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Vipshop Reports Third Quarter 2012 Financial Results
Third Quarter 2012 Highlights
- Net revenues increased by 197.0% over prior year period to
US$155.9 million , primarily attributable to a 173.6% increase in the number of active customers(1) to 1.7 million and a 157.6% increase in total orders(2) to 5.4 million. - Gross margin increased to 22.3% from 19.0% in the prior year period and 21.8% in the second quarter of 2012.
- Non-GAAP loss from operations(3) decreased to
US$1.2 million fromUS$10.7 million in the prior year period. Non-GAAP operating loss margin(4) improved to 0.7% from 20.3% in the prior year period and 2.8% in the second quarter of 2012. - Net loss attributable to ordinary shareholders decreased to
US$1.5 million fromUS$17.5 million in the prior year period. Net loss margin improved to 0.9% from 33.4% in the prior year period and 4.3% in the second quarter of 2012. - Non-GAAP net income attributable to ordinary shareholders(5) was
US$640,542 compared to a non-GAAP net loss ofUS$10.8 million in the prior year period. Non-GAAP net margin(6) was 0.4% compared with a non-GAAP net loss margin of 20.6% in the prior year period and 3.1% from the second quarter of 2012.
Mr.
Mr.
Third Quarter 2012 Financial Results
NET REVENUES
Net revenues for the third quarter of 2012 increased by 197.0% to
The number of active customers for the third quarter of 2012 increased by 173.6% to 1.7 million from approximately 633,000 in the prior year period. The number of total orders for the third quarter of 2012 increased by 157.6% to 5.4 million from 2.1 million in the prior year period. This increase was primarily due to the Company's addition of several regional sub-sites in 2011, as well as continued efforts to optimize brand and product selection, increase the number of sales events and increase the number of SKUs available on its website. In addition, the Company's regional warehouse expansion into
GROSS PROFIT
Gross profit for the third quarter of 2012 increased by 247.8% to
OPERATING EXPENSES
Total operating expenses for the third quarter of 2012 increased by 38.6% to
- Fulfillment expenses increased by 89.8% to
US$21.7 million for the third quarter of 2012 fromUS$11.4 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 13.9% from 21.8% in the prior year period and 15.2% in the second quarter of 2012, which reflects the Company's strategy of shifting towards using regional delivery services and capacity expansion of regional warehouses. - Marketing expenses increased to
US$7.3 million fromUS$4.6 million in the prior year period. As a percentage of net revenues, marketing expenses decreased to 4.7% from 8.7% in the prior year period and 4.9% in the second quarter of 2012, demonstrating the Company's ability to control marketing expenses and leverage word-of-mouth referrals. - Technology and content expenses increased to
US$3.2 million from approximatelyUS$1.2 million 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 remain stable at 2.1% compared with 2.3% in the prior year period and 2.0% in the second quarter of 2012. - General and administrative expenses decreased to
US$6.3 million fromUS$10.4 million in the prior year period, primarily due to decreased share-based compensation charges. As a percentage of net revenues, general and administrative expenses was 4.1% compared with 19.7% in the prior year period and 4.1% in the second quarter of 2012, reflecting the Company's increased operational leverage and continued cost-control efforts.
