GUANGZHOU, China, Feb. 20, 2019 /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, 2018.
Fourth Quarter and Full Year 2018 Highlights
- Total net revenue for the fourth quarter of 2018
increased by 8.1% year over year to RMB26.1
billion (US$3.8 billion) from
RMB24.1 billion in the prior year
period. Total net revenue for the full year of 2018
increased by 15.9% year over year to RMB84.5
billion (US$12.3 billion) from
RMB72.9 billion in the prior
year.
- GMV[1] for the fourth quarter of
2018 increased by 15% year over year to RMB41.8 billion from RMB36.3 billion in the prior year period.
GMV for the full year of 2018 increased by 21% year over
year to RMB131.0 billion from
RMB108.4 billion in the prior
year.
- Gross profit for the fourth quarter of 2018 increased by
2.8% year over year to RMB5.4 billion
(US$783.1 million) from RMB5.2 billion in the prior year period. Gross
profit for the full year of 2018 increased by 4.8% year over
year to RMB17.1 billion (US$2.5 billion) from RMB16.3 billion in the prior year.
- Net income attributable to Vipshop's shareholders for
the fourth quarter of 2018 increased by 2.3% year over year to
RMB688.7 million (US$100.2 million) from RMB673.2 million in the prior year period. Net
income attributable to Vipshop's shareholders for the full year
of 2018 increased by 9.2% year over year to RMB2.1 billion (US$309.6
million) from RMB1.9 billion
in the prior year.
- Non-GAAP net income attributable to Vipshop's
shareholders[2] for the fourth quarter of 2018
increased by 2.9% year over year to RMB913.6
million (US$132.9 million)
from RMB888.1 million in the prior
year period. Non-GAAP net income attributable to Vipshop's
shareholders for the full year of 2018 was RMB2.7 billion (US$395.5
million), as compared with RMB2.9
billion in the prior year.
- The number of active customers[3] for the
fourth quarter of 2018 increased by 13% year over year to 32.4
million from 28.6 million in the prior year period. The number
of active customers for the full year of 2018 increased by 5%
year over year to 60.5 million from 57.8 million in the prior
year.
- Total orders[4] for the fourth quarter of
2018 increased by 35% year over year to 140.3 million from 104.2
million in the prior year period. Total orders for the full
year of 2018 increased by 31% year over year to 437.4 million from
335.0 million in the prior year.
Mr. Eric Shen, Chairman and Chief
Executive Officer of Vipshop, stated, "We are pleased to have
finished the fourth quarter of 2018 with solid operational results.
During this quarter, our total active customers grew by 13% year
over year, which is a testament of the effectiveness of our
merchandising strategy. Going forward, we will continue to
strengthen our core capabilities, aiming to bring highly desirable
selections of products to our valued customers on a daily basis,
which will drive our long term growth and profitability."
Mr. Donghao Yang, Chief Financial
Officer of Vipshop, further commented, "In the fourth quarter of
2018, we saw a healthy sequential recovery of our bottom-line,
which is mostly attributable to our focus on the highly profitable
apparel category. During this quarter, we began to shift some
low-margin categories from our first-party business into the
marketplace platform, reducing their drag on our bottom-line while
still delivering a solid GMV growth of 15% year over year. We
remain focused on stabilizing our margins, aiming to drive enhanced
shareholder return in the long run."
Recent Business Highlights
- In the fourth quarter of 2018, Vipshop's total active customers
grew by 13% year over year. The number of new customers from
Tencent and JD.com accounted for
approximately 23% of Vipshop's total new customers during the
quarter.
- As of December 31, 2018,
approximately 3.2 million customers enrolled in Vipshop's Super VIP
Paid Membership Program, representing a 38% increase quarter over
quarter. The initial membership renewal rate for customers who
joined the program before December 31,
2017 was over 70%.
- The number of total active customers who participated in the
2018 Singles' Day Promotional Event, including those who otherwise
had not purchased with the Company for a period of time, increased
by 23% year over year.
- More than 5,500 brands participated in the 12.8 Anniversary
Sale in 2018, representing a 14% year-over-year increase. New
customers from the WeChat mini-program accounted for over 20% of
total new customers during the promotional period, demonstrating
the strength of the WeChat mini-program in new customer
acquisition.
- In the fourth quarter of 2018, Vipshop added approximately
86,000 square meters of warehousing space. As of December 31, 2018, Vipshop has approximately 3.0
million square meters of total warehousing space, of which around
1.9 million square meters is owned by the Company.
