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Vipshop Reports Unaudited Fourth Quarter and Full Year 2019 Financial Results
Fourth Quarter and Full Year 2019 Highlights
- Total net revenue for the fourth quarter of 2019 increased by 12.4% year over year to
RMB29.3 billion (US$4.2 billion ) fromRMB26.1 billion in the prior year period. Total net revenue for the full year of 2019 increased by 10.0% year over year toRMB93.0 billion (US$13.4 billion ) fromRMB84.5 billion in the prior year. - GMV[1] for the fourth quarter of 2019 increased by 14% year over year to
RMB47.6 billion fromRMB41.8 billion in the prior year period. GMV for the full year of 2019 increased by 13% year over year toRMB148.2 billion fromRMB131.0 billion in the prior year[2]. - Gross profit for the fourth quarter of 2019 increased by 30.0% year over year to
RMB7.0 billion (US$1.0 billion ) fromRMB5.4 billion in the prior year period. Gross profit for the full year of 2019 increased by 21.2% year over year toRMB20.7 billion (US$3.0 billion ) fromRMB17.1 billion in the prior year. - Net income attributable to
Vipshop's shareholders for the fourth quarter of 2019 increased by 111.4% year over year toRMB1.5 billion (US$209.1 million ) fromRMB688.7 million in the prior year period. Net income attributable toVipshop's shareholders for the full year of 2019 increased by 88.7% year over year toRMB4.0 billion (US$577.0 million ) fromRMB2.1 billion in the prior year. - Non-GAAP net income attributable to
Vipshop's shareholders[3] for the fourth quarter of 2019 increased by 111.4% year over year toRMB1.9 billion (US$277.4 million ) fromRMB913.6 million in the prior year period. Non-GAAP net income attributable toVipshop's shareholders for the full year of 2019 increased by 84.4% year over year toRMB5.0 billion (US$720.1 million ) fromRMB2.7 billion in the prior year. - The number of active customers[4] for the fourth quarter of 2019 increased by 19% year over year to 38.6 million from 32.4 million in the prior year period. The number of active customers for the full year of 2019 increased by 14% year over year to 69.0 million from 60.5 million in the prior year.
- Total orders[5] for the fourth quarter of 2019 increased by 24% year over year to 174.6 million from 140.3 million in the prior year period. Total orders for the full year of 2019 increased by 29% year over year to 566.3 million from 437.4 million in the prior year.
Mr.
Mr.
Fourth Quarter 2019 Financial Results
REVENUE
Total net revenue for the fourth quarter of 2019 increased by 12.4% year over year to
GROSS PROFIT
Gross profit for the fourth quarter of 2019 increased by 30.0% year over year to
OPERATING EXPENSES
Total operating expenses for the fourth quarter of 2019 were
- Fulfillment expenses for the fourth quarter of 2019 were
RMB2.1 billion (US$294.9 million ), as compared withRMB2.1 billion in the prior year period. As a percentage of total net revenue, fulfillment expenses for the fourth quarter of 2019 decreased to 7.0% from 8.0% in the prior year period, primarily attributable to the change in fulfillment logistic arrangement. - Marketing expenses for the fourth quarter of 2019 decreased to
RMB944.1 million (US$135.6 million ) fromRMB1.1 billion in the prior year period. As a percentage of total net revenue, marketing expenses for the fourth quarter of 2019 decreased to 3.2% from 4.3% in the prior year period. - Technology and content expenses for the fourth quarter of 2019 decreased to
RMB362.2 million (US$52.0 million ) fromRMB533.2 million in the prior year period. As a percentage of total net revenue, technology and content expenses for the fourth quarter of 2019 decreased to 1.2% from 2.0% in the prior year period. - General and administrative expenses for the fourth quarter of 2019 were
RMB1.7 billion (US$248.8 million ), as compared withRMB820.6 million in the prior year period. As a percentage of total net revenue, general and administrative expenses for the fourth quarter of 2019 were 5.9%, as compared with 3.1% in the prior year period, primarily attributable to a severance payment ofRMB652.0 million (US$93.7 million ) and other provision of assets ofRMB154.2 million (US$22.1 million ) related to the discontinuation of Pinjun, as well as an impairment ofRMB200.2 million (US$28.8 million ) related to the Company's Tai'an and Hengyang warehouses. Goodwill impairment loss for the fourth quarter of 2019 wasRMB278.3 million (US$40.0 million ), as compared with nil in the prior year period, primarily attributable to the goodwill write-down of Pinjun.
