BEIJING, Aug. 18, 2014 /PRNewswire/ -- Jumei International
Holding Limited (NYSE: JMEI) ("Jumei" or the
"Company"), China's leading online retailer of beauty
products, today announced its unaudited financial results for the
second quarter ended June 30, 2014.
The Company will host a conference call to discuss the results at
8:00 AM U.S. Eastern Daylight Time on
August 19, 2014 (8:00 PM China time on the same day).
Second Quarter 2014 Highlights
- Total net GMV[1] increased 64.3% year-over-year to US$289.4 million, primarily due to a 42.9%
increase in the number of active customers[2] and a 39.2% increase
in total orders[3]
- Net revenues increased 41.9% year-over-year to US$154.4 million
- Gross profit as a percentage of net revenues increased to 46.3%
from 41.5% during the same period of 2013. Gross profit as a
percentage of total net GMV decreased to 24.7% from 25.7% for the
same period in 2013, primarily due to the expansion of marketplace
services.
- Net income attributable to ordinary shareholders increased
53.6% to US$15.4 million
- Non-GAAP net income attributable to ordinary shareholders[4]
increased 68.2% to US$17.8
million
- The Company successfully completed its IPO on the New York
Stock Exchange on May 16, 2014.
Including the exercise of the over-allotment and the concurrent
private placement, the Company raised a total of US$429.9
million.
[1]
|
"Net GMV" are to the
sum of (i) net revenues generated from merchandise sales, and (ii)
net revenues generated from marketplace services and adding back
corresponding payables to our third-party merchants;
|
[2]
|
An "active customer"
for a specified period is a customer that made at least one
purchase during the period;
|
[3]
|
Total orders are
defined as the total number of orders placed during the period,
excluding rejected or returned orders;
|
[4]
|
Non-GAAP net income
attributable to ordinary shareholders is a non-GAAP financial
measure, which is defined as net income attributable to ordinary
shareholders excluding share-based compensation expenses. See "Use
of Non-GAAP Financial Measures" and "Unaudited Reconciliation of
GAAP and Non-GAAP Results."
|
Mr. Leo Chen, founder and CEO of
Jumei, stated, "We are thrilled to report robust quarterly
financial results, which reflect our continued growth momentum and
increasing operational efficiencies, evidenced by 64.3%
year-over-year growth in total net GMV, 41.9% growth in net
revenues, and a 53.6% increase in net income attributable to
ordinary shareholders. This is our first quarterly earnings
announcement after our successful IPO on the New York Stock
Exchange on May 16, 2014, which was a
significant milestone in Jumei's history. We are committed to
enhancing our supply chain management and implementing strict
quality control measures so that we can continue to attract more
top-tier beauty brands from both China and around the world. As a part of these
efforts, we expanded random product testing in June 2014 in order to reinforce Jumei's
reputation for quality and reliability with Chinese consumers. Our
purpose is to raise the bar in China's online beauty industry and set new
benchmarks in our ongoing anti-counterfeiting campaign."
Ms. Mona Gao, Co-CFO of Jumei,
added, "This marks the ninth
consecutive quarter in which we have posted strong and profitable
growth. This performance clearly reinforces our significant market
leading position in China's online
B2C beauty market and demonstrates our ability to continue to cross
sell into other female categories such as apparel."
Mr. Yunsheng Zheng, Co-CFO of
Jumei concluded, "Looking forward,
we will continue to focus on our strategy of adding more private
label and exclusive beauty products to our wide range of product
offerings. Striking a balance between our product offerings and
market place services along with the continued execution of our
strategy, should allow us to maximize shareholder value over the
long term."
Unaudited Second Quarter 2014 Financial Results
Total net revenues were US$154.4
million, an increase of 41.9% from US$108.8 million in the second quarter of 2013.
This increase was primarily attributable to the increase in the
number of active customers and total orders. The number of active
customers increased by 42.9% to approximately 5.0 million from
approximately 3.5 million in the same period of 2013. The number of total
orders increased by 39.2% to approximately 11.0 million from
approximately 7.9 million in the same period of 2013.
Gross profit was US$71.5
million, an increase of 58.3% from US$45.2 million in the second quarter of 2013.
