Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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 2023

Commission File Number: 001-35454

 

 

Vipshop Holdings Limited

 

 

Vipshop Headquarters, 128 Dingxin Road

Haizhu District, Guangzhou 510220

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  ☒            Form 40-F  ☐

 

 

 


EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1    Press Release — Vipshop Reports Unaudited Third Quarter 2023 Financial Results


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/ Mark Wang

Name:

  :    

Mark Wang

Title:

  :    

Chief Financial Officer

Date: November 14, 2023

EX-99.1

Exhibit 99.1

 

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Vipshop Reports Unaudited Third Quarter 2023 Financial Results

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on November 14, 2023

Guangzhou, China, November 14, 2023 — Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China (“Vipshop” or the “Company”), today announced its unaudited financial results for the quarter ended September 30, 2023.

Third Quarter 2023 Highlights

 

   

Total net revenues for the third quarter of 2023 increased by 5.3% year over year to RMB22.8 billion (US$3.1 billion) from RMB21.6 billion in the prior year period.

 

   

GMV1 for the third quarter of 2023 increased by 13.1% year over year to RMB42.5 billion from RMB37.6 billion in the prior year period.

 

   

Gross profit for the third quarter of 2023 increased by 14.9% year over year to RMB5.4 billion (US$737.6 million) from RMB4.7 billion in the prior year period.

 

   

Net income attributable to Vipshop’s shareholders for the third quarter of 2023 was RMB1.2 billion (US$165.6 million), as compared with RMB1.7 billion in the prior year period.

 

   

Non-GAAP net income attributable to Vipshop’s shareholders2 for the third quarter of 2023 increased by 15.5% year over year to RMB1.8 billion (US$252.3 million) from RMB1.6 billion in the prior year period.

 

   

The number of active customers3 for the third quarter of 2023 increased by 3.5% year over year to 42.5 million from 41.0 million in the prior year period.

 

   

Total orders4 for the third quarter of 2023 increased by 6.9% year over year to 179.9 million from 168.3 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “We had a decent quarter, primarily driven by the sustained momentum in the apparel category. During the quarter, we advanced our strategic priority of growing mindshare for Vipshop to become the go-to online shopping platform for apparel. We are encouraged to see that our professional merchandising team is skilled at both developing a rich and diverse mix of branded merchandise and identifying opportunities with brand partners in customized products. While growing our merchandise selections, we are committed to providing our users with affordability and elevating their shopping experience enabled by a comprehensive suite of core capabilities. With these competencies, we are confident to achieve stable and sustainable growth, which we believe is well supported by our unique business model.”

 

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, Shan Shan Outlets, and other offline stores during the relevant period, including through the Company’s websites and mobile apps, third-party websites and mobile apps, Shan Shan Outlets, and other offline stores, which were fulfilled by either the Company or its third-party merchants, regardless of whether or not the goods were delivered or returned. GMV includes shipping charges paid by buyers to sellers. For prudent considerations, the Company does not consider products or services to be sold if the relevant orders were placed and canceled pre-shipment and only included orders that left the Company’s or other third-party vendors’ warehouses.

2 

Non-GAAP net income attributable to Vipshop’s shareholders is a non-GAAP financial measure, which, for the periods presented in this press release, is defined as net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments.

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.

 

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Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, “We are delighted to see that third-quarter results exceeded our expectations. With a continued focus on high-quality growth, we delivered strong margins due to efficiency improvements along with a favorable category mix. Moreover, we remain committed to executing our share repurchase program. As we see opportunity for our value-for-money offerings ahead, we are positive on the long-term growth outlook as well as shareholder value creation.”

Third Quarter 2023 Financial Results

REVENUES

Total net revenues for the third quarter of 2023 increased by 5.3% year over year to RMB22.8 billion (US$3.1 billion) from RMB21.6 billion in the prior year period, primarily attributable to the growth in active customers and spending driven by the recovery in consumption of discretionary categories.

GROSS PROFIT

Gross profit for the third quarter of 2023 increased by 14.9% year over year to RMB5.4 billion (US$737.6 million) from RMB4.7 billion in the prior year period. Gross margin for the third quarter of 2023 increased to 23.6% from 21.7% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the third quarter of 2023 increased by 9.6% year over year to RMB4.0 billion (US$549.3 million) from RMB3.7 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the third quarter of 2023 was 17.6%, as compared with 16.9% in the prior year period.

 

   

Fulfillment expenses for the third quarter of 2023 increased by 9.5% year over year to RMB1.8 billion (US$242.9 million) from RMB1.6 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the third quarter of 2023 was 7.8%, as compared with 7.5% in the prior year period.