INCOME FROM OPERATIONS
Income from operations for the fourth quarter of 2019 increased by 76.9% year over year to
Non-GAAP income from operations[6] for the fourth quarter of 2019, which excluded share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and goodwill impairment loss, increased by 93.7% year over year to
NET INCOME
Net income attributable to
Non-GAAP net income attributable to
For the quarter ended
BALANCE SHEET AND CASH FLOW
As of
For the quarter ended
For the three months ended |
||||
RMB'000 |
RMB'000 |
US$'000 |
||
Net cash from operating activities |
5,855,701 |
6,091,889 |
875,045 |
|
Add: Net impact from Internet |
1,070,356 |
(1,231,955) |
(176,959) |
|
Less: Capital expenditures |
(898,215) |
(1,135,856) |
(163,156) |
|
Free cash inflow |
6,027,842 |
3,724,078 |
534,930 |
Full Year 2019 Financial Results
Total net revenue for the full year of 2019 increased by 10.0% year over year to
Gross profit for the full year of 2019 increased by 21.2% year over year to
Income from operations for the full year of 2019 increased by 97.2% year over year to
Non-GAAP income from operations for the full year of 2019, which excluded share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and goodwill impairment loss, increased by 83.4% year over year to
Net income attributable to
Non-GAAP net income attributable to
For the full year of 2019, the Company's weighted average number of ADSs used in computing diluted earnings per ADS was 680,407,073.
For the full year of 2019, net cash from operating activities was
For the trailing twelve months ended |
||||
RMB'000 |
RMB'000 |
US$'000 |
||
Net cash from operating activities |
5,745,748 |
12,290,183 |
1,765,374 |
|
Add: Net impact from Internet |
393,393 |
(5,542,083) |
(796,070) |
|
Less: Capital expenditures |
(3,593,960) |
(4,277,673) |
(614,449) |
|
Free cash inflow |
2,545,181 |
2,470,427 |
354,855 |
Business Outlook
For the first quarter of 2020, the Company expects its total net revenue to be between
In
Exchange Rate
The Company's business is primarily conducted in
Conference Call Information
The Company will hold a conference call on
United States: |
+1-845-675-0437 |
International Toll Free: |
+1-866-519-4004 |
Mainland China Domestic: |
400-6208-038 |
|
+852-3018-6771 |
Conference ID: |
#4459945 |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61-2-8199-0299 |
Conference ID: |
#4459945 |
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
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 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
[1] "Gross merchandise value (GMV)" is defined as the total Renminbi value of all products and services sold through the Company's online sales business, online marketplace platform, offline stores, and |
[2] Including GMV generated by |
[3] Non-GAAP net income attributable to |
[4] "Active customers" is defined as registered members who have purchased from the Company's online sales business or the Company's online marketplace platforms at least once during the relevant period. |
