Vipshop Reports Unaudited Second Quarter 2017 Financial Results
GUANGZHOU, China, Aug. 16, 2017 /PRNewswire/ -- 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 second quarter ended June 30, 2017.
Second Quarter 2017 Highlights
-- Total net revenue for the second quarter of 2017 increased by 30.3% to
RMB17.52 billion (US$2.58 billion) from RMB13.44 billion in the prior
year period.
-- The number of active customers([1]) for the second quarter of 2017
increased by 22% year over year to 28.1 million.
-- Total orders([2]) for the second quarter of 2017 increased by 23% year
over year to 84.8 million.
-- Gross profit for the second quarter of 2017 increased by 19.1% to
RMB3.86 billion (US$569.4 million) from RMB3.24 billion in the prior
year period.
-- Net income attributable to Vipshop's shareholders for the second quarter
of 2017 was RMB386.5 million (US$57.0 million), as compared with
RMB451.6 million in the prior year period.
-- Non-GAAP net income attributable to Vipshop's shareholders([3]) for the
second quarter of 2017 increased by 7.5% to RMB728.2 million (US$107.4
million) from RMB677.5 million in the prior year period.
"We delivered solid operational results in the second quarter of 2017," said Mr. Eric Shen, chairman and chief executive officer of Vipshop. "Specifically, our total active customers for the trailing twelve months ended June 30, 2017 reached 58.8 million, representing a 32% year-over-year increase. We are also delighted to witness improved average revenue per active customer during the quarter, which was a testament of our ability to effectively manage the lifetime value of our customers. In the past quarter, we made further progress with the trial for our new Super VIP paid membership program, aiming to increase our customer loyalty. We remain focused on strengthening our core capability in merchandising and exploring opportunities to diversify our product categories to improve user stickiness."
Mr. Donghao Yang, chief financial officer of Vipshop, further commented, "In the second quarter of 2017, we made significant strides in the expansion of our logistics footprint and the enhancement of our logistics capabilities. We currently have approximately 27,000 last mile delivery staff and approximately 3,500 delivery stations. Meanwhile, we continue to make solid progress in the exploration of the Internet finance spin-off, which overtime will improve our cash flow and earnings."
Recent Business Highlights
-- To supplement the five regional warehousing centers, Vipshop added four
local warehouses in Nanning, Urumchi, Jinan, and Harbin, China during
the second quarter of 2017, bringing the total number of local
warehouses to eleven as of June 30, 2017. The Company also added
approximately 19,000 square meters of warehouse space in Japan and Korea
for its cross-border business. Vipshop currently has a total of
approximately 2.2 million square meters of warehouses, of which 1.4
million square meters is owned by the Company.
-- During the second quarter of 2017, the Company delivered 95% of its
orders through its proprietary last mile network, up from 91% in the
same period last year. Approximately 68% of returns from customers were
handled directly by Vipshop's last mile delivery staff, up from 46% in
the same period in 2016.
-- Vipshop officially launched the spin-off of the Internet finance
business, which initiated a Series A financing in the second quarter of
2017. The Company's consumer financing business had 4.4 million users in
the second quarter of 2017, which represents a 179% increase from 1.6
million in the second quarter of 2016.
-- During the second quarter of 2017, Vipshop added a number of popular
international brands, including Roberto Cavalli, Trussardi, Desigual,
and many others. The Company also started to work directly with
Luxottica Group, the world's largest eyewear company. In addition, the
Company entered into a strategic partnership with Aveeno to help the
brand enter the China market.
-- In the second quarter of 2017, Vipshop's average revenue per active
customer increased by 6.7% year over year, which was mainly driven by
the 5.9% year-over-year increase in average ticket size.
-- Excluding impact from the Internet finance business, the Company's free
cash inflow for the trailing twelve months ended June 30, 2017 was 1.96
billion as compared with free cash outflow of 93.3 million in the prior
year period.
-- Vipshop attended and sponsored MAGIC Las Vegas, a world-renowned fashion
tradeshow and the United States' most comprehensive fashion marketplace
from August 14 to 16, 2017, which expanded the Company's strategic
partnerships with international brands and enhanced Vipshop's brand
awareness globally.
