Vipshop Reports Unaudited Third Quarter 2017 Financial Results
GUANGZHOU, China, Nov. 20, 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 third quarter ended September 30, 2017.
Third Quarter 2017 Highlights
-- Total net revenue for the third quarter of 2017 increased by 27.6% to
RMB15.3 billion (US$2.3 billion) from RMB12.0 billion in the prior year
period.
-- The number of active customers([1]) for the trailing twelve months ended
September 30, 2017 increased by 22% year over year to 60.5 million from
49.6 million in the prior year period.
-- Total orders([2]) for the third quarter of 2017 increased by 23% year
over year to 74.0 million from 60.1 million in the prior year period.
-- Gross profit for the third quarter of 2017 increased by 19.4% to RMB3.5
billion (US$526.0 million) from RMB2.9 billion in the prior year period.
-- Net income attributable to Vipshop's shareholders for the third quarter
of 2017 was RMB338.1 million (US$50.8 million), as compared with
RMB342.9 million in the prior year period.
-- Non-GAAP net income attributable to Vipshop's shareholders(([3])) for
the third quarter of 2017 was RMB559.8 million (US$84.1 million), as
compared with RMB595.5 million in the prior year period.
Mr. Eric Shen, chairman and chief executive officer of Vipshop, stated, "We saw healthy growth in our total active customers for the trailing twelve months ended September 30, 2017, which increased to over 60 million. Importantly, our core categories continue to demonstrate robust growth, adding hundreds of domestic and international fashion brands to our portfolio in the past quarter. We remain committed to enriching our offering, including opening up our marketplace business, which will continue to improve our user experience."
Mr. Donghao Yang, chief financial officer of Vipshop, further commented, "In the third quarter of 2017, our topline came in at the high-end of our guidance range, increasing by nearly 28% year over year. Our efforts to manage existing and new users are bearing fruit, as demonstrated by the improved stickiness and customer loyalty across our platform."
Recent Business Highlights
-- In the third quarter of 2017, Vipshop added three local warehouses in
Taiyuan, Hohhot, and Hefei, China, totaling approximately 32,000 square
meters and bringing the Company's total number of local warehouses to
fourteen as of September 30, 2017. The Company added approximately
23,000 square meters of warehousing space for its cross-border business,
including new locations in Australia, France, and the United States. For
its regional logistics hubs, approximately 150,000 square meters of
warehousing space were added. As of September 30, 2017, Vipshop has
approximately 2.4 million square meters of total warehousing space, of
which 1.5 million square meters of warehousing space is owned by the
Company.
-- During the third quarter of 2017, Vipshop delivered 98% of its orders
through its proprietary last mile network, up from 90% in the prior year
period. Around 72% of customer returns were collected directly by
Vipshop's last mile staff, which represents a significant increase from
50% in the prior year period.
-- In the third quarter of 2017, the Company's average revenue per customer
increased by 11% year over year, which was primarily driven by the 4%
year-over-year increase in average ticket size and 7% year-over-year
increase in the number of orders per customer.
-- Vipshop began to roll out its Super VIP Paid Membership Program to all
customers in the third quarter of 2017. The average visiting frequency
of customers who enrolled in the program increased by almost 100% after
such customers started paying for the membership.
-- Vipshop is connected to the inventory management systems of more than
500 of its suppliers. In the third quarter of 2017, the Company's daily
average SKUs online was 3.2 million, representing a significant increase
from 1.2 million in the prior year period.
-- Vipshop recently added a number of popular domestic and international
brands to its platform, including Diesel, Marc Jacobs, Sergio Rossi,
Shanghai Tang, and Peuterey.
-- In October 2017, Vipshop's Internet finance subsidiary completed its
second offering of Renminbi-denominated asset-backed securities ("ABS")
of RMB500 million, which is listed on the Shanghai Stock Exchange in
China.
-- During the third quarter of 2017, Vipshop's consumer financing business
had 3.8 million users, which was an 146% increase from 1.5 million users
in the prior year period.
