow adding back the impact from Internet financing
activities and less capital expenditures, which include purchase of
property and equipment, purchase and deposits of land use rights,
and purchase of other assets.
|
Vipshop Holdings
Limited
|
Condensed
Consolidated Statements of Income and Comprehensive
Income
|
(In thousands,
except per share data)
|
|
Three Months
Ended
|
|
March
31,2016
|
March
31,2017
|
March
31,2017
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
Product
revenues
|
11,924,439
|
15,606,804
|
2,267,376
|
Other revenues
(1)
|
244,655
|
346,141
|
50,288
|
Total net
revenues
|
12,169,094
|
15,952,945
|
2,317,664
|
Cost of goods
sold
|
(9,213,001)
|
(12,258,473)
|
(1,780,926)
|
Gross
profit
|
2,956,093
|
3,694,472
|
536,738
|
Operating
expenses
|
|
|
|
Fulfillment
expenses(2)
|
(1,079,428)
|
(1,436,200)
|
(208,653)
|
Marketing
expenses
|
(603,812)
|
(729,549)
|
(105,990)
|
Technology and
content expenses
|
(326,674)
|
(419,533)
|
(60,950)
|
General and
administrative expenses(3)
|
(382,288)
|
(542,172)
|
(78,767)
|
Total operating
expenses
|
(2,392,202)
|
(3,127,454)
|
(454,360)
|
Other
income
|
32,175
|
169,578
|
24,637
|
Income from
operations
|
596,066
|
736,596
|
107,015
|
Interest
expenses
|
(22,417)
|
(25,113)
|
(3,648)
|
Interest
income
|
27,757
|
25,860
|
3,757
|
Exchange
loss
|
(6,845)
|
(10,437)
|
(1,516)
|
Income before income
taxes and share of loss of affiliates
|
594,561
|
726,906
|
105,608
|
Income tax
expense(4)
|
(131,029)
|
(165,911)
|
(24,104)
|
Share of loss of
affiliates
|
(16,849)
|
(17,686)
|
(2,569)
|
Net income
|
446,683
|
543,309
|
78,935
|
Net loss attributable
to noncontrolling interests
|
27,885
|
8,608
|
1,251
|
Net income
attributable to Vipshop's shareholders
|
474,568
|
551,917
|
80,186
|
|
|
|
|
Shares used in
calculating earnings per share(5):
|
|
|
|
Class A and Class B
ordinary shares:
|
|
|
|
—Basic
|
115,241,944
|
116,819,173
|
116,819,173
|
—Diluted
|
124,277,310
|
125,067,816
|
125,067,816
|
|
|
|
|
Net earnings per
Class A and Class B share
|
|
|
|
Net income
attributable to Vipshop's shareholders——Basic
|
4.12
|
4.72
|
0.69
|
Net income
attributable to Vipshop's shareholders——Diluted
|
3.99
|
4.59
|
0.67
|
|
|
|
|
Net earnings per ADS
(1 ordinary share equals to 5 ADSs)
|
|
|
|
Net income
attributable to Vipshop's shareholders——Basic
|
0.82
|
0.94
|
0.14
|
Net income
attributable to Vipshop's shareholders——Diluted
|
0.80
|
0.92
|
0.13
|
(1) Other revenues
primarily consist of revenues from third-party logistics
services,
product promotion
and online advertising, fees charged to third-party merchants which
the Company
provides platform
access for sales of their products,and inventory and
warehouse
management
services to certain suppliers.
|
|
|
(2) Including
shipping and handling expenses, which amounted RMB 562million and
RMB 771
million in
the three month periods ended March 31, 2016 and March 31,
2017, respectively.
|
|
|
(3)Including
amortization of intangible assets resulting from business
acquisitions, which
amounted to RMB 77
million and RMB 87 million in the three months period ended March
31,
2016 and
March 31, 2017, respectively.
|
|
|
(4)Included income
tax benefits of RMB 20 million and RMB 22 million related to the
reversal
of deferred tax
liabilities, which was recognized on business acquisitions for the
three
months period
ended March 31, 2016 and March 31, 2017,
respectively.
|
|
|
(5) Authorized
share capital are re-classified and re-designated into Class A
ordinary shares
and Class B
ordinary shares, with each Class A ordinary share being entitled to
one vote and
each Class B
ordinary share being entitled to ten votes on all matters that are
subject to
shareholder
vote.