[5] "Total orders" is defined as the total number of orders placed during the relevant period, including the orders for products and services sold through the Company's online sales business and the Company's online marketplace platforms (excluding, for the avoidance of doubt, orders from the Company's offline stores and outlets), net of orders returned. |
[6] Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and goodwill impairment loss. |
[7] 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. |
[8] "ADS" means American depositary share, each of which represents 0.2 Class A ordinary share. |
[9] Non-GAAP net margin attributable to |
[10] Non-GAAP net income attributable to |
[11] 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 and deposits of property and equipment and land use rights, and purchase of other assets. |
[12] Net 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. |
|
|||||||
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income |
|||||||
(In thousands, except for share and per share data) |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
|
|
|
|
|
|
||
RMB'000 |
RMB'000 |
USD'000 |
RMB'000 |
RMB'000 |
USD'000 |
||
Product revenues |
25,010,940 |
28,062,306 |
4,030,898 |
81,510,275 |
88,721,311 |
12,744,019 |
|
Other revenues (1) |
1,072,422 |
1,256,798 |
180,528 |
3,013,673 |
4,273,107 |
613,793 |
|
Total net revenues |
26,083,362 |
29,319,104 |
4,211,426 |
84,523,948 |
92,994,418 |
13,357,812 |
|
Cost of revenues |
(20,699,018) |
(22,318,374) |
(3,205,834) |
(67,454,981) |
(72,314,190) |
(10,387,283) |
|
Gross profit |
5,384,344 |
7,000,730 |
1,005,592 |
17,068,967 |
20,680,228 |
2,970,529 |
|
Operating expenses: |
|||||||
Fulfillment expenses (2) |
(2,095,750) |
(2,052,916) |
(294,883) |
(7,489,393) |
(7,317,706) |
(1,051,123) |
|
Marketing expenses |
(1,117,081) |
(944,100) |
(135,612) |
(3,240,450) |
(3,323,927) |
(477,452) |
|
Technology and content expenses |
(533,162) |
(362,160) |
(52,021) |
(2,000,894) |
(1,568,107) |
(225,244) |
|
General and administrative expenses (3) |
(820,649) |
(1,732,020) |
(248,789) |
(2,674,179) |
(4,064,264) |
(583,795) |
|
|
0 |
(278,263) |
(39,970) |
0 |
(278,263) |
(39,970) |
|
Total operating expenses |
(4,566,642) |
(5,369,459) |
(771,275) |
(15,404,916) |
(16,552,267) |
(2,377,584) |
|
Other operating income |
185,732 |
144,162 |
20,708 |
757,062 |
645,413 |
92,708 |
|
Income from operations |
1,003,434 |
1,775,433 |
255,025 |
2,421,113 |
4,773,374 |
685,653 |
|
Investment gain and revaluation of investments |
(27,876) |
(30,529) |
(4,385) |
191,842 |
166,932 |
23,978 |
|
Impairment loss of investments |
(20,073) |
(43,973) |
(6,316) |
(20,073) |
(127,589) |
(18,327) |
|
Interest expense |
(38,011) |
(14,740) |
(2,117) |
(159,744) |
(86,004) |
(12,354) |
|
Interest income |
70,606 |
70,287 |
10,096 |
242,872 |
217,027 |
31,174 |
|
Foreign exchange loss |
(1,931) |
(35,162) |
(5,051) |
71,065 |
(935) |
(134) |
|
Income before income tax expense and share of gain(loss) of equity method investees |
986,149 |
1,721,316 |
247,252 |
2,747,075 |
4,942,805 |
709,990 |
|
Income tax expenses (4) |
(231,837) |
(313,802) |
(45,075) |
(566,604) |
(983,554) |
(141,279) |
|
Share of (loss) gain of equity method investees |
(60,320) |
2,488 |
358 |
(46,999) |
27,182 |
3,904 |
|
Net income |
693,992 |
1,410,002 |