Gross profit as a percentage of net revenues increased to 46.3%
from 41.5% during the same period of 2013. The increase was mainly
attributable to the higher percentage of net revenues generated
from marketplace services. Gross profit from merchandise sales as a
percentage of net GMV of merchandise
sales increased to 32.8% from 32.2% in the same period of
2013, primarily as a result of the increased percentage of net
revenues generated from sales of exclusive products and improved
economies of scale. Gross profit as a percentage of net GMV
decreased to 24.7% from 25.7% in the same period of 2013, primarily
due to the expansion of marketplace services.
Total operating expenses were US$50.4 million, an increase of 96.6% from
US$25.7 million in the second quarter
of 2013. The increase reflects the Company's overall business
expansion. Operating expenses as a percentage of total net GMV
increased to 17.4% from 14.6% during the same period of 2013,
primarily due to the expanded scale of the business and related
marketing expenses.
- Fulfillment expenses were US$19.5 million, an increase of 54.4% from
US$12.6 million in the same period of
2013. The increase was mainly due to the significant increase in
the number of orders fulfilled. Fulfillment expenses as a
percentage of total net GMV decreased to 6.7% from 7.2% for the
same period of 2013, primarily due to the increased percentage of
net GMV generated from apparel marketplace services, for which the
Company does not provide fulfillment services.
- Marketing expenses were US$21.9 million, an increase of 146.2% from
US$8.9 million for the same period of
2013. The increase was primarily a result of Jumei's successful
marketing campaigns and brand promotion activities, and directly
reflects the Company's efforts to grow its customer base and gain
market share in the female beauty and apparel market. Marketing
expenses as a percentage of total net GMV increased to 7.6% from
5.1% for the same period of 2013.
- Technology and content expenses were US$4.7 million, an increase of 110.7% from
US$2.2 million in the same period of
2013. The increase reflects Jumei's ongoing investments in the
Company's information technology platform and commitment to recruit
top research and development talents in order to provide better
technology-enabled services to both consumers and merchants.
Technology and content expenses as a percentage of total net GMV
increased to 1.6% from 1.3% for the same period of 2013.
- General and administrative expenses were
US$4.3 million,
an increase of 129.8% from US$1.9 million for the same period of 2013. The
increase was mainly due to increases in general and administrative
staff headcount and rental and office expenses to support business
growth. General and administrative expenses as a percentage of
total net GMV increased to 1.5% from 1.1% for the same period of
2013.
Income from operations was US$21.1
million, an increase of 7.9% from US$19.5 million for the same period of 2013.
Non-GAAP income from operations, which excludes
US$2.5 million in share-based
compensation expenses, was US$23.6
million, an increase of 16.9% from US$20.2 million for the same period of 2013.
Net income attributable to ordinary shareholders was
US$15.4 million, an increase of 53.6%
from US$10.0 million for the same
period of 2013. Net margin attributable to ordinary shareholders
increased to 9.9% from 9.2% for the same period of 2013. Net income
per basic and diluted ADS were US$0.15 and US$0.13, respectively, compared with US$0.17 and US$0.12
for the same period of 2013, respectively.
Non-GAAP net income attributable to ordinary
shareholders, which excludes share-based compensation expenses,
was US$17.8 million, an increase of
68.2% from US$10.6 million for the
same period of 2013. Non-GAAP net margin attributable to ordinary
shareholders increased to 11.6% from 9.8% for the same period of
2013. Non-GAAP net income per basic and diluted ADS were
US$0.17 and US$0.16, respectively, compared with US$0.18 and US$0.13
for the same period of 2013, respectively.
Share Count
The Company's weighted average number of ADSs used in computing
diluted earnings per ADS was 114,512,550.
Balance Sheet
As of June 30, 2014, the Company
had cash and cash equivalents of US$84.0
million, and short-term investments of US$493.3 million.
Business Highlights
Random sample spectrum analysis testing
Jumei began expanding the scope of random sample testing in
June 2014, when the Company's
Beijing consulting laboratory
increased the sample size for testing from 12% of third party
merchants to more than 67%, covering 17% of beauty product
marketplace SKUs. The tests in June discovered no instances of
counterfeiting or other product discrepancies. Jumei has already
begun posting monthly spectrum analysis audits of third party
merchants in Chinese, which can be found at
http://www.jumei.com/act/sepuceshi.html. The spectrum analysis
audits will be updated monthly to reflect the previous month's
testing results.
Authentic Beauty Product Alliance
As of July 30, 2014, the Authentic
Beauty Product Alliance (ABPA) had 84 members, and accounted for
approximately 70% of Jumei's merchandise sales GMV. All such brands
are available on Jumei's platform.
