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Vipshop Reports Unaudited First Quarter 2015 Financial Results
First Quarter 2015 Highlights
- Total net revenue increased by 100.0% year over year to
RMB8.6 billion (US$1.4 billion ) fromRMB4.3 billion in the prior year period, primarily attributable to a 75.0% year-over-year increase in the number of active customers[1] to 12.9 million and a 90.0% year-over-year increase in total orders[2] to 38.5 million. - Gross profit increased by 99.6% to
RMB2.1 billion (US$345.4 million ) fromRMB1.1 billion in the prior year period. - Income from operations increased by 112.9% to
RMB395.0 million (US$63.7 million ) fromRMB185.5 million in the prior year period. Operating margin increased to 4.6% from 4.3% in the prior year period. - Non-GAAP income from operations[3] increased by 96.9% to
RMB517.3 million (US$83.5 million ) fromRMB262.7 million in the prior year period. - Net income attributable to
Vipshop's shareholders increased by 125.3% toRMB367.5 million (US$59.3 million ) fromRMB163.2 million in the prior year period. Net income margin attributable toVipshop's shareholders increased to 4.3% from 3.8% in the prior year period. - Non-GAAP net income attributable to
Vipshop's shareholders[4] increased by 106.0% toRMB477.1 million (US$77.0 million ) fromRMB231.5 million in the prior year period. Non-GAAP net income margin attributable toVipshop's shareholders[5] increased to 5.5% from 5.4% in the prior year period.
Mr.
Mr.
First Quarter 2015 Financial Results
REVENUE
Total net revenue for the first quarter of 2015 increased by 100.0% to
The number of active customers for the first quarter of 2015 increased by 75.0% to 12.9 million from 7.4 million in the prior year period. The number of total orders for the first quarter of 2015 increased by 90.0% to 38.5 million from 20.2 million in the prior year period. This increase was primarily attributable to increased brand recognition among customers, the Company's further improved ability to retain existing customers, as well as its continued efforts in optimizing and diversifying brand and product selection available on both PC and mobile platforms.
Beginning in the first quarter of 2015, the Company has broadened the way it defines active customers, total orders and repeat customers to include the buying activity over its online marketplace platforms. These changes to the definitions are intended to reflect
GROSS PROFIT
Gross profit for the first quarter of 2015 increased by 99.6% to
OPERATING INCOME AND EXPENSES
Total operating expenses for the first quarter of 2015 were
- Fulfillment expenses for the first quarter of 2015 were
RMB806.0 million (US$130.0 million ), as compared withRMB457.6 million in the prior year period, primarily reflecting the increase in sales volume, average ticket size and number of orders fulfilled. As a percentage of total net revenue, fulfillment expenses decreased to 9.4% from 10.6% in the prior year period, primarily reflecting the scale effect associated with the rapid growth in total net revenue. - Marketing expenses for the first quarter of 2015 were
RMB402.6 million (US$65.0 million ), as compared withRMB184.4 million in the prior year period. As a percentage of total net revenue, marketing expenses were 4.7%, as compared with 4.3% in the prior year period, reflecting the Company's strategy to drive long-term growth through increasing investments in strengthening its brand awareness, attracting new users, and expanding market share especially within product categories such as cosmetics, home goods, and baby and child care products. - Technology and content expenses for the first quarter of 2015 were
RMB256.1 million (US$41.3 million ), as compared withRMB114.5 million in the prior year period. As a percentage of total net revenue, technology and content expenses were 3.0%, as compared with 2.7% in the prior year period, primarily reflecting the Company's continued effort to expand headcount to better support future growth, as well as its investments in data analytics, which can help improve the ability to predict consumer behavior and further enhance user experience. - General and administrative expenses for the first quarter of 2015 were
RMB296.7 million (US$47.9 million ), as compared withRMB148.1 million in the prior year period. As a percentage of total net revenue, general and administrative expenses remained stable at 3.4%, as compared with the prior year period.
