Press Releases
<< Back |
View printer-friendly version |
Vipshop Reports Unaudited Second Quarter 2017 Financial Results
Second Quarter 2017 Highlights
- Total net revenue for the second quarter of 2017 increased by 30.3% to
RMB17.52 billion (US$2.58 billion ) fromRMB13.44 billion in the prior year period. - The number of active customers[1] for the second quarter of 2017 increased by 22% year over year to 28.1 million.
- Total orders[2] for the second quarter of 2017 increased by 23% year over year to 84.8 million.
- Gross profit for the second quarter of 2017 increased by 19.1% to
RMB3.86 billion (US$569.4 million ) fromRMB3.24 billion in the prior year period. - Net income attributable to
Vipshop's shareholders for the second quarter of 2017 wasRMB386.5 million (US$57.0 million ), as compared withRMB451.6 million in the prior year period. - Non-GAAP net income attributable to
Vipshop's shareholders[3] for the second quarter of 2017 increased by 7.5% toRMB728.2 million (US$107.4 million ) fromRMB677.5 million in the prior year period.
"We delivered solid operational results in the second quarter of 2017," said Mr.
Mr.
Recent Business Highlights
- To supplement the five regional warehousing centers,
Vipshop added four local warehouses in Nanning, Urumchi,Jinan , andHarbin, China during the second quarter of 2017, bringing the total number of local warehouses to eleven as ofJune 30, 2017 . The Company also added approximately 19,000 square meters of warehouse space inJapan andKorea for its cross-border business.Vipshop currently has a total of approximately 2.2 million square meters of warehouses, of which 1.4 million square meters is owned by the Company. - During the second quarter of 2017, the Company delivered 95% of its orders through its proprietary last mile network, up from 91% in the same period last year. Approximately 68% of returns from customers were handled directly by
Vipshop's last mile delivery staff, up from 46% in the same period in 2016. Vipshop officially launched the spin-off of the Internet finance business, which initiated a Series A financing in the second quarter of 2017. The Company's consumer financing business had 4.4 million users in the second quarter of 2017, which represents a 179% increase from 1.6 million in the second quarter of 2016.- During the second quarter of 2017,
Vipshop added a number of popular international brands, includingRoberto Cavalli , Trussardi, Desigual, and many others. The Company also started to work directly withLuxottica Group , the world's largest eyewear company. In addition, the Company entered into a strategic partnership with Aveeno to help the brand enter theChina market. - In the second quarter of 2017,
Vipshop's average revenue per active customer increased by 6.7% year over year, which was mainly driven by the 5.9% year-over-year increase in average ticket size. - Excluding impact from the Internet finance business, the Company's free cash inflow for the trailing twelve months ended
June 30, 2017 was 1.96 billion as compared with free cash outflow of 93.3 million in the prior year period. Vipshop attended and sponsored MAGIC Las Vegas, a world-renowned fashion tradeshow andthe United States' most comprehensive fashion marketplace fromAugust 14 to 16, 2017 , which expanded the Company's strategic partnerships with international brands and enhancedVipshop's brand awareness globally.- As of
June 30, 2017 , more than 300 ofVipshop's suppliers had seamlessly connected their inventory management systems to the Company's system, increasingVipshop's daily average SKUs online to 2.7 million in the second quarter of 2017, up from 0.8 million in the same period last year.
Second Quarter 2017 Financial Results
REVENUE
Total net revenue for the second quarter of 2017 increased by 30.3% to
The number of active customers for the second quarter of 2017 increased by 22% to 28.1 million from 23.0 million in the prior year period. The number of total orders for the second quarter of 2017 increased by 23% to 84.8 million from 68.9 million in the prior year period.
GROSS PROFIT
Gross profit for the second quarter of 2017 increased by 19.1% to
OPERATING INCOME AND EXPENSES
Total operating expenses for the second quarter of 2017 were
- Fulfillment expenses for the second quarter of 2017 were
RMB1.64 billion (US$242.5 million ), as compared withRMB1.15 billion in the prior year period, primarily reflecting an increase in sales volume and number of orders fulfilled. As a percentage of total net revenue, fulfillment expenses were 9.4% as compared with 8.6% in the prior year period, primarily attributable to the Company's expansion to support an increase in the last mile business outside of theVipshop platform. - Marketing expenses for the second quarter of 2017 were
RMB752.1 million (US$110.9 million ), as compared withRMB672.3 million in the prior year period, reflecting the Company's strategy to strengthen its brand awareness, attract new users, and expand market share. As a percentage of total net revenue, marketing expenses decreased to 4.3% from 5.0% in the prior year period, primarily attributable to the Company's strategic balance between promotional activities and its broader marketing efforts. - Technology and content expenses for the second quarter of 2017 were
RMB447.8 million (US$66.1 million ), as compared withRMB391.5 million in the prior year period, reflecting the Company's continuing efforts to invest in human capital, advanced technologies, and its Internet finance business. As a percentage of total net revenue, technology and content expenses decreased to 2.6% from 2.9% in the prior year period. - General and administrative expenses for the second quarter of 2017 were
RMB578.8 million (US$85.4 million ), as compared withRMB434.2 million in the prior year period. As a percentage of total net revenue, general and administrative expenses were 3.3% as compared with 3.2% in the prior year period, primarily attributable to an increase in share based compensation as well as the impact from building out the Internet finance business.