Business Outlook
For the year of 2014, the Company expects its non-GAAP net income to be
between US$81 million and US$87
million, representing a year-over-year growth rate of
approximately 40% to 50%. These forecasts reflect the Company's
current and preliminary view on the market and operational
conditions, which are subject to change.
Conference Call information
Jumei's management will host a conference call on Tuesday, August 19, 2014 at 8:00 a.m. U.S. Eastern Daylight Time
(8:00 p.m. Beijing / Hong Kong Time on the same day) to
discuss the financial results.
The dial-in details for the earnings conference call are as
follows:
Hong
Kong:
|
800-908-575 (Toll
Free)
|
|
3056-2688
(Toll/Mobile)
|
|
|
China:
|
800-803-6152 (Toll
Free)
|
|
400-603-9021
(Toll/Mobile)
|
|
|
USA:
|
1-877-679-2987 (Toll
Free)
|
|
646-502-5131
(Toll/Mobile)
|
|
|
UK:
|
0800-376-2927 (Toll
Free)
|
|
020-7660-2114
(Toll/Mobile)
|
|
|
Participant PIN
Code:
|
794133#
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call through 12:00 a.m. U.S.
Eastern Daylight Time, September 18, 2014. The dial-in details
for the replay are as follows:
International:
|
852-3060-0238
|
USA:
|
1-866-345-5132
|
Passcode:
|
213236#
|
A live and archived webcast of the conference call will be
available on the Investor Relations section of Jumei's website at
http://jumei.investorroom.com/.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with the United States Generally Accepted Accounting
Principles ("GAAP"), Jumei uses non-GAAP
income from operations, non-GAAP net income attributable to ordinary
shareholders, non-GAAP net margin
attributable to ordinary shareholders and non-GAAP net income per ADS, by
excluding share-based compensation expenses from operating profit
and net income attributable to the Company's shareholders,
respectively. The Company believes these non-GAAP financial
measures are important to help investors understand Jumei's
operating and financial performance, compare business trends among
different reporting periods on a consistent basis and assess
Jumei's core operating results, as they exclude certain expenses
that are not expected to result in cash payments. The use of the
above non-GAAP financial measures has certain limitations.
Share-based compensation expenses have been and will continue to be
incurred in the future and are not reflected in the presentation of
the non-GAAP financial measures, but should be considered in the
overall evaluation of Jumei's results. The Company compensates for
these limitations by providing the relevant disclosure of its
share-based compensation expenses in the reconciliations to the
most directly comparable GAAP financial measures, which should be
considered when evaluating Jumei's performance. These non-GAAP
financial measures should be considered in addition to financial
measures prepared in accordance with GAAP, but should not be
considered a substitute for, or superior to, financial measures
prepared in accordance with GAAP. Reconciliation of each of these
non-GAAP financial measures to the most directly comparable GAAP
financial measure is set forth at the end of this release.
About Jumei International Holding Limited
Jumei (NYSE: JMEI) is China's No. 1 online
retailer of beauty products as measured by gross merchandise
volume, with a market share of 22.1% in 2013, according to a
commissioned research report by Frost & Sullivan. Jumei's
internet platform is a trusted destination for consumers to
discover and purchase branded beauty products and fashionable
apparel and other lifestyle products through the
Company's jumei.com website and mobile
application. Leveraging its deep understanding of customer needs
and preferences, as well as its strong merchandizing capabilities,
Jumei has adopted multiple effective sales formats to encourage
product purchases on its platform, including curated sales, online
shopping mall and flash sales.
