BEIJING, Nov. 19, 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
quarter ended September 30, 2014. The Company will host a
conference call to discuss the results at 7:30 AM U.S.
Eastern Standard Time on November 20, 2014 (8:30
PM China time on the same day).
Third Quarter 2014 Highlights
- Total net GMV[1] increased by 31.4% year-over-year
to US$273.0 million, primarily due to a 23.8% increase in the
number of active customers[2] and a 14.1% increase in
total orders[3]
- Net revenues increased 28.0% year-over-year to US$157.7
million
- Gross profit as a percentage of net revenues decreased to 38.0%
from 43.7% in the same period of 2013. Gross profit as a percentage
of total net GMV decreased to 22.0% from 25.9% in the same period
of 2013. The decreases were primarily due to an increase in
promotional activities, which led to relatively higher pricing
discounts, as well as the higher value-added tax paid as a result
of a shift from beauty product marketplace sales to merchandise
sales
- Net income attributable to ordinary shareholders increased by
88.6% year-over-year to US$19.5 million
- Non-GAAP net income attributable to ordinary
shareholders[4] was US$21.0 million, an increase of
87.4% from the same period of 2013
[1]
|
"Net GMV" means the
sum of (i) net revenues generated from merchandise sales, and (ii)
net revenues generated from marketplace services plus corresponding
payables to third-party merchants;
|
[2]
|
"Active customer"
means a customer that made at least one purchase during a specified
period;
|
[3]
|
"Total orders" means
the total number of orders placed during a period, excluding
rejected or returned orders;
|
[4]
|
"Non-GAAP net income
attributable to ordinary shareholders" is a non-GAAP financial
measure 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 just
delivered the tenth consecutive quarter of strong growth and
profitability. Despite this being a quarter of transition, we saw
net income attributable to ordinary shareholders increase by 88.6%
and mobile transactions as percentage of net GMV reach 57%. As we
communicated to investors during our IPO roadshow, we are working
to eventually move most of our beauty product marketplace sales to
merchandise sales. We began this move in September and expect to
complete it by the end of this year. Marketplace beauty product
sales will then be replaced by direct brand cooperation, department
store purchases and Jumei Global. Jumei Global was officially
launched in September and has quickly ramped up. This strategic
transition gives us further control over the entire beauty supply
chain and further strengthens our quality control.
"Our company strives for zero tolerance when it comes to quality
issues and we have long been setting industry standards for quality
control. In October, we commenced operations at our in-house
spectrum analysis lab. As of November, the lab is routinely testing
around 300 SKUs per month, including
the SKUs from customer returns.
"We also continue to develop and reinforce the Authentic Beauty
Product Alliance (ABPA). As of September 30,
2014, the ABPA had 102 members. Since the second quarter of
this year, brands that have joined the ABPA include Elizabeth Arden, Whoo, Aupres, Jurlique, Chando,
Za, and others."
Unaudited Third Quarter 2014 Financial Results
Total net revenues were US$157.7 million, an
increase of 28.0% from US$123.3 million in the third
quarter of 2013. This increase was primarily attributable to the
rise in the number of active customers and total orders. The number
of active customers increased by 23.8% to 5.2 million from 4.2
million in the same period of 2013. The number of total
orders increased by 14.1% to 10.5 million from 9.2 million in
the same period of 2013.
Gross profit was US$59.9 million, an increase
of 11.4% from US$53.8 million in the third quarter of
2013. Gross profit as a percentage of net revenues decreased to
38.0% from 43.7% in the same period of 2013. Gross profit from
merchandise sales as a percentage of net GMV of merchandise
sales decreased to 29.4% from 33.8% in the same period of
2013, and gross profit as a percentage of net GMV decreased to
22.0% from 25.9% in the same period of 2013. The decrease was
primarily due to the launch of a variety of new promotional
marketing activities as well as an increase in value added tax as
the Company saw a shift in sales from marketplace sales to
merchandise sales.
Total operating expenses were US$42.7 million,
an increase of 28.0% from US$33.4 million in the third
quarter of 2013. The increase reflected the Company's overall
business expansion. Operating expenses as a percentage of total net
GMV decreased to 15.7% from 16.1% in the same period of 2013,
primarily due to greater economies of scale.
- Fulfillment expenses were US$16.6
million, an increase of 9.9% from US$15.1 million in the
same period of 2013. This was mainly due to an increase in the
number of orders fulfilled. Fulfillment expenses as a percentage of
total net GMV decreased significantly to 6.1% from 7.3% in the same
period of 2013, primarily due to greater economies of scale and
improving efficiencies in the Company's fulfillment.
- Marketing expenses were US$16.0
million, an increase of 29.2% from US$12.4 million in the
same period of 2013. The increase was primarily a result of the
higher number of marketing campaigns and brand promotion activities
that Jumei launched during the quarter, and reflects the Company's
efforts to grow its customer base and further gain market shares in
the beauty and apparel markets. Marketing expenses as a percentage
of total net GMV decreased slightly to 5.9% from 6.0% in the same
period of 2013.