Income from operations for the first quarter of 2015 increased by 112.9% to
Non-GAAP income from operations, which excludes share-based compensation expenses and amortization of intangible assets resulting from a business acquisition, increased by 96.9% to
NET INCOME
Net income attributable to
Non-GAAP net income attributable to
For the quarter ended
As of
For the quarter ended
Business Outlook
For the second quarter of 2015, the Company expects its total net revenue to be between
Change in Reporting Currency to the Renminbi
Effective
Exchange Rate
This announcement contains currency conversions of certain Renminbi (RMB) amounts into U.S. dollars (USD) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of
Conference Call Information
The Company will hold a conference call on
United States: |
+1-845-675-0438 |
International Toll Free: |
+1-855-500-8701 |
China Domestic: |
400-1200654 |
Hong Kong: |
+852-3018-6776 |
Conference ID: |
#38108055 |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61 2 90034211 |
Conference ID: |
#38108055 |
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
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
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in
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] |
Beginning in the first quarter of 2015, the Company has updated its definition of "active customers" from "registered members who have purchased products from the Company at least once during the relevant period" to "registered members who have purchased from the Company or the Company's online marketplace platforms at least once during the relevant period." The active customer figures in 2014 and 2015 include active Lefeng customers after the Lefeng acquisition was completed in February 2014. |
[2] |
Beginning in the first quarter of 2015, the Company has updated its definition of "total orders" from "the total number of orders placed during the relevant period" to "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." The total order figures in 2014 and 2015 include orders attributable to Lefeng after the Lefeng acquisition was completed in February 2014. |
[3] |
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. |
[4] |
Non-GAAP net income attributable to Vipshop's shareholders is a non-GAAP financial measure, which is defined as net income attributable to Vipshop's shareholders excluding share-based compensation expenses and amortization of intangible assets resulting from a business acquisition and equity method investments. |
[5] |
Non-GAAP net income 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. |
[6] |
Beginning in the first quarter of 2015, the Company has updated its definition of "repeat customers" from "for a given period, any customer who (i) is an active customer during such period, and (ii) had purchased products from the Company at least twice during the period from the Company's inception on August 22, 2008 to the end of such period" to "for a given period, any customer who (i) is an active customer during such period, and (ii) had purchased products from the Company or its online marketplace platforms at least twice during the period from our inception on August 22, 2008 to the end of such period". |
[7] |
According to the reported data on iResearch Views dated March 11, 2015, mobile shopping took up 33.0% of China's online shopping market in 2014, as measured by gross merchandise volume (GMV). |
[8] |
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. |
[9] |
"ADS" means American Depositary Share. Effective November 3, 2014, the Company changed its ADS to Class A Ordinary Share ("Share") ratio from one ADS representing two ordinary shares to five ADSs representing one ordinary share. The computation of GAAP and non-GAAP income per diluted ADS have been adjusted retroactively for all periods presented to reflect this change. |