 

   

Marketing expenses for the third quarter of 2023 increased by 17.0% year over year to RMB669.6 million (US$91.8 million) from RMB572.4 million in the prior year period. As a percentage of total net revenues, marketing expenses for the third quarter of 2023 was 2.9%, as compared with 2.6% in the prior year period.

 

   

Technology and content expenses for the third quarter of 2023 increased by 10.3% year over year to RMB435.3 million (US$59.7 million) from RMB394.8 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the third quarter of 2023 was 1.9%, as compared with 1.8% in the prior year period.

 

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General and administrative expenses for the third quarter of 2023 increased by 5.5% year over year to RMB1.13 billion (US$155.0 million) from RMB1.07 billion in the prior year period. As a percentage of total net revenues, general and administrative expenses for the third quarter of 2023 was 5.0%, which stayed flat as compared with that in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the third quarter of 2023 increased by 34.8% year over year to RMB1.5 billion (US$210.2 million) from RMB1.1 billion in the prior year period. Operating margin for the third quarter of 2023 increased to 6.7% from 5.3% in the prior year period.

Non-GAAP income from operations5 for the third quarter of 2023, which excluded share-based compensation expenses, increased by 33.0% year over year to RMB2.1 billion (US$284.2 million) from RMB1.6 billion in the prior year period. Non-GAAP operating margin6 for the third quarter of 2023 increased to 9.1% from 7.2% in the prior year period.

NET INCOME

Net income attributable to Vipshop’s shareholders for the third quarter of 2023 was RMB1.2 billion (US$165.6 million), as compared with RMB1.7 billion in the prior year period. Net margin attributable to Vipshop’s shareholders for the third quarter of 2023 was 5.3%, as compared with 7.8% in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS7 for the third quarter of 2023 was RMB2.19 (US$0.30), as compared with RMB2.70 in the prior year period.

Non-GAAP net income attributable to Vipshop’s shareholders for the third quarter of 2023, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, increased by 15.5% year over year to RMB1.8 billion (US$252.3 million) from RMB1.6 billion in the prior year period. Non-GAAP net margin attributable to Vipshop’s shareholders8 for the third quarter of 2023 increased to 8.1% from 7.4% in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS9 for the third quarter of 2023 increased to RMB3.33 (US$0.46) from RMB2.56 in the prior year period.

For the quarter ended September 30, 2023, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 552,080,770.

BALANCE SHEET AND CASH FLOW

As of September 30, 2023, the Company had cash and cash equivalents and restricted cash of RMB19.6 billion (US$2.7 billion) and short term investments of RMB451.9 million (US$61.9 million).

 

5 

Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding share-based compensation expenses.

6 

Non-GAAP operating 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 Vipshop’s shareholders is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Vipshop’s shareholders, as a percentage of total net revenues.

9 

Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Vipshop’s shareholders, divided by the weighted average number of diluted ADSs outstanding for computing diluted earnings per ADS.

 

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For the quarter ended September 30, 2023, net cash generated from operating activities was RMB1.2 billion (US$165.0 million), and free cash flow10, a non-GAAP measurement of liquidity, was as follows:

 

For the three months ended    Sept 30, 2022
RMB’000
     Sept 30, 2023
RMB’000
     Sept 30, 2023
US$’000
 

Net cash generated from operating activities

     724,601        1,204,020        165,025  

Reconciling items:

        

Net impact from internet financing activities11

     (82,296      (102,537      (14,054

Capital expenditures

     (558,241      (1,071,555      (146,869
  

 

 

    

 

 

    

 

 

 

Free cash inflow

     84,064        29,928        4,102  
  

 

 

    

 

 

    

 

 

 

 

For the trailing twelve months ended    Sept 30, 2022
RMB’000
     Sept 30, 2023
RMB’000
     Sept 30, 2023
US$’000
 

Net cash generated from operating activities

     10,867,286        12,243,732        1,678,143  

Reconciling items:

        

Net impact from internet financing activities

     159,791        295,072        40,443  

Capital expenditures

     (3,719,922      (4,419,331      (605,720
  

 

 

    

 

 

    

 

 

 

Free cash inflow

     7,307,155        8,119,473        1,112,866  
  

 

 

    

 

 

    

 

 

 

Share Repurchase Program

During the quarter ended September 30, 2023, the Company repurchased US$13.4 million of its ADSs under its current US$1 billion share repurchase program, which is effective through March 2025. As of September 30, 2023, the Company had an unutilized amount of US$551.5 million under this program.

