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Vipshop Reports Unaudited Third Quarter 2016 Financial Results
3Q16 Total Net Revenue up 38.4% YoY to RMB12.00 Billion (US$1.80 Billion)
3Q16 Income from Operations up 21.3% YoY to RMB528.8 Million (US$79.3 Million)
Conference Call to be Held at 8:00 AM U.S. Eastern Time on November 22, 2016

GUANGZHOU, China, Nov. 21, 2016 /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 third quarter ended September 30, 2016.

Third Quarter 2016 Highlights

  • Total net revenue increased by 38.4% to RMB12.00 billion (US$1.80 billion), primarily attributable to a 43% year-over-year increase in the number of active customers[1] to 20.8 million and a 34% year-over-year increase in total orders[2] to 60.1 million.
  • Gross profit increased by 36.0% to RMB2.93 billion (US$439.7 million) from RMB2.16 billion in the prior year period.
  • Income from operations increased by 21.3% to RMB528.8 million (US$79.3 million) from RMB436.1 million in the prior year period. Operating margin was 4.4% as compared with 5.0% in the prior year period.
  • Non-GAAP income from operations[3] increased by 24.8% to RMB732.0 million (US$109.8 million) from RMB586.8 million in the prior year period. Non-GAAP operating margin[4] was 6.1% as compared with 6.8% in the prior year period.
  • Net income attributable to Vipshop's shareholders increased by 8.3% to RMB342.9 million (US$51.4 million) from RMB316.7 million in the prior year period.
  • Non-GAAP net income attributable to Vipshop's shareholder[5] increased by 31.5% to RMB595.5 million (US$89.3 million) from RMB452.7 million in the prior year period.

"We are pleased to have delivered solid financial results and healthy customer growth despite a seasonally soft quarter for retail," said Mr. Eric Shen, chairman and chief executive officer of Vipshop, "As a leading online discount retailer for brands in China, we are committed to advancing the end-to-end shopping experience on our platform by providing our customers with diverse products and more personalized merchandising. The superior user experience across our platform led to improved user stickiness, as demonstrated by the strong 49% year-over-year increase in repeat customers[6] to 16.7 million. Despite macro weakness, our robust customer growth and retention is a testament to the resilience of our business model. We are confident that our strong foundation will continue to drive our overall secular business growth and enable us to maintain our market leadership regardless of macro environment changes."

Mr. Donghao Yang, chief financial officer of Vipshop, further commented, "In the third quarter of 2016, we continued to deliver strong growth in revenues, active customers and total orders. Importantly, we were able to achieve solid top-line growth and market share gain while maintaining stable margins. In addition, we continue to expand our Internet finance business which is increasingly beneficial to our core retail business and will further strengthen our overall ecosystem. By balancing revenue and profitability, we aim to continue to expand our user base and gain additional market share from China's highly fragmented discount retail market."

Third Quarter 2016 Financial Results

REVENUE

Total net revenue for the third quarter of 2016 increased by 38.4% to RMB12.00 billion (US$1.80 billion) from RMB8.67 billion in the prior year period, primarily driven by the growth in the numbers of total active customers, repeat customers, and total orders.

The number of active customers for the third quarter of 2016 increased by 43% to 20.8 million from 14.6 million in the prior year period. The number of total orders for the third quarter of 2016 increased by 34% to 60.1 million from 44.8 million in the prior year period.

GROSS PROFIT 

Gross profit for the third quarter of 2016 increased by 36.0% to RMB2.93 billion (US$439.7 million) from RMB2.16 billion in the prior year period. Gross margin was 24.4% as compared with 24.9% in the prior year period.

OPERATING INCOME AND EXPENSES

Total operating expenses for the third quarter of 2016 were RMB2.54 billion (US$381.3 million), as compared with RMB1.80 billion in the prior year period. As a percentage of total net revenue, total operating expenses were 21.2% as compared with 20.7% in the prior year period.