Third Quarter 2017 Financial Results
REVENUE
Total net revenue for the third quarter of 2017 increased by 27.6% to RMB15.3 billion (US$2.3 billion) from RMB12.0 billion in the prior year period, primarily driven by the growth in the number of total active customers and average revenue per customer.
The number of active customers for the third quarter of 2017 increased by 15% to 23.8 million from 20.8 million in the prior year period. The number of total orders for the third quarter of 2017 increased by 23% to 74.0 million from 60.1 million in the prior year period.
GROSS PROFIT
Gross profit for the third quarter of 2017 increased by 19.4% to RMB3.5 billion (US$526.0 million) from RMB2.9 billion in the prior year period. Gross margin was 22.9% as compared with 24.4% in the prior year period, primarily attributable to investment in promotional activities for market share gain, which is balanced by reduced spending in the Company's broader marketing efforts.
OPERATING INCOME AND EXPENSES
Total operating expenses for the third quarter of 2017 were RMB3.2 billion (US$474.1 million), as compared with RMB2.5 billion in the prior year period. As a percentage of total net revenue, total operating expenses decreased to 20.6% from 21.2% in the prior year period.
-- Fulfillment expenses for the third quarter of 2017 were RMB1.7 billion
(US$251.6 million), as compared with RMB1.0 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 10.9% as compared with 8.5% 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 third quarter of 2017 were RMB478.4 million
(US$71.9 million), as compared with RMB641.5 million in the prior year
period. As a percentage of total net revenue, marketing expenses
decreased to 3.1% from 5.3% in the prior year period.
-- Technology and content expenses for the third quarter of 2017 were
RMB455.0 million (US$68.4 million), as compared with RMB374.5 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 3.0% from 3.1% in the prior year period.
-- General and administrative expenses for the third quarter of 2017 were
RMB546.6 million (US$82.2 million), as compared with RMB500.6 million in
the prior year period. As a percentage of total net revenue, general and
administrative expenses decreased to 3.6% from 4.2% in the prior year
period, primarily attributable to the Company's improved efficiency due
to its greater scale.
Income from operations for the third quarter of 2017 was RMB448.2 million (US$67.4 million), as compared with RMB528.8 million in the prior year period. Operating margin was 2.9% as compared with 4.4% 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, was RMB703.2 million (US$105.7 million) as compared with RMB732.0 million in the prior year period. Non-GAAP operating income margin([5]) was 4.6% as compared with 6.1% in the prior year period.
NET INCOME
Net income attributable to Vipshop's shareholders for the third quarter of 2017 was RMB338.1 million (US$50.8 million), as compared with RMB342.9 million in the prior year period. Net margin attributable to Vipshop's shareholders was 2.2% as compared with 2.9% in the prior year period, primarily attributable to decreased gross margin and increased fulfillment costs due to the Company's investment into its logistics business outside of the Vipshop platform. Net income attributable to Vipshop's shareholders per diluted ADS([6]) was RMB0.56 (US$0.08) as compared with RMB0.58 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, was RMB559.8 million (US$84.1 million) as compared with RMB595.5 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[7] was 3.7% as compared with 5.0% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[8] was RMB0.91 (US$0.14) as compared with RMB1.00 in the prior year period.
For the quarter ended September 30, 2017, the Company's weighted average number of ADSs used in computing diluted income per ADS was 627,678,468.
BALANCE SHEET AND CASH FLOW
As of September 30, 2017, the Company had cash and cash equivalents and restricted cash of RMB3.7 billion (US$556.6 million) and held-to-maturity securities of RMB230.3 million (US$34.6 million).