202,535 |
2,133,472 |
3,986,433 |
572,615 |
|
Net (loss) gain attributable to non-controlling interests |
(5,325) |
45,556 |
6,544 |
(4,685) |
30,399 |
4,367 |
|
Net income attributable to |
688,667 |
1,455,558 |
209,079 |
2,128,787 |
4,016,832 |
576,982 |
|
Shares used in calculating earnings per share (5): |
|||||||
Weighted average number of Class A and Class B ordinary shares: |
|||||||
—Basic |
132,797,122 |
133,954,320 |
133,954,320 |
132,266,157 |
133,524,129 |
133,524,129 |
|
—Diluted |
140,082,697 |
135,976,408 |
135,976,408 |
140,083,610 |
136,081,415 |
136,081,415 |
|
Net earnings per Class A and Class B ordinary share |
|||||||
Net income attributable to |
5.19 |
10.87 |
1.56 |
16.09 |
30.08 |
4.32 |
|
Net income attributable to |
5.02 |
10.70 |
1.54 |
15.61 |
29.58 |
4.25 |
|
Net earnings per ADS (1 ordinary share equals to 5 ADSs) |
|||||||
Net income attributable to |
1.04 |
2.17 |
0.31 |
3.22 |
6.02 |
0.86 |
|
Net income attributable to |
1.00 |
2.14 |
0.31 |
3.12 |
5.92 |
0.85 |
|
(1) Other revenues primarily consist of revenues from third-party logistics services, product promotion and |
(1) Other revenues primarily consist of revenues from third-party logistics services, |
||||||
(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB 1.29 billion and |
(2) Fulfillment expenses include shipping and handling expenses, which amounted |
||||||
(3) General and administrative expenses include amortization of intangible assets resulting from business |
(3) General and administrative expenses include amortization of intangible assets |
||||||
(4) Income tax expenses include income tax benefits of |
(4) Income tax expenses include income tax benefits of |
||||||
(5) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B |
(5) Authorized share capital are re-classified and re-designated into Class A ordinary |
||||||
Three Months Ended |
Twelve Months Ended |
||||||
|
|
|
|
|
|
||
RMB'000 |
RMB'000 |
USD'000 |
RMB'000 |
RMB'000 |
USD'000 |
||
Share-based compensation expenses included are as follows |
|||||||
Fulfillment expenses |
11,720 |
24,044 |
3,454 |
73,151 |
112,683 |
16,186 |
|
Marketing expenses |
6,888 |
1,725 |
248 |
41,063 |
35,038 |
5,033 |
|
Technology and content expenses |
25,373 |
8,098 |
1,163 |
203,594 |
180,493 |
25,926 |
|
General and administrative expenses |
70,087 |
65,315 |
9,382 |
353,402 |
359,869 |
51,692 |
|
Total |
114,068 |
99,182 |
14,247 |
671,210 |
688,083 |
98,837 |
|
|
|||||||
Unaudited Condensed Consolidated Balance Sheets |
|||||||
(In thousands, except for share and per share data) |
|||||||
|
|
|
|||||
RMB'000 |
RMB'000 |
USD'000 |
|||||
ASSETS |
|||||||
CURRENT ASSETS |
|||||||
Cash and cash equivalents |
9,540,556 |
6,573,808 |
944,268 |
||||
Restricted cash |
497,916 |
1,145,477 |
164,537 |
||||
Short term investments |
2,321,244 |
3,052,726 |
438,497 |
||||
Accounts receivable, net |
5,674,731 |
1,295,766 |
186,125 |
||||
Amounts due from related parties |
17,475 |
47,964 |
6,890 |
||||
Other receivables and prepayments,net |
3,594,736 |
2,897,893 |
416,256 |
||||
Loan receivables,net |
310,873 |
306,115 |
43,971 |
||||
Inventories |
5,368,106 |
7,708,292 |
1,107,227 |
||||
Total current assets |