  • Fulfillment expenses for the third quarter of 2016 were RMB1.03 billion (US$153.8 million), as compared with RMB778.1 million in the prior year period, primarily reflecting the increase in sales volume and number of orders fulfilled. As a percentage of total net revenue, fulfillment expenses decreased to 8.5% from 9.0% in the prior year period, primarily reflecting the scale effect associated with the growth in total net revenue and improved fulfillment efficiency.
  • Marketing expenses for the third quarter of 2016 were RMB641.5 million (US$96.2 million), as compared with RMB469.6 million in the prior year period, reflecting the Company's strategy to drive long-term growth through sustainable investments to strengthen its brand awareness, attract new users and expand market share. As a percentage of total net revenue, marketing expenses decreased to 5.3% from 5.4% in the prior year period.
  • Technology and content expenses for the third quarter of 2016 were RMB374.5 million (US$56.2 million), as compared with RMB253.1 million in the prior year period, reflecting the Company's continued efforts to invest in human capital, advanced technologies such as data analytics as well as new business opportunities including the Internet finance unit. As a percentage of total net revenue, technology and content expenses were 3.1% as compared with 2.9% in the prior year period.
  • General and administrative expenses for the third quarter of 2016 were RMB500.6 million (US$75.1 million), as compared with RMB296.6 million in the prior year period, primarily due to the build-out of the Internet finance team. As a percentage of total net revenue, general and administrative expenses were 4.2% as compared with 3.4% in the prior year period.

Income from operations for the third quarter of 2016 increased by 21.3% to RMB528.8 million (US$79.3 million) from RMB436.1 million in the prior year period. Operating margin was 4.4% as compared with 5.0% in the prior year period.

Non-GAAP income from operations, which excludes share-based compensation expenses and amortization of intangible assets resulting from a business acquisition, increased by 24.8% to RMB732.0 million (US$109.8 million) from RMB586.8 million in the prior year period. Non-GAAP operating income margin was 6.1% as compared with 6.8% in the prior year period.

NET INCOME

Net income attributable to Vipshop's shareholders increased by 8.3% to RMB342.9 million (US$51.4 million) from RMB316.7 million in the prior year period. Net margin attributable to Vipshop's shareholders was 2.9% as compared with 3.7% in the prior year period. The decline is primarily attributable to a RMB65.9 million impairment loss of investments. Net income attributable to Vipshop's shareholders per diluted ADS[7] increased to RMB0.58 (US$0.09) from RMB0.53 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders, which excludes share-based compensation expenses, impairment loss of investments, and amortization of intangible assets resulting from a business acquisition and equity method investments, increased by 31.5% to RMB595.5 million (US$89.3 million) from RMB452.7 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders was 5.0% as compared with 5.2% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to RMB1.00 (US$0.15) from RMB0.76 in the prior year period.

For the quarter ended September 30, 2016, the Company's weighted average number of ADSs used in computing diluted income per ADS was 593,638,381.

BALANCE SHEET AND CASH FLOW

As of September 30, 2016, the Company had cash and cash equivalents, and restricted cash of RMB4.94 billion (US$740.6 million) and held-to-maturity securities of RMB71.3 million (US$10.7 million).

For the quarter ended September 30, 2016, operating cash was RMB0.65 billion, and free cash flow[8], a non-GAAP measurement of liquidity, was as follows:


For the three months ended


Sep 30, 2015

         

RMB'000

Sep 30, 2016

         

RMB'000

Sep 30, 2016

         

US$'000

Net cash from operating activities

284,918

649,556

97,407

Add: Impact from Internet financing activities[9]

65,417

450,106

67,497

Less: Capital expenditures

(1,567,414)

(830,470)

(124,536)

Free cash flow (out) /in

(1,217,079)

269,192

40,368


Business Outlook

For the fourth quarter of 2016, the Company expects its total net revenue to be between RMB18.0 billion and RMB18.5 billion, representing a year-over-year growth rate of approximately 30% to 33%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

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 RMB6.6685 to US$1.00, the effective noon buying rate for September 30, 2016 as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call Information

The Company will hold a conference call on Tuesday, November 22, 2016 at 8:00 am Eastern Time or 9:00 pm Beijing Time to discuss its financial results and operating performance for the third quarter of 2016.