Fourth Quarter 2018 Financial Results
REVENUE
Total net revenue for the fourth quarter of 2018 increased by
8.1% year over year to RMB26.1
billion (US$3.8 billion) from
RMB24.1 billion in the prior year
period, primarily driven by the growth in the number of total
active customers.
GROSS PROFIT
Gross profit for the fourth quarter of 2018 increased by 2.8%
year over year to RMB5.4 billion
(US$783.1 million) from RMB5.2 billion in the prior year period. Gross
margin for the fourth quarter of 2018 was 20.6% as compared with
21.7% in the prior year period.
OPERATING EXPENSES
Total operating expenses for the fourth quarter of 2018 were
RMB4.6 billion (US$664.2 million), as compared with RMB4.4 billion in the prior year period. As a
percentage of total net revenue, total operating expenses for the
fourth quarter of 2018 decreased to 17.5% from 18.4% in the prior
year period.
- Fulfillment expenses for the fourth quarter of
2018 were RMB2.1 billion
(US$304.8 million), as compared with
RMB2.1 billion in the prior year
period. As a percentage of total net revenue, fulfillment expenses
for the fourth quarter of 2018 decreased to 8.0% from 8.9% in the
prior year period.
- Marketing expenses for the fourth quarter of 2018
were RMB1.1 billion (US$162.5 million), as compared with RMB1.0 billion in the prior year period. As a
percentage of total net revenue, marketing expenses for the fourth
quarter of 2018 were 4.3% as compared with 4.2% in the prior year
period.
- Technology and content expenses for the fourth
quarter of 2018 were RMB533.2 million
(US$77.5 million), as compared with
RMB486.1 million in the prior year
period. As a percentage of total net revenue, technology and
content expenses for the fourth quarter of 2018 remained stable at
2.0% year over year.
- General and administrative expenses for the
fourth quarter of 2018 were RMB820.6
million (US$119.4 million), as
compared with RMB780.2 million in the
prior year period. As a percentage of total net revenue, general
and administrative expenses for the fourth quarter of 2018
decreased to 3.1% from 3.2% in the prior year period.
INCOME FROM OPERATIONS
Income from operations for the fourth quarter of 2018 increased
by 13.5% year over year to RMB1.0
billion (US$145.9 million)
from RMB883.9 million in the prior
year period. Operating margin for the fourth quarter of 2018
increased to 3.8% from 3.7% in the prior year period.
Non-GAAP income from operations[5] for the fourth
quarter of 2018, which excludes share-based compensation expenses
and amortization of intangible assets resulting from business
acquisitions, was RMB1.1 billion
(US$162.6 million), as compared with
RMB1.1 billion in the prior year
period. Non-GAAP operating income margin[6] for the
fourth quarter of 2018 was 4.3% as compared with 4.6% in the prior
year period.
NET INCOME
Net income attributable to Vipshop's shareholders for the fourth
quarter of 2018 increased by 2.3% year over year to RMB688.7 million (US$100.2
million) from RMB673.2 million
in the prior year period. Net margin attributable to Vipshop's
shareholders for the fourth quarter of 2018 was 2.6%, as compared
with 2.8% in the prior year period. Net income attributable to
Vipshop's shareholders per diluted ADS[7] for the
fourth quarter of 2018 was RMB1.00
(US$0.15), as compared with
RMB1.07 in the prior year period.
Non-GAAP net income attributable to Vipshop's shareholders for
the fourth quarter of 2018, which excludes (i) share-based
compensation expenses, (ii) impairment loss in investments, (iii)
amortization of intangible assets resulting from business
acquisitions and equity method investments, (iv) tax effect of
amortization of intangible assets resulting from business
acquisitions, (v) loss (gain) on disposal, revaluation and value
changes of investments, and (vi) share of result in investment of
limited partnership that is accounted for as an equity method
investee, increased by 2.9% year over year to RMB913.6 million (US$132.9
million) from RMB888.1 million
in the prior year period. Non-GAAP net margin attributable to
Vipshop's shareholders[8] for the fourth quarter of
2018 was 3.5%, as compared with 3.7% in the prior year period.
Non-GAAP net income attributable to Vipshop's shareholders per
diluted ADS[9] for the fourth quarter of 2018 was
RMB1.33 (US$0.19), as compared with RMB1.41 in the prior year period.
For the quarter ended December 31,
2018, the Company's weighted average number of ADSs used in
computing diluted income per ADS was 700,413,485.
