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Vipshop Reports First Quarter 2013 Financial Results
First Quarter 2013 Highlights
- Net revenues increased by 206.8% over the prior year period to
US$310.7 million , primarily attributable to a 169.9% increase in the number of active customers[1] from 1.0 million to 2.8 million and a 186.9% increase in total orders[2] from 3.1 million to 8.8 million. - Gross margin increased to 23.4% from 21.2% in the prior year period.
- Non-GAAP income from operations[3] was
US$8.7 million , as compared to a non-GAAP loss from operations ofUS$6.6 million in the prior year period. Non-GAAP operating income margin[4] was 2.8%, compared to a non-GAAP operating loss margin of 6.5% in the prior year period. - Net income was
US$5.8 million , compared to a net loss ofUS$8.6 million in the prior year period. Net income margin was 1.9%, compared to a net loss margin of 8.5% in the prior year period. - Non-GAAP net income[5] was
US$9.0 million compared to a non-GAAP net loss ofUS$6.5 million in the prior year period. Non-GAAP net income margin[6] was 2.9% compared with a non-GAAP net loss margin of 6.4% in the prior year period.
Mr.
Mr.
NET REVENUES
Net revenues for the first quarter of 2013 increased by 206.8% to
The number of active customers for the first quarter of 2013 increased by 169.9% to 2.8 million from approximately 1.0 million in the prior year period. The number of total orders for the first quarter of 2013 increased by 186.9% to 8.8 million from 3.1 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. The Company established three logistics centers and set up several regional subsites within its website during 2011, since then, the full utilization of which has enhanced the Company's ability to accommodate increased and diversified demand from customers.
GROSS PROFIT
Gross profit for the first quarter of 2013 increased by 239.6% to US$72.8 million from US$21.4 million in the prior year period. This reflects both the significant increase in net revenues as well as continued margin expansion. Gross margin increased to 23.4% in the first quarter of 2013 from 21.2% in the prior year period. This increase is attributable to the Company's increased bargaining power with its suppliers due to increased purchasing scale.
OPERATING INCOME AND EXPENSES
Total operating expenses for the first quarter of 2013 increased by 121.7% to
- Fulfillment expenses increased by 123.4% to
US$37.7 million fromUS$16.9 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 12.1% from 16.7% in the prior year period, which reflects the Company's strategy of shifting towards using regional and local delivery services to reduce the Company's shipping and handling expenses per order as well as the capacity expansion of regional warehouses. - Marketing expenses increased by 123.5% to
US$13.1 million fromUS$5.9 million in the prior year period. As a percentage of net revenues, marketing expenses decreased to 4.2% from 5.8% in the prior year period, 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 226.7% to
US$7.9 million fromUS$2.4 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 2.6% compared with 2.4% in the prior year period. - General and administrative expenses increased by 70.3% to
US$9.8 million fromUS$5.8 million in the prior year period, primarily due to increased headcount and office rentals associated with the growth in the Company's overall business. As a percentage of net revenues, general and administrative expenses decreased to 3.2% from 5.7% in the prior year period, reflecting 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 was
Non-GAAP net income, which excludes share-based compensation expenses, was