-- As of June 30, 2017, more than 300 of Vipshop's suppliers had seamlessly
connected their inventory management systems to the Company's system,
increasing Vipshop's daily average SKUs online to 2.7 million in the
second quarter of 2017, up from 0.8 million in the same period last
year.
Second Quarter 2017 Financial Results
REVENUE
Total net revenue for the second quarter of 2017 increased by 30.3% to RMB17.52 billion (US$2.58 billion) from RMB13.44 billion in the prior year period, primarily driven by the growth in the number of total active customers, repeat customers, and total orders.
The number of active customers for the second quarter of 2017 increased by 22% to 28.1 million from 23.0 million in the prior year period. The number of total orders for the second quarter of 2017 increased by 23% to 84.8 million from 68.9 million in the prior year period.
GROSS PROFIT
Gross profit for the second quarter of 2017 increased by 19.1% to RMB3.86 billion (US$569.4 million) from RMB3.24 billion in the prior year period. Gross margin was 22.0% as compared with 24.1% in the prior year period, primarily attributable to investment in promotional activities for market share gain.
OPERATING INCOME AND EXPENSES
Total operating expenses for the second quarter of 2017 were RMB3.42 billion (US$504.9 million), as compared with RMB2.65 billion in the prior year period. As a percentage of total net revenue, total operating expenses decreased to 19.5% from 19.7% in the prior year period.
-- Fulfillment expenses for the second quarter of 2017 were RMB1.64 billion
(US$242.5 million), as compared with RMB1.15 billion in the prior year
period, primarily reflecting an increase in sales volume and number of
orders fulfilled. As a percentage of total net revenue, fulfillment
expenses were 9.4% as compared with 8.6% in the prior year period,
primarily attributable to the Company's expansion to support an increase
in the last mile business outside of the Vipshop platform.
-- Marketing expenses for the second quarter of 2017 were RMB752.1 million
(US$110.9 million), as compared with RMB672.3 million in the prior year
period, reflecting the Company's strategy to strengthen its brand
awareness, attract new users, and expand market share. As a percentage
of total net revenue, marketing expenses decreased to 4.3% from 5.0% in
the prior year period, primarily attributable to the Company's strategic
balance between promotional activities and its broader marketing
efforts.
-- Technology and content expenses for the second quarter of 2017 were
RMB447.8 million (US$66.1 million), as compared with RMB391.5 million in
the prior year period, reflecting the Company's continuing efforts to
invest in human capital, advanced technologies, and its Internet finance
business. As a percentage of total net revenue, technology and content
expenses decreased to 2.6% from 2.9% in the prior year period.
-- General and administrative expenses for the second quarter of 2017 were
RMB578.8 million (US$85.4 million), as compared with RMB434.2 million in
the prior year period. As a percentage of total net revenue, general and
administrative expenses were 3.3% as compared with 3.2% in the prior
year period, primarily attributable to an increase in share based
compensation as well as the impact from building out the Internet
finance business.
Income from operations for the second quarter of 2017 was RMB621.7 million (US$91.7 million), as compared with RMB643.9 million in the prior year period. Operating margin was 3.5% as compared with 4.8% in the prior year period.
Non-GAAP income from operations([4]), which excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 6.0% to RMB887.7 million (US$130.9 million) from RMB837.2 million in the prior year period. Non-GAAP operating income margin([5]) was 5.1% as compared with 6.2% in the prior year period.
NET INCOME
Net income attributable to Vipshop's shareholders was RMB386.5 million (US$57.0 million), as compared with RMB451.6 million in the prior year period. Net margin attributable to Vipshop's shareholders was 2.2% as compared with 3.4% in the prior year period, primarily attributable to decreased gross margin and impairment loss of investments of RMB103.1 million. Net income attributable to Vipshop's shareholders per diluted ADS([6]) was RMB0.64 (US$0.09) as compared with RMB0.76 in the prior year period.