BALANCE SHEET AND CASH FLOW
As of December 31, 2018, the
Company had cash and cash equivalents and restricted cash of
RMB10.0 billion (US$1.5 billion) and short term investments of
RMB2.3 billion (US$337.6 million).
For the quarter ended December 31,
2018, net cash from operating activities was RMB5.9 billion (US$851.7
million), and free cash flow[10], a non-GAAP
measurement of liquidity, was as follows:
For the three months
ended
|
|
Dec 31,
2017
RMB'000
|
Dec 31,
2018
RMB'000
|
Dec 31,
2018
US$'000
|
Net cash
from operating activities
|
877,938
|
5,855,701
|
851,676
|
Add: Impact from
Internet financing activities[11]
|
1,736,201
|
1,070,356
|
155,677
|
Less: Capital
expenditures
|
(496,016)
|
(898,215)
|
(130,640)
|
Free cash flow
in
|
2,118,123
|
6,027,842
|
876,713
|
Full Year 2018 Financial Results
Total net revenue for the full year of 2018 increased by 15.9%
year over year to RMB84.5 billion
(US$12.3 billion) from RMB72.9 billion in the prior year, primarily
driven by the growth in the number of total active customers and
the improvement in average revenue per customer.
Gross profit for the full year of 2018 increased by 4.8% year
over year to RMB17.1 billion
(US$2.5 billion) from RMB16.3 billion in the prior year. Gross margin
for the full year of 2018 was 20.2% as compared with 22.3% in the
prior year.
Income from operations for the full year of 2018 was
RMB2.4 billion (US$352.1 million), as compared with RMB2.7 billion in the prior year. Operating
margin for the full year of 2018 was 2.9% as compared with 3.7% in
the prior year.
Non-GAAP income from operations for the full year of 2018, which
excludes share-based compensation expenses and amortization of
intangible assets resulting from business acquisitions, was
RMB3.1 billion (US$456.4 million), as compared with RMB3.7 billion in the prior year. Non-GAAP
operating income margin for the full year of 2018 was 3.7 % as
compared with 5.1% in the prior year.
Net income attributable to Vipshop's shareholders for the full
year of 2018 increased by 9.2% year over year to RMB2.1 billion (US$309.6
million) from RMB1.9 billion
in the prior year. Net margin attributable to Vipshop's
shareholders for the full year of 2018 was 2.5%, as compared with
2.7% in the prior year. Net income attributable to Vipshop's
shareholders per diluted ADS for the full year of 2018 was
RMB3.12 (US$0.45), as compared with RMB3.19 in the prior year.
Non-GAAP net income attributable to Vipshop's shareholders for
the full year of 2018, which excludes (i) share-based compensation
expenses, (ii) impairment loss in investments, (iii) amortization
of intangible assets resulting from business acquisitions and
equity method investments, (iv) tax effect of amortization of
intangible assets resulting from business acquisitions, (v) loss
(gain) on disposal, revaluation and value changes of investments,
(vi) tax effect of investment gain, and (vii) share of result in
investment of limited partnership that is accounted for as an
equity method investee, was RMB2.7
billion (US$395.5 million), as
compared with RMB2.9 billion in the
prior year. Non-GAAP net margin attributable to Vipshop's
shareholders for the full year of 2018 was 3.2%, as compared with
4.0% in the prior year. Non-GAAP net income attributable to
Vipshop's shareholders per diluted ADS for the full year of 2018
was RMB3.96 (US$0.58), as compared with RMB4.73 in the prior year.
For the full year of 2018, the Company's weighted average number
of ADSs used in computing diluted earnings per ADS was
700,418,049.
For the full year of 2018, net cash from operating activities
was RMB5.7 billion (US$835.7 million), and free cash flow, a non-GAAP
measurement of liquidity, was as follows:
For the trailing twelve months ended
|
Dec 31,
2017
RMB'000
|
Dec 31,
2018
RMB'000
|
Dec 31,
2018
US$'000
|
Net cash from
operating activities
|
981,251
|
5,745,748
|
835,684
|
Add: Impact from
Internet financing activities
|
3,300,751
|
393,393
|
57,217
|
Less: Capital
expenditures
|
(2,474,450)
|
(3,593,960)
|
(522,720)
|
Free cash flow
in
|
1,807,552
|
2,545,181
|
370,181
|
Business Outlook
Starting from the fourth quarter of 2018, GMV contribution from
the apparel category with a relatively high return rate among all
categories has increased, and the Company shifted certain
standardized categories from its first-party business into the
marketplace platform in order to improve profitability. Revenue
generated from the marketplace platform is recorded as other
revenue instead of product revenue. In light of this development in
revenue mix, the Company began to disclose GMV to provide an
additional perspective for the market to measure the scale of its
business.