Environment, Social and Governance

On August 28, 2023, Vipshop released its 2022 Environment, Social, and Governance (ESG) Report. As outlined in the report, Vipshop defines its ESG strategy with the goal of “co-creation of a new sustainable life” to explore a path of sustainable development across five core areas: New Sustainable Choices, Happy Consumption, Proactive Inclusivity, Beautiful Society, and Dependable Compliance. Besides, the Company also pledges to achieve carbon neutrality in its own operations and a 50% reduction in Scope 3 carbon emission intensity no later than 2030.

As a result of the Company’s efforts, Vipshop’s MSCI ESG rating was elevated from “A” to “AA” in October 2023, making it a leader among over 300 companies in the consumer discretionary industry.

Full ESG Report of the Company can be accessed at https://ir.vip.com/sustainability.

 

10 

Free cash flow is a non-GAAP financial measure, which is defined as net cash from 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.

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.

 

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Business Outlook

For the fourth quarter of 2023, the Company expects its total net revenues to be between RMB31.8 billion and RMB33.3 billion, representing a year-over-year increase of approximately 0% to 5%. These forecasts reflect the Company’s current and preliminary view on the market and operational conditions, which is subject to change.

Exchange Rate

The Company’s business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi. This announcement contains currency conversions of Renminbi amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB7.2960 to US$1.00, the effective noon buying rate on September 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on September 29, 2023, or at any other rate.

Conference Call Information

The Company will hold a conference call on Tuesday, November 14, 2023 at 7:30 am U.S. Eastern Time, 8:30 pm Beijing Time to discuss the financial results.

All participants wishing to join the conference call must pre-register online using the link provided below.

Registration Link: https://register.vevent.com/register/BI76030433d32e4ded923a0d58ad810740

Once pre-registration has been completed, each participant will receive dial-in numbers and a unique access PIN via email. To join the conference, participants should use the dial-in details followed by the PIN code.

A live webcast of the earnings conference call can be accessed at https://edge.media-server.com/mmc/p/m9sw6aaf. An archived webcast will be available at the Company’s investor relations website at http://ir.vip.com.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. 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 https://ir.vip.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 needs for and market acceptance of flash sales products and services; competition in the discount retail industry; the potential impact of the COVID-19 to Vipshop’s business operations and the economy in China and elsewhere generally; 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 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.

 

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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 United States of America (“U.S. GAAP”), except that comparative consolidated statements of income and cash flows for the period presented and detailed footnote disclosures required by Accounting Standards Codification 270, Interim Reporting (“ASC270”), have been omitted. Vipshop uses non-GAAP net income attributable to Vipshop’s shareholders, non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net margin attributable to Vipshop’s shareholders, and free cash flow, each of which is a non-GAAP financial measure. For the periods presented in this press release, non-GAAP net income attributable to Vipshop’s shareholders is net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS is computed using non-GAAP net income attributable to Vipshop’s shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP income from operations is income from operations excluding share-based compensation expenses. Non-GAAP operating margin is non-GAAP income from operations as a percentage of total net revenues. Non-GAAP net margin attributable to Vipshop’s shareholders is non-GAAP net income attributable to Vipshop’s shareholders as a percentage of total net revenues. Free cash flow is net cash from 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. Impact from internet financing activities added back or deducted from free cash flow contains changes in the balances of financial products, which are primarily consumer financing and supplier financing that the Company provides to customers and suppliers. The Company believes that separate analysis and exclusion of the non-cash impact of (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments add 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 (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments. Free cash flow enables the Company to assess liquidity and cash flow, taking into account the impact from internet financing activities and the financial resources needed for the expansion of fulfillment infrastructure, technology platform and Shan Shan Outlets. Share-based compensation expenses 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 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. One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures.

 

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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

Tel: +86 (20) 2233-0732

Email: IR@vipshop.com

 

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Vipshop Holdings Limited

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income

(In thousands, except for share and per share data)

 

     Three Months Ended  
     September 30, 2022     September 30, 2023     September 30, 2023  
     RMB’000     RMB’000     USD’000  

Product revenues

     20,249,206       21,077,354       2,888,892  

Other revenues (1)

     1,365,751       1,688,507       231,429  
  

 

 

   

 

 

   

 

 

 

Total net revenues

     21,614,957       22,765,861       3,120,321  
  

 

 

   

 

 

   

 

 

 

Cost of revenues

     (16,931,883     (17,384,331     (2,382,721
  

 

 

   

 

 

   

 

 

 

Gross profit

     4,683,074       5,381,530       737,600  
  

 

