UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November 2013

 


 

Commission File Number: 001-35454

 


 

Vipshop Holdings Limited

 

No. 20 Huahai Street

Liwan District, Guangzhou 510370

The People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x  Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

Vipshop Holdings Limited

 

 

 

 

 

 

 

 

 

By

:

/s/ Donghao Yang

 

Name:

:

Donghao Yang

 

Title:

:

Chief Financial Officer

 

 

Date: November 12, 2013

 

2



 

EXHIBIT INDEX

 

Exhibit 99.1 — Press release

 

3


Exhibit 99.1

 

Vipshop Reports Third Quarter 2013 Financial Results

 

3Q13 Total Net Revenues Up 146.1% YOY

3Q13 Gross Margin Increased to 24.2%

Achieved Net Profit of US$12.0 Million

Conference Call to be Held at 8:00 AM U.S. Eastern Time on November 12, 2013

 

Guangzhou, China, November 11, 2013 — Vipshop Holdings Limited (NYSE: VIPS), China’s leading online discount retailer for brands (“Vipshop” or the “Company”) today announced its unaudited financial results for the quarter ended September 30, 2013.

 

Third Quarter 2013 Highlights

 

·                  Total net revenues increased by 146.1% over the prior year period to US$383.7 million, primarily attributable to a 131.7% increase in the number of active customers1 from 1.7 million to 4.0 million and a 115.6% increase in total orders2 from 5.4 million to 11.7 million over the prior year period.

·                  Gross margin increased to 24.2% from 22.3% in the prior year period.

·                  Non-GAAP income from operations3 was US$15.1 million, as compared to a non-GAAP loss from operations of US$1.2 million in the prior year period. Non-GAAP operating income margin4 was 3.9%, compared to a non-GAAP operating loss margin of 0.7% in the prior year period.

·                  Net income was US$12.0 million, compared to a net loss of US$1.5 million in the prior year period. Net income margin was 3.1%, compared to a net loss margin of 0.9% in the prior year period.

·                  Non-GAAP net income5 increased to US$15.1 million from US$0.6 million in the prior year period. Non-GAAP net income margin6 increased to 3.9% from 0.4% in the prior year period.

 

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, “During the third quarter, our business continued to deliver solid financial and operational results with revenues growing by 146% year-over-year. We are pleased with the growth in our customer base, brand partnerships as well as our warehouse capacity. Our strong improvements in scale, warehousing capacity, merchandizing and logistical expertise and mobile capabilities speak to the continuing attractiveness of our distinguished discount retail platform. Looking ahead, we will continue to focus on strengthening our market leadership and expertise in online discount retail and capitalize on the robust growth of online retail sector in China. We are very confident in our ability to leverage our core competencies to embrace future opportunities and are committed to ensure that Vipshop is a long-standing leader in China’s discount retail market.”

 

Mr. Donghao Yang, CFO of Vipshop, commented, “Despite the third quarter traditionally being a slow season, we were still able to expand our gross margin to 24.2% thanks to the pronounced scale effects in our growing business. Moreover, since we achieved non-GAAP net income profitability one year ago, we have thereafter successfully continued to increase our profitability, achieving 3.1% net margin and 3.9% non-GAAP net margin this quarter. These results are a testament to the strength of our reputation as a channel for brand partners to liquidate overstocked products and for customers to purchase discounted quality products, as well as our improving ability to control costs and achieve greater operational efficiency. We believe that our strong internal capabilities and multifaceted growth strategies, coupled with the exogenous trends of middle class expansion and e-commerce growth in China, positions us optimally to achieve sustainable long-term growth.”

 


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 total 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 total net revenues.

 

1



 

Third Quarter 2013 Financial Results

 

REVENUES

 

Total net revenues for the third quarter of 2013 increased by 146.1% to US$383.7 million from US$155.9 million in the prior year period, primarily driven by growth in the number of active customers and total orders.

 

The number of active customers for the third quarter of 2013 increased by 131.7% to 4.0 million from approximately 1.7 million in the prior year period. The number of total orders for the third quarter of 2013 increased by 115.6% to 11.7 million from 5.4 million in the prior year period. This increase was primarily due to the Company’s continued efforts to optimize and increase brand and product selections available on its website. In addition, the Company has expanded its warehouse capacity to help facilitate and accommodate increased demands from customers as well as accelerate the delivery of purchased products.

