Conference Call to be Held at 8:00
AM U.S. Eastern Time on February 21,
2017
GUANGZHOU, China, Feb. 20, 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
fourth quarter and full year ended December
31, 2016.
Fourth Quarter and Full Year 2016 Highlights
- Total net revenue for the fourth quarter of 2016
increased by 36.5% to RMB18.98
billion (US$2.73 billion) over
the prior year period. Total net revenue for the full year
of 2016 increased by 40.8% to RMB56.59
billion (US$8.15 billion) over
the prior year.
- The number of active customers[1] for the
fourth quarter of 2016 increased by 39% to 27.5 million. The
number of active customers for the full year of 2016 increased
by 42% to 52.1 million.
- Total orders[2] for the fourth quarter of
2016 increased by 26% to 82.0 million. Total orders for the
full year of 2016 increased by 40% to 269.8 million.
- Gross profit for the fourth quarter of 2016 increased by
33.4% to RMB4.47 billion
(US$643.4 million) from RMB3.35 billion in the prior year period.
Gross profit for the full year of 2016 increased by
37.4% to RMB13.60 billion
(US$1.96 billion) from RMB9.90 billion in the prior year.
- Net income attributable to Vipshop's shareholders for
the fourth quarter of 2016 increased by 51.7% to RMB767.8 million (US$110.6
million) from RMB506.2 million
in the prior year period. Net income attributable to Vipshop's
shareholders for the full year of 2016 increased by 28.1% to
RMB2.04 billion (US$293.4 million) from RMB1.59 billion in the prior year.
- Non-GAAP net income attributable to Vipshop's
shareholders[3] for the fourth quarter of
2016 increased by 30.9% to RMB970.3
million (US$139.7 million)
from RMB741.5 million in the prior
year period. Non-GAAP net income attributable to Vipshop's
shareholders for the full year of 2016 increased by 30.4% to
RMB2.87 billion (US$412.9 million) from RMB2.20 billion in the prior year.
"We are delighted to have delivered strong operational results
with solid customer and market share gain in the year of 2016,"
said Mr. Eric Shen, chairman and
chief executive officer of Vipshop. "We continued to focus on
improving the customer experience across our platform through
enhanced personalization and diverse merchandising. As such, we
have added a number of high-quality and popular brands to our
platform over the last few quarters and will continue to strengthen
our merchandising capabilities going forward. Our robust results
are a testament to the solid strength of our business model and we
are confident that we can continue to maintain our market
leadership going forward."
Mr. Donghao Yang, chief financial
officer of Vipshop, further commented, "In the fourth quarter of
2016, we had strong free cash flow and delivered solid topline
growth while maintaining steady margins. Importantly, we continued
to expand our logistics and warehousing network by adding five
local distribution centers to further improve the efficiency and
speed of our fulfillment and distribution capabilities. Looking
ahead, we will continue to invest in areas that are crucial to the
customer experience across our platform while balancing revenue
growth and margins."
Recent Business Highlights
- Fitch rated Vipshop as BBB+, Moody's rated the Company as Baa1,
and Standard & Poor's rated the Company as BBB. These solid
investment grade ratings from all the "Big Three" global rating
agencies are endorsements of the Company's business fundamentals,
financial strengths, investment prospects, and future market
potential.
- In January 2017, a Vipshop's
subsidiary operating its Internet finance business completed its
first tranche of Renminbi-denominated asset-backed securities
("ABS") of RMB300 million, which is
listed on the Shanghai Stock Exchange in China. The Company is currently preparing for
future follow-on ABS offerings in China. These transactions represent an
important milestone in the Company's plan to further grow this new
business with external sources of funding.
- Vipshop recently introduced local distribution centers in
Fuzhou, Hangzhou, Zhengzhou, Shenyang and Xi'an to cater to more standardized and high
frequency purchased products for its cosmetics and baby maternity
categories. The local distribution centers allow Vipshop to be
closer to its customers, shorten delivery time and improve the
efficiency of its distribution.
