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Vipshop Reports Fourth Quarter and Full Year 2012 Financial Results
Fourth Quarter 2012 Highlights
- Net revenues increased by 184.8% over the prior year period to
US$299.6 million , primarily attributable to a 176.9% increase in the number of active customers[1] from 934,000 to 2.6 million and a 191.2% increase in total orders[2] from 3.0 million to 8.8 million. - Gross margin increased to 22.9% from 20.0% in the prior year period and 22.3% in the third quarter of 2012.
- Non-GAAP income from operations[3] was
US$7.2 million , as compared to a non-GAAP loss from operations ofUS$11.1 million in the prior year period. Non-GAAP operating income margin[4] was 2.4%, compared to a non-GAAP operating loss margin of 10.6% in the prior year period and a non-GAAP operating loss margin of 0.7% in the third quarter of 2012. - Net income attributable to ordinary shareholders was
US$6.3 million , compared to a net loss attributable to ordinary shareholders ofUS$63.5 million in the prior year period. Net income margin was 2.1%, compared to a net loss margin of 60.4% in the prior year period and a net loss margin of 0.9% in the third quarter of 2012. - Non-GAAP net income attributable to ordinary shareholders[5] was
US$8.1 million compared to a non-GAAP net loss ofUS$11.2 million in the prior year period. Non-GAAP net income margin[6] was 2.7% compared with a non-GAAP net loss margin of 10.6% in the prior year period and a non-GAAP net income margin of 0.4% in the third quarter of 2012.
Full Year 2012 Highlights
- Net revenues increased by 204.7% for the full year of 2012 to
US$692.1 million , primarily attributable to a 175.7% increase in the number of active customers from 1.5 million to 4.1 million and a 201.5% increase in total orders from 7.3 million to 21.9 million. - Gross margin increased to 22.3% from 19.1% in the prior year.
- Non-GAAP loss from operations decreased to
US$4.3 million fromUS$33.0 million in the prior year. Non-GAAP operating loss margin improved to 0.6% from 14.5% in the prior year. - Net loss attributable to ordinary shareholders decreased to
US$9.5 million fromUS$156.5 million in the prior year period. Net loss margin improved to 1.4% from 68.9% in the prior year period. - Non-GAAP net loss attributable to ordinary shareholders was
US$1.9 million compared to a non-GAAP net loss ofUS$82.6 million in the prior year. Non-GAAP net loss margin was 0.3% compared with a non-GAAP net loss margin of 36.3% in the prior year period.
Mr.
Mr.
NET REVENUES
Net revenues for the fourth quarter of 2012 increased by 184.8% to
The number of active customers for the fourth quarter of 2012 increased by 176.9% to 2.6 million from approximately 934,000 in the prior year period. The number of total orders for the fourth quarter of 2012 increased by 191.2% to 8.8 million from 3.0 million in the prior year period. This increase was primarily due to the Company's continued efforts to optimize brand and product selection, increase the number of sales events and increase the number of SKUs available on its website. In addition, the Company's regional warehouse expansion into
GROSS PROFIT
Gross profit for the fourth quarter of 2012 increased by 227.4% to
OPERATING INCOME AND EXPENSES
Total operating expenses for the fourth quarter of 2012 decreased by 24.4% to
- Fulfillment expenses increased by 90.9% to
US$37.4 million fromUS$19.6 million in the prior year period, primarily reflecting the increase in sales volume and number of orders fulfilled. As a percentage of net revenues, fulfillment expenses decreased to 12.5% from 18.6% in the prior year period and 13.9% in the third quarter of 2012, which reflects the Company's strategy of shifting towards using regional and local delivery services and capacity expansion of regional warehouses. The sequential improvement in fulfillment expenses as a percentage of net revenues also reflected the seasonality associated with increased average revenue per order due to higher priced winter season products. - Marketing expenses increased by 85.9% to
US$12.5 million fromUS$6.7 million in the prior year period. As a percentage of net revenues, marketing expenses decreased to 4.2% from 6.4% in the prior year period and 4.7% in the third quarter of 2012, demonstrating the Company's ability to control marketing expenses by retaining repeat customers and achieving high growth of new customers through word-of-mouth referrals. - Technology and content expenses increased by 112.5% to
US$6.3 million fromUS$3.0 million in the prior year period, primarily reflecting the Company's continued efforts to invest in its website and IT systems to better support future growth. As a percentage of net revenues, technology and content expenses remained stable at 2.1% compared with 2.8% in the prior year period and 2.1% in the third quarter of 2012. - General and administrative expenses decreased by 85.8% to
US$7.9 million fromUS$55.5 million in the prior year period, primarily due to decreased share-based compensation expenses. As a percentage of net revenues, general and administrative expenses decreased to 2.6% compared with 52.8% in the prior year period and 4.1% in the third quarter of 2012, reflecting the effect of the decrease in share-based compensation expenses, the Company's increased operational leverage as well as continued cost-control efforts.