Non-GAAP net income attributable to Vipshop's shareholders, which excludes share-based compensation expenses, impairment loss of investments, and amortization of intangible assets resulting from business acquisitions and equity method investments, increased by 7.5% to RMB728.2 million (US$107.4 million) from RMB677.5 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders([7]) was 4.2% as compared with 5.0% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS([8]) increased to RMB1.18 (US$0.17) from RMB1.12 in the prior year period.
For the quarter ended June 30, 2017, the Company's weighted average number of ADSs used in computing diluted income per ADS was 629,352,488.
BALANCE SHEET AND CASH FLOW
As of June 30, 2017, the Company had cash and cash equivalents and restricted cash of RMB4.20 billion (US$619.2 million) and held-to-maturity securities of RMB343.2 million (US$50.6 million).
For the quarter ended June 30, 2017, net cash used in operating activities was RMB0.27 billion, and free cash flow([9]), a non-GAAP measurement of liquidity, was as follows:
For the three months ended
Jun 30, 2016 Jun 30, 2017 Jun 30,
2017
RMB'000 RMB'000 US$'000
Net cash from (used
in) operating
activities 1,227,110 (273,753) (40,381)
Add: Impact from
Internet financing
activities[9] 490,573 783,610 115,589
Less: Capital
expenditures (587,852) (673,891) (99,404)
Free cash flow in
(out) 1,129,831 (164,034) (24,196)
Free cash flow trailing twelve months ended
Jun 30, 2016 Jun 30, 2017 Jun 30,
2017
RMB'000 RMB'000 US$'000
Net cash from
operating
activities 3,269,475 1,914,083 282,342
Add: Impact from
Internet
financing
activities[9] 1,218,589 2,850,206 420,428
Less: Capital
expenditures (4,581,344) (2,801,534) (413,248)
Free cash flow
(out) in (93,280) 1,962,755 289,522
Business Outlook
For the third quarter of 2017, the Company expects its total net revenue to be between RMB14.9 billion and RMB15.4 billion, representing a year-over-year growth rate of approximately 24% to 28%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.
Exchange Rate
This announcement contains currency conversions of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB6.7793 to US$1.00, the effective noon buying rate for June 30, 2017 as set forth in the H.10 statistical release of the Federal Reserve Board.
Conference Call Information
The Company will hold a conference call on Thursday, August 17, 2017 at 8:00 am Eastern Time or 8:00 pm Beijing Time to discuss its financial results and operating performance for the second quarter of 2017.
United States: +1-845-675-0438
International Toll Free: +1-855-500-8701
China Domestic: 400-1200-654
Hong Kong: +852-3018-6776
Conference ID: #58958603
The replay will be accessible through August 25, 2017 by dialing the following numbers:
United States Toll Free: +1-855-452-5696
International: +61-2-9003-4211
Conference ID: #58958603
A live and archived webcast of the conference call will also 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 www.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 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.
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 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 income margin, non-GAAP net margin attributable to Vipshop's shareholders, and free cash flow, each of which is a non-GAAP financial measure. Non-GAAP net income attributable to Vipshop's shareholders is net income attributable to Vipshop's shareholders excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets resulting from business acquisitions and equity method investments. 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 and amortization of intangible assets resulting from business acquisitions. Non-GAAP operating income margin is non-GAAP income from operations as a percentage of total net revenue. 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 revenue. Free cash flow is the operating cash flow adding back the impact from Internet financing activities and less capital expenditures, which include purchase of property and equipment, purchase and deposits of land use rights, and purchase of other assets. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation, impairment loss of investments and amortization of intangible assets 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, impairment loss of investments, and amortization of intangible assets. 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 and technology platform. Share-based compensation expenses and amortization of intangible assets 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. 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
[1] "Active customers" are defined
as registered members who have
purchased from the Company or the
Company's online marketplace
platforms at least once during the
relevant period.
[2] "Total orders" are defined as
the total number of orders placed
during the relevant period,
including the orders for products
and services sold in the Company's
online sales business and on the
Company's online marketplace
platforms, net of orders returned.
[3] Non-GAAP net income
attributable to Vipshop's
shareholders is a non-GAAP
financial measure, which is
defined as net income attributable
to Vipshop's shareholders
excluding share-based
compensation expenses, impairment
loss of investments, and
amortization of intangible assets
resulting from business
acquisitions and equity method
investments.