For the first quarter of 2019, the Company expects its total net
revenue to be between RMB19.9 billion
and RMB20.9 billion, representing a
year-over-year growth rate of approximately 0% to 5%. These
forecasts reflect the Company's current and preliminary view on the
market and operational conditions, which is subject to change.
Exchange Rate
The Company's business is primarily conducted in China and the significant majority of revenues
generated are denominated in Renminbi. This announcement contains
currency conversions of Renminbi amounts into U.S. dollars solely
for the convenience of the reader. Unless otherwise noted, all
translations from Renminbi to U.S. dollars are made at a rate of
RMB6.8755 to US$1.00, the effective noon buying rate for
December 31, 2018 as set forth in the
H.10 statistical release of the Federal Reserve Board. No
representation is made that the Renminbi amounts could have been,
or could be, converted, realized or settled into U.S. dollars at
that rate on December 31, 2018, or at
any other rate.
Conference Call Information
The Company will hold a conference call on Thursday, February 21, 2019 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 2018.
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:
|
#4746236
|
The replay will be accessible through March 1, 2019 by dialing the following
numbers:
United States Toll
Free:
|
+1-855-452-5696
|
International:
|
+61-2-9003-4211
|
Conference
ID:
|
#4746236
|
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 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 condensed consolidated financial information is derived from
the Company's unaudited interim condensed consolidated financial
statements prepared in conformity with accounting principles
generally accepted in the United States
of America ("U.S. GAAP"), except that comparative
consolidated statements of income and cash flows for the
twelve-month period ended December 31,
2018 and detailed footnote disclosures required by
Accounting Standards Codification 270, Interim Reporting
("ASC270"), have been omitted. 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 (i) share-based
compensation expenses, (ii) impairment loss in investments, (iii)
amortization of intangible assets resulting from business
acquisitions and equity method investments, (iv) tax effect of
amortization of intangible assets resulting from business
acquisitions, (v) loss (gain) on disposal, revaluation and fair
value changes of investments, (vi) tax effect of investment gain,
and (vii) share of result in investment of limited partnership that
is accounted for as an equity method investee. 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 net cash from
operating activities 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. Impact from Internet financing
activities added back or deducted from free cash flow contains
changes in the balances of financial products, which are primarily
consumer financing and supplier financing that the Company provides
to customers and suppliers. The Company believes that separate
analysis and exclusion of the non-cash impact of (a) share-based
compensation, (b) impairment loss in investments, (c) amortization
of intangible assets, (d) loss (gain) on disposal, revaluation and
fair value changes of investments, and (e) share of result in
investment of limited partnership that is accounted for as an
equity method investee 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
(1) non-cash share-based compensation expenses, (2) impairment loss
in investments, (3) amortization of intangible assets, (4) loss
(gain) on disposal, revaluation and fair value changes of
investments, and (5) share of result in investment of limited
partnership that is accounted for as an equity method investee.
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.
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] "Gross merchandise value
(GMV)" is defined as the total Renminbi value of all products
and services sold in the Company's online sales business and
on the Company's online marketplace platform during the
relevant period, including through the Company's websites and
mobile apps, as well as through third-party websites and mobile
apps that were fulfilled by either the Company or its third-party
merchants, regardless of whether or not the goods
were delivered or returned. GMV includes shipping charges paid
by buyers to sellers. For prudent considerations, the Company does
not consider products or services to be sold if the relevant orders
were placed and canceled pre-shipment and only included orders that
left the Company's or other third-party vendors'
warehouses.
|
[2] 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 (i) share-based compensation expenses, (ii) impairment
loss in investments, (iii) amortization of intangible assets
resulting from business acquisitions and equity method investments,
(iv) tax effect of amortization of intangible assets resulting from
business acquisitions, (v) loss (gain) on disposal, revaluation and
value changes of investments, (vi) tax effect of investment gain,
and (vii) share of result in investment of limited partnership that
is accounted for as an equity method investee.
|
[3] "Active customers"
is defined as registered members who have purchased from the
Company or the Company's online marketplace platforms at least once
during the relevant period.