For the quarter ended September 30, 2017, net cash used in operating activities was RMB0.4 billion, and free cash flow([9]), a non-GAAP measurement of liquidity, was as follows:
For the three months ended
Sep 30, 2016 Sep 30, 2017 Sep 30,
2017
RMB'000 RMB'000 US$'000
Net cash from (used
in) operating
activities 649,556 (359,678) (54,060)
Add: Impact from
Internet financing
activities[9] 450,106 503,416 75,664
Less: Capital
expenditures (830,470) (719,081) (108,079)
Free cash flow in
(out) 269,192 (575,343) (86,475)
Free cash flow trailing twelve months ended
Sep 30, 2016 Sep 30, 2017 Sep 30,
2017
RMB'000 RMB'000 US$'000
Net cash from
operating
activities 3,634,113 904,849 136,000
Add: Impact from
Internet
financing
activities[9] 1,603,278 2,903,516 436,402
Less: Capital
expenditures (3,844,400) (2,690,145) (404,332)
Free cash flow in 1,392,991 1,118,220 168,070
Business Outlook
For the fourth quarter of 2017, the Company expects its total net revenue to be between RMB22.8 billion and RMB23.8 billion, representing a year-over-year growth rate of approximately 20% to 25%. 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 RMB6.6533 to US$1.00, the effective noon buying rate for September 29, 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 Tuesday, November 21, 2017 at 8:00 am Eastern Time or 9:00 pm Beijing Time to discuss its financial results and operating performance for the third 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: #3299529
The replay will be accessible through November 29, 2017 by dialing the following numbers:
United States Toll Free: +1-855-452-5696
International: +61-2-9003-4211
Conference ID: #3299529
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
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income
(In thousands, except per share data)
Three Months Ended
------------------
September 30,2016 September 30,2017 September 30,2017
----------------- ----------------- -----------------
RMB'000 RMB'000 USD'000
Product revenues 11,703,511 14,900,789 2,239,609
Other revenues (1) 298,813 412,368 61,979
Total net revenues 12,002,324 15,313,157 2,301,588
---------- ---------- ---------
Cost of revenues (9,070,361) (11,813,674) (1,775,611)
Gross profit 2,931,963 3,499,483 525,977
--------- --------- -------
Operating expenses:
Fulfillment expenses (2) (1,025,845) (1,674,261) (251,644)
Marketing expenses (641,514) (478,424) (71,908)
Technology and content expenses (374,468) (455,039) (68,393)
General and administrative expenses (3) (500,600) (546,575) (82,151)
-------- -------- -------
Total operating expenses (2,542,427) (3,154,299) (474,096)
---------- ---------- --------
Other income 139,251 103,017 15,484
------- ------- ------
Income from operations 528,787 448,201 67,365
Impairment loss of investments (65,940) 0 0
Interest expenses (20,125) (18,675) (2,807)
Interest income 21,972 18,549 2,788
Exchange gain (loss) 31,913 (26,950) (4,051)
Income before income taxes and share of result of affiliates 496,607 421,125 63,295
Income tax expense (4) (135,651) (101,676) (15,282)
Share of loss of affiliates (15,752) (993) (149)
------- ---- ----
Net income 345,204 318,456 47,864
Net (income) loss attributable to noncontrolling interests (2,343) 19,599 2,946
------ ------ -----
Net income attributable to Vipshop's shareholders 342,861 338,055 50,810
Shares used in calculating earnings per share (5):
Class A and Class B ordinary shares:
-Basic 116,178,808 117,641,548 117,641,548
-Diluted 118,727,676 125,535,694 125,535,694
Net earnings per Class A and Class B share
Net income attributable to Vipshop's shareholders--Basic 2.95 2.87 0.43
Net income attributable to Vipshop's shareholders--Diluted 2.89 2.79 0.42
Net earnings per ADS (1 ordinary share equals to 5 ADSs)
Net income attributable to Vipshop's shareholders--Basic 0.59 0.57 0.09
Net income attributable to Vipshop's shareholders--Diluted 0.58 0.56 0.08
(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) Fulfillment expenses include shipping and handling expenses, which amounted RMB 543
million and RMB 948 million in the three month periods ended September 30, 2016 and
September 30, 2017, respectively.
(3) General and administrative expenses include amortization of intangible assets resulting from
business acquisitions, which amounted to RMB 77 million and RMB 84 million in the three months
period ended September 30, 2016 and September 30, 2017, respectively.