 

GROSS PROFIT

 

Gross profit for the third quarter of 2013 increased by 167.4% to US$93.0 million from US$34.8 million in the prior year period. This reflects both the significant increase in total net revenues as well as continued margin expansion. Gross margin increased to 24.2% in the third quarter of 2013 from 22.3% in the prior year period. This increase is attributable to the Company’s increased bargaining power with its suppliers due to increased scale of the Company’s business.

 

OPERATING INCOME AND EXPENSES

 

Total operating expenses for the third quarter of 2013 increased by 115.3% to US$83.0 million from US$38.6 million in the prior year period. As a percentage of total net revenues, total operating expenses decreased to 21.6% from 24.7% in the prior year period.

 

·                       Fulfillment expenses increased by 103.2% to US$44.1 million from US$21.7 million in the prior year period, primarily reflecting the increase in sales volume and number of orders fulfilled. As a percentage of total net revenues, fulfillment expenses decreased to 11.5% from 13.9% 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 137.7% to US$17.4 million from US$7.3 million in the prior year period. As a percentage of total net revenues, marketing expenses decreased to 4.5% from 4.7% 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 199.1% to US$9.6 million from US$3.2 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 total net revenues, technology and content expenses increased to 2.5%, from 2.1% in the prior year period.

 

2



 

·                  General and administrative expenses increased by 88.5% to US$11.9 million from US$6.3 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 total net revenues, general and administrative expenses decreased to 3.1% from 4.1% in the prior year period, reflecting the Company’s increased operational leverage as well as continued cost-control efforts.

 

Income from operations increased to US$12.0 million, compared to a loss from operations of US$3.3 million in the prior year period, reflecting the growing scale of the Company’s operations, improved gross margin and cost control. Operating income margin increased to 3.1%, compared to an operating loss margin of 2.1% in the prior year period.

 

Non-GAAP income from operations, which excludes the impact of share-based compensation expenses, increased to US$15.1 million, compared to a non-GAAP loss from operations of US$1.2 million in the prior year period. Non-GAAP operating income margin increased to 3.9%, compared to a non-GAAP operating loss margin of 0.7% in the prior year period.

 

NET INCOME/LOSS

 

Net income increased to US$12.0 million, compared to a net loss of US$1.5 million in the prior year period. Net income margin increased to 3.1%, compared with a net loss margin of 0.9% in the prior year period.  Net income per diluted ADS7 increased to US$0.21, compared to a net loss per diluted ADS of US$0.03 in the prior year period.

 

Non-GAAP net income, which excludes share-based compensation expenses, increased to US$15.1 million from US$0.6 million in the prior year period. Non-GAAP net income margin increased to 3.9% from 0.4% in the prior year period. Non-GAAP net income per diluted ADS increased to US$0.26 in the third quarter of 2013 from US$0.01 in the prior year period.

 

For the quarter ended September 30, 2013, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 58,471,791.

 

As of September 30, 2013, the Company had cash and cash equivalents of US$279.0 million and held-to-maturity securities of US$202.7 million.

 

For the third quarter of 2013, net cash from operating activities was US$98.6 million.

 

Business Outlook

 

For the fourth quarter of 2013, the Company expects its total net revenues to be between US$580 million and US$590 million, representing a year-over-year growth rate of approximately 94% to 97%. These forecasts reflect the Company’s current and preliminary view on the market and operational conditions, which are subject to change.

 

Conference Call Information

 

The Company will hold a conference call on Tuesday, November 12, 2013 at 8:00 AM U.S. Eastern Time or 9:00 pm Beijing Time to discuss its financial results and operating performance for the third quarter 2013.

 


7 “ADS” means American Depositary Share. Each ADS represents two ordinary shares, par value US$0.0001 per share, of the Company.

 

3



 

United States:

+1-845-675-0438

International Toll Free:

+1-855-500-8701

China Domestic:

400-1200654

Hong Kong:

+852-3051-2745

Conference ID:

#90567955

 

The replay will be accessible through November 20, 2013 by dialing the following numbers:

 

United States Toll Free:

+1-855-452-5696

International:

+61 2 8199 0299

Conference ID:

#90567955

 

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 Vipshop Holdings Limited

 

Vipshop Holdings Limited is China’s leading online discount retailer for brands. 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 ir.vipshop.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.