|
[4] "Total orders" is 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.
|
[5] 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.
|
[6] 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.
|
[7] "ADS" means American depositary
share, each of which represents 0.2 Class A ordinary
share.
|
[8] 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.
|
[9] 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 the weighted average number
of diluted ADS outstanding for computing diluted earnings per
ADS.
|
[10] Free cash flow is a non-GAAP
financial measure, which is defined as net cash from operating
activities 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.
|
[11] Impact from Internet financing
activities represents net cash flow relating to the Company's
financial products, which are primarily consumer financing and
supplier financing that the Company provides to customers and
suppliers.
|
Vipshop Holdings
Limited
|
Unaudited
Condensed Consolidated Statements of Income and Comprehensive
Income
|
(In thousands,
except for share and per share data)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,2017
|
December
31,2018
|
December
31,2018
|
|
December
31,2017
|
December
31,2018
|
December
31,2018
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
|
|
|
|
|
|
|
Product
revenues
|
23,487,183
|
25,010,940
|
3,637,690
|
|
71,171,653
|
81,510,275
|
11,855,178
|
Other revenues
(1)
|
642,449
|
1,072,422
|
155,977
|
|
1,740,660
|
3,013,673
|
438,321
|
Total net
revenues
|
24,129,632
|
26,083,362
|
3,793,667
|
|
72,912,313
|
84,523,948
|
12,293,499
|
Cost of
revenues
|
(18,889,638)
|
(20,699,018)
|
(3,010,547)
|
|
(56,618,471)
|
(67,454,981)
|
(9,810,920)
|
Gross
profit
|
5,239,994
|
5,384,344
|
783,120
|
|
16,293,842
|
17,068,967
|
2,482,579
|
Operating
expenses:
|
|
|
|
|
|
|
|
Fulfillment expenses
(2)
|
(2,145,119)
|
(2,095,750)
|
(304,814)
|
|
(6,899,654)
|
(7,489,393)
|
(1,089,287)
|
Marketing
expenses
|
(1,018,500)
|
(1,117,081)
|
(162,473)
|
|
(2,978,621)
|
(3,240,450)
|
(471,304)
|
Technology and
content expenses
|
(486,060)
|
(533,162)
|
(77,545)
|
|
(1,808,452)
|
(2,000,894)
|
(291,018)
|
General and
administrative expenses (3)
|
(780,194)
|
(820,649)
|
(119,358)
|
|
(2,447,724)
|
(2,674,179)
|
(388,943)
|
Total operating
expenses
|
(4,429,873)
|
(4,566,642)
|
(664,190)
|
|
(14,134,451)
|
(15,404,916)
|
(2,240,552)
|
Other operating
income
|
73,791
|
185,732
|
27,014
|
|
531,055
|
757,062
|
110,110
|
Income from
operations
|
883,912
|
1,003,434
|
145,944
|
|
2,690,446
|
2,421,113
|
352,137
|
(Loss) gain on
disposal or revaluation of investments
|
0
|
(27,876)
|
(4,054)
|
|
55,615
|
191,842
|
27,902
|
Impairment loss of
investments
|
(29,919)
|
(20,073)
|
(2,919)
|
|
(133,026)
|
(20,073)
|
(2,919)
|
Interest
expense
|
(19,388)
|
(38,011)
|
(5,528)
|
|
(82,435)
|
(159,744)
|
(23,234)
|
Interest
income
|
27,032
|
70,606
|
10,269
|
|
101,125
|
242,872
|
35,324
|
Foreign exchange
(loss) gain
|
(16,590)
|
(1,931)
|
(281)
|
|
(90,872)
|
71,065
|
10,336
|
Income before income
taxes and share of result of equity method investees
|
845,047
|
986,149
|
143,431
|
|
2,540,853
|
2,747,075
|
399,546
|
Income tax expenses
(4)
|
(188,874)
|
(231,837)
|
(33,719)
|
|
(626,140)
|
(566,604)
|
(82,409)
|
Share of result of
equity method investees
|
3,692
|
(60,320)
|
(8,773)
|
|
(22,280)
|
(46,999)
|
(6,836)
|
Net income
|
659,865
|
693,992
|
100,939
|
|
1,892,433
|
2,133,472
|
310,301
|
Net loss (gain)
attributable to noncontrolling interests
|
13,335
|
(5,325)
|
(775)
|
|
57,222
|
(4,685)
|
(681)
|
Net income
attributable to Vipshop's shareholders
|
673,200
|
688,667
|
100,164
|
|
1,949,655
|
2,128,787
|
309,620
|
|
|
|
|
|
|
|
|
Shares used in
calculating earnings per share (5):
