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Vipshop Reports Unaudited Fourth Quarter and Full Year 2020 Financial Results
Fourth Quarter and Full Year 2020 Highlights
- Total net revenue for the fourth quarter of 2020 increased by 22.0% year over year to
RMB35.8 billion (US$5.5 billion ) fromRMB29.3 billion in the prior year period. Total net revenue for the full year of 2020 increased by 9.5% year over year toRMB101.9 billion (US$15.6 billion ) fromRMB93.0 billion in the prior year. - GMV[1] for the fourth quarter of 2020 increased by 25% year over year to
RMB59.3 billion fromRMB47.6 billion in the prior year period. GMV for the full year of 2020 increased by 11% year over year toRMB165.0 billion fromRMB148.2 billion in the prior year. - Gross profit for the fourth quarter of 2020 increased by 12.1% year over year to
RMB7.8 billion (US$1.2 billion ) fromRMB7.0 billion in the prior year period. Gross profit for the full year of 2020 increased by 2.9% year over year toRMB21.3 billion (US$3.3 billion ) fromRMB20.7 billion in the prior year. - Net income attributable to
Vipshop's shareholders for the fourth quarter of 2020 increased by 67.7% year over year toRMB2.4 billion (US$374.1 million ) fromRMB1.5 billion in the prior year period. Net income attributable toVipshop's shareholders for the full year of 2020 increased by 47.1% year over year toRMB5.9 billion (US$905.3 million ) fromRMB4.0 billion in the prior year. - Non-GAAP net income attributable to
Vipshop's shareholders[2] for the fourth quarter of 2020 increased by 33.4% year over year toRMB2.6 billion (US$394.8 million ) fromRMB1.9 billion in the prior year period. Non-GAAP net income attributable toVipshop's shareholders for the full year of 2020 increased by 25.0% year over year toRMB6.3 billion (US$960.7 million ) fromRMB5.0 billion in the prior year. - The number of active customers[3] for the fourth quarter of 2020 increased by 37% year over year to 53.0 million from 38.6 million in the prior year period. The number of active customers for the full year of 2020 increased by 22% year over year to 83.9 million from 69.0 million in the prior year.
- Total orders[4] for the fourth quarter of 2020 increased by 30% year over year to 227.3 million from 174.6 million in the prior year period. Total orders for the full year of 2020 increased by 22% year over year to 692.4 million from 566.3 million in the prior year.
Mr.
Mr.
Fourth Quarter 2020 Financial Results
REVENUE
Total net revenue for the fourth quarter of 2020 increased by 22.0% year over year to
GROSS PROFIT
Gross profit for the fourth quarter of 2020 increased by 12.1% year over year to
OPERATING EXPENSES
Total operating expenses for the fourth quarter of 2020 were
- Fulfillment expenses for the fourth quarter of 2020 were
RMB2.2 billion (US$335.6 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 2020 decreased to 6.1% from 7.0% in the prior year period, primarily attributable to the change in fulfillment logistic arrangement. - Marketing expenses for the fourth quarter of 2020 were
RMB1.7 billion (US$261.1 million ), as compared withRMB944.1 million in the prior year period. As a percentage of total net revenue, marketing expenses for the fourth quarter of 2020 were 4.8%, as compared with 3.2% in the prior year period, primarily attributable to increased investment in customer acquisition. - Technology and content expenses for the fourth quarter of 2020 decreased to
RMB272.4 million (US$41.7 million ) fromRMB362.2 million in the prior year period. As a percentage of total net revenue, technology and content expenses for the fourth quarter of 2020 decreased to 0.8% from 1.2% in the prior year period. - General and administrative expenses for the fourth quarter of 2020 were
RMB1.3 billion (US$192.5 million ), as compared withRMB1.7 billion in the prior year period. As a percentage of total net revenue, general and administrative expenses for the fourth quarter of 2020 decreased to 3.5% from 5.9% in the prior year period.