- Technology and content
expenses were US$6.0 million, an increase of
111.7% from US$2.9 million in the same period of 2013.
The significant increase reflects Jumei's continuous investments in
the Company's information technology platform and commitment to
attract top research and development talent 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 2.2% from 1.4% in the same period of 2013.
- General and administrative
expenses were US$4.1 million,
an increase of 33.9% from US$3.1 million in
the same period of 2013. The increase was mainly due to an increase
in general and administrative staff headcount to support business
expansion and growth. General and administrative expenses as a
percentage of total net GMV was 1.5%, which is unchanged from the
same period of 2013.
Income from operations was US$17.2 million, a
decrease of 15.8% from US$20.4 million in the same period
of 2013.
Non-GAAP income from operations, which
excludes US$1.5 million in share-based compensation
expenses, was US$18.7 million, a decrease of 12.2%
from US$21.3 million in the same period of 2013.
Net income attributable to ordinary
shareholders was US$19.5 million, an increase of
88.6% from US$10.3 million in the same period of 2013,
partially as a result of the conversion of the Company's preferred
shares into ordinary shares at the completion of the IPO in
May, 2014. Net margin attributable
to ordinary shareholders increased to 12.4% from 8.4% in the same
period of 2013. Net income per basic and diluted ADS
were US$0.13 and US$0.13, 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$21.0 million, an increase of 87.4% from US$11.2
million in the same period of 2013. Non-GAAP net margin
attributable to ordinary shareholders increased to 13.3% from 9.1%
in the same period of 2013. Non-GAAP net income per basic and
diluted ADS were US$0.15 and US$0.14, compared
with US$0.19 and US$0.13 in the same period of
2013, respectively.
Share Count
The Company's weighted average number of ADSs used in computing
diluted earnings per ADS was 150,594,342.
Balance Sheet
As of September 30, 2014, the Company had cash and cash
equivalents of US$182.0 million, and short-term investments
of US$410.4 million.
Company Guidance
The Company reiterates its guidance provided in August 2014. For fiscal year 2014, the Company
expects non-GAAP net income to be between US$81 million
and US$87 million, representing
year-over-year growth 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
Jumei's management will host a conference call on Thursday, November
20, 2014 at 7:30 a.m. U.S. Eastern Standard
Time (8:30 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:
|
900139#
|
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 Standard Time, December 18, 2014. The dial-in details
for the replay are as follows:
Hong Kong and
International:
|
852-3060-0238
|
USA:
|
1-866-345-5132
|
Passcode:
|
213897#
|
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, 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
|
|
September 30, 2014
|
|
|
US$
|
|
US$
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
111,402
|
|
182,039
|
Short-term
investments
|
|
4,100
|
|
410,418
|
Loan
receivables
|
|
-
|
|
3,207
|
Accounts receivable,
net
|
|
2,807
|
|
4,548
|
Amount due from
related parties
|
|
-
|
|
172
|
Inventories
|
|
32,653
|
|
64,180
|
Advances to
suppliers
|
|
22,343
|
|
13,621
|
Prepayments and other
current assets
|
|
9,289
|
|
23,130
|
Deferred tax
assets
|
|
292
|
|
289
|
Total current
assets
|
|
182,886
|
|
701,604
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
Property, equipment
and software, net
|
|
5,394
|
|
8,377
|
Intangible assets,
net
|
|
36
|
|
12
|
Goodwill
|
|
2,320
|
|
2,320
|
Deferred tax
assets
|
|
2,706
|
|
2,140
|
Other non-current
assets
|
|
1,969
|
|
2,178
|
Total non-current
assets
|
|
12,425
|
|
15,027
|
Total
assets
|
|
195,311
|
|
716,631
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
88,766
|
|
145,375
|
Amount due to related
parties
|
|
280
|
|
-
|
Advances from
customers
|
|
4,506
|
|
5,263
|
Tax payable
|
|
16,264
|
|
14,870
|
Accrued expenses and
other current liabilities
|
|
9,835
|
|
12,836
|
Total
current liabilities
|
|
119,651
|
|
178,344
|
Non-current