|
|
|
|
|
|
|
|
Class A and Class B
ordinary shares:
|
|
|
|
|
|
|
|
--Basic
|
118,372,431
|
132,797,122
|
132,797,122
|
|
117,554,229
|
132,266,157
|
132,266,157
|
--Diluted
|
126,107,741
|
140,082,697
|
140,082,697
|
|
125,715,833
|
140,083,610
|
140,083,610
|
|
|
|
|
|
|
|
|
Net earnings per
Class A and Class B share
|
|
|
|
|
|
|
|
Net income
attributable to Vipshop's shareholders--Basic
|
5.69
|
5.19
|
0.75
|
|
16.59
|
16.09
|
2.34
|
Net income
attributable to Vipshop's shareholders--Diluted
|
5.37
|
5.02
|
0.73
|
|
15.94
|
15.61
|
2.27
|
|
|
|
|
|
|
|
|
Net earnings per ADS
(1 ordinary share equals to 5 ADSs)
|
|
|
|
|
|
|
|
Net income
attributable to Vipshop's shareholders--Basic
|
1.14
|
1.04
|
0.15
|
|
3.32
|
3.22
|
0.47
|
Net income
attributable to Vipshop's shareholders--Diluted
|
1.07
|
1.00
|
0.15
|
|
3.19
|
3.12
|
0.45
|
(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, interest
income from microcredit and
consumer financing services, 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, interest income from
microcredit and consumer financing
services, and inventory and warehouse
management services to certain suppliers.
|
(2) Fulfillment
expenses include shipping and handling expenses, which amounted
RMB 1.22
billion and RMB 1.29 billion in the three month periods ended
December 31,2017 and
December 31,2018, respectively.
|
|
(2)
Fulfillment expenses include shipping
and handling expenses, which amounted
RMB 3.83 billion and RMB 4.50 billion in
the twelve month periods ended December
31,2017 and 2018, respectively.
|
(3) General and
administrative expenses include amortization of intangible assets
resulting
from business acquisitions, which amounted to RMB 84 million and
RMB 0.6 million in the
three months period ended December 31,2017 and December
31,2018, respectively.
|
|
(3)General and
administrative expenses
include amortization of intangible assets
resulting from a business acquisition, which
amounted to RMB 340 million and RMB 46
million in the twelve months period ended
December 31, 2017 and December 31,
2018, respectively.
|
(4) Income tax
expenses include income tax benefits of RMB 21 million and RMB 0.2
million
related to the reversal of deferred tax liabilities, which was
recognized on business acquisitions
for the three months period ended December 31,2017 and
December 31,2018, respectively.
|
|
(4) Income tax
expenses include income
tax benefits of RMB 85 million and RMB 11
million related to the reversal of deferred
tax liabilities, which was recognized on
business acquisitions for the twelve months
period ended December 31, 2017 and
December 31, 2018, respectively.
|
(5) Authorized
share capital is 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,2017
|
December
31,2018
|
December
31,2018
|
|
December
31,2017
|
December
31,2018
|
December
31,2018
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
RMB'000
|
RMB'000
|
USD'000
|
Share-based
compensation expenses included are as follows
|
|
|
|
|
|
|
|
Fulfillment
expenses
|
18,239
|
11,720
|
1,705
|
|
73,235
|
73,151
|
10,639
|
Marketing
expenses
|
10,264
|
6,888
|
1,002
|
|
40,364
|
41,063
|
5,972
|
Technology and
content expenses
|
48,490
|
25,373
|
3,690
|
|
206,073
|
203,594
|
29,612
|
General and
administrative expenses
|
57,119
|
70,087
|
10,194
|
|
347,426
|
353,402
|
51,400
|
Total
|
134,112
|
114,068
|
16,591
|
|
667,098
|
671,210
|
97,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vipshop Holdings
Limited
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
(In thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,2017
|
December
31,2018
|
December
31,2018
|
|
|
|
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
9,973,891
|
9,540,556
|
1,387,616
|
|
|
|
|
Restricted