- With over 20,000 full time delivery staff and over 2,000
self-operated delivery stations, Vipshop is now able to deliver
more than 90% of its orders through its last mile network. The
Company's average delivery time for its in-house last-mile delivery
capabilities has been reduced to less than 48 hours. In the fourth
quarter of 2016, over 60% of Vipshop's returns were collected by
the Company's full time delivery staff, which represents a
significant increase from 30% at the beginning of 2016.
- Vipshop and Tencent Qzone
co-released a report based upon both companies' big data analytics,
which focuses on emerging fashion color trends and identifies
fashion preferences for China's
younger generation. The insights were reflected in designer
Chi Zhang's new collection, which
was presented in New York Fashion Week in February 2017. The collection will also be
available exclusively on the Vipshop platform in the second half of
2017. This is the first season of a series of cross-industry
collaborations initiated by Vipshop.
- As of December 2016, the Company
had ten overseas offices for its cross-border business to expand
its global merchandising. Currently, Vipshop has leased seven
overseas warehouses and is in the process of expanding its
international warehouse space.
- Vipshop added various popular international and domestic brands
throughout 2016 including well-known brands like UGG, Tory Burch, Brooks Brothers, Belle and many
others.
- In September 2016, Vipshop
completed the acquisition of third-party payment license holder,
Beifu, and during December, Beifu officially changed its corporate
name to Zhejiang Vipshop Payment Services Co., Ltd., marking
another important step in expanding the Company's ecosystem.
Fourth Quarter 2016 Financial Results
REVENUE
Total net revenue for the fourth quarter of 2016 increased by
36.5% to RMB18.98 billion
(US$2.73 billion) from RMB13.90 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 fourth quarter of 2016
increased by 39% to 27.5 million from 19.8 million in the prior
year period. The number of total orders for the fourth quarter of
2016 increased by 26% to 82.0 million from 64.9 million in the
prior year period.
GROSS PROFIT
Gross profit for the fourth quarter of 2016 increased by 33.4%
to RMB4.47 billion (US$643.4 million) from RMB3.35 billion in the prior year period. Gross
margin was 23.5% as compared with 24.1% in the prior year period.
The Company expects its gross margin to remain stable as it
balances its promotional activities and sales with its marketing
expenses.
OPERATING INCOME AND EXPENSES
Total operating expenses for the fourth quarter of 2016 were
RMB3.66 billion (US$527.4 million), as compared with RMB2.72 billion in the prior year period. As a
percentage of total net revenue, total operating expenses decreased
to 19.3% from 19.6% in the prior year period.
- Fulfillment expenses for the fourth quarter of
2016 were RMB1.65 billion
(US$237.2 million), as compared with
RMB1.26 billion in the prior year
period, primarily reflecting the increase in sales volume and
number of orders fulfilled. As a percentage of total net revenue,
fulfillment expenses decreased to 8.7% from 9.1% in the prior year
period, primarily reflecting the scale effect associated with the
growth in total net revenue and improved fulfillment
efficiency.
- Marketing expenses for the fourth quarter of 2016
were RMB920.0 million (US$132.5 million), as compared with RMB714.5 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 4.8% from 5.1% 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 fourth
quarter of 2016 were RMB470.9 million
(US$67.8 million), as compared with
RMB321.6 million in the prior year
period, reflecting the Company's continued efforts to invest in
human capital, advanced technologies such as data analytics as well
as new business opportunities including the Internet finance unit.
As a percentage of total net revenue, technology and content
expenses were 2.5% as compared with 2.3% in the prior year
period.
- General and administrative expenses for the
fourth quarter of 2016 were RMB624.1
million (US$89.9 million), as
compared with RMB421.4 million in the
prior year period, primarily due to the build-out of the Internet
finance team. As a percentage of total net revenue, general and
administrative expenses were 3.3% as compared with 3.0% in the
prior year period.
Income from operations for the fourth quarter of 2016 increased
by 17.1% to RMB938.9 million
(US$135.2 million) from RMB801.8 million in the prior year period.