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:

#11654609

The replay will be accessible through November 30, 2016 by dialing the following numbers:

United States Toll Free:

+1-855-452-5696

International: 

+61-2-9003-4211

Conference ID:

#11654609

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 and in the attachments 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 unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of shareholders' equity, consolidated statements of cash flows, and the detailed notes required by Accounting Standards Codification 270 Interim Reporting ("ASC270"), have not been presented. Vipshop uses non-GAAP net income attributable to Vipshop's shareholders, non-GAAP net income per diluted ADS, non-GAAP income from operations, non-GAAP net income margin, and non-GAAP operating income margin, 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 share-based compensation expenses, impairment loss of investments, and amortization of intangible assets resulting from a business acquisition and equity method investments. Non-GAAP net income per diluted ADS is non-GAAP net income divided by weighted average number of diluted ADS. Non-GAAP income from operations is income from operations excluding share-based compensation expenses and amortization of intangible assets resulting from a business acquisition. Non-GAAP operating income margin is non-GAAP income from operations as a percentage of total net revenue. Non-GAAP net income margin is non-GAAP net income as a percentage of total net revenue. Free cash flow is 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. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation, impairment loss of investments and amortization of intangible assets 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 non-cash share-based compensation expenses, impairment loss of investments, and amortization of intangible assets. 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. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

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 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 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 operating margin is a non-GAAP financial measure, which is defined as non-GAAP income from operations as a percentage of total net revenues.



[5]

Non-GAAP net income attributable to Vipshop's shareholders is a non-GAAP financial measure. Effective from the fourth quarter of 2015, the non-GAAP net income attributable to Vipshop's shareholders 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 a business acquisition and equity method investments.



[6]

A "repeat customer" for a given period refers to any customer who (i) is an active customer during such period, and (ii) had purchased products from us at least twice during the period from our inception on August 22, 2008 to the end of such period.



[7]

"ADS" means American depositary share, each of which represents 0.2 Class A ordinary share.



[8]

As used in this press release, free cash flow is defined as 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.



[9]

Impact from Internet financing activities added back to free cash flow contains changes in the balances of financial products, which are primarily "Weipin Spend" and "Wei Yidai" that the Company provides to customers and suppliers respectively.

 

 

Vipshop Holdings Limited

Condensed Consolidated Statements of Income and Comprehensive Income 

(In thousands, except per share data)


Three Months Ended


September 30, 2015

September 30, 2016

September 30, 2016


RMB'000

RMB'000

USD'000


(Unaudited)

(Unaudited)

(Unaudited)





Product revenues 

8,508,687

11,703,511

1,755,044

Other revenues (1)

162,558

298,813

44,810

Total net revenues

8,671,245

12,002,324

1,799,854

Cost of goods sold

(6,514,921)

(9,070,361)

(1,360,180)

Gross profit

2,156,324

2,931,963

439,674

Operating expenses




Fulfillment expenses(2)

(778,099)

(1,025,845)

(153,834)

Marketing expenses

(469,615)

(641,514)

(96,201)

Technology and content expenses

(253,075)

(374,468)

(56,155)

General and administrative expenses(3)

(296,630)

(500,600)

(75,069)

Total operating expenses

(1,797,419)

(2,542,427)

(381,259)

Other income

77,156

139,251

20,882

Income from operations

436,061

528,787

79,297

Impairment loss of investments

0

(65,940)

(9,888)

Interest expenses

(22,499)

(20,125)

(3,018)

Interest income

62,819

21,972

3,295

Exchange (loss) gain 

(56,886)

31,913

4,786

Income before income taxes and share of loss of affiliates

419,495

496,607

74,472

Income tax expense(4)

(93,204)

(135,651)

(20,342)

Share of loss of affiliates

(33,438)

(15,752)

(2,362)

Net income

292,853

345,204

51,768

Net loss (income) attributable to noncontrolling interests

23,845

(2,343)

(351)

Net income attributable to Vipshop's shareholders

316,698

342,861

51,417





Shares used in calculating earnings per share(5):




Class A and Class B ordinary shares:




--Basic

116,175,626

116,178,808

116,178,808

--Diluted

119,869,265

118,727,676

118,727,676





Net earnings per Class A and Class B share




Net income attributable to Vipshop's shareholders -- Basic

2.73

2.95

0.44

Net income attributable to Vipshop's shareholders -- Diluted

2.64

2.89

0.43





Net earnings per ADS (1 ordinary share equals to 5 ADSs)




Net income attributable to Vipshop's shareholders
-- Basic

0.55

0.59

0.09

Net income attributable to Vipshop's shareholders
-- Diluted

0.53

0.58

0.09

(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,and inventory
and warehouse management services to certain suppliers.