Vipshop Holdings Limited |
|||
Condensed Consolidated Statements of Income and Comprehensive Income |
|||
(In thousands, except per share data) |
|||
Three Months Ended |
|||
March 31, |
March 31, |
March 31, |
|
RMB'000 |
RMB'000 |
USD'000 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Product revenues |
4,241,648 |
8,414,397 |
1,357,380 |
Other revenues (1) |
64,715 |
198,302 |
31,989 |
Total net revenues |
4,306,363 |
8,612,699 |
1,389,369 |
Cost of goods sold |
(3,233,886) |
(6,471,623) |
(1,043,979) |
Gross profit |
1,072,477 |
2,141,076 |
345,390 |
Operating expenses |
|||
Fulfillment expenses(2) |
(457,590) |
(805,961) |
(130,015) |
Marketing expenses |
(184,381) |
(402,647) |
(64,953) |
Technology and content expenses |
(114,486) |
(256,148) |
(41,321) |
General and administrative expenses(3) |
(148,052) |
(296,698) |
(47,862) |
Total operating expenses |
(904,509) |
(1,761,454) |
(284,151) |
Other income |
17,560 |
15,338 |
2,474 |
Income from operations |
185,528 |
394,960 |
63,713 |
Impairment loss of other investment |
- |
(10,000) |
(1,613) |
Interest expenses |
(9,990) |
(21,841) |
(3,523) |
Interest income |
50,296 |
81,795 |
13,195 |
Exchange (loss) gain |
(6,490) |
8,508 |
1,372 |
Income before income taxes and share of loss of affiliates |
219,344 |
453,422 |
73,144 |
Income tax expense(4) |
(63,335) |
(89,190) |
(14,388) |
Share of loss of affiliates |
(4,630) |
(22,926) |
(3,698) |
Net income |
151,379 |
341,306 |
55,058 |
Net loss attributable to noncontrolling interests |
11,777 |
26,203 |
4,227 |
Net income attributable to Vipshop's shareholders |
163,156 |
367,509 |
59,285 |
Shares used in calculating earnings per share(5): |
|||
Class A ordinary shares: |
|||
—Basic |
95,408,930 |
98,431,535 |
98,431,535 |
—Diluted |
102,650,613 |
103,030,229 |
103,030,229 |
Class B ordinary shares: |
|||
—Basic |
16,510,358 |
16,510,358 |
16,510,358 |
—Diluted |
16,510,358 |
16,510,358 |
16,510,358 |
Net earnings per Class A share |
|||
Net income attributable to Vipshop's shareholders——Basic |
1.46 |
3.20 |
0.52 |
Net income attributable to Vipshop's shareholders——Diluted |
1.37 |
3.07 |
0.50 |
Net earnings per Class B share |
|||
Net income attributable to Vipshop's shareholders——Basic |
1.46 |
3.20 |
0.52 |
Net income attributable to Vipshop's shareholders——Diluted |
1.37 |
3.07 |
0.50 |
Net earnings per ADS (1 ordinary share equals to 5 ADSs) |
|||
Net income attributable to Vipshop's shareholders——Basic |
0.29 |
0.64 |
0.10 |
Net income attributable to Vipshop's shareholders——Diluted |
0.27 |
0.61 |
0.10 |
(1)Other revenues primarily consist of revenues from product promotion and online advertising, fees charged to third-party merchants which the Company provides platform access for sales of their product. |
|||
(2) Including shipping and handling expenses, which amounted RMB 281 million and RMB 405 million in the three month periods ended March 31, 2014 and March 31, 2015, respectively. |
|||
(3)Including amortization of intangible assets resulting from a business acquisition, which amounted to RMB 31 million and RMB 58 million in the three months period ended March 31, 2014 and March 31, 2015, respectively. |
|||
(4)Included income tax benefits of RMB 8 million and RMB 15 million related to the reversal of deferred tax liabilities, which was recognized on the businss acquisition of Lefeng for the three months period ended March 31, 2014 and March 31, 2015, respectively. |
|||
(5) Authorized share capital are re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to ten votes on all matters that are subject to shareholder vote. |
