Vipshop Reports Unaudited First Quarter 2018 Financial Results
Vipshop Reports Unaudited First Quarter 2018 Financial Results
Conference Call to Be Held at 8:00 A.M. U.S. Eastern Time on May 15, 2018
GUANGZHOU, China, May 14, 2018 /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 first quarter ended March 31, 2018.
First Quarter 2018 Highlights
-- Total net revenue for the first quarter of 2018 increased by 24.6% year
over year to RMB19.9 billion (US$3.2 billion) from RMB16.0 billion in
the prior year period.
-- The number of active customers([1]) for the trailing twelve months ended
March 31, 2018 was 56.6 million, as compared with 55.5 million in the
prior year period.
-- Total orders([2]) for the first quarter of 2018 increased by 25% year
over year to 90.2 million from 72.1 million in the prior year period.
-- Gross profit for the first quarter of 2018 increased by 8.5% year over
year to RMB4.0 billion (US$639.2 million) from RMB3.7 billion in the
prior year period.
-- Net income attributable to Vipshop's shareholders for the first quarter
of 2018 was RMB529.7 million (US$84.5 million), as compared with
RMB551.9 million in the prior year period.
-- Non-GAAP net income attributable to Vipshop's shareholders(([3])) for
the first quarter of 2018 was RMB727.7 million (US$116.0 million), as
compared with RMB799.4 million in the prior year period.
Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "In the first quarter of 2018, we delivered solid operational results as demonstrated by the continued improvement in customer stickiness and loyalty. We made further progress with our strategic collaboration with Tencent and JD.com, opening up the entry on JD's app homepage in mid-March and the WeChat wallet entry in early April. Looking ahead, we will continue to work closely with Tencent and JD.com in order to improve the traffic flow and conversion rates, which will contribute meaningfully to our long-term customer and revenue growth."
Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "We finished the first quarter of 2018 with a solid 25% year-over-year increase in topline, which was at the high-end of our guidance range. Our average revenue per customer increased by 25% year over year, driven by improved customer shopping frequency. Leveraging the support from Tencent and JD.com, we will continue to grow our topline and expand our market share."
Recent Business Highlights
-- Vipshop launched its JD flagship store on March 3, 2018 and opened up
its entry on the homepage of JD's app to all customers on March 14,
2018. Vipshop's JD flagship store attracted approximately half a million
followers within the first two months of launching. The majority of
customers from the JD channel are new customers, and male apparel is the
strongest category. The Company opened access of its WeChat wallet entry
to all traffic on April 8, 2018 and conducted a round of promotions with
red dots prompting users to click into Vipshop's WeChat mini-program in
mid-April, 2018. Comparing to the Company's app users, customers from
its mini-program are younger and more male-concentrated.
-- In the first quarter of 2018, Vipshop's average revenue per customer
increased by approximately 25% year over year, driven by the robust 25%
year-over-year increase in average number of orders per customer. During
this quarter, 86% of customers were repeat customers, up from 77% in the
prior year period, and approximately 96% of orders were placed by repeat
customers, up from 92% in the prior year period.
-- Vipshop's Board of Directors appointed Mr. Martin Lau, President and
Executive Director of Tencent Holdings Limited (SEHK: 0700), as a
Director of the Company's Board, effective December 29, 2017. In
addition, Mr. Bin Wu resigned from the Company's Board of Directors,
effective January 30, 2018.
-- On May 8, 2018, L'Oréal Paris launched its official WeChat
mini-program, which was developed and operated by Vipshop. Vipshop is
actively exploring more opportunities within the WeChat ecosystem with
its brand partners, empowering brands to grow their business leveraging
the robust traffic within WeChat.
-- In the first quarter of 2018, Vipshop added an overseas warehouse in
Frankfurt, Germany, bringing the Company's total international
warehousing capacity to approximately 59,000 square meters. Vipshop
currently has overseas warehouses in nine locations, including Hong
Kong, New York, Paris, Milan, London, Seoul, Tokyo, Sydney, and
Frankfurt. As of March 31, 2018, the Company has approximately 2.8
million square meters of total warehousing space, of which around 1.8
million square meters is owned by Vipshop.
-- During the first quarter of 2018, Vipshop delivered approximately 99% of
its orders through its in-house last mile delivery network, up from 93%
in the prior year period. More than 81% of customer returns were handled
directly by Vipshop's in-house last mile delivery network, up from 67%
in the prior year period.
-- As of March 31, 2018, close to 1.5 million customers enrolled in
Vipshop's Super VIP Paid Membership Program, representing a 54% increase
sequentially.