Operating margin was 4.9% as compared with 5.8% in the prior year
period.
Non-GAAP income from operations[4], which excludes
share-based compensation expenses and amortization of intangible
assets resulting from a business acquisition, increased by 20.0% to
RMB1.16 billion (US$166.9 million) from RMB965.6 million in the prior year period.
Non-GAAP operating income margin[5] was 6.1% as compared
with 6.9% in the prior year period.
NET INCOME
Net income attributable to Vipshop's shareholders increased by
51.7% to RMB767.8 million
(US$110.6 million) from RMB506.2 million in the prior year period. Net
margin attributable to Vipshop's shareholders increased to 4.0%
from 3.6% in the prior year period. Net income attributable to
Vipshop's shareholders per diluted ADS[6] increased
to RMB1.26 (US$0.18) from RMB0.84 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 a business acquisition and equity method investments,
increased by 30.9% to RMB970.3
million (US$139.7 million)
from RMB741.5 million in the prior
year period. Non-GAAP net margin attributable to Vipshop's
shareholders[7] was 5.1% as compared with 5.3% in the
prior year period. Non-GAAP net income attributable to Vipshop's
shareholders per diluted ADS[8] increased to
RMB1.58 (US$0.23) from RMB1.22 in the prior year period.
For the quarter ended December 31,
2016, the Company's weighted average number of ADSs used in
computing diluted income per ADS was 626,846,985.
BALANCE SHEET AND CASH FLOW
As of December 31, 2016, the
Company had cash and cash equivalents of RMB4.11 billion (US$591.9
million) and held-to-maturity securities of RMB671.8 million (US$96.8
million).
For the quarter ended December 31,
2016, operating cash was RMB0.80
billion, and free cash flow[9], a non-GAAP measurement of
liquidity, was as follows:
For the three months
ended
|
|
Dec 31,
2015
|
Dec 31,
2016
|
Dec 31,
2016
|
|
|
|
|
|
RMB'000
|
RMB'000
|
US$'000
|
Net cash from
operating activities
|
1,604,236
|
801,536
|
115,445
|
Add: Impact from
Internet financing activities[9]
|
353,390
|
1,338,966
|
192,851
|
Less: Capital
expenditures
|
(1,765,484)
|
(711,711)
|
(102,508)
|
Free cash flow
in
|
192,142
|
1,428,791
|
205,788
|
|
|
|
|
For the twelve months
ended
|
|
Dec 31,
2015
|
Dec 31,
2016
|
Dec 31,
2016
|
|
|
|
|
|
RMB'000
|
RMB'000
|
US$'000
|
Net cash from
operating activities
|
1,915,086
|
2,831,413
|
407,808
|
Add: Impact from
Internet financing activities[9]
|
636,997
|
2,588,854
|
372,873
|
Less: Capital
expenditures
|
(4,184,425)
|
(2,790,627)
|
(401,934)
|
Free cash flow (out)
/in
|
(1,632,342)
|
2,629,640
|
378,747
|
Full Year 2016 Financial Results
Total net revenues increased by 40.8% year over year for the
full year of 2016 to RMB56.59 billion
(US$8.15 billion) from RMB40.20 billion in the prior year, primarily
driven by growth in the number of new active customers, total
active customers, and total orders.
The number of active customers for the full year of 2016
increased by 42% to 52.1 million from 36.6 million in the prior
year. The number of total orders for the full year of 2016
increased by 40% to 269.8 million from 193.1 million in the prior
year.
Gross profit increased by 37.4% to RMB13.60 billion (US$1.96
billion) for the full year of 2016 from RMB9.90 billion in the prior year. Gross margin
was 24.0% as compared with 24.6% in the prior year.
Income from operations for the full year of 2016 increased by
30.8% to RMB2.71 billion
(US$390.0 million) from RMB2.07 billion in the prior year. Operating
margin was 4.8% as compared with 5.2% in the prior year.