liabilities
|
|
|
|
|
Other non-current
liabilities
|
|
-
|
|
907
|
Total
non-current liabilities
|
|
-
|
|
907
|
Total
liabilities
|
|
119,651
|
|
179,251
|
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
|
|
457,678
|
Statutory
reserves
|
|
449
|
|
449
|
Retained
earnings
|
|
24,238
|
|
78,707
|
Accumulated other
comprehensive income
|
|
1,117
|
|
510
|
Total
shareholders' equity
|
|
58,476
|
|
537,380
|
Total
liabilities, mezzanine equity and shareholders'
equity
|
|
195,311
|
|
716,631
|
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
|
|
|
September 30, 2013
|
|
June 30, 2014
|
|
September 30, 2014
|
|
|
US$
|
|
US$
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
|
Merchandise sales
|
|
104,885
|
|
123,316
|
|
138,559
|
Marketplace services
|
|
18,369
|
|
31,043
|
|
19,187
|
Total net
revenues
|
|
123,254
|
|
154,359
|
|
157,746
|
Cost of
revenues
|
|
(69,448)
|
|
(82,843)
|
|
(97,824)
|
Gross
profit
|
|
53,806
|
|
71,516
|
|
59,922
|
Operating
expenses:
|
|
|
|
|
|
|
Fulfillment expenses
|
|
(15,059)
|
|
(19,524)
|
|
(16,556)
|
Marketing expenses
|
|
(12,375)
|
|
(21,933)
|
|
(15,990)
|
Technology and content expenses
|
|
(2,855)
|
|
(4,681)
|
|
(6,043)
|
General and administrative
expenses
|
|
(3,099)
|
|
(4,307)
|
|
(4,149)
|
Total operating
expenses
|
|
(33,388)
|
|
(50,445)
|
|
(42,738)
|
Income from
operations
|
|
20,418
|
|
21,071
|
|
17,184
|
Other
income/(expenses):
|
|
|
|
|
|
|
Interest income
|
|
201
|
|
2,206
|
|
5,320
|
Others,
net
|
|
(5)
|
|
1,488
|
|
1,866
|
Income before
tax
|
|
20,614
|
|
24,765
|
|
24,370
|
Income tax expenses
|
|
(4,261)
|
|
(5,587)
|
|
(4,874)
|
Net
income
|
|
16,353
|
|
19,178
|
|
19,496
|
Accretion to preferred
share redemption value
|
|
(449)
|
|
(235)
|
|
-
|
Income allocation to
participating Redeemable
Preferred
Shares
|
|
(5,567)
|
|
(3,589)
|
|
-
|
Net income
attributable to ordinary shareholders
|
|
10,337
|
|
15,354
|
|
19,496
|
|
|
|
|
|
|
|
Net
income
|
|
16,353
|
|
19,178
|
|
19,496
|
Foreign currency
translation adjustment, net of nil tax
|
|
339
|
|
17
|
|
122
|
Comprehensive
income
|
|
16,692
|
|
19,195
|
|
19,618
|
|
|
|
|
|
|
|
Net income per
share
|
|
|
|
|
|
|
- Basic
|
|
0.17
|
|
0.15
|
|
0.13
|
- Diluted
|
|
0.12
|
|
0.13
|
|
0.13
|
Net income per ADS
(1 ordinary share equals to 1 ADS)
|
|
|
|
|
|
|
- Basic
|
|
0.17
|
|
0.15
|
|
0.13
|
- Diluted
|
|
0.12
|
|
0.13
|
|
0.13
|
|
|
|
|
|
|
|
Weighted average
shares outstanding used in computing
net income per
share
|
|
|
|
|
|
|
- Basic
|
|
60,122,899
|
|
102,350,714
|
|
144,712,235
|
- Diluted
|
|
83,375,808
|
|
114,512,550
|
|
150,594,342
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
September 30, 2013
|
|
June 30, 2014
|
|
September 30, 2014
|
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
Share-based
compensation expenses included are follows:
|
|
|
|
|
|
|
Fulfillment
expenses
|
|
151
|
|
243
|
|
243
|
Marketing
expenses
|
|
181
|
|
1,130
|
|
278
|
Technology and content
expenses
|
|
234
|
|
418
|
|
369
|
General and
administrative expenses
|
|
308
|
|
701
|
|
618
|
Total
|
|
874
|
|
2,492
|
|
1,508
|
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
|
|
|
September 30, 2013
|
|
June 30, 2014
|
|
September 30, 2014
|
|
|
US$
|
|
US$
|
|
US$
|
Income from
operations
|
|
20,418
|
|
21,071
|
|
17,184
|
Share-based
compensation expenses
|
|
874
|
|
2,492
|
|
1,508
|
Non-GAAP income from
operations
|
|
21,292
|
|
23,563
|
|
18,692
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders
|
|
10,337
|
|
15,354
|
|
19,496
|
Share-based
compensation expenses
|
|
874
|
|
2,492
|
|
1,508
|
Non-GAAP net income
attributable to ordinary shareholders
|
|
11,211
|
|
17,846
|
|
21,004
|
|
|
|
|
|
|
|
Non-GAAP net
income per share
|
|
|
|
|
|
|
- Basic
|
|
0.19
|
|
0.17
|
|
0.15
|
- Diluted
|
|
0.13
|
|
0.16
|
|
0.14
|
Non-GAAP net
income per ADS (1 ordinary share equals to 1 ADS)
|
|
|
|
|
|
|
- Basic
|
|
0.19
|
|
0.17
|
|
0.15
|
- Diluted
|
|
0.13
|
|
0.16
|
|
0.14
|
Non-GAAP weighted
average shares outstanding used in computing net
income per share:
|
|
|
|
|
|
|
- Basic
|
|
60,122,899
|
|
102,350,714
|
|
144,712,235
|
- Diluted
|
|
83,375,808
|
|
114,512,550
|
|
150,594,342
|
SOURCE Jumei International Holding limited