 

4



 

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/(loss), non-GAAP net income/(loss) per diluted ADS, non-GAAP income/(loss) from operations, non-GAAP net income/(loss) margin, and non-GAAP operating income/(loss) margin, each of which is a non-GAAP financial measure. Non-GAAP net income/(loss) is net income/(loss) excluding share-based compensation expenses. Non-GAAP net income/(loss) per diluted ADS is non-GAAP net income/(loss) divided by weighted average number of diluted ADS. Non-GAAP income/(loss) from operations is income/(loss) from operations excluding share-based compensation expenses. Non-GAAP operating income/(loss) margin is non-GAAP income/(loss) from operations as a percentage of total net revenues.  Non-GAAP net income/(loss) margin is non-GAAP net income/(loss) as a percentage of total net revenues. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation 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, which 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/(loss) 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. 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.

 

Investor Relations Contact

 

Vipshop Holdings Limited

Millicent Tu

Tel: +86 (20) 2233-0732

Email:IR@vipshop.com

 

ICR, Inc.

Jeremy Peruski

Tel: +1 (646) 405-4866

Email: IR@vipshop.com

 

5



 

Vipshop Holdings Limited

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

(In US dollars, except for share data)

 

 

 

Three Months Ended

 

 

 

September 30,2012

 

September 30,2013

 

June 30,2013

 

 

 

USD

 

USD

 

USD

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Net revenues

 

155,944,583

 

381,209,303

 

351,027,738

 

Other revenues (1)

 

 

2,499,249

 

261,475

 

Total net revenues

 

155,944,583

 

383,708,552

 

351,289,213

 

Cost of goods sold

 

(121,180,318

)

(290,742,385

)

(268,659,461

)

Gross profit

 

34,764,265

 

92,966,167

 

82,629,752

 

Operating expenses

 

 

 

 

 

 

 

Fulfillment expenses(2)

 

(21,703,487

)

(44,094,258

)

(42,815,750

)

Marketing expenses

 

(7,310,957

)

(17,377,035

)

(15,092,686

)

Technology and content expenses

 

(3,218,857

)

(9,628,377

)

(8,656,210

)

General and administrative expenses

 

(6,321,337

)

(11,916,875

)

(10,755,077

)

Total operating expenses

 

(38,554,638

)

(83,016,545

)

(77,319,723

)

Other income

 

538,739

 

2,090,512

 

1,438,012

 

(Loss) income from operations

 

(3,251,634

)

12,040,134

 

6,748,041

 

Interest expense

 

(1,197

)

 

 

Interest income

 

1,372,350

 

3,750,788

 

3,607,987

 

Exchange gain

 

424,454

 

287,799

 

1,039,605

 

(Loss) income before income taxes

 

(1,456,027

)

16,078,721

 

11,395,633

 

Income tax expenses

 

 

(4,051,836

)

(2,362,458

)

Net (loss) income

 

(1,456,027

)

12,026,885

 

9,033,175

 

 

 

 

 

 

 

 

 

Weighted average numbers of shares used in calculating earnings per share:

 

 

 

 

 

 

 

—Basic

 

101,139,801

 

110,802,643

 

110,564,733

 

—Diluted

 

101,139,801

 

116,943,581

 

116,073,470

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share

 

 

 

 

 

 

 

—Basic

 

(0.01

)

0.11

 

0.08

 

—Diluted

 

(0.01

)

0.10

 

0.08

 

 

 

 

 

 

 

 

 

Net earnings (loss) per ADS (2 ordinary shares equal to 1 ADS)

 

 

 

 

 

 

 

—Basic

 

(0.03

)

0.22

 

0.16

 

—Diluted

 

(0.03

)

0.21

 

0.16

 

 


(1)Other revenues primarily consist of fees charged to third-party merchants which the Company provides platform access for sales of their products.

(2) Including shipping and handling expenses, which amounted US$13 million, US$26.6 million and US$23.5 million in the three month periods ended September 30, 2012, September 30, 2013 and June 30, 2013, respectively.

 

Net (loss) income

 

(1,456,027

)

12,026,885

 

9,033,175

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

274,895

 

347,096

 

929,198

 

Comprehensive (loss)income

 

(1,181,132

)

12,373,981

 

9,962,373

 

 

 

 

Three Months Ended

 

 

 

September 30,2012

 

September 30,2013

 

June 30,2013

 

 

 

USD

 

USD

 

USD

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Share-based compensation charges included are follows

 

 

 

 

 

 

 

Fulfillment expenses

 

79,090

 

211,958

 

184,945

 

Marketing expenses

 

30,203

 

100,734

 

91,117

 

Technology and content expenses

 

258,947

 

919,511

 

689,445

 

General and administrative expenses

 

1,728,329

 

1,825,952

 

1,826,200

 

Total

 

2,096,569

 