INCOME FROM OPERATIONS
Income from operations for the fourth quarter of 2020 increased by 45.9% year over year to
Non-GAAP income from operations[5]for the fourth quarter of 2020, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 30.2% year over year to
NET INCOME
Net income attributable to
Non-GAAP net income attributable to
For the quarter ended
BALANCE SHEET AND CASH FLOW
As of
For the quarter ended
For the three months ended |
||||
RMB'000 |
RMB'000 |
US$'000 |
||
Net cash from operating activities |
6,091,889 |
7,227,682 |
1,107,691 |
|
Add: Net impact from Internet financing |
(1,231,955) |
(90,565) |
(13,880) |
|
Less: Capital expenditures |
(1,135,856) |
(499,787) |
(76,596) |
|
Free cash inflow |
3,724,078 |
6,637,330 |
1,017,215 |
Full Year 2020 Financial Results
Total net revenue for the full year of 2020 increased by 9.5% year over year to
Gross profit for the full year of 2020 increased by 2.9% year over year to
Income from operations for the full year of 2020 increased by 22.8% year over year to
Non-GAAP income from operations for the full year of 2020, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 19.0% year over year to
Net income attributable to
Non-GAAP net income attributable to
For the full year of 2020, the Company's weighted average number of ADSs used in computing diluted earnings per ADS was 690,180,050.
For the full year of 2020, net cash from operating activities was
For the trailing twelve months ended |
||||
RMB'000 |
RMB'000 |
US$'000 |
||
Net cash from operating activities |
12,290,183 |
11,820,444 |
1,811,562 |
|
Add: Net impact from Internet financing |
(5,542,083) |
(1,226,467) |
(187,964) |
|
Less: Capital expenditures |
(4,277,673) |
(2,271,896) |
(348,183) |
|
Free cash inflow |
2,470,427 |
8,322,081 |
1,275,415 |
Business Outlook
For the first quarter of 2021, the Company expects its total net revenue to be between
Exchange Rate
The Company's business is primarily conducted in
Conference Call Information
The Company will hold a conference call on
All participants wishing to join the conference call must pre-register online using the link provided below. Once pre-registration has been complete, participants will receive dial-in numbers, a passcode, and a unique registrant ID. To join the conference, simply dial the number in the calendar invite you receive after pre-registration, enter the passcode followed by your PIN, and you will join the conference instantly.
Conference ID |
#2154516 |
Registration Link |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61-2-8199-0299 |
Conference ID: |
#2154516 |
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] Non-GAAP net income attributable to |
[3] "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. |
[4] "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. |
[5] 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. |
[6] 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. |
[7] "ADS" means American depositary share, each of which represents 0.2 Class A ordinary share. |
[8] Non-GAAP net margin attributable to |
[9] Non-GAAP net income attributable to |
[10] Free cash flow is a non-GAAP financial measure, which is defined as net cash from (used in) 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. |
[11] 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 its 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 |
28,062,306 |
34,111,067 |
5,227,750 |
88,721,311 |
97,449,712 |
14,934,822 |
|
Other revenues (1) |
1,256,798 |
1,663,874 |
255,000 |
4,273,107 |
4,408,777 |
675,675 |
|
Total net revenues |
29,319,104 |
35,774,941 |
5,482,750 |
92,994,418 |