cash
|
248,101
|
497,916
|
72,419
|
|
|
|
|
Short term
investments
|
245,981
|
2,321,244
|
337,611
|
|
|
|
|
Accounts receivable,
net
|
4,803,527
|
5,674,731
|
825,355
|
|
|
|
|
Amounts due from
related parties
|
10,191
|
17,475
|
2,542
|
|
|
|
|
Other receivables and
prepayments,net
|
3,674,196
|
3,594,736
|
522,833
|
|
|
|
|
Loan
Receivables,net
|
0
|
310,873
|
45,215
|
|
|
|
|
Inventories
|
6,960,251
|
5,368,106
|
780,759
|
|
|
|
|
Total current
assets
|
25,916,138
|
27,325,637
|
3,974,350
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
Property and
equipment, net
|
6,660,825
|
8,531,483
|
1,240,853
|
|
|
|
|
Deposits for property
and equipment
|
307,859
|
176,556
|
25,679
|
|
|
|
|
Land use rights,
net
|
3,077,770
|
3,885,578
|
565,134
|
|
|
|
|
Intangible assets,
net
|
400,994
|
353,108
|
51,358
|
|
|
|
|
Investment in equity
method investees
|
66,334
|
667,427
|
97,073
|
|
|
|
|
Other
investments
|
533,922
|
1,470,551
|
213,882
|
|
|
|
|
Other long-term
assets
|
366,760
|
396,447
|
57,661
|
|
|
|
|
Goodwill
|
367,106
|
367,106
|
53,393
|
|
|
|
|
Deferred tax
assets
|
285,112
|
388,770
|
56,544
|
|
|
|
|
Total non-current
assets
|
12,066,682
|
16,237,026
|
2,361,577
|
|
|
|
|
TOTAL
ASSETS
|
37,982,820
|
43,562,663
|
6,335,927
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILTIES
AND EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Short term
loans
|
907,310
|
1,343,160
|
195,355
|
|
|
|
|
Accounts
payable
|
11,445,109
|
11,630,172
|
1,691,538
|
|
|
|
|
Advance from
customers
|
2,339,914
|
1,473,134
|
214,258
|
|
|
|
|
Accrued expenses and
other current liabilities
|
3,537,151
|
5,512,605
|
801,775
|
|
|
|
|
Amounts due to
related parties
|
65,022
|
323,108
|
46,994
|
|
|
|
|
Deferred
income
|
203,179
|
367,512
|
53,452
|
|
|
|
|
Securitization
debt
|
760,000
|
969,000
|
140,935
|
|
|
|
|
Convertible senior
notes
|
0
|
4,327,268
|
629,375
|
|
|
|
|
Total current
liabilities
|
19,257,685
|
25,945,959
|
3,773,682
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Deferred tax
liability
|
17,007
|
4,960
|
721
|
|
|
|
|
Deferred income-non
current
|
362,649
|
400,951
|
58,316
|
|
|
|
|
Convertible senior
notes
|
4,094,903
|
0
|
0
|
|
|
|
|
Total non-current
liabilities
|
4,474,559
|
405,911
|
59,037
|
|
|
|
|
TOTAL
LIABILITIES
|
23,732,244
|
26,351,870
|
3,832,719
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
Class A ordinary
shares (US$0.0001 par value, 483,489,642 shares
authorized, and 114,716,587 and 116,395,883 shares issued and
outstanding as of December 31, 2017 and December 31, 2018,
respectively)
|
74
|
75
|
11
|
|
|
|
|
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, 2017 and December 31,
2018,
respectively)
|
11
|
11
|
2
|
|
|
|
|
Additional paid-in
capital
|
8,715,995
|
9,385,216
|
1,365,023
|
|
|
|
|
Retained
earnings
|
5,602,681
|
7,907,396
|
1,150,083
|
|
|
|
|
Accumulated other
comprehensive loss
|
(24,242)
|
(30,883)
|
(4,490)
|
|
|
|
|
Noncontrolling
interests
|
(43,943)
|
(51,022)
|
(7,421)
|
|
|
|
|
Total shareholders'
equity
|
14,250,576
|
17,210,793
|
2,503,208
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
37,982,820
|
43,562,663
|
6,335,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vipshop Holdings
Limited
|
Reconciliations of GAAP and Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,2017
|
December
31,2018
|
December
31,2018
|
|
December
31,2017
|
December
31,2018
|
December
31,2018
|
|
RMB'000
|
RMB'000
|
USD'000
|
|
RMB'000
|
RMB'000
|
USD'000
|
Income from
operations
|
883,912
|
1,003,434
|
145,944
|
|
2,690,446
|
2,421,113
|
352,137
|
Share-based
compensation expenses
|
134,112
|
114,068
|
16,591
|
|
667,098
|
671,210
|
97,623
|
Amortization of
intangible assets resulting from business
acquisitions