Non-GAAP income from operations for the full year of 2016
increased by 32.4% to RMB3.49 billion
(US$503.1 million) from RMB2.64 billion in the prior year. Non-GAAP
operating income margin was 6.2% as compared with 6.6% in the prior
year.
Net income attributable to Vipshop's shareholders for the full
year of 2016 increased by 28.1% to RMB2.04
billion (US$293.4 million)
from RMB1.59 billion in the prior
year. Net margin attributable to Vipshop's shareholders was 3.6% as
compared with 4.0% in the prior year. Net income attributable to
Vipshop's shareholders per diluted ADS increased to RMB3.37 (US$0.49)
from RMB2.65 in the prior year.
Non-GAAP net income attributable to Vipshop's shareholders for
the full year of 2016 increased by 30.4% to RMB2.87 billion (US$412.9
million) from RMB2.20 billion
in the prior year. Non-GAAP net margin attributable to Vipshop's
shareholders was 5.1% as compared with 5.5% in the prior year.
Non-GAAP net income attributable to Vipshop's shareholders per
diluted ADS increased to RMB4.69
(US$0.68) from RMB3.66 in the prior year.
For the full year ended December 31,
2016, the Company's weighted average number of ADSs used in
computing diluted earnings per ADS was 629,085,915.
For the full year of 2016, net cash from operating activities
was RMB2.83 billion (US$407.8 million).
Business Outlook
For the first quarter of 2017, the Company expects its total net
revenue to be between RMB15.3 billion and
RMB15.8 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
RMB6.9430 to US$1.00, the effective noon buying rate for
December 31, 2016 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, February 21, 2017 at 8:00 am Eastern Time or 9:00 pm Beijing Time to discuss its financial
results and operating performance for the fourth quarter and full
year 2016.
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:
|
#67006640
|
The replay will be accessible through March 1, 2017 by dialing the following
numbers:
United States Toll
Free:
|
+1-855-452-5696
|
International:
|
+61-2-9003-4211
|
Conference
ID:
|
#67006640
|
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 a business acquisition and equity
method investments. Non-GAAP net income attributable to Vipshop's
shareholders per diluted ADS is 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 a business acquisition. 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.
[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. Effective from the fourth quarter of 2015, the non-GAAP
net income attributable to Vipshop's shareholders 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 a business
acquisition.
|
|
|
[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
|
|
Twelve Months
Ended
|
|
December 31,
2015
|
December 31,
2016
|
December 31,
2016
|
|
December 31,
2015
|
December 31,
2016
|
December 31,
2016
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
RMB
|
RMB
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Product
revenues
|
13,657,163
|
18,501,672
|
2,664,795
|
|
39,409,961
|
55,281,900
|
7,962,250
|
Other revenues
(1)
|
243,983
|
478,514
|
68,920
|
|
793,251
|
1,309,402
|
188,593
|
Total net
revenues
|
13,901,146
|
18,980,186
|
2,733,715
|
|
40,203,212
|
56,591,302
|
8,150,843
|
Cost of goods
sold
|
(10,552,727)
|
(14,513,037)
|
(2,090,312)
|
|
(30,306,723)
|
(42,994,688)
|
(6,192,523)
|
Gross
profit
|
3,348,419
|
4,467,149
|
643,403
|
|
9,896,489
|
13,596,614
|
1,958,320
|
Operating
expenses
|
|
|