101,858,489 |
15,610,497 |
|
Cost of revenues |
(22,318,374) |
(27,927,515) |
(4,280,079) |
(72,314,190) |
(80,573,181) |
(12,348,380) |
|
Gross profit |
7,000,730 |
7,847,426 |
1,202,671 |
20,680,228 |
21,285,308 |
3,262,117 |
|
Operating expenses: |
|||||||
Fulfillment expenses (2) |
(2,052,916) |
(2,189,585) |
(335,569) |
(7,317,706) |
(6,878,991) |
(1,054,251) |
|
Marketing expenses |
(944,100) |
(1,703,582) |
(261,085) |
(3,323,927) |
(4,284,274) |
(656,594) |
|
Technology and content expenses |
(362,160) |
(272,379) |
(41,744) |
(1,568,107) |
(1,221,264) |
(187,167) |
|
General and administrative expenses |
(1,732,020) |
(1,256,115) |
(192,508) |
(4,064,264) |
(3,748,548) |
(574,490) |
|
|
(278,263) |
0 |
0 |
(278,263) |
0 |
0 |
|
Total operating expenses |
(5,369,459) |
(5,421,661) |
(830,906) |
(16,552,267) |
(16,133,077) |
(2,472,502) |
|
Other operating income |
144,162 |
164,011 |
25,136 |
645,413 |
707,855 |
108,483 |
|
Income from operations |
1,775,433 |
2,589,776 |
396,901 |
4,773,374 |
5,860,086 |
898,098 |
|
Investment gain and revaluation of investments |
(30,529) |
200,276 |
30,694 |
166,932 |
980,868 |
150,325 |
|
Impairment loss of investments |
(43,973) |
(38,114) |
(5,841) |
(127,589) |
(43,160) |
(6,614) |
|
Interest expense |
(14,740) |
(6,269) |
(961) |
(86,004) |
(67,357) |
(10,323) |
|
Interest income |
70,287 |
155,255 |
23,794 |
217,027 |
449,017 |
68,815 |
|
Foreign exchange loss |
(35,162) |
(98,021) |
(15,022) |
(935) |
(160,097) |
(24,536) |
|
Income before income tax expense and share of gain of equity method investees |
1,721,316 |
2,802,903 |
429,565 |
4,942,805 |
7,019,357 |
1,075,765 |
|
Income tax expenses |
(313,802) |
(384,660) |
(58,952) |
(983,554) |
(1,130,016) |
(173,183) |
|
Share of gain of equity method investees |
2,488 |
29,468 |
4,516 |
27,182 |
30,015 |
4,600 |
|
Net income |
1,410,002 |
2,447,711 |
375,129 |
3,986,433 |
5,919,356 |
907,182 |
|
Net loss(income) attributable to non-controlling interests |
45,556 |
(6,898) |
(1,057) |
30,399 |
(12,399) |
(1,900) |
|
Net income attributable to |
1,455,558 |
2,440,813 |
374,072 |
4,016,832 |
5,906,957 |
905,282 |
|
Shares used in calculating earnings per share (3): |
|||||||
Weighted average number of Class A and Class B ordinary shares: |
|||||||
—Basic |
133,954,320 |
135,646,247 |
135,646,247 |
133,524,129 |
135,077,790 |
135,077,790 |
|
—Diluted |
135,976,408 |
139,219,751 |
139,219,751 |
136,081,415 |
138,036,010 |
138,036,010 |
|
Net earnings per Class A and Class B ordinary share |
|||||||
Net income attributable to |
10.87 |
17.99 |
2.76 |
30.08 |
43.73 |
6.70 |
|
Net income attributable to |
10.70 |
17.53 |
2.69 |
29.58 |
42.79 |
6.56 |
|
Net earnings per ADS (1 ordinary share equals to 5 ADSs) |
|||||||
Net income attributable to |
2.17 |
3.60 |
0.55 |
6.02 |
8.75 |
1.34 |
|
Net income attributable to |
2.14 |
3.51 |
0.54 |
5.92 |
8.56 |
1.31 |
|
(1) Other revenues primarily consist of revenues from third-party logistics services, product promotion and online advertising, fees charged to third-party |
(1) Other revenues primarily consist of revenues from third-party logistics |
||||||
(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB 1.36 billion and |
(2) Fulfillment expenses include shipping and handling expenses, which |
||||||
(3) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each Class A ordinary share |
(3) Authorized share capital is re-classified and re-designated into Class A |
||||||
Three Months Ended |
Twelve Months Ended |
||||||
|
|
|
|
|
|
||
RMB'000 |
RMB'000 |
USD'000 |
RMB'000 |
RMB'000 |
USD'000 |
||