Income from operations was
Non-GAAP income from operations, which excludes the impact of share-based compensation expense, was
NET INCOME/LOSS
Net income attributable to ordinary shareholders was
Non-GAAP net income attributable to ordinary shareholders, which excludes share-based compensation expenses, was
For the quarter ended
As of
For the fourth quarter of 2012, net cash from operating activities was
Full Year 2012 Financial Results
Net revenues increased by 204.7% year-over-year for the full year of 2012 to
The number of active customers for the full year of 2012 increased by 175.7% to 4.1 million from 1.5 million in the prior year. The number of total orders for the full year of 2012 increased by 201.5% to 21.9 million from 7.3 million in the prior year. This increase was primarily due to the Company's addition of several regional sub-sites in 2011, as well as continued efforts to optimize brand and product selection, increase the number of sales events and increase the number of SKUs available on its website. In addition, the Company's regional warehouse expansion into
Gross profit increased by 256.4% to
Loss from operations for the full year of 2012 decreased by 88.8% to
Non-GAAP loss from operations for the full year of 2012 decreased to
Net loss attributable to ordinary shareholders decreased to
Non-GAAP net loss attributable to ordinary shareholders decreased to
For the full year ended
Business Outlook
For the first quarter of 2013, the Company expects its net revenues to be between
Conference Call Information
The Company will hold a conference call on
To participate in the call, please dial the following numbers:
United States: |
+1-646-254-3515 |
International Toll Free: |
+1-855-500-8701 |
China Domestic: |
400-1200654 |
Hong Kong: |
+852-3051-2745 |
Conference ID: |
#94462443 |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61 2 8199 0299 |
Conference ID: |
#94462443 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.vipshop.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] |
Active customers are defined as any registered member who has purchased products from the Company at least once during the period. |
[2] |
Total orders are defined as the total number of orders placed during the period. |
[3] |
Non-GAAP income/(loss) from operations is a non-GAAP financial measure, which is defined as income/(loss) from operations excluding share-based compensation expenses. |
[4] |
Non-GAAP operating income/(loss) margin is a non-GAAP financial measure, which is defined as non-GAAP income/(loss) from operations as a percentage of net revenues. |
[5] |
Non-GAAP net income/(loss) attributable to ordinary shareholders is a non-GAAP financial measure, which is defined as net income/(loss) attributable to ordinary shareholders excluding share-based compensation expenses. |
[6] |
Non-GAAP net income/(loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income /(loss) attributable to ordinary shareholders as a percentage of net revenues. |
[7] |
"ADS" is American Depositary Share. Each ADS represents two ordinary shares. |
Vipshop Holdings Limited Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (In US dollars, except for share data) |
|||||||
Three Months Ended |
Twelve Months Ended | ||||||
December 31, 2011 |
December 31, 2012 |
September 30, 2012 |
December 31, 2010 |
December 31, 2011 |
December 31, 2012 | ||
USD |
USD |
USD |
USD |
USD |
USD | ||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) | ||
Net revenues |
105,205,829 |
299,626,573 |
155,944,583 |
32,582,115 |
227,142,876 |
692,112,964 | |
Cost of goods sold |
(84,211,219) |
(230,893,516) |
(121,180,318) |
(29,374,315) |
(183,801,334) |
(537,637,860) | |
Gross profit |
20,994,610 |
68,733,057 |
34,764,265 |
3,207,800 |
43,341,542 |
154,475,104 | |
Operating expenses |
|||||||
Fulfillment expenses* |
(19,592,188) |
(37,402,282) |
(21,703,487) |
(5,809,118) |
(45,478,327) |
(96,523,444) | |
Marketing expenses |
(6,721,359) |
(12,495,522) |
(7,310,957) |
(2,438,066) |
(15,253,325) |
(32,272,629) | |
Technology and content expenses |
(2,981,439) |