27,325,637 |
23,028,041 |
3,307,771 |
||||
NON-CURRENT ASSETS |
|||||||
Property and equipment, net |
8,531,483 |
11,256,810 |
1,616,940 |
||||
Deposits for property and equipment |
176,556 |
101,800 |
14,623 |
||||
Land use rights, net |
3,885,578 |
5,541,108 |
795,930 |
||||
Intangible assets, net |
353,108 |
337,310 |
48,452 |
||||
Investment in equity method investees |
667,427 |
3,112,952 |
447,148 |
||||
Other investments |
1,470,551 |
2,002,756 |
287,678 |
||||
Other long-term assets |
396,447 |
608,073 |
87,344 |
||||
Amounts due from related party-non current |
0 |
102,000 |
14,651 |
||||
|
367,106 |
236,711 |
34,001 |
||||
Deferred tax assets, net |
388,770 |
539,561 |
77,503 |
||||
Operating lease right-of-use assets(1) |
0 |
1,715,556 |
246,424 |
||||
Total non-current assets |
16,237,026 |
25,554,637 |
3,670,694 |
||||
TOTAL ASSETS |
43,562,663 |
48,582,678 |
6,978,465 |
||||
LIABILTIES AND EQUITY |
|||||||
CURRENT LIABILITIES |
|||||||
Short term loans |
1,343,160 |
1,093,645 |
157,092 |
||||
Accounts payable |
11,630,172 |
13,792,200 |
1,981,126 |
||||
Advance from customers |
1,473,134 |
1,233,165 |
177,133 |
||||
Accrued expenses and other current liabilities |
5,512,605 |
6,534,575 |
938,633 |
||||
Amounts due to related parties |
323,108 |
532,788 |
76,530 |
||||
Deferred income |
367,512 |
405,994 |
58,317 |
||||
Securitization debt |
969,000 |
0 |
0 |
||||
Convertible senior notes |
4,327,268 |
0 |
0 |
||||
Operating lease liabilities(1) |
0 |
333,268 |
47,871 |
||||
Total current liabilities |
25,945,959 |
23,925,635 |
3,436,702 |
||||
NON-CURRENT LIABILITIES |
|||||||
Long term loans |
0 |
64,515 |
9,267 |
||||
Deferred tax liability |
4,960 |
165,098 |
23,715 |
||||
Deferred income-non current |
400,951 |
782,068 |
112,337 |
||||
Operating lease liabilities(1) |
0 |
1,395,665 |
200,475 |
||||
Total non-current liabilities |
405,911 |
2,407,346 |
345,794 |
||||
TOTAL LIABILITIES |
26,351,870 |
26,332,981 |
3,782,496 |
||||
EQUITY: |
|||||||
Class A ordinary shares ( |
75 |
76 |
11 |
||||
Class B ordinary shares ( |
11 |
11 |
2 |
||||
Additional paid-in capital |
9,385,216 |
9,959,497 |
1,430,592 |
||||
Retained earnings |
7,907,396 |
11,924,228 |
1,712,808 |
||||
Accumulated other comprehensive loss |
(30,883) |
(56,656) |
(8,138) |
||||
Non-controlling interests |
(51,022) |
422,541 |
60,694 |
||||
Total shareholders' equity |
17,210,793 |
22,249,697 |
3,195,969 |
||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
43,562,663 |
48,582,678 |
6,978,465 |
||||
(1) On |
|||||||
|
|||||||
Reconciliations of GAAP and Non-GAAP Results |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
|
|
|
|
|
|
||
RMB'000 |
RMB'000 |
USD'000 |
RMB'000 |
RMB'000 |
USD'000 |
||
Income from operations |
1,003,434 |
1,775,433 |
255,025 |
2,421,113 |
4,773,374 |
685,653 |
|
Share-based compensation expenses |
114,068 |
99,182 |
14,247 |
671,210 |
688,083 |
98,837 |
|
|
- |
278,263 |
39,970 |
- |
278,263 |
39,970 |
|
Amortization of intangible assets resulting from business acquisitions |
607 |
13,032 |
1,872 |
45,876 |
14,468 |
2,078 |
|
Non-GAAP income from operations |
1,118,109 |
2,165,910 |
311,114 |
3,138,199 |