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 Jumei's strategic and operational plans,
contain forward-looking statements. Jumei may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K,
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 Jumei'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: the Company's goals and strategies; the
Company's future business development, results of operations and
financial condition; the expected growth of the Company's curated
sales, online shopping mall and flash sales in China; the Company's ability to attract and
retain new customers and to increase revenues generated from repeat
customers; its ability to obtain the authorization of more
exclusive products; its expectations regarding demand for and
market acceptance of its products and services; trends and
competition in China's online
retailers of beauty products; 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 Jumei's
filings with the SEC, including its registration statement on Form
F-1, as amended. All information provided in this press release and
in the attachments is as of the date of this press release, and
Jumei does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please contact:
Jumei International Holding Limited
Mr. Sterling Song
Investor Relations Director
Phone: +86-10-5676-6983
kans@jumei.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
JUMEI
INTERNATIONAL HOLDING LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands, except share data and per share data)
|
|
|
|
|
December 31, 2013
|
|
June 30, 2014
|
|
|
|
US$
|
|
US$
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
111,402
|
|
83,960
|
Short-term
investments
|
|
|
4,100
|
|
493,306
|
Accounts receivable,
net
|
|
|
2,807
|
|
4,171
|
Amount due from
related parties
|
|
|
-
|
|
140
|
Inventories
|
|
|
32,653
|
|
53,252
|
Advances to
suppliers
|
|
|
22,343
|
|
13,030
|
Prepayments and other
current assets
|
|
|
9,289
|
|
11,099
|
Deferred tax
assets
|
|
|
292
|
|
289
|
Total current
assets
|
|
|
182,886
|
|
659,247
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
Property, equipment
and software, net
|
|
|
5,394
|
|
6,738
|
Intangible assets,
net
|
|
|
36
|
|
27
|
Goodwill
|
|
|
2,320
|
|
2,320
|
Deferred tax
assets
|
|
|
2,706
|
|
2,140
|
Other non-current
assets
|
|
|
1,969
|
|
2,177
|
Total non-current
assets
|
|
|
12,425
|
|
13,402
|
Total
assets
|
|
|
195,311
|
|
672,649
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
|
88,766
|
|
121,009
|
Amount due to related
parties
|
|
|
280
|
|
-
|
Advances from
customers
|
|
|
4,506
|
|
6,306
|
Tax
payable
|
|
|
16,264
|
|
12,984
|
Accrued expenses and
other current liabilities
|
|
|
9,835
|
|
15,124
|
Total
current liabilities
|
|
|
119,651
|
|
155,423
|
Non-current
liabilities
|
|
|
|
|
|
Other non-current
liabilities
|
|
|
-
|
|
972
|
Total
non-current liabilities
|
|
|
-
|
|
972
|
Total
liabilities
|
|
|
119,651
|
|
156,395
|
Mezzanine
Equity
|
|
|
|
|
|
Series A-1 Redeemable
Preferred
Shares
|
|
|
647
|
|
-
|
Series A-2 Redeemable
Preferred
Shares
|
|
|
8,854
|
|
-
|
Series B Redeemable
Preferred
Shares
|
|
|
7,683
|
|
-
|
Total mezzanine
equity
|
|
|
17,184
|
|
-
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
|
|
20
|
|
36
|
Additional paid-in
capital
|
|
|
32,652
|
|
456,170
|
Statutory
reserves
|
|
|
449
|
|
449
|
Retained
earnings
|
|
|
24,238
|
|
59,211
|
Accumulated other
comprehensive income
|
|
|
1,117
|
|
388
|
Total
shareholders' equity
|
|
|
58,476
|
|
516,254
|
Total
liabilities, mezzanine equity and shareholders'
equity
|
|
|
195,311
|
|
672,649
|
JUMEI
INTERNATIONAL HOLDING LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(U.S. dollars in
thousands, except share data and per share data)
|
|
|
|
For the
three months ended
|
|
|
June 30,
2013
|
|