(6,336,055) |
(3,218,857) |
(562,120) |
(5,516,361) |
(14,644,113) | |
General and administrative expenses |
(55,510,374) |
(7,888,972) |
(6,321,337) |
(2,843,583) |
(84,575,539) |
(25,541,812) | |
Total operating expenses |
(84,805,360) |
(64,122,831) |
(38,554,638) |
(11,652,887) |
(150,823,552) |
(168,981,998) | |
Other income |
327,199 |
813,545 |
538,739 |
78,675 |
564,182 |
2,563,321 | |
Income (loss) from operations |
(63,483,551) |
5,423,771 |
(3,251,634) |
(8,366,412) |
(106,917,828) |
(11,943,573) | |
Interest expense |
(287,576) |
(969) |
(1,197) |
- |
(494,509) |
(222,868) | |
Interest income |
103,772 |
1,643,898 |
1,372,350 |
564 |
122,437 |
3,558,013 | |
Exchange (loss) gain |
142,428 |
(10,725) |
424,454 |
- |
18,375 |
(157,473) | |
Income (loss) before income taxes |
(63,524,927) |
7,055,975 |
(1,456,027) |
(8,365,848) |
(107,271,525) |
(8,765,901) | |
Income tax expenses |
- |
(706,173) |
- |
- |
- |
(706,173) | |
Net income (loss) |
(63,524,927) |
6,349,802 |
(1,456,027) |
(8,365,848) |
(107,271,525) |
(9,472,074) | |
Deemed dividend on issuance of Series A Preferred Shares |
- |
- |
- |
- |
(49,214,977) |
- | |
Net income (loss) attributable to ordinary shareholders |
(63,524,927) |
6,349,802 |
(1,456,027) |
(8,365,848) |
(156,486,502) |
(9,472,074) | |
Weighted average numbers of shares used in calculating earnings (loss) per share: | |||||||
-- Basic |
46,255,574 |
101,183,145 |
101,139,801 |
47,775,000 |
46,255,574 |
88,849,206 | |
-- Diluted |
46,255,574 |
105,028,955 |
101,139,801 |
47,775,000 |
46,255,574 |
88,849,206 | |
Net earnings (loss) per share |
|||||||
-- Basic |
(1.37) |
0.06 |
(0.01) |
(0.18) |
(3.38) |
(0.11) | |
-- Diluted |
(1.37) |
0.06 |
(0.01) |
(0.18) |
(3.38) |
(0.11) | |
Net earnings (loss) per ADS (2 ordinary shares equal to 1 ADS) |
|||||||
-- Basic |
(2.75) |
0.12 |
(0.03) |
(0.35) |
(6.77) |
(0.21) | |
-- Diluted |
(2.75) |
0.12 |
(0.03) |
(0.35) |
(6.77) |
(0.21) | |
*Including shipping and handling expenses, |
*Including shipping and handling expenses, which amounted US$4 million, US$29 million and US$54 million in the twelve month periods ended December 31, 2010, 2011 and 2012, respectively. |
||||||
Net loss |
(63,524,927) |
6,349,802 |
(1,456,027) |
(8,365,848) |
(107,271,525) |
(9,472,074) | |
Other comprehensive (loss) income, net of tax: |
|||||||
Foreign currency translation adjustments |
(218,493) |
628,902 |
274,895 |
(195,771) |
(569,628) |
994,606 | |
Comprehensive loss |
(63,743,420) |
6,978,704 |
(1,181,132) |
(8,561,619) |
(107,841,153) |
(8,477,468) | |
Three Months Ended |
Twelve Months Ended | ||||||
December 31, 2011 |
December 31, 2012 |
September 30, 2012 |
December 31, 2010 |
December 31, 2011 |
December 31, 2012 | ||
USD |
USD |
USD |
USD |
USD |
USD | ||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) | ||
Share-based compensation charges included are as follows | |||||||
Fulfillment expenses |
225,047 |
78,229 |
79,090 |
- |
297,095 |
292,866 | |
Marketing expenses |
168,497 |
81,449 |
30,203 |
- |
184,404 |
169,100 | |
Technology and content expenses |
595,149 |
263,332 |
258,947 |
- |
729,420 |
897,133 | |
General and administrative expenses |
51,352,722 |
1,370,327 |
1,728,329 |
- |
72,716,983 |
6,237,850 | |
Total |
52,341,415 |
1,793,337 |
2,096,569 |
73,927,902 |
7,596,949 | ||
Vipshop Holdings Limited Condensed Consolidated Balance Sheets | ||
As of December 31, 2011 |
As of December 31, 2012 | |
USD |
USD | |
ASSETS |
(Audited) |
(Unaudited) |
CURRENT ASSETS |
||
Cash and cash equivalents |
44,954,778 |
124,472,629 |
Restricted deposits |
14,214,585 |
- |
Held-to-maturity securities |
- |
86,097,191 |
Accounts receivable |
4,150,664 |
6,990,560 |
Amounts due from related parties |
2,101,853 |
177,237 |
Other receivables |
9,410,481 |
9,993,887 |
Inventories |
69,742,200 |
143,963,931 |
Advance to suppliers |
12,626,286 |
9,569,795 |
Prepaid expenses |
1,077,194 |
686,876 |
Total current assets |
158,278,041 |
381,952,106 |
NON-CURRENT ASSETS |
||
Property and equipment, net |
9,148,162 |
12,637,567 |
Deposits for property and equipment |