Income from operations for the second quarter of 2017 was
Non-GAAP income from operations[4], which excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 6.0% to
NET INCOME
Net income attributable to
Non-GAAP net income attributable to
For the quarter ended
BALANCE SHEET AND CASH FLOW
As of
For the quarter ended
For the three months ended |
||||
Jun 30, 2016
RMB'000 |
Jun 30, 2017
RMB'000 |
Jun 30, 2017
US$'000 |
||
Net cash from (used in) operating activities |
1,227,110 |
(273,753) |
(40,381) |
|
Add: Impact from Internet financing activities[9] |
490,573 |
783,610 |
115,589 |
|
Less: Capital expenditures |
(587,852) |
(673,891) |
(99,404) |
|
Free cash flow in (out) |
1,129,831 |
(164,034) |
(24,196) |
Free cash flow trailing twelve months ended
Jun 30, 2016
RMB'000 |
Jun 30, 2017
RMB'000 |
Jun 30, 2017
US$'000 |
||
Net cash from operating activities |
3,269,475 |
1,914,083 |
282,342 |
|
Add: Impact from Internet financing activities[9] |
1,218,589 |
2,850,206 |
420,428 |
|
Less: Capital expenditures |
(4,581,344) |
(2,801,534) |
(413,248) |
|
Free cash flow (out) in |
(93,280) |
1,962,755 |
289,522 |
Business Outlook
For the third quarter of 2017, the Company expects its total net revenue to be between
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
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: |
400-1200-654 |
Hong Kong: |
+852-3018-6776 |
Conference ID: |
#58958603 |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61-2-9003-4211 |
Conference ID: |
#58958603 |
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.
Investor Relations Contact
Millicent Tu
Tel: +86 (20) 2233-0732
Email: IR@vipshop.com
[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, which 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 business acquisitions. |
[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 |
[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 |
|||
June 30,2016 |
June 30,2017 |
June 30,2017 |
|
RMB'000 |
RMB'000 |
USD'000 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Product revenues |
13,152,278 |
17,036,222 |
2,512,977 |
Other revenues (1) |
287,420 |
480,357 |
70,856 |
Total net revenues |
13,439,698 |
17,516,579 |
2,583,833 |
Cost of goods sold |
(10,198,289) |
(13,656,686) |
(2,014,468) |
Gross profit |
3,241,409 |
3,859,893 |
569,365 |
Operating expenses |
|||
Fulfillment expenses (2) |
(1,152,493) |
(1,644,074) |
(242,514) |
Marketing expenses |
(672,345) |
(752,148) |
(110,948) |
Technology and content expenses |
(391,525) |
(447,820) |
(66,057) |
General and administrative expenses (3) |
(434,156) |
(578,783) |
(85,375) |
Total operating expenses |
(2,650,519) |
(3,422,825) |
(504,894) |
Other income |
53,039 |
184,669 |
27,240 |
Income from operations |
643,929 |
621,737 |
91,711 |
Impairment loss of investments |
(48,634) |
(103,107) |
(15,209) |
Interest expenses |
(21,721) |
(19,259) |
(2,841) |
Interest income |
28,212 |
29,684 |
4,379 |
Exchange loss |
(20,618) |
(36,895) |
(5,442) |
Gain on disposal of an investment |
- |
55,615 |
8,204 |
Income before income taxes and share of result of affiliates |
581,168 |
547,775 |
80,802 |
Income tax expense(4) |
(127,960) |
(169,679) |
(25,029) |
Share of loss of affiliates |
(15,532) |
(7,293) |
(1,076) |
Net income |
437,676 |
370,803 |
54,697 |
Net loss attributable to noncontrolling interests |
13,929 |
15,680 |
2,313 |
Net income attributable to Vipshop's shareholders |
451,605 |
386,483 |
57,010 |
Shares used in calculating earnings per share (5): |
|||
Class A and Class B ordinary shares: |
|||
—Basic |
115,858,596 |
117,365,737 |
117,365,737 |
—Diluted |
124,555,621 |
125,870,498 |
125,870,498 |