|
84,161
|
607
|
88
|
|
339,669
|
45,876
|
6,672
|
Non-GAAP income from
operations
|
1,102,185
|
1,118,109
|
162,623
|
|
3,697,213
|
3,138,199
|
456,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
659,865
|
693,992
|
100,939
|
|
1,892,433
|
2,133,472
|
310,301
|
Share-based
compensation expenses
|
134,112
|
114,068
|
16,591
|
|
667,098
|
671,210
|
97,623
|
Impairment loss in
investments
|
29,919
|
20,073
|
2,919
|
|
133,026
|
20,073
|
2,919
|
Loss (gain) on
disposal, revaluation and value changes of
investments
|
0
|
27,876
|
4,054
|
|
(55,615)
|
(191,842)
|
(27,902)
|
Share of result in
investment of limited partnership that is accounted for
as an equity method investee
|
0
|
62,482
|
9,088
|
|
0
|
52,797
|
7,679
|
Tax effect of
investment gain
|
0
|
0
|
0
|
|
0
|
9,967
|
1,450
|
Amortization of
intangible assets resulting from business acquisitions
and equity method investments
|
84,161
|
613
|
89
|
|
360,066
|
45,881
|
6,673
|
Tax effect of
amortization of intangible assets resulting from business
acquisitions
|
(21,040)
|
(152)
|
(22)
|
|
(84,917)
|
(11,469)
|
(1,668)
|
Non-GAAP net
income
|
887,017
|
918,952
|
133,658
|
|
2,912,091
|
2,730,089
|
397,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Vipshop's shareholders
|
673,200
|
688,667
|
100,164
|
|
1,949,655
|
2,128,787
|
309,620
|
Share-based
compensation expenses
|
134,112
|
114,068
|
16,591
|
|
667,098
|
671,210
|
97,623
|
Impairment loss in
investments
|
29,919
|
20,073
|
2,919
|
|
133,026
|
20,073
|
2,919
|
Loss (gain) on
disposal, revaluation and value changes of
investments
|
0
|
27,876
|
4,054
|
|
(55,615)
|
(191,842)
|
(27,902)
|
Share of result in
investment of limited partnership that is accounted for
as an equity method investee
|
0
|
62,482
|
9,088
|
|
0
|
52,797
|
7,679
|
Tax effect of
investment gain
|
0
|
0
|
0
|
|
0
|
9,967
|
1,450
|
Amortization of
intangible assets resulting from business acquisitions
and equity method investments
|
67,857
|
603
|
88
|
|
294,261
|
37,371
|
5,435
|
Tax effect of
amortization of intangible assets resulting from business
acquisitions
|
(16,965)
|
(149)
|
(22)
|
|
(68,468)
|
(9,341)
|
(1,359)
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders
|
888,123
|
913,620
|
132,882
|
|
2,919,957
|
2,719,022
|
395,465
|
|
|
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Shares used in
calculating earnings per share:
|
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|
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|
Basic ordinary
shares:
|
|
|
|
|
|
|
|
Class A and Class B
ordinary shares:
|
|
|
|
|
|
|
|
--Basic
|
118,372,431
|
132,797,122
|
132,797,122
|
|
117,554,229
|
132,266,157
|
132,266,157
|
--Diluted
|
126,107,741
|
140,082,697
|
140,082,697
|
|
125,715,833
|
140,083,610
|
140,083,610
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per Class A and Class B share
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders--Basic
|
7.50
|
6.88
|
1.00
|
|
24.84
|
20.56
|
2.99
|
Non-GAAP net income
attributable to Vipshop's shareholders--Diluted
|
7.07
|
6.63
|
0.96
|
|
23.66
|
19.82
|
2.88
|
|
|
|
|
|
|
|
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|
|
|
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|
|
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Non-GAAP net income
per ADS (1 ordinary share equal to 5 ADSs)
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Vipshop's shareholders--Basic
|
1.50
|
1.38
|
0.20
|
|
4.97
|
4.11
|
0.60
|
Non-GAAP net income
attributable to Vipshop's shareholders--Diluted
|
1.41
|
1.33
|
0.19
|
|
4.73
|
3.96
|
0.58
|
View original
content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-fourth-quarter-and-full-year-2018-financial-results-300798856.html
SOURCE Vipshop Holdings Limited