|
|
|
|
|
Fulfillment
expenses(2)
|
(1,263,359)
|
(1,646,760)
|
(237,183)
|
|
(3,667,031)
|
(4,904,526)
|
(706,399)
|
Marketing
expenses
|
(714,520)
|
(920,009)
|
(132,509)
|
|
(2,089,348)
|
(2,837,680)
|
(408,711)
|
Technology and
content expenses
|
(321,602)
|
(470,915)
|
(67,826)
|
|
(1,076,520)
|
(1,563,582)
|
(225,203)
|
General and
administrative expenses(3)
|
(421,401)
|
(624,102)
|
(89,889)
|
|
(1,301,472)
|
(1,941,146)
|
(279,583)
|
Total operating
expenses
|
(2,720,882)
|
(3,661,786)
|
(527,407)
|
|
(8,134,371)
|
(11,246,934)
|
(1,619,896)
|
Other
income
|
174,223
|
133,564
|
19,237
|
|
308,431
|
358,029
|
51,567
|
Income from
operations
|
801,760
|
938,927
|
135,233
|
|
2,070,549
|
2,707,709
|
389,991
|
Impairment loss of
investments
|
(89,749)
|
-
|
-
|
|
(99,749)
|
(114,574)
|
(16,502)
|
Interest
expenses
|
(24,441)
|
(20,932)
|
(3,015)
|
|
(85,762)
|
(85,195)
|
(12,271)
|
Interest
income
|
46,844
|
29,103
|
4,192
|
|
267,208
|
107,044
|
15,418
|
Exchange (loss)
gain
|
(73,307)
|
46,650
|
6,719
|
|
(101,726)
|
51,100
|
7,360
|
Income before income
taxes and share of loss of affiliates
|
661,107
|
993,748
|
143,129
|
|
2,050,520
|
2,666,084
|
383,996
|
Income tax
expense(4)
|
(162,748)
|
(207,188)
|
(29,841)
|
|
(457,745)
|
(601,828)
|
(86,681)
|
Share of loss of
affiliates
|
(7,777)
|
(23,356)
|
(3,364)
|
|
(84,063)
|
(71,489)
|
(10,297)
|
Net income
|
490,582
|
763,204
|
109,924
|
|
1,508,712
|
1,992,767
|
287,018
|
Net loss attributable
to noncontrolling interests
|
15,584
|
4,579
|
660
|
|
80,952
|
44,050
|
6,345
|
Net income
attributable to Vipshop's shareholders
|
506,166
|
767,783
|
110,584
|
|
1,589,664
|
2,036,817
|
293,363
|
|
|
|
|
|
|
|
|
Shares used in
calculating earnings per share(5):
|
|
|
|
|
|
|
|
Class A and Class B
ordinary shares:
|
|
|
|
|
|
|
|
—Basic
|
115,997,137
|
116,562,400
|
116,562,400
|
|
115,736,092
|
115,958,088
|
115,958,088
|
—Diluted
|
125,656,590
|
125,369,397
|
125,369,397
|
|
120,168,063
|
125,817,183
|
125,817,183
|
|
|
|
|
|
|
|
|
Net earnings per
Class A and Class B share
|
|
|
|
|
|
|
|
Net income
attributable to Vipshop's shareholders——Basic
|
4.36
|
6.59
|
0.95
|
|
13.74
|
17.57
|
2.53
|
Net income
attributable to Vipshop's shareholders——Diluted
|
4.22
|
6.29
|
0.91
|
|
13.23
|
16.86
|
2.43
|
|
|
|
|
|
|
|
|
Net earnings per ADS
(1 ordinary share equals to 5 ADSs)
|
|
|
|
|
|
|
|
Net income
attributable to Vipshop's shareholders——Basic
|
0.87
|
1.32
|
0.19
|
|
2.75
|
3.51
|
0.51
|
Net income
attributable to Vipshop's shareholders——Diluted
|
0.84
|
1.26
|
0.18
|
|
2.65
|
3.37
|
0.49
|
(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.
|
|
(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 647million and
RMB 856 million in the three month periods ended December 31, 2015
and December 31, 2016, respectively.
|
|
(2) Including
shipping and handling expenses, which amounted RMB 1.71 billion and
RMB 2.58 billion in the twelve month periods ended December 31,2015
and 2016, respectively.
|
(3)Including
amortization of intangible assets resulting from business
acquisitions, which amounted to RMB 72 million and RMB 78 million
in the three months period ended December 31, 2015 and December 31,
2016, respectively.
|
|
(3)Including
amortization of intangible assets resulting from business
acquisitions, which amounted to RMB 265 million and RMB 310 million
in the twelve months period ended December 31, 2015 and December
31, 2016, respectively.