(2) Including shipping and handling expenses, which amounted RMB 361 million and
RMB 543 million in the three month periods ended September 30, 2015 and
September 30, 2016, respectively.

(3) Including amortization of intangible assets resulting from a business acquisition,
which amounted to RMB 74 million and RMB 77 million in the three months period
ended September 30, 2015 and September 30, 2016, respectively.

(4) Included income tax benefits of RMB 19 million and RMB 20 million related to the
reversal of deferred tax liabilities, which was recognized on the business acquisition of
Lefeng for the three months period ended September 30, 2015 and September 30,
2016, 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

292,853

345,204

51,768

Other comprehensive income (loss), net of tax: 




Foreign currency translation adjustments 

(37,371)

(36,623)

(5,492)

Unrealized (loss) gain  from available for sale securities

(15,419)

11,342

1,701

Comprehensive income

240,063

319,923

47,977

Less: Comprehensive (loss) income attributable to non-
controlling interests

(19,302)

5,609

841

Comprehensive income attributable to Vipshop's
shareholders

259,365

314,314

47,136






Three Months Ended


September 30, 2015

September 30, 2016

September 30, 2016


RMB'000

RMB'000

USD'000


(Unaudited)

(Unaudited)

(Unaudited)

Share-based compensation charges included are as follows




Fulfillment expenses

4,496

10,136

1,520

Marketing expenses

4,346

9,536

1,430

Technology and content expenses

33,112

45,096

6,763

General and administrative expenses

34,427

61,397

9,207

Total

76,381

126,165

18,920


Vipshop Holdings Limited

Condensed Consolidated Balance Sheets

(In thousands, except per share data)



December 31, 2015

September 30, 2016

September 30, 2016


RMB'000

RMB'000

USD'000

ASSETS

(Unaudited)

(Unaudited)

(Unaudited)

CURRENT ASSETS




Cash and cash equivalents

3,324,384

4,876,764

731,313

Restricted cash 

-

62,234

9,333

Held-to-maturity securities

1,807,403

71,256

10,685

Accounts receivable, net

351,423

1,602,909

240,370

Amounts due from related parties

31,856

5,000

750

Other receivables and prepayments

1,869,461

1,781,252

267,114

Inventories

4,566,746

3,531,299

529,549

Deferred tax assets

202,003

344,094

51,600

Total current assets

12,153,276

12,274,808

1,840,714

NON-CURRENT ASSETS




Property and equipment, net

2,949,604

4,109,117

616,198

Deposits for property and equipment

933,419

976,070

146,370

Land use rights, net

197,462

2,301,631

345,150

Intangible assets, net

744,369

808,776

121,283

Investment in affiliates

252,706

101,781

15,263

Other investments

489,862

482,628

72,374

Available-for-sale securities investment, non-current

269,736

386,045

57,891

Other long-term assets

1,936,307

333,532

50,016

Goodwill

108,781

376,739

56,495

Total non-current assets

7,882,246

9,876,319

1,481,040

TOTAL ASSETS

20,035,522

22,151,127

3,321,754





LIABILTIES AND  EQUITY 




CURRENT LIABILITIES




Accounts payable (Including accounts payable of the VIE
without recourse to the Company of RMB 48,178  and RMB
219,011 as of December 31, 2015 and September 30, 2016,
respectively) 

6,645,262

7,106,509

1,065,683

Advance from customers (Including  advance from
customers of the VIE without recourse to the Company of
RMB 879,848  and RMB 1,079,223  as of December 31, 2015
and September 30, 2016, respectively) 

2,009,578

2,124,256

318,551

Accrued expenses and other current liabilities (Including
accrued expenses and other current liabilities of the VIE
without recourse to the Company of RMB  1,127,270 and
RMB 831,413 as of December 31, 2015 and September 30,
2016, respectively)

3,104,622

3,042,945

456,316

Amounts due to related parties (Including amounts due to
related parties of the VIE without recourse to the Company of
RMB 82,994 and RMB 2,420  as of December 31, 2015 and
September 30, 2016, respectively)

206,966

33,649

5,046

Deferred income (Including deferred income of the VIE
without recourse to the Company of RMB 95,643 and RMB
120,974 as of December 31, 2015 and September 30, 2016,
respectively)