Loss from operations decreased to
Non-GAAP loss from operations, which excludes the impact of share-based compensation expense, decreased to
NET LOSS
Net loss attributable to ordinary shareholders decreased to
Non-GAAP net income attributable to ordinary shareholders, which excludes share-based compensation expenses, was
For the quarter ended
As of
For the third quarter of 2012, net cash from operating activities was
Business Outlook
For the fourth quarter of 2012, 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: |
#58808563 |
The replay will be accessible through
United States Toll Free: |
+1-855-452-5696 |
International: |
+61 2 8199 0299 |
Conference ID: |
#58808563 |
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 quarter. |
(2) Total orders are defined as the total number of orders placed during the quarter. |
(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 (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) attributable to ordinary shareholders is a non-GAAP financial measure, which is defined as net income/(loss) attributable to ordinary shareholders excluding share-based compensation expenses. |
(6) Non-GAAP net (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income /(loss) attributable to ordinary shareholders as a percentage of net revenues. |
(7) "ADS" is American Depositary Share. Each ADS represents two ordinary shares. |
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 | |||
September 30, 2011 |
September 30, 2012 |
June 30, 2012 | |
USD |
USD |
USD | |
(Unaudited) |
(Unaudited) |
(Unaudited) | |
Net revenues |
52,507,268 |
155,944,583 |
135,279,785 |
Cost of goods sold |
(42,511,012) |
(121,180,318) |
(105,727,006) |
Gross profit |
9,996,256 |
34,764,265 |
29,552,779 |
Operating expenses |
|||
Fulfillment expenses* |
(11,432,449) |
(21,703,487) |
(20,540,533) |
Marketing expenses |
(4,559,574) |
(7,310,957) |
(6,593,048) |
Technology and content expenses |
(1,190,921) |
(3,218,857) |
(2,656,044) |
General and administrative expenses |
(10,352,062) |
(6,321,337) |
(5,575,356) |
Other income |
116,386 |
538,739 |
369,609 |
Total operating expenses |
(27,418,620) |
(38,015,899) |
(34,995,372) |
Loss from operations |
(17,422,364) |
(3,251,634) |
(5,442,593) |
Interest expense |
(189,745) |
(1,197) |
(33,977) |
Interest income |
13,665 |
1,372,350 |
375,826 |
Exchange (loss) gain |
57,158 |
424,454 |
(678,866) |
Loss before income taxes |
(17,541,286) |
(1,456,027) |
(5,779,610) |
Income tax expenses |
- |
- |
- |
Net loss |
(17,541,286) |
(1,456,027) |
(5,779,610) |
Deemed dividend on issuance of Series A Preferred Shares |
- |
||
Net loss attributable to ordinary shareholders |
(17,541,286) |
(1,456,027) |
(5,779,610) |
Weighted average numbers of shares used in calculating net loss per share: |
|||
-- Basic |
46,268,513 |
101,139,801 |
101,138,565 |
-- Diluted |
46,268,513 |
101,139,801 |
101,138,565 |
Net loss per share |
|||
-- Basic |
(0.38) |
(0.01) |
(0.06) |
-- Diluted |
(0.38) |
(0.01) |
(0.06) |
Net loss per ADS (2 ordinary shares equal to 1 ADS) |
|||
-- Basic |
(0.76) |
(0.03) |
(0.11) |
-- Diluted |
(0.76) |
(0.03) |
(0.11) |
*Including shipping and handling expenses, which amounted US$7.3 million, US$13 million and US$12 million in the three month periods ended September 30, 2011, September 30, 2012 and June 30, 2012, respectively. |
|||
Three Months Ended | |||
September 30, 2011 |
September 30, 2012 |
June 30, 2012 | |
USD |
USD |
USD | |
(Unaudited) |
(Unaudited) |
(Unaudited) | |
Share-based compensation charges included are follows |
|||
Fulfillment expenses |
42,197 |
79,090 |
75,540 |
Marketing expenses |
9,316 |
30,203 |
29,628 |
Technology and content expenses |
78,639 |
258,947 |
212,248 |
General and administrative expenses |
6,611,001 |
1,728,329 |
1,286,408 |
Total |
6,741,153 |
2,096,569 |
1,603,824 |
Vipshop Holdings Limited | ||
Condensed Consolidated Balance Sheets | ||