|
(4)Included income
tax benefits of RMB 18 million and RMB 20 million related to the
reversal of deferred tax liabilities, which was recognized on
business acquisitions for the three months period ended December
31, 2015 and December 31, 2016, respectively.
|
|
(4)Included income
tax benefits of RMB 67 million and RMB 80 million related to the
reversal of deferred tax liabilities, which was recognized on
business acquisitions for the twelve months period ended December
31, 2015 and December 31, 2016, 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.
|
|
(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
|
490,582
|
763,204
|
109,924
|
|
1,508,712
|
1,992,767
|
287,018
|
Other comprehensive
loss(income), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(2,815)
|
(252,028)
|
(36,300)
|
|
(55,653)
|
(288,955)
|
(41,618)
|
Unrealized (loss)
gain from available-for-sale securities
|
(8,233)
|
9,628
|
1,387
|
|
(7,783)
|
(17,042)
|
(2,455)
|
Reclassification
adjustment for losses included in net income
|
-
|
-
|
-
|
|
-
|
36,567
|
5,267
|
Comprehensive
income
|
479,534
|
520,804
|
75,011
|
|
1,445,276
|
1,723,337
|
248,212
|
Less: Comprehensive
loss attributable to noncontrolling interests
|
(22,048)
|
(4,649)
|
(670)
|
|
(84,119)
|
(40,854)
|
(5,884)
|
Comprehensive income
attributable to Vipshop's shareholders
|
501,582
|
525,453
|
75,681
|
|
1,529,395
|
1,764,191
|
254,096
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2015
|
December 31,
2016
|
December 31,
2016
|
|
December 31,
2015
|
December 31,
2016
|
December 31,
2016
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Share-based
compensation charges included are as follows
|
|
|
|
|
|
|
|
Fulfillment
expenses
|
6,259
|
11,021
|
1,587
|
|
18,665
|
38,428
|
5,535
|
Marketing
expenses
|
7,537
|
9,915
|
1,428
|
|
19,938
|
38,459
|
5,539
|
Technology and
content expenses
|
34,714
|
56,748
|
8,173
|
|
126,274
|
183,122
|
26,375
|
General and
administrative expenses
|
43,594
|
63,619
|
9,163
|
|
138,064
|
215,644
|
31,059
|
Total
|
92,104
|
141,303
|
20,351
|
|
302,941
|
475,653
|
68,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vipshop Holdings
Limited
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
December 31,
2016
|
December 31,
2016
|
|
|
|
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
|
|
|
ASSETS
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
3,324,384
|
4,109,577
|
591,902
|
|
|
|
|
Held-to-maturity
securities
|
1,807,403
|
671,776
|
96,756
|
|
|
|
|
Accounts receivable,
net
|
351,423
|
2,333,918
|
336,154
|
|
|
|
|
Amounts due from
related parties
|
31,856
|
8,352
|
1,203
|
|
|
|
|
Other receivables and
prepayments, net
|
1,869,461
|
2,293,825
|
330,380
|
|
|
|
|
Inventories
|
4,566,746
|
4,948,609
|
712,748
|
|
|
|
|
Deferred tax
assets
|
202,003
|
214,815
|
30,940
|
|
|
|
|
Total current
assets
|
12,153,276
|
14,580,872
|
2,100,083
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
Property and
equipment, net
|
2,949,604
|
4,467,451
|
643,447
|
|
|
|
|
Deposits for property
and equipment
|
933,419
|
1,039,793
|
149,761
|
|
|
|
|
Land use rights,
net
|
197,462
|
2,399,058
|
345,536
|
|
|
|
|
Intangible assets,
net
|
744,369
|
725,147
|
104,443
|
|
|
|
|
Investment in
affiliates
|
252,706
|
93,144
|
13,415
|
|
|
|
|
Other
investments
|
489,862
|
503,117
|
72,464
|
|
|
|
|
Available-for-sale
securities investments
|
269,736
|
407,944
|
58,756
|
|
