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Vipshop Reports First Quarter 2012 Financial Results
First Quarter 2012 Highlights
- Net revenues for the first quarter of 2012 increased by 250.7% year-over-year to
US$101.3 million , primarily attributable to a 247.2% increase in the number of active customers(1) to 1.0 million and a 276.4% increase in total orders(2) to 3.1 million. - Gross margin increased to 21.2% from 17.0% in the prior year period and 20.0% in the fourth quarter of 2011.
- Net loss was
US$8.6 million compared toUS$6.7 million in the prior year period. Net loss margin improved to 8.5% from 23.2% in the prior year period and 60.4% in the fourth quarter of 2011. - Non-GAAP loss from operations(3) was
US$6.6 million compared toUS$4.2 million in the prior year period. Non-GAAP operating loss margin improved to 6.5% from 14.6% in the prior year period and 10.6% in the fourth quarter of 2011.
Mr.
Mr.
First Quarter 2012 Financial Results
NET REVENUES
Net revenues for the first quarter of 2012 increased by 250.7% to
The number of active customers for the first quarter of 2012 increased by 247.2% to 1.0 million from approximately 300,000 in the prior year period. The number of total orders for the first quarter of 2012 increased by 276.4% to 3.1 million from approximately 800,000 in the prior year period. This increase was primarily due to the Company's continued efforts to optimize product selection, increase the number of sales events and increase the number of SKUs available on its website. In addition, recent regional warehouse expansion to
GROSS PROFIT
Gross profit increased by 335.3% to
OPERATING EXPENSES
Total operating expenses increased by 158.7% to
- Fulfillment expenses increased by 180.1% to
US$16.9 million for the first quarter of 2012 fromUS$6.0 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 16.7% from 20.9% in the prior year period and 18.6% in the fourth quarter of 2011, which reflects the Company's ability to attain economies of scale as well as its shift towards using regional delivery services and capacity expansion of regional warehouses. - Marketing expenses increased to
US$5.9 million fromUS$1.7 million in the prior year period. As a percentage of net revenues, marketing expenses remained stable at 5.8% compared to 5.7% in the prior year period and was down from 6.4% in the fourth quarter of 2011, demonstrating the Company's ability to control marketing expenses and leverage word-of-mouth advertising. - Technology and content expenses increased to
US$2.4 million fromUS$493,883 in the prior year period, primarily reflecting the Company's continued efforts to invest in its website and IT system to better support future growth. As a percentage of net revenues, technology and content expenses were 2.4% compared to 1.7% in the prior year period and 2.8% in the fourth quarter of 2011. - General and administrative expenses increased to
US$5.8 million fromUS$3.5 million in the prior year period. As a percentage of net revenues, general and administrative expenses decreased to 5.7% from 12.2% in the prior year period and 52.8% in the fourth quarter of 2011, primarily due to decreased share-based compensation charges compared to the prior year period.
Loss from operations(3) was
Non-GAAP loss from operations(3), which excludes the impact of share-based compensation expense, was
NET LOSS
Net loss was
Non-GAAP net loss(3), which excludes share-based compensation expenses, was
For the quarter ending
As of
(1) |
Active customers are defined as any registered member who has purchased products from the Company at least once during the quarter. |
(2) |
Total orders are defined as the total number of orders placed during the quarter. |
(3) |
An explanation of the Company's non-GAAP financial measures is included in the section entitled "Use of Non-GAAP Financial Measures" below, and the related reconciliations to GAAP financial measures are presented in the accompanying financial information. Share-based compensation charges for the quarters ended March 31, 2012, March 31, 2011 and December 31, 2011 were US$2.1 million, US$2.5 million and US$52.3 million, respectively. |
(4) |
"ADS" is American Depositary Share. Each ADS represents two ordinary shares. |
Business Outlook
For the second quarter of 2012, the Company expects its net revenues to be between
Recent Developments
The Company successfully completed its initial public offering and listing of 11,004,600 ADSs on the
Conference Call Information
The Company will hold a conference call at
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: |
# 78299364 |
A replay of the call will be available through
United States: |
+1-718-354-1232 |
International Toll Free: |
+1-866-214-5335 |
Conference ID: |
# 78299364 |
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
To supplement the unaudited condensed consolidated financial information except that the consolidated statement of shareholders' equity (deficit) and comprehensive income (loss), consolidated statements of cash flows, and the detailed notes required by Accounting Standards Codification 270 Interim Reporting ("ASC270"), have not been presented.