Net earnings per Class A and Class B share |
|||
Net income attributable to Vipshop's shareholders--Basic |
3.90 |
3.29 |
0.49 |
Net income attributable to Vipshop's shareholders--Diluted |
3.80 |
3.20 |
0.47 |
Net earnings per ADS (1 ordinary share equals to 5 ADSs) |
|||
Net income attributable to Vipshop's shareholders--Basic |
0.78 |
0.66 |
0.10 |
Net income attributable to Vipshop's shareholders--Diluted |
0.76 |
0.64 |
0.09 |
(1) Other revenues primarily consist of revenues from third-party logistics services, product |
|||
(2) Including shipping and handling expenses, which amounted RMB 617 million and |
|||
(3)Including amortization of intangible assets resulting from business acquisitions, which |
|||
(4)Included income tax benefits of RMB 20 million and RMB 21 million related to the |
|||
(5) Authorized share capital are re-classified and re-designated into Class A ordinary |
|||
Net income |
437,676 |
370,803 |
54,697 |
Other comprehensive income (loss), net of tax: |
|||
Foreign currency translation adjustments |
4,546 |
99,585 |
14,690 |
Unrealized (loss) gain from available-for-sale securities |
(8,934) |
13,899 |
2,050 |
Reclassification adjustment for losses(gains) of investment |
36,567 |
(55,615) |
(8,204) |
Comprehensive income |
469,855 |
428,672 |
63,233 |
Less: Comprehensive loss attributable to noncontrolling interests |
(15,380) |
(15,680) |
(2,313) |
Comprehensive income attributable to Vipshop's shareholders |
485,235 |
444,352 |
65,546 |
Three Months Ended |
|||
June 30,2016 |
June 30,2017 |
June 30,2017 |
|
RMB'000 |
RMB'000 |
USD'000 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Share-based compensation charges included are as follows |
|||
Fulfillment expenses |
10,146 |
19,058 |
2,811 |
Marketing expenses |
9,683 |
10,387 |
1,532 |
Technology and content expenses |
45,510 |
54,331 |
8,014 |
General and administrative expenses |
50,819 |
98,012 |
14,458 |
Total |
116,158 |
181,788 |
26,815 |
Vipshop Holdings Limited |
|||
Condensed Consolidated Balance Sheets |
|||
(In thousands, except per share data) |
|||
December 31,2016 |
June 30,2017 |
June 30,2017 |
|
RMB'000 |
RMB'000 |
USD'000 |
|
ASSETS |
(Unaudited) |
(Unaudited) |
(Unaudited) |
CURRENT ASSETS |
|||
Cash and cash equivalents |
4,109,577 |
4,148,892 |
611,994 |
Restricted cash |
- |
48,898 |
7,213 |
Held-to-maturity securities |
671,776 |
343,239 |
50,630 |
Accounts receivable, net |
2,333,918 |
3,488,455 |
514,574 |
Amounts due from related parties |
8,352 |
11,089 |
1,636 |
Other receivables and prepayments,net |
2,293,825 |
2,208,141 |
325,718 |
Inventories |
4,948,609 |
3,716,585 |
548,225 |
Deferred tax assets |
214,815 |
- |
- |
Total current assets |
14,580,872 |
13,965,299 |
2,059,990 |
NON-CURRENT ASSETS |
|||
Property and equipment, net |
4,467,451 |
5,510,239 |
812,804 |
Deposits for property and equipment |
1,039,793 |
556,074 |
82,025 |
Land use rights, net |
2,399,058 |
3,030,806 |
447,068 |
Intangible assets, net |
725,147 |
569,305 |
83,977 |
Investment in affiliates |
93,144 |
63,635 |
9,387 |
Other investments |
503,117 |
416,403 |
61,423 |
Available-for-sale securities investments |
407,944 |
149,999 |
22,126 |
Other long-term assets |
510,821 |
185,093 |
27,303 |
Goodwill |
367,106 |
367,106 |
54,151 |
Deferred tax assets |
- |
284,367 |
41,946 |
Total non-current assets |
10,513,581 |
11,133,027 |
1,642,210 |
TOTAL ASSETS |
25,094,453 |
25,098,326 |
3,702,200 |
LIABILTIES AND EQUITY |
|||
CURRENT LIABILITIES |
|||
Short term loan(Including Short term loan of the VIE without |
- |
3,000 |
443 |
Accounts payable (Including accounts payable of the VIE without |
8,333,610 |
8,151,478 |
1,202,407 |