|
|
|
Other long-term
assets
|
1,936,307
|
510,821
|
73,574
|
|
|
|
|
Goodwill
|
108,781
|
367,106
|
52,874
|
|
|
|
|
Total non-current
assets
|
7,882,246
|
10,513,581
|
1,514,270
|
|
|
|
|
TOTAL
ASSETS
|
20,035,522
|
25,094,453
|
3,614,353
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable
(Including accounts payable of the VIE without recourse to the
Company of RMB 48,178 and RMB 22,471 as of December 31,
2015 and December 31, 2016, respectively)
|
6,645,262
|
8,333,610
|
1,200,290
|
|
|
|
|
Advance from
customers (Including advance from customers of the VIE
without recourse to the Company of RMB 879,848 and RMB
1,211,643 as of December 31, 2015 and December 31, 2016,
respectively)
|
2,009,578
|
2,699,981
|
388,878
|
|
|
|
|
Accrued expenses and
other current liabilities(Including accrued expenses and other
current liabilities of the VIE without recourse to the Company of
RMB 1,127,270 and RMB 1,257,667 as of December
31, 2015 and December 31, 2016, respectively)
|
3,104,622
|
3,322,599
|
478,554
|
|
|
|
|
Amounts due to
related parties(Including amounts due to related parties of the VIE
without recourse to the Company of RMB 82,994 and RMB
591 as of December 31, 2015 and December 31, 2016,
respectively)
|
206,966
|
52,729
|
7,595
|
|
|
|
|
Deferred income
(Including deferred income of the VIE without recourse to the
Company of RMB 95,643 and RMB 16,222 as of December 31, 2015
and December 31, 2016, respectively)
|
104,531
|
174,547
|
25,140
|
|
|
|
|
Short term loans
(Including short term loans of the VIE without recourse to
the Company of nil and nil as of December 31, 2015 and
December 31, 2016)
|
95,000
|
-
|
-
|
|
|
|
|
Total current
liabilities
|
12,165,959
|
14,583,466
|
2,100,457
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Deferred tax
liability(Including deferred tax of the VIE without recourse to the
Company of RMB 116 and RMB 4,904 as of December 31,
2015 and December 31, 2016, respectively)
|
175,416
|
100,583
|
14,487
|
|
|
|
|
Deferred income-non
current(Including deferred income-non current of the VIE without
recourse to the Company of RMB 3,573 and RMB 1,928 as
of December 31, 2015 and December 31, 2016,
respectively)
|
22,699
|
246,902
|
35,561
|
|
|
|
|
Convertible senior
notes
|
4,058,181
|
4,381,698
|
631,096
|
|
|
|
|
Total non-current
liabilities
|
4,256,296
|
4,729,183
|
681,144
|
|
|
|
|
Total
liabilities
|
16,422,255
|
19,312,649
|
2,781,601
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
Class A ordinary
shares (US$0.0001 par value, 483,489,642 shares authorized, and
100,085,519 and 101,508,264 shares issued and outstanding as of
December 31, 2015 and December 31, 2016,
respectively)
|
65
|
66
|
9
|
|
|
|
|
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, 2015 and December 31, 2016, respectively)
|
11
|
11
|
2
|
|
|
|
|
Treasury shares, at
cost - 1,614,135 shares and - 1,356,918 shares as of December
31, 2015 and December 31, 2016
|
(844,711)
|
(707,441)
|
(101,893)
|
|
|
|
|
Additional paid-in
capital
|
2,838,591
|
3,130,126
|
450,832
|
|
|
|
|
Retained
earnings
|
1,616,209
|
3,653,026
|
526,145
|
|
|
|
|
Accumulated other
comprehensive loss
|
(70,980)
|
(343,608)
|
(49,490)
|
|
|
|
|
Noncontrolling
interests
|
74,082
|
49,624
|
7,147
|
|
|
|
|
Total shareholders'
equity
|
3,613,267
|
5,781,804
|
832,752
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
20,035,522
|
25,094,453
|
3,614,353
|