(Amounts in US dollars) | ||
As of December 31, 2011 |
As of September 30, 2012 | |
USD |
USD | |
ASSETS |
(Audited) |
(Unaudited) |
CURRENT ASSETS |
||
Cash and cash equivalents |
44,954,778 |
91,875,685 |
Restricted deposits |
14,214,585 |
- |
Short-term investments |
- |
40,098,385 |
Accounts receivable |
4,150,664 |
2,831,356 |
Amounts due from related parties |
2,101,853 |
477,634 |
Other receivables |
9,410,481 |
6,222,200 |
Inventories |
69,742,200 |
90,325,964 |
Advance to suppliers |
12,626,286 |
18,397,721 |
Prepaid expenses |
1,077,194 |
861,213 |
Total current assets |
158,278,041 |
251,090,158 |
NON-CURRENT ASSETS |
||
Property and equipment, net |
9,148,162 |
8,489,609 |
Deposits for property, plant and equipment |
- |
724,463 |
Other assets |
9,117 |
6,380 |
Total non-current assets |
9,157,279 |
9,220,452 |
TOTAL ASSETS |
167,435,320 |
260,310,610 |
LIABILITIES AND EQUITY |
||
CURRENT LIABILITIES |
||
Accounts payable (Including accounts |
88,020,376 |
105,315,761 |
Advance from customers (Including advance from customers of the VIE without recourse to the Company of $15,378,465 and $34,183,215 as of December 31, 2011 and September 30,2012 , respectively) |
15,381,357 |
34,254,432 |
Accrued expenses and other current liabilities((Including accrued expenses and other current liabilities of the VIE without recourse to the Company of $11,825,417 and $16,061,844 as of December 31, 2011 and September 30,2012 , respectively) |
26,666,502 |
37,086,069 |
Amounts due to related parties(Including amounts due to related parties of the VIE without recourse to the Company of $2,992,516 and $665,049 as of December 31, 2011 and September 30,2012 , respectively) |
3,797,508 |
1,590,227 |
Deferred income ((Including deferred income of the VIE without recourse to the Company of $2,569,655 and $7,419,825 as of December 31, 2011 and September 30,2012 , respectively)) |
2,569,655 |
8,459,309 |
Bank borrowings |
12,710,720 |
- |
Total current liabilities |
149,146,118 |
186,705,798 |
Total liabilities |
149,146,118 |
186,705,798 |
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, 101,159,707 shares issued and outstanding as of September 30,2012) |
4,624 |
10,116 |
Series A convertible preference 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 September 30,2012) |
20,113,898 |
- |
Series B convertible preference 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 September 30,2012) |
41,147,021 |
- |
Additional paid-in capital |
124,341,953 |
256,369,162 |
Accumulated losses |
(166,553,261) |
(182,375,137) |
Accumulated other comprehensive income (loss) |
(765,033) |
(399,329) |
Total shareholders' equity |
18,289,202 |
73,604,812 |
TOTAL LIABILITIES AND EQUITY |
167,435,320 |
260,310,610 |
Vipshop Holdings Limited | |||
Reconciliations of GAAP and Non-GAAP Results | |||
Three Months Ended | |||
September 30, 2011 |
September 30, 2012 |
June 30, 2012 | |
USD |
USD |
USD | |
(Unaudited) |
(Unaudited) |
(Unaudited) | |
Loss from operations |
(17,422,364) |
(3,251,634) |
(5,442,593) |
Share-based compensation expenses |
6,741,153 |
2,096,569 |
1,603,824 |
Non-GAAP income/loss from operation |
(10,681,211) |
(1,155,065) |
(3,838,769) |
Net loss attributable to ordinary shareholders |
(17,541,286) |
(1,456,027) |
(5,779,610) |
Share-based compensation expenses |
6,741,153 |
2,096,569 |
1,603,824 |
Non-GAAP net income/loss |
(10,800,133) |
640,542 |
(4,175,786) |
Non-GAAP weighted average numbers of shares used in calculating net income (loss) per share: |
|||
-- Basic |
46,268,513 |
101,139,801 |
101,138,565 |
-- Diluted |
46,268,513 |
102,440,611 |
101,138,565 |
Non-GAAP net income/loss per share |
|||
-- Basic |
(0.23) |
0.01 |
(0.04) |
-- Diluted |
(0.23) |
0.01 |
(0.04) |
Non-GAAP net income/loss per ADS (2 ordinary shares equal to 1 ADS) |
|||
-- Basic |
(0.47) |
0.01 |
(0.08) |
-- Diluted |
(0.47) |
0.01 |
(0.08) |
SOURCE