[4] Non-GAAP income from
operations is a non-GAAP
financial measure, which is
defined as income from operations
excluding share-based
compensation expenses and
amortization of intangible assets
resulting from business
acquisitions.
[5] Non-GAAP operating income
margin is a non-GAAP financial
measure, which is defined as non-
GAAP income from operations as a
percentage of total net revenues.
[6] "ADS" means American depositary
share, each of which represents
0.2 Class A ordinary share.
[7] 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.
[8] 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 weighted
average number of diluted ADS
outstanding for computing diluted
earnings per ADS.
[9] Free cash flow is a non-GAAP
financial measure, which means the
operating cash flow adding back
the impact from Internet financing
activities and less capital
expenditures, which include
purchase of property and
equipment, purchase and deposits
of land use rights, and purchase
of other assets.
Vipshop Holdings Limited
Condensed Consolidated Statements of Income and Comprehensive Income
(In thousands, except per share data)
Three Months Ended
------------------
June 30,2016 June 30,2017 June 30,2017
------------ ------------ ------------
RMB'000 RMB'000 USD'000
(Unaudited) (Unaudited) (Unaudited)
Product revenues 13,152,278 17,036,222 2,512,977
Other revenues (1) 287,420 480,357 70,856
Total net revenues 13,439,698 17,516,579 2,583,833
---------- ---------- ---------
Cost of goods sold (10,198,289) (13,656,686) (2,014,468)
Gross profit 3,241,409 3,859,893 569,365
--------- --------- -------
Operating expenses
Fulfillment expenses (2) (1,152,493) (1,644,074) (242,514)
Marketing expenses (672,345) (752,148) (110,948)
Technology and content expenses (391,525) (447,820) (66,057)
General and administrative expenses (3) (434,156) (578,783) (85,375)
-------- -------- -------
Total operating expenses (2,650,519) (3,422,825) (504,894)
---------- ---------- --------
Other income 53,039 184,669 27,240
------ ------- ------
Income from operations 643,929 621,737 91,711
Impairment loss of investments (48,634) (103,107) (15,209)
Interest expenses (21,721) (19,259) (2,841)
Interest income 28,212 29,684 4,379
Exchange loss (20,618) (36,895) (5,442)
Gain on disposal of an investment - 55,615 8,204
Income before income taxes and share of result of affiliates 581,168 547,775 80,802
Income tax expense(4) (127,960) (169,679) (25,029)
Share of loss of affiliates (15,532) (7,293) (1,076)
------- ------ ------
Net income 437,676 370,803 54,697
Net loss attributable to noncontrolling interests 13,929 15,680 2,313
------ ------ -----
Net income attributable to Vipshop's shareholders 451,605 386,483 57,010
Shares used in calculating earnings per share (5):
Class A and Class B ordinary shares:
-Basic 115,858,596 117,365,737 117,365,737
-Diluted 124,555,621 125,870,498 125,870,498
Net earnings per Class A and Class B share
Net income attributable to Vipshop's shareholders--Basic 3.90 3.29 0.49
Net income attributable to Vipshop's shareholders--Diluted 3.80 3.20 0.47
Net earnings per ADS (1 ordinary share equals to 5 ADSs)
Net income attributable to Vipshop's shareholders--Basic 0.78 0.66 0.10
Net income attributable to Vipshop's shareholders--Diluted 0.76 0.64 0.09
(1) Other revenues primarily consist of revenues from third-party logistics services, product
promotion and online advertising, fees charged to third-party merchants which the
Company provides platform access for sales of their products,and inventory and
warehouse management services to certain suppliers.
(2) Including shipping and handling expenses, which amounted RMB 617 million and
RMB 887 million in the three month periods ended June 30, 2016 and June 30, 2017,
respectively.
(3)Including amortization of intangible assets resulting from business acquisitions, which
amounted to RMB 77 million and RMB 84 million in the three months period ended June
30, 2016 and June 30, 2017, respectively.