Share-based compensation expenses are included in the operating expenses as follows: |
|||||||
Fulfillment expenses |
24,044 |
23,025 |
3,529 |
112,683 |
100,486 |
15,400 |
|
Marketing expenses |
1,725 |
3,529 |
541 |
35,038 |
16,534 |
2,534 |
|
Technology and content expenses |
8,098 |
20,598 |
3,157 |
180,493 |
152,234 |
23,331 |
|
General and administrative expenses |
65,315 |
176,701 |
27,081 |
359,869 |
681,794 |
104,490 |
|
Total |
99,182 |
223,853 |
34,308 |
688,083 |
951,048 |
145,755 |
|
|||
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 |
6,573,808 |
11,995,415 |
1,838,378 |
Restricted cash |
1,145,477 |
815,906 |
125,043 |
Short term investments |
3,052,726 |
7,328,719 |
1,123,175 |
Accounts receivable, net |
1,295,766 |
334,529 |
51,269 |
Amounts due from related parties |
47,964 |
333,539 |
51,117 |
Other receivables and prepayments,net |
2,897,893 |
2,286,359 |
350,400 |
Loan receivables,net |
306,115 |
27,258 |
4,177 |
Inventories |
7,708,292 |
7,642,509 |
1,171,266 |
Assets held for sale |
0 |
408,748 |
62,643 |
Total current assets |
23,028,041 |
31,172,982 |
4,777,468 |
NON-CURRENT ASSETS |
|||
Property and equipment, net |
11,256,810 |
13,584,459 |
2,081,909 |
Deposits for property and equipment |
101,800 |
73,718 |
11,298 |
Land use rights, net |
5,541,108 |
6,062,792 |
929,164 |
Intangible assets, net |
337,310 |
333,022 |
51,038 |
Investment in equity method investees |
3,112,952 |
1,949,787 |
298,818 |
Other investments |
2,002,756 |
2,861,034 |
438,472 |
Other long-term assets |
608,073 |
100,328 |
15,376 |
Amounts due from related party-non current |
102,000 |
0 |
0 |
|
236,711 |
593,662 |
90,983 |
Deferred tax assets, net |
539,561 |
628,267 |
96,286 |
Operating lease right-of-use assets |
1,715,556 |
1,580,763 |
242,263 |
Total non-current assets |
25,554,637 |
27,767,832 |
4,255,607 |
TOTAL ASSETS |
48,582,678 |
58,940,814 |
9,033,075 |
LIABILTIES AND EQUITY |
|||
CURRENT LIABILITIES |
|||
Short term loans |
1,093,645 |
1,043,426 |
159,912 |
Accounts payable |
13,792,200 |
15,191,313 |
2,328,171 |
Advance from customers |
1,233,165 |
1,558,891 |
238,911 |
Accrued expenses and other current liabilities |
6,534,575 |
7,696,996 |
1,179,616 |
Amounts due to related parties |
532,788 |
444,100 |
68,061 |
Deferred income |
405,994 |
334,431 |
51,254 |
Operating lease liabilities |
333,268 |
299,791 |
45,945 |
Total current liabilities |
23,925,635 |
26,568,948 |
4,071,870 |
NON-CURRENT LIABILITIES |
|||
Long term loans |
64,515 |
0 |
0 |
Deferred tax liability |
165,098 |
432,995 |
66,359 |
Deferred income-non current |
782,068 |
1,070,891 |
164,121 |
Operating lease liabilities |
1,395,665 |
1,360,946 |
208,574 |
Other long term liabilities |
0 |
121,245 |
18,582 |
Total non-current liabilities |
2,407,346 |
2,986,077 |
457,636 |
TOTAL LIABILITIES |
26,332,981 |
29,555,025 |
4,529,506 |
EQUITY: |
|||
Class A ordinary shares ( |
76 |
77 |
12 |
Class B ordinary shares ( |
11 |
11 |
2 |
Additional paid-in capital |
9,959,497 |
10,816,185 |
1,657,653 |
Retained earnings |
11,924,228 |
17,740,415 |
2,718,838 |
Accumulated other comprehensive loss |
(56,656) |
(58,954) |
(9,036) |
Non-controlling interests |
422,541 |
888,055 |
136,100 |
Total shareholders' equity |
22,249,697 |
29,385,789 |
4,503,569 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
48,582,678 |
58,940,814 |
9,033,075 |
|
|||||||
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 |
1,775,433 |
2,589,776 |
396,901 |
4,773,374 |
5,860,086 |
898,098 |
|
Share-based compensation expenses |
99,182 |
223,853 |
34,308 |
688,083 |
951,048 |
145,755 |
|
|
278,263 |
- |
- |
278,263 |
- |
- |
|