Advance from customers (Including advance from customers of |
2,699,981 |
1,703,522 |
251,283 |
Accrued expenses and other current liabilities (Including accrued |
3,322,599 |
3,004,990 |
443,260 |
Amounts due to related parties(Including amounts due to related |
52,729 |
17,550 |
2,589 |
Deferred income (Including deferred income of the VIE without |
174,547 |
153,807 |
22,688 |
Securitization debt |
- |
285,000 |
42,040 |
Total current liabilities |
14,583,466 |
13,319,347 |
1,964,710 |
NON-CURRENT LIABILITIES |
|||
Deferred tax liability(Including deferred tax of the VIE without |
100,583 |
58,243 |
8,591 |
Deferred income-non current(Including deferred income-non |
246,902 |
313,060 |
46,179 |
Convertible senior notes |
4,381,698 |
4,266,722 |
629,375 |
Total non-current liabilities |
4,729,183 |
4,638,025 |
684,145 |
Total liabilities |
19,312,649 |
17,957,372 |
2,648,855 |
EQUITY: |
|||
Class A ordinary shares (US$0.0001 par value, 483,489,642 |
66 |
66 |
10 |
Class B ordinary shares (US$0.0001 par value, 16,510,358 |
11 |
11 |
2 |
Treasury shares, at cost - 1,356,918 shares and - 493,845 |
(707,441) |
(251,432) |
(37,088) |
Additional paid-in capital |
3,130,126 |
3,051,185 |
450,074 |
Retained earnings |
3,653,026 |
4,591,426 |
677,271 |
Accumulated other comprehensive loss |
(343,608) |
(238,042) |
(35,116) |
Noncontrolling interests |
49,624 |
(12,260) |
(1,808) |
Total shareholders' equity |
5,781,804 |
7,140,954 |
1,053,345 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
25,094,453 |
25,098,326 |
3,702,200 |
Vipshop Holdings Limited |
|||
Reconciliations of GAAP and Non-GAAP Results |
|||
Three Months Ended |
|||
June 30,2016 |
June 30,2017 |
June 30,2017 |
|
RMB'000 |
RMB'000 |
USD'000 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income from operations |
643,929 |
621,737 |
91,711 |
Share-based compensation expenses |
116,158 |
181,788 |
26,815 |
Amortization of intangible assets resulting from business |
77,093 |
84,161 |
12,414 |
Non-GAAP income from operations |
837,180 |
887,686 |
130,940 |
Net income |
437,676 |
370,803 |
54,697 |
Share-based compensation expenses |
116,158 |
181,788 |
26,815 |
Impairment loss in investments |
48,634 |
103,107 |
15,209 |
Amortization of intangible assets resulting from |
92,160 |
90,129 |
13,295 |
Tax effect of amortization of intangible assets resulting from |
(19,887) |
(21,040) |
(3,104) |
Non-GAAP net income |
674,741 |
724,787 |
106,912 |
Net income attributable to Vipshop's shareholders |
451,605 |
386,483 |
57,010 |
Share-based compensation expenses |
116,158 |
181,788 |
26,815 |
Impairment loss in investments |
48,634 |
103,107 |
15,209 |
Amortization of intangible assets resulting from business |
77,127 |
73,826 |
10,890 |
Tax effect of amortization of intangible assets resulting from |
(16,009) |
(16,965) |
(2,502) |
Non-GAAP net income attributable to Vipshop's shareholders |
677,515 |
728,239 |
107,422 |
Shares used in calculating earnings per share: |
|||
Basic ordinary shares: |
|||
Class A and Class B ordinary shares: |
|||
-Basic |
115,858,596 |
117,365,737 |
117,365,737 |
-Diluted |
124,555,621 |
125,870,498 |
125,870,498 |
Non-GAAP net income per Class A and Class B share |
|||
Non-GAAP net income attributable to Vipshop's |
5.85 |
6.20 |
0.92 |
Non-GAAP net income attributable to Vipshop's |
5.61 |
5.91 |
0.87 |
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs) |
|||
Non-GAAP net income attributable to Vipshop's |
1.17 |
1.24 |
0.18 |
Non-GAAP net income attributable to Vipshop's |
1.12 |
1.18 |
0.17 |
View original content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-second-quarter-2017-financial-results-300505265.html
SOURCE