(4)Included income tax benefits of RMB 20 million and RMB 21 million related to the
reversal of deferred tax liabilities, which was recognized on business acquisitions for the
three months period ended June 30, 2016 and June 30, 2017, respectively.
(5) Authorized share capital are 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.
Net income 437,676 370,803 54,697
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments 4,546 99,585 14,690
Unrealized (loss) gain from available-for-sale securities (8,934) 13,899 2,050
Reclassification adjustment for losses(gains) of investment 36,567 (55,615) (8,204)
included in net income
Comprehensive income 469,855 428,672 63,233
------- ------- ------
Less: Comprehensive loss attributable to noncontrolling interests (15,380) (15,680) (2,313)
Comprehensive income attributable to Vipshop's shareholders 485,235 444,352 65,546
======= ======= ======
Three Months Ended
June 30,2016 June 30,2017 June 30,2017
------------ ------------ ------------
RMB'000 RMB'000 USD'000
(Unaudited) (Unaudited) (Unaudited)
Share-based compensation charges included are as follows
Fulfillment expenses 10,146 19,058 2,811
Marketing expenses 9,683 10,387 1,532
Technology and content expenses 45,510 54,331 8,014
General and administrative expenses 50,819 98,012 14,458
Total 116,158 181,788 26,815
======= ======= ======
Vipshop Holdings Limited
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
December 31,2016 June 30,2017 June 30,2017
---------------- ------------ ------------
RMB'000 RMB'000 USD'000
ASSETS (Unaudited) (Unaudited) (Unaudited)
CURRENT ASSETS
Cash and cash equivalents 4,109,577 4,148,892 611,994
Restricted cash - 48,898 7,213
Held-to-maturity securities 671,776 343,239 50,630
Accounts receivable, net 2,333,918 3,488,455 514,574
Amounts due from related parties 8,352 11,089 1,636
Other receivables and prepayments,net 2,293,825 2,208,141 325,718
Inventories 4,948,609 3,716,585 548,225
Deferred tax assets 214,815 - -
Total current assets 14,580,872 13,965,299 2,059,990
---------- ---------- ---------
NON-CURRENT ASSETS
Property and equipment, net 4,467,451 5,510,239 812,804
Deposits for property and equipment 1,039,793 556,074 82,025
Land use rights, net 2,399,058 3,030,806 447,068
Intangible assets, net 725,147 569,305 83,977
Investment in affiliates 93,144 63,635 9,387
Other investments 503,117 416,403 61,423
Available-for-sale securities investments 407,944 149,999 22,126
Other long-term assets 510,821 185,093 27,303
Goodwill 367,106 367,106 54,151
Deferred tax assets - 284,367 41,946
Total non-current assets 10,513,581 11,133,027 1,642,210
---------- ---------- ---------
TOTAL ASSETS 25,094,453 25,098,326 3,702,200
========== ========== =========
LIABILTIES AND EQUITY
CURRENT LIABILITIES
Short term loan(Including Short term loan of the VIE without - 3,000 443
recourse to the Company of nil and nil as of December 31, 2016
and June 30, 2017, respectively)
Accounts payable (Including accounts payable of the VIE without 8,333,610 8,151,478 1,202,407
recourse to the Company of RMB 22,471 and RMB 22,914 as of
December 31, 2016 and June 30, 2017, respectively)
Advance from customers (Including advance from customers of 2,699,981 1,703,522 251,283
the VIE without recourse to the Company of RMB 1,211,643 and
RMB1,066,815 as of December 31, 2016 and June 30, 2017,
respectively)
Accrued expenses and other current liabilities (Including accrued 3,322,599 3,004,990 443,260
expenses and other current liabilities of the VIE without recourse
to the Company of RMB 1,257,667 and RMB 1,508,350 as of
December 31, 2016 and June 30, 2017, respectively)
Amounts due to related parties(Including amounts due to related 52,729 17,550 2,589
parties of the VIE without recourse to the Company of RMB 591
and RMB 263 as of December 31, 2016 and June 30, 2017,
respectively)
Deferred income (Including deferred income of the VIE without 174,547 153,807 22,688
recourse to the Company of RMB 16,222 and RMB 2,835 as of
December 31, 2016 and June 30, 2017, respectively)