For the quarter ended
As of
For the first quarter of 2013, net cash from operating activities was
Business Outlook
For the second 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: |
#64798598 |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61 2 8199 0299 |
Conference ID: |
#64798598 |
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) is a non-GAAP financial measure, which is defined as net income/(loss) 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) as a percentage of net revenues. |
[7] |
"ADS" means American Depositary Share. Each ADS represents two ordinary shares, par value US$0.0001 per share, of the Company. |
Vipshop Holdings Limited |
|||
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) |
|||
(In US dollars, except for share data) |
|||
Three Months Ended |
|||
March 31,2012 |
March 31,2013 |
December 31,2012 |
|
USD |
USD |
USD |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Net revenues |
101,262,023 |
310,658,681 |
299,626,573 |
Cost of goods sold |
(79,837,020) |
(237,908,540) |
(230,893,516) |
Gross profit |
21,425,003 |
72,750,141 |
68,733,057 |
Operating expenses |
|||
Fulfillment expenses* |
(16,877,142) |
(37,699,224) |
(37,402,282) |
Marketing expenses |
(5,873,102) |
(13,126,003) |
(12,495,522) |
Technology and content expenses |
(2,433,157) |
(7,948,145) |
(6,336,055) |
General and administrative expenses |
(5,756,147) |
(9,804,914) |
(7,888,972) |
Total operating expenses |
(30,939,548) |
(68,578,286) |
(64,122,831) |
Other income |
841,428 |
1,306,068 |
813,545 |
(Loss) income from operations |
(8,673,117) |
5,477,923 |
5,423,771 |
Interest expense |
(186,725) |
- |
(969) |
Interest income |
165,939 |
2,436,478 |
1,643,898 |
Exchange gain (loss) |
107,664 |
(222,618) |
(10,725) |
(Loss) income before income taxes |
(8,586,239) |
7,691,783 |
7,055,975 |
Income tax expenses |
- |
(1,850,610) |
(706,173) |
Net (loss) income |
(8,586,239) |
5,841,173 |
6,349,802 |
Weighted average numbers of shares used in calculating earnings (loss) per share: |
|||
-- Basic |
51,644,716 |
103,004,723 |
101,183,145 |
-- Diluted |
51,644,716 |
109,132,970 |
105,028,955 |
Net earnings (loss) per share |
|||
-- Basic |
(0.17) |
0.06 |
0.06 |
-- Diluted |
(0.17) |
0.05 |
0.06 |
Net earnings (loss) per ADS (2 ordinary shares equal to 1 ADS) |
|||
-- Basic |
(0.33) |
0.11 |
0.12 |
-- Diluted |
(0.33) |
0.11 |
0.12 |
*Including shipping and handling expenses, which amounted US$9.4 million, US$19 million and US$24 million in the three month periods ended March 31, December 31, 2012 and March 31, 2013, respectively. |
|||
Net (loss) income |
(8,586,239) |
5,841,173 |
6,349,802 |
Other comprehensive (loss) income, net of tax: |
|||
Foreign currency translation adjustments |
8,115 |
219,668 |
628,902 |
Comprehensive (loss)income |
(8,578,124) |
6,060,841 |
6,978,704 |
Three Months Ended |
|||
March 31,2012 |
March 31,2013 |
December 31,2012 |
|
USD |
USD |
USD |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Share-based compensation charges included are follows |
|||
Fulfillment expenses |
60,007 |
77,771 |
78,229 |
Marketing expenses |
27,820 |
80,247 |
81,449 |
Technology and content expenses |
162,606 |
261,343 |
263,332 |
General and administrative expenses |
1,852,786 |
2,766,446 |
1,370,327 |
Total |
2,103,219 |
3,185,807 |
1,793,337 |
Vipshop Holdings Limited |
|||
Condensed Consolidated Balance Sheets |
|||
(Amounts in US dollars) |
|||
As of |
As of |
||
USD |
USD |
||
ASSETS |
(Unaudited) |
||
CURRENT ASSETS |
|||
Cash and cash equivalents |
124,472,629 |
231,075,063 |
|
Restricted deposits |
- |
- |
|
Held-to-maturity securities |
86,097,191 |
141,599,754 |
|
Accounts receivable |