(4) Income tax expense Includes 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 September 30, 2016 and September 30, 2017, respectively.
(5) 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.
Net income 345,204 318,456 47,864
Other comprehensive income, net of tax:
Foreign currency translation adjustments (36,623) 92,229 13,862
Unrealized gain (loss) from available-for-sale securities 11,342 (1,993) (299)
Comprehensive income 319,923 408,692 61,427
------- ------- ------
Less: Comprehensive income (loss) attributable to noncontrolling interests 5,609 (19,599) (2,946)
Comprehensive income attributable to Vipshop's shareholders 314,314 428,291 64,373
======= ======= ======
Three Months Ended
September 30,2016 September 30,2017 September 30,2017
----------------- ----------------- -----------------
RMB'000 RMB'000 USD'000
Share-based compensation expenses included are as follows
Fulfillment expenses 10,136 17,842 2,682
Marketing expenses 9,536 9,415 1,415
Technology and content expenses 45,096 51,420 7,728
General and administrative expenses 61,397 92,148 13,850
Total 126,165 170,825 25,675
======= ======= ======
Vipshop Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
December 31,2016 September 30,2017 September 30,2017
---------------- ----------------- -----------------
RMB'000 RMB'000 USD'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents 4,109,577 3,665,310 550,901
Restricted cash 0 37,781 5,679
Held-to-maturity securities 671,776 230,267 34,610
Accounts receivable, net 2,333,918 3,561,913 535,360
Amounts due from related parties 8,352 5,007 753
Other receivables and prepayments,net 2,293,825 2,782,842 418,265
Inventories 4,948,609 4,341,557 652,542
Deferred tax assets 214,815 0 0
Total current assets 14,580,872 14,624,677 2,198,110
---------- ---------- ---------
NON-CURRENT ASSETS
Property and equipment, net 4,467,451 6,161,628 926,101
Deposits for property and equipment 1,039,793 425,639 63,974
Land use rights, net 2,399,058 3,095,594 465,272
Intangible assets, net 725,147 484,862 72,875
Investment in affiliates 93,144 62,642 9,415
Other investments 503,117 424,096 63,742
Available-for-sale securities investments 407,944 148,006 22,246
Other long-term assets 510,821 152,625 22,940
Goodwill 367,106 367,106 55,177
Deferred tax assets 0 302,849 45,519
Total non-current assets 10,513,581 11,625,047 1,747,261
---------- ---------- ---------
TOTAL ASSETS 25,094,453 26,249,724 3,945,371
========== ========== =========
LIABILTIES AND EQUITY
CURRENT LIABILITIES
Short term loans (Including short term loans of the VIE without recourse to 0 554,000 83,267
the Company of nil and nil as of December 31, 2016 and September 30,
2017, respectively)
Accounts payable (Including accounts payable of the VIE without recourse 8,333,610 8,435,969 1,267,937
to the Company of RMB 22,471 and RMB 27,978 as of December 31, 2016
and September 30, 2017, respectively)
Advance from customers (Including advance from customers of the VIE 2,699,981 1,836,299 275,998
without recourse to the Company of RMB 1,211,643 and RMB 904,297 as
of December 31, 2016 and September 30, 2017, respectively)
Accrued expenses and other current liabilities (Including accrued expenses 3,322,599 2,689,541 404,242
and other current liabilities of the VIE without recourse to the Company of
RMB 1,257,667 and RMB 1,406,029 as of December 31, 2016 and
September 30, 2017, respectively)
Amounts due to related parties (Including amounts due to related parties of 52,729 13,686 2,057
the VIE without recourse to the Company of RMB 591 and RMB 3,656 as of
December 31, 2016 and September 30, 2017, respectively)
Deferred income (Including deferred income of the VIE without recourse to 174,547 173,580 26,089
the Company of RMB 16,222 and RMB 7,898 as of December 31, 2016 and
September 30, 2017, respectively)
Securitization debt (Including securitization debt of the VIE without recourse 0 285,000 42,836
to the Company of nil and nil as of December 31, 2016 and September