|
|
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Vipshop Holdings
Limited
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2015
|
December 31,
2016
|
December 31,
2016
|
|
December 31,
2015
|
December 31,
2016
|
December 31,
2016
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
Income from
operations
|
801,760
|
938,927
|
135,233
|
|
2,070,549
|
2,707,709
|
389,991
|
Share-based
compensation expenses
|
92,104
|
141,303
|
20,351
|
|
302,941
|
475,653
|
68,508
|
Amortization of
intangible assets resulting from business acquisitions
|
71,775
|
78,258
|
11,272
|
|
264,842
|
309,537
|
44,583
|
Non-GAAP income from
operations
|
965,639
|
1,158,488
|
166,856
|
|
2,638,332
|
3,492,899
|
503,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
490,582
|
763,204
|
109,924
|
|
1,508,712
|
1,992,767
|
287,018
|
Share-based
compensation expenses
|
92,104
|
141,303
|
20,351
|
|
302,941
|
475,653
|
68,508
|
Impairment loss in
investments
|
89,749
|
-
|
-
|
|
99,749
|
114,574
|
16,502
|
Amortization of
intangible assets resulting from business acquisitions and equity
method investments
|
85,066
|
92,721
|
13,355
|
|
323,049
|
367,389
|
52,915
|
Tax effect of
amortization of intangible assets resulting from business
acquisitions
|
(18,199)
|
(20,179)
|
(2,906)
|
|
(67,131)
|
(79,840)
|
(11,499)
|
Non-GAAP net
income
|
739,302
|
977,049
|
140,724
|
|
2,167,320
|
2,870,543
|
413,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Vipshop's shareholders
|
506,166
|
767,783
|
110,584
|
|
1,589,664
|
2,036,817
|
293,363
|
Share-based
compensation expenses
|
92,104
|
141,303
|
20,351
|
|
302,941
|
475,653
|
68,508
|
Impairment loss in
investments
|
89,749
|
-
|
-
|
|
99,749
|
114,574
|
16,502
|
Amortization of
intangible assets resulting from business acquisitions and equity
method investments (excluding noncontrolling interests)
|
67,122
|
77,533
|
11,167
|
|
256,839
|
302,862
|
43,621
|
Tax effect of
amortization of intangible assets resulting from business
acquisitions (excluding noncontrolling interests)
|
(13,650)
|
(16,340)
|
(2,353)
|
|
(50,349)
|
(63,273)
|
(9,113)
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders
|
741,491
|
970,279
|
139,749
|
|
2,198,844
|
2,866,633
|
412,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
calculating earnings per share:
|
|
|
|
|
|
|
|
Basic ordinary
shares:
|
|
|
|
|
|
|
|
Class A and Class B
ordinary shares:
|
|
|
|
|
|
|
|
—Basic
|
115,997,137
|
116,562,400
|
116,562,400
|
|
115,736,092
|
115,958,088
|
115,958,088
|
—Diluted
|
125,656,590
|
125,369,397
|
125,369,397
|
|
120,168,063
|
125,817,183
|
125,817,183
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per Class A and Class B share
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders——Basic
|
6.39
|
8.32
|
1.20
|
|
19.00
|
24.72
|
3.56
|
Non-GAAP net income
attributable to Vipshop's shareholders——Diluted
|
6.10
|
7.91
|
1.14
|
|
18.30
|
23.45
|
3.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per ADS (1 ordinary share equal to 5 ADSs)
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders——Basic
|
1.28
|
1.66
|
0.24
|
|
3.80
|
4.94
|
0.71
|
Non-GAAP net income
attributable to Vipshop's shareholders——Diluted
|
1.22
|
1.58
|
0.23
|
|
3.66
|
4.69
|
0.68
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-fourth-quarter-and-full-year-2016-financial-results-300410193.html
SOURCE Vipshop Holdings Limited
Copyright . 20 PR Newswire