Amortization of intangible assets resulting from business acquisitions |
13,032 |
5,896 |
904 |
14,468 |
35,377 |
5,422 |
|
Non-GAAP income from operations |
2,165,910 |
2,819,525 |
432,113 |
5,754,188 |
6,846,511 |
1,049,275 |
|
Net income |
1,410,002 |
2,447,711 |
375,129 |
3,986,433 |
5,919,356 |
907,182 |
|
Share-based compensation expenses |
99,182 |
223,853 |
34,308 |
688,083 |
951,048 |
145,755 |
|
|
278,263 |
- |
- |
278,263 |
- |
- |
|
Impairment loss of investments |
43,973 |
38,114 |
5,841 |
127,589 |
43,160 |
6,614 |
|
Investment gain and revaluation of investments excluding dividends |
39,998 |
(22,269) |
(3,413) |
(155,390) |
(668,568) |
(102,462) |
|
Share of loss in investment of limited partnerships that are accounted for as an equity method |
28,459 |
4,085 |
626 |
41,707 |
83,404 |
12,782 |
|
Tax effect of investment gain and revaluation of investments excluding dividends |
(6,483) |
(9,253) |
(1,418) |
22,588 |
29,513 |
4,523 |
|
Tax effect of share-based compensation expenses |
0 |
(103,438) |
(15,853) |
0 |
(103,438) |
(15,853) |
|
Amortization of intangible assets resulting from business acquisitions |
13,032 |
5,896 |
904 |
14,468 |
35,377 |
5,422 |
|
Tax effect of amortization of intangible assets resulting from business acquisitions |
(3,258) |
(1,474) |
(226) |
(3,617) |
(8,844) |
(1,355) |
|
Non-GAAP net income |
1,903,168 |
2,583,225 |
395,898 |
5,000,124 |
6,281,008 |
962,608 |
|
Net income attributable to |
1,455,558 |
2,440,813 |
374,072 |
4,016,832 |
5,906,957 |
905,282 |
|
Share-based compensation expenses |
99,182 |
223,853 |
34,308 |
688,083 |
951,048 |
145,755 |
|
|
261,259 |
- |
- |
261,259 |
- |
- |
|
Impairment loss of investments |
43,973 |
38,114 |
5,841 |
127,589 |
43,160 |
6,614 |
|
Investment gain and revaluation of investments excluding dividends |
39,998 |
(22,269) |
(3,413) |
(155,390) |
(668,568) |
(102,462) |
|
Share of loss in investment of limited partnerships that are accounted for as an equity method |
28,459 |
4,085 |
626 |
41,707 |
83,404 |
12,782 |
|
Tax effect of investment gain and revaluation of investments excluding dividends |
(6,483) |
(9,253) |
(1,418) |
22,588 |
29,513 |
4,523 |
|
Tax effect of share-based compensation expenses |
0 |
(103,438) |
(15,853) |
0 |
(103,438) |
(15,853) |
|
Amortization of intangible assets resulting from business acquisitions |
12,639 |
5,896 |
904 |
14,045 |
35,377 |
5,422 |
|
Tax effect of amortization of intangible assets resulting from business acquisitions |
(3,160) |
(1,474) |
(226) |
(3,511) |
(8,844) |
(1,355) |
|
Non-GAAP net income attributable to |
1,931,425 |
2,576,327 |
394,841 |
5,013,202 |
6,268,609 |
960,708 |
|
Shares used in calculating earnings per share: |
|||||||
Weighted average number of Class A and Class B ordinary shares: |
|||||||
—Basic |
133,954,320 |
135,646,247 |
135,646,247 |
133,524,129 |
135,077,790 |
135,077,790 |
|
—Diluted |
135,976,408 |
139,219,751 |
139,219,751 |
136,081,415 |
138,036,010 |
138,036,010 |
|
Non-GAAP net income per Class A and Class B ordinary share |
|||||||
Non-GAAP net income attributable to |
14.42 |
18.99 |
2.91 |
37.55 |
46.41 |
7.11 |
|
Non-GAAP net income attributable to |
14.20 |
18.51 |
2.84 |
36.91 |
45.41 |
6.96 |
|
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs) |
|||||||
Non-GAAP net income attributable to |
2.88 |
3.80 |
0.58 |
7.51 |
9.28 |
1.42 |
|
Non-GAAP net income attributable to |
2.84 |
3.70 |
0.57 |
7.38 |
9.08 |
1.39 |
View original content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-fourth-quarter-and-full-year-2020-financial-results-301235325.html
SOURCE
Jessie Fan, Tel: +86 (20) 2233-0732, Email: IR@vipshop.com