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 GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP Results" at the end of this release.
Investor Relations Contact
Tel: +86 (20) 2233-0732
Email: IR@vipshop.com
Tel: +1 (646) 405-4866
Email: IR@vipshop.com
Vipshop Holdings Limited | |||
Condensed Consolidated Statements of Operations | |||
(Amounts in US dollars, except for number of shares and ADS and per share and per ADS data) | |||
Three Months Ended | |||
March 31, 2011 |
March 31, 2012 |
Dec 31, 2011 | |
USD |
USD |
USD | |
(Unaudited) |
(Unaudited) |
(Unaudited) | |
Net revenues |
28,872,040 |
101,262,023 |
105,205,829 |
Cost of goods sold |
(23,949,749) |
(79,837,020) |
(84,211,219) |
Gross profit |
4,922,291 |
21,425,003 |
20,994,610 |
Fulfillment expenses(1) |
(6,026,465) |
(16,877,142) |
(19,592,188) |
Marketing expenses |
(1,655,106) |
(5,873,102) |
(6,721,359) |
Technology and content expenses |
(493,883) |
(2,433,157) |
(2,981,439) |
General and administrative expenses |
(3,514,259) |
(5,756,147) |
(55,510,374) |
Other income |
56,724 |
841,428 |
327,199 |
Total operating expenses |
(11,632,989) |
(30,098,120) |
(84,478,161) |
Loss from operations |
(6,710,698) |
(8,673,117) |
(63,483,551) |
Interest expense |
- |
(186,725) |
(287,576) |
Interest income |
687 |
165,939 |
103,772 |
Exchange gain |
- |
107,664 |
142,428 |
Loss before income taxes |
(6,710,011) |
(8,586,239) |
(63,524,927) |
Income tax expenses |
|||
Net loss |
(6,710,011) |
(8,586,239) |
(63,524,927) |
Deemed dividend on issuance of Series A Preferred Shares |
(49,214,977) |
- |
- |
Net loss attributable to ordinary shareholders |
(55,924,988) |
(8,586,239) |
(63,524,927) |
Weighted average numbers of shares used in calculating net loss per share: |
|||
——Basic |
46,570,417 |
51,664,716 |
46,234,659 |
——Diluted |
46,570,417 |
51,664,716 |
46,234,659 |
Net Loss per share |
|||
——Basic |
(1.20) |
(0.17) |
(1.37) |
——Diluted |
(1.20) |
(0.17) |
(1.37) |
Net Loss per ADS (2 ordinary shares equal to 1 ADS) |
|||
——Basic |
(2.40) |
(0.33) |
(2.75) |
——Diluted |
(2.40) |
(0.33) |
(2.75) |
Three Months Ended | |||
March 31, 2011 |
March 31, 2012 |
Dec 31, 2011 | |
USD |
USD |
USD | |
(Unaudited) |
(Unaudited) |
(Unaudited) | |
Share-based compensation charges included are as follows: |
|||
Fulfillment expenses |
1,983 |
60,007 |
225,047 |
Marketing expenses |
438 |
27,820 |
168,497 |
Technology and content expenses |
3,695 |
162,606 |
595,149 |
General and administrative expenses |
2,479,704 |
1,852,786 |
51,352,722 |
Total |
2,485,820 |
2,103,219 |
52,341,415 |
(1) Including shipping and handling expense, which amounted US$3.9 million, US$9.4 million and US$13.0 million in the three month periods ended March 31, 2011, March 31, 2012 and December 31, 2011, respectively. |
Vipshop Holdings Limited | ||
Condensed Consolidated Balance Sheets | ||
(Amounts in US dollars) | ||
As of December 31, 2011 |
As of March 31, 2012 | |
USD |
USD | |
ASSETS |
(Unaudited) | |
CURRENT ASSETS |
||
Cash and cash equivalents |
44,954,778 |
98,473,344 |
Restricted deposits |
14,214,585 |
9,022,318 |
Accounts receivable |
4,150,664 |
1,635,632 |
Amounts due from related parties |
2,101,853 |
573,197 |
Other receivables |
9,410,481 |
6,119,672 |
Inventories |
69,742,200 |
66,242,773 |
Advance to suppliers |
12,626,286 |
5,503,815 |
Prepaid expenses |
1,077,194 |
1,032,713 |
Total current assets |
158,278,041 |
188,603,464 |