30, 2017, respectively)
Total current liabilities 14,583,466 13,988,075 2,102,426
---------- ---------- ---------
NON-CURRENT LIABILITIES
Deferred tax liability (Including deferred tax of the VIE without recourse to the 100,583 38,820 5,835
Company of RMB 4,904 and RMB 4,382 as of December 31, 2016 and
September 30, 2017, respectively)
Deferred income-non current (Including deferred income-non current of the 246,902 314,814 47,317
VIE without recourse to the Company of RMB 1,928 and RMB 2,972 as of
December 31, 2016 and September 30, 2017, respectively)
Convertible senior notes 4,381,698 4,187,421 629,375
Total non-current liabilities 4,729,183 4,541,055 682,527
--------- --------- -------
Total liabilities 19,312,649 18,529,130 2,784,953
========== ========== =========
EQUITY:
Class A ordinary shares (US$0.0001 par value, 483,489,642 shares 66 66 10
authorized, and 101,508,264 and 101,508,264 shares issued and
outstanding as of December 31, 2016 and September 30, 2017,
respectively)
Class B ordinary shares (US$0.0001 par value, 16,510,358 shares 11 11 2
authorized, and 16,510,358 and 16,510,358 shares issued and
outstanding as of December 31, 2016 and September 30, 2017,
respectively)
Treasury shares, at cost - 1,356,918 shares and -297,480 shares as of (707,441) (151,578) (22,782)
December 31, 2016 and September 30, 2017
Additional paid-in capital 3,130,126 3,122,281 469,283
Retained earnings 3,653,026 4,929,480 740,908
Accumulated other comprehensive loss (343,608) (147,807) (22,215)
Noncontrolling interests 49,624 (31,859) (4,788)
Total shareholders' equity 5,781,804 7,720,594 1,160,418
--------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 25,094,453 26,249,724 3,945,371
========== ========== =========
Vipshop Holdings Limited
Reconciliations of GAAP and Non-GAAP Results
Three Months Ended
September 30,2016 September 30,2017 September 30,2017
----------------- ----------------- -----------------
RMB'000 RMB'000 USD'000
Income from operations 528,787 448,201 67,365
Share-based compensation expenses 126,165 170,825 25,675
Amortization of intangible assets resulting from business acquisitions 77,093 84,161 12,649
Non-GAAP income from operations 732,045 703,187 105,689
======= ======= =======
Net income 345,204 318,456 47,864
Share-based compensation expenses 126,165 170,825 25,675
Impairment loss in investments 65,940 0 0
Amortization of intangible assets resulting from business acquisitions and 91,556 84,161 12,649
equity method investments
Tax effect of amortization of intangible assets resulting from business (19,887) (21,040) (3,162)
acquisitions
Non-GAAP net income 608,978 552,402 83,026
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Net income attributable to Vipshop's shareholders 342,861 338,055 50,810
Share-based compensation expenses 126,165 170,825 25,675
Impairment loss in investments 65,940 0 0
Amortization of intangible assets resulting from business acquisitions 76,523 67,857 10,199
and equity method investments
Tax effect of amortization of intangible assets resulting from business (16,009) (16,965) (2,550)
acquisitions
Non-GAAP net income attributable to Vipshop's shareholders 595,480 559,772 84,134
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Shares used in calculating earnings per share:
Basic ordinary shares:
Class A and Class B ordinary shares:
-Basic 116,178,808 117,641,548 117,641,548
-Diluted 118,727,676 125,535,694 125,535,694
Non-GAAP net income per Class A and Class B share
Non-GAAP net income attributable to Vipshop's shareholders--Basic 5.13 4.76 0.72
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 5.02 4.56 0.69
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)
Non-GAAP net income attributable to Vipshop's shareholders--Basic 1.03 0.95 0.14
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 1.00 0.91 0.14
View original content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-third-quarter-2017-financial-results-300559394.html
SOURCE Vipshop Holdings Limited