 

   

 

 

   

 

 

 

Operating expenses:

      

Fulfillment expenses (2)

     (1,618,670     (1,771,903     (242,860

Marketing expenses

     (572,421     (669,608     (91,777

Technology and content expenses

     (394,752     (435,279     (59,660

General and administrative expenses

     (1,071,778     (1,131,241     (155,049
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     (3,657,621     (4,008,031     (549,346
  

 

 

   

 

 

   

 

 

 

Other operating income

     111,874       160,165       21,952  
  

 

 

   

 

 

   

 

 

 

Income from operations

     1,137,327       1,533,664       210,206  

Investment gain (loss) and revaluation of investments

     330,769       (94,939     (13,012

Impairment loss of investments

     (9,557            

Interest expense

     (8,718     (466     (64

Interest income

     176,088       166,246       22,786  

Exchange gain (loss)

     322,212       (33,632     (4,610
  

 

 

   

 

 

   

 

 

 

Income before income tax expense and share of income of equity method investees

     1,948,121       1,570,873       215,306  

Income tax expenses

     (266,412     (364,835     (50,005

Share of income of equity method investees

     5,155       24,528       3,362  
  

 

 

   

 

 

   

 

 

 

Net income

     1,686,864       1,230,566       168,663  

Net income attributable to non-controlling interests

     (364     (22,274     (3,053
  

 

 

   

 

 

   

 

 

 

Net income attributable to Vipshop’s shareholders

     1,686,500       1,208,292       165,610  

Shares used in calculating earnings per share (3):

      

Weighted average number of Class A and Class B ordinary shares:

      

—Basic

     123,718,348       108,463,991       108,463,991  

—Diluted

     124,739,925       110,416,154       110,416,154  

Net earnings per Class A and Class B ordinary share

      

Net income attributable to Vipshop’s shareholders—Basic

     13.63       11.14       1.53  

Net income attributable to Vipshop’s shareholders—Diluted

     13.52       10.94       1.50  

Net earnings per ADS (1 ordinary share equals to 5 ADSs)

      

Net income attributable to Vipshop’s shareholders—Basic

     2.73       2.23       0.31  

Net income attributable to Vipshop’s shareholders—Diluted

     2.70       2.19       0.30  

 

(1)

Other revenues primarily consist of product promotion and online advertising revenues, lease income mainly earned from the Shan Shan Outlets ,fees charged to third-party merchants which the Company provides platform access for sales of their products, revenue from third-party logistics services, loan facilitation service income and membership fee income.

(2)

Fulfillment expenses include shipping and handling expenses, which amounted RMB1.1 billion and RMB 1.2 billion in the three month periods ended September 30,2022 and September 30,2023, respectively.

(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 being entitled to one vote and each Class B ordinary share being entitled to ten votes on all matters that are subject to shareholder vote.

 

     Three Months Ended  
     September 30, 2022      September 30, 2023      September 30, 2023  
     RMB’000      RMB’000      USD’000  

Share-based compensation expenses are included in the operating expenses as follows:

        

Fulfillment expenses

     19,522        20,798        2,851  

Marketing expenses

     3,938        7,985        1,094  

Technology and content expenses

     65,989        89,333        12,244  

General and administrative expenses

     332,483        421,423        57,761  
  

 

 

    

 

 

    

 

 

 

Total

     421,932        539,539        73,950  
  

 

 

    

 

 

    

 

 

 

 

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Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for share and per share data)

 

     December 31, 2022     September 30, 2023     September 30, 2023  
     RMB’000     RMB’000     USD’000  

ASSETS

      

CURRENT ASSETS

      

Cash and cash equivalents

     21,938,653       18,840,320       2,582,281  

Restricted cash

     1,164,748       808,728       110,845  

Short term investments

     1,595,904       451,929       61,942  

Accounts receivable, net

     567,730       775,825       106,336  

Amounts due from related parties, net

     670,187       605,112       82,938  

Other receivables and prepayments, net

     2,280,449       2,216,154       303,749  

Loan receivables, net

     882       3,171       435  

Inventories

     5,515,880       4,129,548       566,002  
  

 

 

   

 

 

   

 

 

 

Total current assets

     33,734,433       27,830,787       3,814,528  
  

 

 

   

 

 

   

 

 

 

NON-CURRENT ASSETS

      