NON-CURRENT ASSETS |
||
Property and equipment, net |
9,148,162 |
8,826,822 |
Deposits for property, plant and equipment |
- |
328,877 |
Other asset, net |
9,117 |
7,908 |
Total non-current asset |
9,157,279 |
9,163,607 |
TOTAL ASSETS |
167,435,320 |
197,767,071 |
LIABILTIES AND EQUITY |
||
CURRENT LIABILITIES |
||
Accounts payable (Including accounts payable of the VIE without recourse to |
88,020,376 |
71,043,448 |
Advance from customers (Including advance from customers of the VIE without recourse |
15,381,357 |
17,946,093 |
Accrued expenses and other current liabilities (Including accrued expenses and other |
26,666,502 |
19,162,426 |
Amounts due to related parties (Including amounts due to related parties of the VIE without |
3,797,508 |
3,185,648 |
Deferred income (Entire amounts are liabilities of the VIE without recourse to the Company) |
2,569,655 |
4,010,665 |
Bank borrowings |
12,710,720 |
7,939,659 |
Total current liabilities |
149,146,118 |
123,287,939 |
Total liabilities |
149,146,118 |
123,287,939 |
EQUITY |
||
Ordinary shares (US$0.0001 par value, 471,620,833 shares authorized and 46,234,650 shares issued and outstanding as of December 31, 2011; US$0.0001 par value, 101,138,565 shares issued and outstanding as of March 31, 2012) |
4,624 |
10,114 |
Series A Preferred Shares (US$0.0001 par value: 20,212,500 shares authorized, issued and outstanding as of December 31, 2011; nil authorized, issued and outstanding as of March 31, 2012) |
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; nil authorized, issued and outstanding as of March 31, 2012) |
41,147,021 |
- |
Additional paid-in capital |
124,341,953 |
250,365,437 |
Accumulated losses |
(166,553,261) |
(175,139,500) |
Accumulated other comprehensive loss |
(765,033) |
(756,919) |
Total shareholders' equity |
18,289,202 |
74,479,132 |
TOTAL LIABILITIES AND EQUITY |
167,435,320 |
197,767,071 |
Vipshop Holdings Limited | |||
Reconciliations of GAAP and Non-GAAP Results | |||
Three Months Ended |
|||
March 31, 2011 |
March 31, 2012 |
Dec 31, 2011 | |
USD |
USD |
USD | |
(Unaudited) |
(Unaudited) |
(Unaudited) | |
Loss from operations |
(6,710,698) |
(8,673,117) |
(63,483,551) |
Share-based compensation expenses |
2,485,820 |
2,103,219 |
52,341,415 |
Adjusted loss from operations |
(4,224,878) |
(6,569,898) |
(11,142,136) |
Net loss |
(6,710,011) |
(8,586,239) |
(63,524,927) |
Share-based compensation expenses |
2,485,820 |
2,103,219 |
52,341,415 |
Adjusted net loss |
(4,224,191) |
(6,483,020) |
(11,183,512) |
Net loss attributable to ordinary shareholders |
(55,924,988*) |
(8,586,239) |
(63,524,927) |
Share-based compensation expenses |
2,485,820 |
2,103,219 |
52,341,415 |
Adjusted net loss attributable to ordinary shareholders |
(53,439,168) |
(6,483,020) |
(11,183,512) |
Weighted average numbers of shares used in calculating net loss per share: |
|||
——Basic |
46,570,417 |
51,664,716 |
46,234,659 |
——Diluted |
46,570,417 |
51,664,716 |
46,234,659 |
Adjusted net loss per share |
|||
——Basic |
(1.15) |
(0.13) |
(0.24) |
——Diluted |
(1.15) |
(0.13) |
(0.24) |
Adjusted net loss attributable to ordinary shareholders per ADS (2 ordinary shares equal to 1 ADS) |
|||
——Basic |
(2.29) |
(0.25) |
(0.48) |
——Diluted |
(2.29) |
(0.25) |
(0.48) |
* Including deemed dividends on issuance of Series A Preferred Shares, which have all been converted into ordinary shares upon the Company's initial public offering in March 2012. |
SOURCE