6,990,560 |
12,376,560 |
|
Amounts due from related parties |
177,237 |
- |
|
Other receivables |
9,993,887 |
5,656,418 |
|
Inventories |
143,963,931 |
116,218,267 |
|
Advance to suppliers |
9,569,795 |
8,050,558 |
|
Prepaid expenses |
686,876 |
1,358,859 |
|
Deferred tax assets |
- |
3,087,064 |
|
Total current assets |
381,952,106 |
519,422,543 |
|
NON-CURRENT ASSETS |
|||
Property and equipment, net |
12,637,567 |
14,931,653 |
|
Deposits for property and equipment |
4,322,217 |
1,631,670 |
|
Other assets |
5,230 |
4,036 |
|
Total non-current assets |
16,965,014 |
16,567,359 |
|
TOTAL ASSETS |
398,917,120 |
535,989,902 |
|
LIABILTIES AND EQUITY |
|||
CURRENT LIABILITIES |
|||
Accounts payable (Including accounts payable of the VIE without recourse to the Company of $101,556 and $106,817 as of December 31, 2012 and March 31,2013 , respectively) |
193,455,827 |
175,382,872 |
|
Advance from customers (Including advance from customers of the VIE without recourse to the Company of $55,948,713 and $62,266,485 as of December 31, 2012 and March 31,2013 , respectively) |
55,948,713 |
62,266,485 |
|
Accrued expenses and other current liabilities(Including accrued expenses and other current liabilities of the VIE without recourse to the Company of $24,908,418 and $38,761,008 as of December 31, 2012 and March 31,2013 , respectively) |
52,676,443 |
74,445,163 |
|
Amounts due to related parties(Including amounts due to related parties of the VIE without recourse to the Company of $789,057 and $ 833,333 as of December 31, 2012 and March 31,2013 , respectively) |
1,335,756 |
29,967,757 |
|
Deferred income (Including deferred income of the VIE without recourse to the Company of $10,850,319 and $9,789,213 as of December 31, 2012 and March 31,2013 , respectively) |
12,917,567 |
10,902,946 |
|
Total current liabilities |
316,334,306 |
352,965,223 |
|
Total liabilities |
316,334,306 |
352,965,223 |
|
EQUITY: |
|||
Ordinary shares (US$0.0001 par value, 471,620,833 shares authorized, and 101,284,881 and 110,508,113 shares issued and outstanding as of December 31, 2012 and March 31, 2013, respectively) |
10,128 |
11,051 |
|
Additional paid-in capital |
258,368,448 |
352,748,549 |
|
Accumulated losses |
(176,025,335) |
(170,184,162) |
|
Accumulated other comprehensive income |
229,573 |
449,241 |
|
Total shareholders' equity |
82,582,814 |
183,024,679 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
398,917,120 |
535,989,902 |
|
Vipshop Holdings Limited |
|||
Reconciliations of GAAP and Non-GAAP Results |
|||
Three Months Ended |
|||
March 31,2012 |
March 31,2013 |
December 31,2012 |
|
USD |
USD |
USD |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
(Loss)/income from operations |
(8,673,117) |
5,477,923 |
5,423,771 |
Share-based compensation expenses |
2,103,219 |
3,185,807 |
1,793,337 |
Non-GAAP (loss)/income from operation |
(6,569,898) |
8,663,730 |
7,217,108 |
Net (loss)/income |
(8,586,239) |
5,841,173 |
6,349,802 |
Share-based compensation expenses |
2,103,219 |
3,185,807 |
1,793,337 |
Non-GAAP net (loss)/income |
(6,483,020) |
9,026,980 |
8,143,139 |
Non-GAAP weighted average numbers of shares used in calculating net income (loss) per share: |
|||
-- Basic |
51,644,716 |
103,004,723 |
101,183,145 |
-- Diluted |
51,644,716 |
109,132,970 |
105,028,955 |
Non-GAAP net income/loss per share |
|||
-- Basic |
(0.13) |
0.09 |
0.08 |
-- Diluted |
(0.13) |
0.08 |
0.08 |
Non-GAAP net income/loss per ADS (2 ordinary shares equal to 1 ADS) |
|||
-- Basic |
(0.25) |
0.18 |
0.16 |
-- Diluted |
(0.25) |
0.17 |
0.16 |
SOURCE
Vipshop Holdings Limited, Millicent Tu, +86 (20) 2233-0732, IR@vipshop.com; ICR, Inc., Jeremy Peruski, +1 (646) 405-4866, IR@vipshop.com