3,058,155

 

2,791,707

 

 



 

Vipshop Holdings Limited

Condensed Consolidated Balance Sheets

(Amounts in US dollars)

 

 

 

As of December 31, 2012

 

As of September 30, 2013

 

 

 

USD

 

USD

 

 

 

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

124,472,629

 

279,039,304

 

Restricted deposits

 

 

 

Held-to-maturity securities

 

86,097,191

 

202,659,851

 

Accounts receivable

 

6,990,560

 

3,609,461

 

Amounts due from related parties

 

177,237

 

 

Other receivables

 

9,993,887

 

8,127,400

 

Inventories

 

143,963,931

 

227,493,444

 

Advance to suppliers

 

9,569,795

 

20,732,646

 

Prepaid expenses

 

686,876

 

2,167,034

 

Deferred tax assets

 

 

5,499,247

 

Total current assets

 

381,952,106

 

749,328,387

 

NON-CURRENT ASSETS

 

 

 

 

 

Property and equipment, net

 

12,637,567

 

17,431,851

 

Deposits for property and equipment

 

4,322,217

 

3,528,783

 

Other assets

 

5,230

 

1,973,139

 

Total non-current assets

 

16,965,014

 

22,933,773

 

TOTAL ASSETS

 

398,917,120

 

772,262,160

 

 

 

 

 

 

 

LIABILTIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Accounts payable (Including accounts payable of the VIE without recourse to the Company of $101,556 and $21,285 as of December 31, 2012 and September 30, 2013, respectively)

 

193,455,827

 

325,904,612

 

Advance from customers (Including advance from customers of the VIE without recourse to the Company of $55,948,713 and $87,082,838 as of December 31, 2012 and September 30, 2013, respectively)

 

55,948,713

 

87,082,838

 

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 $67,606,145 as of December 31, 2012 and September 30, 2013, respectively)

 

52,676,443

 

127,529,273

 

Amounts due to related parties(Including amounts due to related parties of the VIE without recourse to the Company of $789,057 and $ 1,389,874 as of December 31, 2012 and September 30, 2013, respectively)

 

1,335,756

 

2,377,972

 

Deferred income (Including deferred income of the VIE without recourse to the Company of $10,850,319 and $16,022,211 as of December 31, 2012 and September 30, 2013, respectively)

 

12,917,567

 

17,135,944

 

Total current liabilities

 

316,334,306

 

560,030,639

 

Total liabilities

 

316,334,306

 

560,030,639

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

Ordinary shares (US$0.0001 par value, 471,620,833 shares authorized, and 101,284,881 and 111,313,272 shares issued and outstanding as of December 31, 2012 and September 30, 2013, respectively)

 

10,128

 

11,131

 

Additional paid-in capital

 

258,368,448

 

359,618,956

 

Accumulated losses

 

(176,025,335

)

(149,124,101

)

Accumulated other comprehensive income

 

229,573

 

1,725,535

 

Total shareholders’ equity

 

82,582,814

 

212,231,521

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

398,917,120

 

772,262,160

 

 



 

Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

 

 

 

Three Months Ended

 

 

 

September 30,2012

 

September 30,2013

 

June 30,2013

 

 

 

USD

 

USD

 

USD

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Loss) income from operations

 

(3,251,634

)

12,040,134

 

6,748,041

 

Share-based compensation expenses

 

2,096,569

 

3,058,155

 

2,791,707

 

Non-GAAP (loss) income from operations

 

(1,155,065

)

15,098,289

 

9,539,748

 

 

 

 

 

 

 

 

 

Net (loss) income

 

(1,456,027

)

12,026,885

 

9,033,175

 

Share-based compensation expenses

 

2,096,569

 

3,058,155

 

2,791,707

 

Non-GAAP net (loss) income

 

640,542

 

15,085,040

 

11,824,882

 

 

 

 

 

 

 

 

 

Non-GAAP weighted average numbers of shares used in calculating net income per share:

 

 

 

 

 

 

 

—Basic

 

101,139,801

 

110,802,643

 

110,564,733

 

—Diluted

 

102,440,611

 

116,943,581

 

116,073,470

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share

 

 

 

 

 

 

 

—Basic

 

0.01

 

0.14

 

0.11

 

—Diluted

 

0.01

 

0.13

 

0.10

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS (2 ordinary shares equal to 1 ADS)

 

 

 

 

 

 

 

—Basic

 

0.01

 

0.27

 

0.21

 

—Diluted

 

0.01

 

0.26

 

0.20