|
|
|
|
|
|
|
|
|
|
|
Net income
|
446,683
|
543,309
|
78,935
|
Other comprehensive
(loss) income, net of tax:
|
|
|
|
Foreign currency
translation adjustments
|
(4,850)
|
25,243
|
3,667
|
Unrealized (loss)
gain from available-for-sale securities
|
(29,078)
|
22,451
|
3,262
|
Comprehensive
income
|
412,755
|
591,003
|
85,864
|
Less: Comprehensive
loss attributable to noncontrolling interests
|
(26,434)
|
(8,608)
|
(1,251)
|
Comprehensive income
attributable to Vipshop's shareholders
|
439,189
|
599,611
|
87,115
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,2016
|
March
31,2017
|
March
31,2017
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Share-based
compensation charges included are as follows
|
|
|
|
Fulfillment
expenses
|
7,125
|
18,096
|
2,629
|
Marketing
expenses
|
9,325
|
10,298
|
1,496
|
Technology and
content expenses
|
35,768
|
51,832
|
7,530
|
General and
administrative expenses
|
39,809
|
100,147
|
14,549
|
Total
|
92,027
|
180,373
|
26,204
|
|
|
|
|
|
|
|
|
|
|
|
|
Vipshop Holdings
Limited
|
|
Condensed
Consolidated Balance Sheets
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,2016
|
March
31,2017
|
March
31,2017
|
|
RMB'000
|
RMB'000
|
USD'000
|
ASSETS
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
4,109,577
|
4,434,837
|
644,299
|
Held-to-maturity
securities
|
671,776
|
746,241
|
108,415
|
Accounts receivable,
net
|
2,333,918
|
2,726,474
|
396,106
|
Amounts due from
related parties
|
8,352
|
5,727
|
832
|
Other receivables and
prepayments,net
|
2,293,825
|
2,209,877
|
321,054
|
Inventories
|
4,948,609
|
3,616,175
|
525,362
|
Deferred tax
assets
|
214,815
|
-
|
-
|
Total current
assets
|
14,580,872
|
13,739,331
|
1,996,068
|
NON-CURRENT
ASSETS
|
|
|
|
Property and
equipment, net
|
4,467,451
|
4,613,568
|
670,265
|
Deposits for property
and equipment
|
1,039,793
|
978,628
|
142,176
|
Land use rights,
net
|
2,399,058
|
2,993,787
|
434,941
|
Intangible assets,
net
|
725,147
|
653,764
|
94,980
|
Investment in
affiliates
|
93,144
|
77,224
|
11,219
|
Other
investments
|
503,117
|
507,718
|
73,762
|
Available-for-sale
securities investments
|
407,944
|
428,578
|
62,264
|
Other long-term
assets
|
510,821
|
72,438
|
10,524
|
Goodwill
|
367,106
|
367,106
|
53,334
|
Deferred tax
assets
|
-
|
274,959
|
39,946
|
Total non-current
assets
|
10,513,581
|
10,967,770
|
1,593,411
|
TOTAL
ASSETS
|
25,094,453
|
24,707,101
|
3,589,479
|
|
|
|
|
LIABILTIES
AND EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts payable
(Including accounts payable of the VIE without
recourse to the
Company of RMB 22,471 and RMB 34,088 as of
December 31, 2016
and March 31, 2017, respectively)
|
8,333,610
|
7,835,445
|
1,138,343
|
Advance from
customers (Including advance from customers of the
VIE without recourse
to the Company of RMB 1,211,643 and RMB
1,038,913 as
of December 31, 2016 and March 31, 2017,
respectively)
|
2,699,981
|
1,912,760
|
277,888
|
Accrued expenses and
other current liabilities(Including accrued
expenses and other
current liabilities of the VIE without recourse to
the Company of
RMB 1,257,667 and RMB 1,302,147 as
of
December 31, 2016
and March 31, 2017, respectively)
|
3,322,599
|
3,273,506
|
475,580
|
Amounts due to
related parties(Including amounts due to related
parties of the VIE
without recourse to the Company of RMB 591
and RMB 243 as
of December 31, 2016 and March 31, 2017,
respectively)
|
52,729
|
27,303
|
3,967
|
Deferred income
(Including deferred income of the VIE without
recourse to the
Company of RMB 16,222 and RMB6,435 as of
December 31, 2016
and March 31, 2017, respectively)
|
174,547
|
140,108
|
20,355
|
Securitization
debt
|
-
|
285,000
|
41,405
|
Total current
liabilities
|
14,583,466
|
13,474,122
|
1,957,538
|
NON-CURRENT
LIABILITIES
|
|
|
|
Deferred tax
liability(Including deferred tax of the VIE without
recourse to the