104,531

169,419

25,406

Short term loans (Including  short term loans of the VIE
without recourse to the Company of nil and nil as of
December 31, 2015 and  September 30, 2016)

95,000

3,000

450

Total current liabilities

12,165,959

12,479,778

1,871,452

NON-CURRENT LIABILITIES




Deferred tax liability (Including deferred tax of the VIE
without recourse to the Company of RMB 116 and RMB 772 as of
December 31, 2015 and September 30, 2016, respectively)

175,416

116,410

17,457

Deferred income-non current(Including deferred income-non
current of the VIE without recourse to the Company of RMB
3,573  and RMB 2,472  as of December 31, 2015 and
September 30, 2016, respectively)

22,699

227,040

34,047

Convertible senior notes

4,058,181

4,203,477

630,348

Total non-current liabilities

4,256,296

4,546,927

681,852

Total liabilities

16,422,255

17,026,705

2,553,304





EQUITY:




Class A ordinary shares (US$0.0001 par value, 483,489,642
shares authorized, and 100,085,519 and 101,499,579
shares issued and outstanding as of December 31, 2015
and September 30, 2016, respectively)

65

66

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 September 30, 2016 and
December 31, 2015, respectively)

11

11

2

Treasury shares, at cost - 1,614,135 shares as of December
31, 2015 and September 30, 2016

(844,711)

(844,711)

(126,672)

Additional paid-in capital

2,838,591

3,128,486

469,144

Retained earnings

1,616,209

2,885,245

432,668

Accumulated other comprehensive loss

(70,980)

(101,276)

(15,190)

Non-controlling interests

74,082

56,601

8,488

Total shareholders' equity

3,613,267

5,124,422

768,450

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 

20,035,522

22,151,127

3,321,754





Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results



Three Months Ended


September 30,2015

September 30,2016

September 30,2016


RMB'000

RMB'000

USD'000


(Unaudited)

(Unaudited)

(Unaudited)

Income from operations

436,061

528,787

79,297

Share-based compensation expenses

76,381

126,165

18,920

Amortization of intangible assets resulting from a business
acquisition

74,309

77,093

11,561

Non-GAAP income from operations

586,751

732,045

109,778









Net income

292,853

345,204

51,768

Share-based compensation expenses

76,381

126,165

18,920

Impairment loss in investments

-

65,940

9,888

Amortization of intangible assets resulting from a business
acquisition and equity method investments

92,298

91,556

13,730

Tax effect of amortization of intangible assets resulting from
business acquisitions

(18,842)

(19,887)

(2,982)

Non-GAAP net income

442,690

608,978

91,324









Net income attributable to Vipshop's shareholders

316,698

342,861

51,417

Share-based compensation expenses

76,381

126,165

18,920

Impairment loss in investments

-

65,940

9,888

Amortization of intangible assets resulting from a business
acquisition and equity method investments (excluding non-
controlling interests)

73,720

76,523

11,475

Tax effect of amortization of intangible assets resulting from
business acquisitions (excluding non-controlling interests)

(14,131)

(16,009)

(2,401)





Non-GAAP net income attributable to Vipshop's shareholders

452,668

595,480

89,299









Shares used in calculating earnings per share:




Basic ordinary shares:




Class A and Class B ordinary shares:




--Basic

116,175,626

116,178,808

116,178,808

--Diluted

119,869,265

118,727,676

118,727,676





Non-GAAP net income per Class A and Class B share




Non-GAAP net income attributable to Vipshop's shareholders
-- Basic

3.90

5.13

0.77

Non-GAAP net income attributable to Vipshop's shareholders
-- Diluted

3.78

5.02

0.75









Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)




Non-GAAP net income attributable to Vipshop's shareholders
-- Basic

0.78

1.03

0.15

Non-GAAP net income attributable to Vipshop's shareholders
-- Diluted

0.76

1.00

0.15

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-third-quarter-2016-financial-results-300366596.html

SOURCE Vipshop Holdings Limited

Millicent Tu, Vipshop Holdings Limited, +86-20-2233-0732, IR@vipshop.com; Jeremy Peruski, ICR, Inc., +1-646-405-4866, IR@vipshop.com