March 31, 2014
|
|
June 30, 2014
|
|
|
US$
|
|
US$
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
|
Merchandise
sales
|
|
93,716
|
|
129,833
|
|
123,316
|
Marketplace
services
|
|
15,049
|
|
25,026
|
|
31,043
|
Total
net revenues
|
|
108,765
|
|
154,859
|
|
154,359
|
Cost of
revenues
|
|
(63,582)
|
|
(86,517)
|
|
(82,843)
|
Gross
profit
|
|
45,183
|
|
68,342
|
|
71,516
|
Operating
expenses:
|
|
|
|
|
|
|
Fulfillment
expenses
|
|
(12,649)
|
|
(19,886)
|
|
(19,524)
|
Marketing
expenses
|
|
(8,908)
|
|
(23,432)
|
|
(21,933)
|
Technology and
content expenses
|
|
(2,222)
|
|
(4,256)
|
|
(4,681)
|
General and
administrative expenses
|
|
(1,874)
|
|
(3,656)
|
|
(4,307)
|
Total operating
expenses
|
|
(25,653)
|
|
(51,230)
|
|
(50,445)
|
Income from
operations
|
|
19,530
|
|
17,112
|
|
21,071
|
Other
income/(expenses):
|
|
|
|
|
|
|
Interest
income
|
|
213
|
|
884
|
|
2,206
|
Others,
net
|
|
165
|
|
2,693
|
|
1,488
|
Income
before tax
|
|
19,908
|
|
20,689
|
|
24,765
|
Income tax
expenses
|
|
(4,099)
|
|
(4,138)
|
|
(5,587)
|
Net
income
|
|
15,809
|
|
16,551
|
|
19,178
|
Accretion to
preferred share redemption value
|
|
(449)
|
|
(520)
|
|
(235)
|
Income allocation to participating Redeemable Preferred Shares
|
|
(5,367)
|
|
(5,538)
|
|
(3,589)
|
Net
income attributable to
ordinary shareholders
|
|
9,993
|
|
10,493
|
|
15,354
|
|
|
|
|
|
|
|
Net
income
|
|
15,809
|
|
16,551
|
|
19,178
|
Foreign currency
translation adjustment, net of nil tax
|
|
379
|
|
(746)
|
|
17
|
Comprehensive
income
|
|
16,188
|
|
15,805
|
|
19,195
|
|
|
|
|
|
|
|
Net income per
share
|
|
|
|
|
|
|
- Basic
|
|
0.17
|
|
0.16
|
|
0.15
|
- Diluted
|
|
0.12
|
|
0.12
|
|
0.13
|
Net income per ADS
(1 ordinary share equals to 1 ADS)
|
|
|
|
|
|
|
-
Basic
|
|
0.17
|
|
0.16
|
|
0.15
|
- Diluted
|
|
0.12
|
|
0.12
|
|
0.13
|
Weighted average
shares
outstanding used in computing
net
income per share
|
|
|
|
|
|
|
-
Basic
|
|
57,971,786
|
|
66,471,596
|
|
102,350,714
|
- Diluted
|
|
82,870,484
|
84,718,363
|
|
114,512,550
|
|
|
|
|
|
|
|
|
|
For the
three months ended
|
|
|
June 30,
2013
|
|
March 31,
2014
|
|
June 30,
2014
|
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
Share-based
compensation expenses included are follows:
|
|
|
|
|
|
|
Fulfillment expenses
|
|
-
|
|
226
|
|
243
|
Marketing expenses
|
|
116
|
|
393
|
|
1,130
|
Technology and
content expenses
|
|
276
|
|
242
|
|
418
|
General and
administrative expenses
|
|
228
|
|
505
|
|
701
|
Total
|
|
620
|
|
1,366
|
|
2,492
|
JUMEI
INTERNATIONAL HOLDING LIMITED
|
UNAUDITED RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(U.S. dollars in
thousands, except share data and per share data)
|
|
|
|
For the
three months ended
|
|
|
June 30, 2013
|
|
March 31, 2014
|
|
June 30, 2014
|
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
Income from
operations
|
|
19,530
|
|
17,112
|
|
21,071
|
Share-based
compensation expenses
|
|
620
|
|
1,366
|
|
2,492
|
Non-GAAP income from
operations
|
|
20,150
|
|
18,478
|
|
23,563
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
|
|
9,993
|
|
10,493
|
|
15,354
|
Share-based
compensation expenses
|
|
620
|
|
1,366
|
|
2,492
|
Non-GAAP net income
attributable to ordinary shareholders
|
|
10,613
|
|
11,859
|
|
17,846
|
|
|
|
|
|
|
|
Non-GAAP net
income per share
|
|
|
|
|
|
|
-Basic
|
|
0.18
|
|
0.18
|
|
0.17
|
-Diluted
|
|
0.13
|
|
0.14
|
|
0.16
|
Non-GAAP net
income per ADS (1 ordinary
share equals to 1 ADS)
|
|
|
|
|
|
|
-Basic
|
|
0.18
|
|
0.18
|
|
0.17
|
-Diluted
|
|
0.13
|
|
0.14
|
|
0.16
|
Non-GAAP weighted
average shares
outstanding used in computing net income
per share:
|
|
|
|
|
|
|
-Basic
|
|
57,971,786
|
|
66,471,596
|
|
102,350,714
|
-Diluted
|
|
82,870,484
|
|
84,718,363
|
|
114,512,550
|
|
|
|
|
|
|
|
SOURCE Jumei International Holding limited