Company of RMB 4,904 and RMB 4,477 as
of
December 31, 2016
and March 31, 2017, respectively)
|
100,583
|
78,786
|
11,446
|
Deferred income-non
current (Including deferred income-non current
of the VIE without
recourse to the Company of RMB 1,928 and
RMB 1,565 as of
December 31, 2016 and March 31, 2017,
respectively)
|
246,902
|
254,919
|
37,035
|
Convertible senior
notes
|
4,381,698
|
4,342,314
|
630,857
|
Total non-current
liabilities
|
4,729,183
|
4,676,019
|
679,338
|
Total
liabilities
|
19,312,649
|
18,150,141
|
2,636,876
|
|
|
|
|
EQUITY:
|
|
|
|
Class A ordinary
shares (US$0.0001 par value, 483,489,642 shares
authorized, and
101,508,264 and 101,508,264 shares issued and
outstanding as of
December 31, 2016 and March 31, 2017,
respectively)
|
66
|
66
|
10
|
Class B ordinary
shares (US$0.0001 par value, 16,510,358 shares
authorized, and
16,510,358 and 16,510,358 shares issued and
outstanding as of
December 31, 2016 and March 31, 2017,
respectively)
|
11
|
11
|
2
|
Treasury shares, at
cost - 1,356,918 shares and - 983,683 shares
as of December 31,
2016 and March 31, 2017
|
(707,441)
|
(508,255)
|
(73,840)
|
Additional paid-in
capital
|
3,130,126
|
3,115,090
|
452,564
|
Retained
earnings
|
3,653,026
|
4,204,943
|
610,899
|
Accumulated other
comprehensive loss
|
(343,608)
|
(295,911)
|
(42,991)
|
Noncontrolling
interests
|
49,624
|
41,016
|
5,959
|
Total shareholders'
equity
|
5,781,804
|
6,556,960
|
952,603
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
25,094,453
|
24,707,101
|
3,589,479
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Vipshop Holdings
Limited
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,2016
|
March
31,2017
|
March
31,2017
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Income from
operations
|
596,066
|
736,596
|
107,015
|
Share-based
compensation expenses
|
92,027
|
180,373
|
26,204
|
Amortization of
intangible assets resulting from business acquisitions
|
77,093
|
87,186
|
12,667
|
Non-GAAP income from
operations
|
765,186
|
1,004,155
|
145,886
|
|
|
|
|
|
|
|
|
Net income
|
446,683
|
543,309
|
78,935
|
Share-based
compensation expenses
|
92,027
|
180,373
|
26,204
|
Amortization of
intangible assets resulting from business acquisitions
and equity method
investments
|
90,952
|
101,615
|
14,763
|
Tax effect of
amortization of intangible assets resulting from
business
acquisitions
|
(19,887)
|
(21,797)
|
(3,167)
|
Non-GAAP net
income
|
609,775
|
803,500
|
116,735
|
|
|
|
|
|
|
|
|
Net income
attributable to Vipshop's shareholders
|
474,568
|
551,917
|
80,186
|
Share-based
compensation expenses
|
92,027
|
180,373
|
26,204
|
Amortization of
intangible assets resulting from business acquisitions
and equity method
investments
|
71,679
|
84,721
|
12,309
|
Tax effect of
amortization of intangible assets resulting from
business
acquisitions
|
(14,915)
|
(17,573)
|
(2,553)
|
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders
|
623,359
|
799,438
|
116,146
|
|
|
|
|
|
|
|
|
Shares used in
calculating earnings per share:
|
|
|
|
Basic ordinary
shares:
|
|
|
|
Class A and Class B
ordinary shares:
|
|
|
|
—Basic
|
115,241,944
|
116,819,173
|
116,819,173
|
—Diluted
|
124,277,310
|
125,067,816
|
125,067,816
|
|
|
|
|
Non-GAAP net income
per Class A and Class B share
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders——Basic
|
5.41
|
6.84
|
0.99
|
Non-GAAP net income
attributable to Vipshop's
shareholders——Diluted
|
5.19
|
6.57
|
0.95
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per ADS (1 ordinary share equal to 5 ADSs)
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders——Basic
|
1.08
|
1.37
|
0.20
|
Non-GAAP net income
attributable to Vipshop's
shareholders——Diluted
|
1.04
|
1.31
|
0.19
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-first-quarter-2017-financial-results-300457481.html
SOURCE Vipshop Holdings Limited