Property and equipment, net

     16,225,589       16,643,729       2,281,213  

Deposits for property and equipment

     296,717       191,495       26,247  

Land use rights, net

     7,638,506       9,872,525       1,353,142  

Intangible assets, net

     336,599       333,765       45,746  

Investment in equity method investees

     2,162,872       2,163,765       296,569  

Other investments

     2,660,305       2,955,383       405,069  

Other long-term assets

     91,762       182,118       24,961  

Goodwill

     755,213       755,213       103,511  

Deferred tax assets, net

     681,770       725,103       99,384  

Operating lease right-of-use assets

     891,744       577,835       79,199  
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     31,741,077       34,400,931       4,715,041  
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     65,475,510       62,231,718       8,529,569  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

      

CURRENT LIABILITIES

      

Short term loans

     2,687,438       791,207       108,444  

Accounts payable

     15,018,138       13,101,454       1,795,704  

Advance from customers

     1,737,424       1,132,098       155,167  

Accrued expenses and other current liabilities

     8,394,742       8,486,940       1,163,233  

Amounts due to related parties

     151,736       173,427       23,770  

Deferred income

     400,207       416,362       57,067  

Operating lease liabilities

     136,435       77,108       10,569  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     28,526,120       24,178,596       3,313,954  
  

 

 

   

 

 

   

 

 

 

NON-CURRENT LIABILITIES

      

Deferred tax liability

     573,734       549,182       75,272  

Deferred income-non current

     1,469,685       1,659,907       227,509  

Operating lease liabilities

     832,928       715,161       98,021  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     2,876,347       2,924,250       400,802  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     31,402,467       27,102,846       3,714,756  
  

 

 

   

 

 

   

 

 

 

EQUITY:

      

Class A ordinary shares (US$0.0001 par value, 483,489,642 shares authorized,124,060,090 and 98,735,792 shares issued,of which 101,621,330 and 92,804,041 shares were outstanding as of December 31, 2022 and September 30, 2023, respectively)

     80       62       8  

Class B ordinary shares (US$0.0001 par value, 16,510,358 shares authorized, and 15,560,358 and 15,560,358 shares issued and outstanding as of December 31, 2022 and September 30, 2023, respectively)

     11       11       2  

Treasury shares,at cost (22,438,760 and 5,931,751 Class A shares as of December 31, 2022 and September 30, 2023, respectively )

     (8,352,511     (3,600,773     (493,527

Additional paid-in capital

     13,091,781       4,193,009       574,700  

Retained earnings

     28,720,304       33,884,781       4,644,296  

Accumulated other comprehensive loss

     (707,628     (694,804     (95,231

Non-controlling interests

     1,321,006       1,346,586       184,565  
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     34,073,043       35,128,872       4,814,813  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

     65,475,510       62,231,718       8,529,569  
  

 

 

   

 

 

   

 

 

 

 

9


Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

 

     Three Months Ended  
     September 30, 2022     September 30, 2023     September 30, 2023  
     RMB’000     RMB’000     USD’000  

Income from operations

     1,137,327       1,533,664       210,206  

Share-based compensation expenses

     421,932       539,539       73,950  
  

 

 

   

 

 

   

 

 

 

Non-GAAP income from operations

     1,559,259       2,073,203       284,156  
  

 

 

   

 

 

   

 

 

 

Net income attributable to Vipshop’s shareholders

     1,686,500       1,208,292       165,610  

Share-based compensation expenses

     421,932       539,539       73,950  

Impairment loss of investments

     9,557       —         —    

Investment (gain) loss and revaluation of investments excluding dividends

     (322,381     95,192       13,047  

Reconciling items on the share of equity method investments(4)

     29,658       17,717       2,428  

Tax effects on non-GAAP adjustments

     (230,658     (19,695     (2,699
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to Vipshop’s shareholders

     1,594,608       1,841,045       252,336  
  

 

 

   

 

 

   

 

 

 

 

(4)   To exclude the GAAP to non-GAAP reconciling items relating to investment (gain) loss and revaluation of investments on the share of equity method investments.

 

    

Shares used in calculating earnings per share:

      

Weighted average number of Class A and Class B ordinary shares:

      

—Basic

     123,718,348       108,463,991       108,463,991  

—Diluted

     124,739,925       110,416,154       110,416,154  

Non-GAAP net income per Class A and Class B ordinary share

      

Non-GAAP net income attributable to Vipshop’s shareholders—Basic

     12.89       16.97       2.33  

Non-GAAP net income attributable to Vipshop’s shareholders—Diluted

     12.78       16.67       2.28  

Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)

      

Non-GAAP net income attributable to Vipshop’s shareholders—Basic

     2.58       3.39       0.47  

Non-GAAP net income attributable to Vipshop’s shareholders—Diluted

     2.56       3.33       0.46  

 

10