|||
Net income |
151,379 |
341,306 |
55,058 |
Other comprehensive income (loss), net of tax: |
|||
Foreign currency translation adjustments |
(31,863) |
330 |
53 |
Unrealized gain or loss of Available-for-sales securities |
16,787 |
2,708 |
|
Comprehensive income |
119,516 |
358,423 |
57,819 |
Less: Comprehensive loss attributable to non-controlling interests |
(11,647) |
(26,496) |
(4,274) |
Comprehensive income attributable to Vipshop's shareholders |
131,163 |
384,919 |
62,093 |
Three Months Ended |
|||
March 31, |
March 31, |
March 31, |
|
RMB'000 |
RMB'000 |
USD'000 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Share-based compensation charges included are follows |
|||
Fulfillment expenses |
2,040 |
3,761 |
607 |
Marketing expenses |
4,239 |
3,879 |
626 |
Technology and content expenses |
21,721 |
27,363 |
4,414 |
General and administrative expenses |
18,504 |
29,235 |
4,716 |
Total |
46,504 |
64,238 |
10,363 |
Vipshop Holdings Limited |
|||
Condensed Consolidated Balance Sheets |
|||
(In thousands, except per share data) |
|||
December 31, |
March 31, |
March 31, |
|
RMB'000 |
RMB'000 |
USD'000 |
|
ASSETS |
(Unaudited) |
(Unaudited) |
(Unaudited) |
CURRENT ASSETS |
|||
Cash and cash equivalents |
4,790,751 |
5,911,634 |
953,643 |
Restricted cash |
400 |
700,000 |
112,921 |
Held-to-maturity securities |
3,768,338 |
1,821,484 |
293,835 |
Accounts receivable, net |
155,099 |
280,215 |
45,203 |
Amounts due from related parties |
30,991 |
1,941 |
313 |
Other receivables |
550,122 |
603,383 |
97,336 |
Inventories |
3,588,304 |
3,053,596 |
492,595 |
Advance to suppliers |
81,952 |
82,317 |
13,279 |
Prepaid expenses |
21,348 |
22,613 |
3,648 |
Deferred tax assets |
233,149 |
259,362 |
41,839 |
Total current assets |
13,220,454 |
12,736,545 |
2,054,612 |
NON-CURRENT ASSETS |
- |
||
Property and equipment, net |
1,911,453 |
2,220,363 |
358,181 |
Deposits for property and equipment |
207,509 |
235,572 |
38,002 |
Prepaid land use right |
81,991 |
81,302 |
13,115 |
Intangible assets, net |
1,038,949 |
972,364 |
156,858 |
Investment in affiliates |
287,390 |
359,459 |
57,987 |
Other investments |
102,792 |
299,083 |
48,247 |
Available-for-sale securities investment, non-current |
47,782 |
7,708 |
|
Other long-term assets |
40,503 |
103,146 |
16,639 |
Goodwill |
60,000 |
60,000 |
9,679 |
Total non-current assets |
3,730,587 |
4,379,071 |
706,416 |
TOTAL ASSETS |
16,951,041 |
17,115,616 |
2,761,028 |
LIABILTIES AND EQUITY |
|||
CURRENT LIABILITIES |
|||
Accounts payable (Including accounts payable of the VIE without recourse to the Company of RMB 7,490 and RMB 13,240 as of December 31, 2014 and March 31, 2015, respectively) |
6,121,256 |
5,415,446 |
873,600 |
Advance from customers (Including advance from customers of the VIE without recourse to the Company of RMB 1,217,429 and RMB 1,255,500 as of December 31, 2014 and March 31, 2015, respectively) |
1,422,935 |
1,539,401 |
248,330 |
Accrued expenses and other current liabilities(Including accrued expenses and other current liabilities of the VIE without recourse to the Company of RMB 944,097 and RMB 783,035 as of December 31, 2014 and March 31, 2015, respectively) |
2,340,755 |
2,496,850 |
402,783 |
Amounts due to related parties(Including amounts due to related parties of the VIE without recourse to the Company of RMB 2,474 and RMB 900 as of December 31, 2014 and March 31, 2015, respectively) |
75,784 |
73,702 |
11,889 |
Deferred income (Including deferred income of the VIE without recourse to the Company of RMB 178,920 and RMB 199,923 as of December 31, 2014 and March 31, 2015, respectively) |
194,560 |
217,004 |
35,006 |
Short term loans (Including short term loans of the VIE without recourse to the Company of nil as of December 31, 2014 and March 31, 2015) |