Securitization debt - 285,000 42,040
Total current liabilities 14,583,466 13,319,347 1,964,710
---------- ---------- ---------
NON-CURRENT LIABILITIES
Deferred tax liability(Including deferred tax of the VIE without 100,583 58,243 8,591
recourse to the Company of RMB 4,904 and RMB 4,533 as of
December 31, 2016 and June 30, 2017, respectively)
Deferred income-non current(Including deferred income-non 246,902 313,060 46,179
current of the VIE without recourse to the Company of RMB 1,928
and RMB 3,189 as of December 31, 2016 and June 30, 2017,
respectively)
Convertible senior notes 4,381,698 4,266,722 629,375
Total non-current liabilities 4,729,183 4,638,025 684,145
--------- --------- -------
Total liabilities 19,312,649 17,957,372 2,648,855
========== ========== =========
EQUITY:
Class A ordinary shares (US$0.0001 par value, 483,489,642 66 66 10
shares authorized, and 101,508,264 and 101,508,264 shares
issued and outstanding as of December 31, 2016 and June 30,
2017, respectively)
Class B ordinary shares (US$0.0001 par value, 16,510,358 11 11 2
shares authorized, and 16,510,358 and 16,510,358 shares
issued and outstanding as of December 31, 2016 and June 30,
2017, respectively)
Treasury shares, at cost - 1,356,918 shares and - 493,845 (707,441) (251,432) (37,088)
shares as of December 31, 2016 and June 30, 2017
Additional paid-in capital 3,130,126 3,051,185 450,074
Retained earnings 3,653,026 4,591,426 677,271
Accumulated other comprehensive loss (343,608) (238,042) (35,116)
Noncontrolling interests 49,624 (12,260) (1,808)
Total shareholders' equity 5,781,804 7,140,954 1,053,345
--------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 25,094,453 25,098,326 3,702,200
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Vipshop Holdings Limited
Reconciliations of GAAP and Non-GAAP Results
Three Months Ended
June 30,2016 June 30,2017 June 30,2017
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RMB'000 RMB'000 USD'000
(Unaudited) (Unaudited) (Unaudited)
Income from operations 643,929 621,737 91,711
Share-based compensation expenses 116,158 181,788 26,815
Amortization of intangible assets resulting from business 77,093 84,161 12,414
acquisitions
Non-GAAP income from operations 837,180 887,686 130,940
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Net income 437,676 370,803 54,697
Share-based compensation expenses 116,158 181,788 26,815
Impairment loss in investments 48,634 103,107 15,209
Amortization of intangible assets resulting from 92,160 90,129 13,295
business acquisitions and equity method investments
Tax effect of amortization of intangible assets resulting from (19,887) (21,040) (3,104)
business acquisitions
Non-GAAP net income 674,741 724,787 106,912
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Net income attributable to Vipshop's shareholders 451,605 386,483 57,010
Share-based compensation expenses 116,158 181,788 26,815
Impairment loss in investments 48,634 103,107 15,209
Amortization of intangible assets resulting from business 77,127 73,826 10,890
acquisitions and equity method investments
Tax effect of amortization of intangible assets resulting from (16,009) (16,965) (2,502)
business acquisitions
Non-GAAP net income attributable to Vipshop's shareholders 677,515 728,239 107,422
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Shares used in calculating earnings per share:
Basic ordinary shares:
Class A and Class B ordinary shares:
-Basic 115,858,596 117,365,737 117,365,737
-Diluted 124,555,621 125,870,498 125,870,498
Non-GAAP net income per Class A and Class B share
Non-GAAP net income attributable to Vipshop's 5.85 6.20 0.92
shareholders--Basic
Non-GAAP net income attributable to Vipshop's 5.61 5.91 0.87
shareholders--Diluted
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)
Non-GAAP net income attributable to Vipshop's 1.17 1.24 0.18
shareholders--Basic
Non-GAAP net income attributable to Vipshop's 1.12 1.18 0.17
shareholders--Diluted
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SOURCE Vipshop Holdings Limited