5,754,188 |
826,538 |
|
Net income |
693,992 |
1,410,002 |
202,535 |
2,133,472 |
3,986,433 |
572,615 |
|
Share-based compensation expenses |
114,068 |
99,182 |
14,247 |
671,210 |
688,083 |
98,837 |
|
|
- |
278,263 |
39,970 |
- |
278,263 |
39,970 |
|
Impairment loss in investments |
20,073 |
43,973 |
6,316 |
20,073 |
127,589 |
18,327 |
|
Investment gain and revaluation of investments excluding dividends |
27,876 |
39,998 |
5,745 |
(191,842) |
(155,390) |
(22,320) |
|
Share of loss in investment of limited partnership that is accounted for as an equity |
62,482 |
28,459 |
4,088 |
52,797 |
41,707 |
5,991 |
|
Tax effect of investment gain and revaluation of investments excluding dividends |
0 |
(6,483) |
(931) |
9,967 |
22,588 |
3,245 |
|
Amortization of intangible assets resulting from business acquisitions |
613 |
13,032 |
1,872 |
45,881 |
14,468 |
2,078 |
|
Tax effect of amortization of intangible assets resulting from business acquisitions |
(152) |
(3,258) |
(468) |
(11,469) |
(3,617) |
(520) |
|
Non-GAAP net income |
918,952 |
1,903,168 |
273,374 |
2,730,089 |
5,000,124 |
718,223 |
|
Net income attributable to |
688,667 |
1,455,558 |
209,079 |
2,128,787 |
4,016,832 |
576,982 |
|
Share-based compensation expenses |
114,068 |
99,182 |
14,247 |
671,210 |
688,083 |
98,837 |
|
|
- |
261,259 |
37,527 |
- |
261,259 |
37,527 |
|
Impairment loss in investments |
20,073 |
43,973 |
6,316 |
20,073 |
127,589 |
18,327 |
|
Investment gain and revaluation of investments excluding dividends |
27,876 |
39,998 |
5,745 |
(191,842) |
(155,390) |
(22,320) |
|
Share of loss in investment of limited partnership that is accounted for as an equity |
62,482 |
28,459 |
4,088 |
52,797 |
41,707 |
5,991 |
|
Tax effect of investment gain and revaluation of investments excluding dividends |
0 |
(6,483) |
(931) |
9,967 |
22,588 |
3,245 |
|
Amortization of intangible assets resulting from business acquisitions |
603 |
12,639 |
1,815 |
37,371 |
14,045 |
2,018 |
|
Tax effect of amortization of intangible assets resulting from business acquisitions |
(149) |
(3,160) |
(454) |
(9,341) |
(3,511) |
(504) |
|
Non-GAAP net income attributable to |
913,620 |
1,931,425 |
277,432 |
2,719,022 |
5,013,202 |
720,103 |
|
Shares used in calculating earnings per share: |
|||||||
Weighted average number of Class A and Class B ordinary shares: |
|||||||
—Basic |
132,797,122 |
133,954,320 |
133,954,320 |
132,266,157 |
133,524,129 |
133,524,129 |
|
—Diluted |
140,082,697 |
135,976,408 |
135,976,408 |
140,083,610 |
136,081,415 |
136,081,415 |
|
Non-GAAP net income per Class A and Class B ordinary share |
|||||||
Non-GAAP net income attributable to |
6.88 |
14.42 |
2.07 |
20.56 |
37.55 |
5.39 |
|
Non-GAAP net income attributable to |
6.63 |
14.20 |
2.04 |
19.82 |
36.91 |
5.30 |
|
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs) |
|||||||
Non-GAAP net income attributable to |
1.38 |
2.88 |
0.41 |
4.11 |
7.51 |
1.08 |
|
Non-GAAP net income attributable to |
1.33 |
2.84 |
0.41 |
3.96 |
7.38 |
1.06 |
View original content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-fourth-quarter-and-full-year-2019-financial-results-301017019.html
SOURCE
Jessie Fan, +86 (20) 2233-0732, IR@vipshop.com