- |
160,975 |
25,968 |
Total current liabilities |
10,155,290 |
9,903,378 |
1,597,576 |
NON-CURRENT LIABILITIES |
|||
Deferred tax liability |
242,697 |
227,508 |
36,701 |
Convertible senior notes |
3,854,985 |
3,859,510 |
622,602 |
Total non-current liabilities |
4,097,682 |
4,087,018 |
659,303 |
Total liabilities |
14,252,973 |
13,990,396 |
2,256,879 |
EQUITY: |
|||
Class A ordinary shares (US$0.0001 par value, 483,489,642 shares authorized, and 99,170,909 and 98,028,314 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively) |
63 |
64 |
10 |
Class B ordinary shares (US$0.0001 par value, 16,510,358 shares authorized, and 16,510,358 and 16,510,358 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively) |
11 |
11 |
2 |
Additional paid-in capital |
2,538,217 |
2,607,238 |
420,590 |
Retained earnings |
26,544 |
394,053 |
63,567 |
Accumulated other comprehensive income (loss) |
(10,711) |
6,406 |
1,034 |
Non-controlling interests |
143,944 |
117,448 |
18,946 |
Total shareholders' equity |
2,698,068 |
3,125,220 |
504,149 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
16,951,041 |
17,115,616 |
2,761,028 |
- |
- |
||
Vipshop Holdings Limited |
|||
Reconciliations of GAAP and Non-GAAP Results |
|||
Three Months Ended |
|||
March 31, |
March 31, |
March 31, |
|
RMB'000 |
RMB'000 |
USD'000 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income from operations |
185,528 |
394,960 |
63,714 |
Share-based compensation expenses |
46,504 |
64,238 |
10,363 |
Amortization of intangible assets resulting from a business acquisition |
30,660 |
58,130 |
9,377 |
Non-GAAP income from operations |
262,692 |
517,328 |
83,453 |
Net income |
151,379 |
341,306 |
55,058 |
Share-based compensation expenses |
46,504 |
64,238 |
10,363 |
Amortization of intangible assets resulting from a business acquisition and equity method investments (net of tax) |
27,631 |
56,161 |
9,060 |
Non-GAAP net income |
225,514 |
461,705 |
74,481 |
Net income attributable to Vipshop's shareholders |
163,156 |
367,509 |
59,285 |
Share-based compensation expenses |
46,504 |
64,238 |
10,363 |
Amortization of intangible assets resulting from a business acquisition and equity method investments (exclude non-controlling interests and net of tax) |
21,883 |
45,311 |
7,309 |
Non-GAAP net income attributable to Vipshop's shareholders |
231,543 |
477,058 |
76,957 |
Shares used in calculating earnings per share: |
|||
Basic commone shares: |
|||
Class A ordinary shares: |
|||
—Basic |
95,408,930 |
98,431,535 |
98,431,535 |
—Diluted |
102,650,613 |
103,030,229 |
103,030,229 |
Class B ordinary shares: |
|||
—Basic |
16,510,358 |
16,510,358 |
16,510,358 |
—Diluted |
16,510,358 |
16,510,358 |
16,510,358 |
Non-GAAP net income per Class A share |
|||
Non-GAAP net income attributable to Vipshop's shareholders——Basic |
2.07 |
4.15 |
0.67 |
Non-GAAP net income attributable to Vipshop's shareholders——Diluted |
1.94 |
3.99 |
0.64 |
Non-GAAP net income per Class B share |
|||
Non-GAAP net income attributable to Vipshop's shareholders——Basic |
2.07 |
4.15 |
0.67 |
Non-GAAP net income attributable to Vipshop's shareholders——Diluted |
1.94 |
3.99 |
0.64 |
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs) |
|||
Non-GAAP net income attributable to Vipshop's shareholders——Basic |
0.41 |
0.83 |
0.13 |
Non-GAAP net income attributable to Vipshop's shareholders——Diluted |
0.39 |
0.80 |
0.13 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-first-quarter-2015-financial-results-300082795.html
SOURCE
Investor Relations Contact: Vipshop Holdings Limited, Millicent Tu, Tel: +86 (20) 2233-0732, Email:IR@vipshop.com; ICR, Inc., Jeremy Peruski, Tel: +1 (646) 405-4866, Email: IR@vipshop.com