- |
4,322,217 |
Other assets |
9,117 |
5,230 |
Total non-current assets |
9,157,279 |
16,965,014 |
TOTAL ASSETS |
167,435,320 |
398,917,120 |
LIABILITIES AND EQUITY |
||
CURRENT LIABILITIES |
||
Accounts payable (Including accounts |
88,020,376 |
193,455,827 |
Advance from customers (Including advance from customers of the VIE without recourse to the Company of $15,378,465 and $55,948,713 as of December 31, 2011 and December 31, 2012, respectively) |
15,381,357 |
55,948,713 |
Accrued expenses and other current liabilities(Including accrued expenses and other current liabilities of the VIE without recourse to the Company of $11,825,417 and $24,908,418 as of December 31, 2011 and December 31, 2012, respectively) |
26,666,502 |
52,676,443 |
Amounts due to related parties(Including amounts due to related parties of the VIE without recourse to the Company of $2,992,516 and 789,057 as of December 31, 2011 and December 31, 2012, respectively) |
3,797,508 |
1,335,756 |
Deferred income (Including deferred income of the VIE without recourse to the Company of $2,569,655 and $10,850,319 as of December 31, 2011 and December 31, 2012, respectively) |
2,569,655 |
12,917,567 |
Bank borrowings |
12,710,720 |
- |
Total current liabilities |
149,146,118 |
316,334,306 |
Total liabilities |
149,146,118 |
316,334,306 |
EQUITY: |
||
Ordinary shares (US$0.0001 par value, 471,620,833 shares authorized, and 46,234,659 and 101,284,881 shares issued and outstanding as of December 31, 2011 and December 31, 2012, respectively) |
4,624 |
10,128 |
Series A Preferred Shares (US$0.0001 par value, 20,212,500 shares authorized, issued and outstanding as of December 31, 2011) |
20,113,898 |
- |
Series B Preferred Shares (US$0.0001 par value, 8,166,667 shares authorized, issued and outstanding as of December 31, 2011) |
41,147,021 |
- |
Additional paid-in capital |
124,341,953 |
258,368,448 |
Accumulated losses |
(166,553,261) |
(176,025,335) |
Accumulated other comprehensive income (loss) |
(765,033) |
229,573 |
Total shareholders' equity |
18,289,202 |
82,582,814 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
167,435,320 |
398,917,120 |
Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP Results | |||||||
Three Months Ended |
Twelve Months Ended | ||||||
December 31, 2011 |
December 31, 2012 |
September 30, 2012 |
December 31, 2010 |
December 31, 2011 |
December 31, 2012 | ||
USD |
USD |
USD |
USD |
USD |
USD | ||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
(Unaudited) | ||
Income (loss) from operations |
(63,483,551) |
5,423,771 |
(3,251,634) |
(8,366,412) |
(106,917,828) |
(11,943,573) | |
Share-based compensation expenses |
52,341,415 |
1,793,337 |
2,096,569 |
- |
73,927,902 |
7,596,949 | |
Non-GAAP income (loss) from operation |
(11,142,136) |
7,217,108 |
(1,155,065) |
(8,366,412) |
(32,989,926) |
(4,346,624) | |
Net income (loss) attributable to ordinary shareholders |
(63,524,927) |
6,349,802 |
(1,456,027) |
(8,365,848) |
(156,486,502) |
(9,472,074) | |
Share-based compensation expenses |
52,341,415 |
1,793,337 |
2,096,569 |
- |
73,927,902 |
7,596,949 | |
Non-GAAP net income(loss) attributable to ordinary shareholders |
(11,183,512) |
8,143,139 |
640,542 |
(8,365,848) |
(82,558,600) |
(1,875,125) | |
Non-GAAP weighted average numbers of shares used in calculating net income (loss) per share: |
|||||||
-- Basic |
46,255,574 |
101,183,145 |
101,139,801 |
47,775,000 |
46,255,574 |
88,849,206 | |
-- Diluted |
46,255,574 |
105,028,955 |
102,440,611 |
47,775,000 |
46,255,574 |
88,849,206 | |
Non-GAAP net income (loss) per share |
|||||||
-- Basic |
(0.24) |
0.08 |
0.01 |
(0.18) |
(1.78) |
(0.02) | |
-- Diluted |
(0.24) |
0.08 |
0.01 |
(0.18) |
(1.78) |
(0.02) | |
Non-GAAP net income (loss) attributable to ordinary shareholders per ADS (2 ordinary shares equal to 1 ADS) | |||||||
-- Basic |
(0.48) |
0.16 |
0.01 |
(0.35) |
(3.57) |
(0.04) | |
-- Diluted |
(0.48) |
0.16 |
0.01 |
(0.35) |
(3.57) |
(0.04) |
SOURCE
Vipshop Holdings Limited, Millicent Tu, +86 (20) 2233-0732, IR@vipshop.com; ICR, Inc., Jeremy Peruski, +1 (646) 405-4866, IR@vipshop.com