-- Vipshop's cross-border business was particularly strong during this
year's 4.19 promotional event, with sales increasing by 43% year over
year.
-- Vipshop recently added a number of popular domestic and international
brands to its platform, including Furla, Stella McCartney, and Dodo.
First Quarter 2018 Financial Results
REVENUE
Total net revenue for the first quarter of 2018 increased by 24.6% year over year to RMB19.9 billion (US$3.2 billion) from RMB16.0 billion in the prior year period, primarily driven by the improvement in average revenue per customer.
GROSS PROFIT
Gross profit for the first quarter of 2018 increased by 8.5% to RMB4.0 billion (US$639.2 million) from RMB3.7 billion in the prior year period. Gross margin for the first quarter of 2018 was 20.2% as compared with 23.2% in the prior year period. In the first quarter of 2018, the Company reclassified costs related to third-party logistics from fulfillment expenses into cost of revenues, which had a 0.9% impact on the gross margin for the quarter. The Company continues to balance investment in promotional activities with its broader marketing efforts to drive growth.
OPERATING INCOME AND EXPENSES
Total operating expenses for the first quarter of 2018 were RMB3.5 billion (US$551.4 million), as compared with RMB3.1 billion in the prior year period. As a percentage of total net revenue, total operating expenses for the first quarter of 2018 decreased to 17.4% from 19.6% in the prior year period.
-- Fulfillment expenses for the first quarter of 2018 were RMB1.7 billion
(US$276.4 million), as compared with RMB1.4 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 for the first quarter of 2018 decreased to 8.7% from 9.0% in
the prior year period.
-- Marketing expenses for the first quarter of 2018 were RMB645.3 million
(US$102.9 million), as compared with RMB729.5 million in the prior year
period. As a percentage of total net revenue, marketing expenses for the
first quarter of 2018 decreased to 3.2% from 4.6% in the prior year
period.
-- Technology and content expenses for the first quarter of 2018 were
RMB466.4 million (US$74.3 million), as compared with RMB419.5 million in
the prior year period. As a percentage of total net revenue, technology
and content expenses for the first quarter of 2018 decreased to 2.3%
from 2.6% in the prior year period.
-- General and administrative expenses for the first quarter of 2018 were
RMB613.6 million (US$97.8 million), as compared with RMB542.2 million in
the prior year period. As a percentage of total net revenue, general and
administrative expenses for the first quarter of 2018 decreased to 3.1%
from 3.4% in the prior year period.
Income from operations for the first quarter of 2018 was RMB662.7 million (US$105.6 million), as compared with RMB736.6 million in the prior year period. Operating margin for the first quarter of 2018 was 3.3% as compared with 4.6% 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 RMB878.1 million (US$140.0 million) as compared with RMB1.0 billion in the prior year period. Non-GAAP operating income margin([5]) for the first quarter of 2018 was 4.4% as compared with 6.3% in the prior year period.
NET INCOME
Net income attributable to Vipshop's shareholders for the first quarter of 2018 was RMB529.7 million (US$84.5 million), as compared with RMB551.9 million in the prior year period. Net margin attributable to Vipshop's shareholders for the first quarter of 2018 was 2.7% as compared with 3.5% in the prior year period, primarily attributable to the Company's investment in promotional activities to drive growth. Net income attributable to Vipshop's shareholders per diluted ADS([6]) was RMB0.77 (US$0.12) as compared with RMB0.92 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 RMB727.7 million (US$116.0 million) as compared with RMB799.4 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders([7]) for the first quarter of 2018 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 RMB1.05 (US$0.17) as compared with RMB1.31 in the prior year period.
For the quarter ended March 31, 2018, the Company's weighted average number of ADSs used in computing diluted income per ADS was 702,451,555.
BALANCE SHEET AND CASH FLOW
As of March 31, 2018, the Company had cash and cash equivalents and restricted cash of RMB7.4 billion (US$1.2 billion) and short term investments of RMB1.8 billion (US$288.1 million).
For the quarter ended March 31, 2018, net cash from operating activities was RMB171.2 million (US$27.3 million), and free cash flow([9]), a non-GAAP measurement of liquidity, was as follows:
For the three months ended
Mar 31, 2017 Mar 31, 2018 Mar 31, 2018
RMB'000 RMB'000 US$'000
------- ------- -------
Net cash from operating activities 736,744 171,245 27,300
Add: Impact from Internet financing activities[10] 277,524 (718,952) (114,618)
Less: Capital expenditures (585,462) (816,167) (130,116)
-------- -------- --------
Free cash flow in/(out) 428,806 (1,363,874) (217,434)
======= ========== ========
For the trailing twelve months ended
Mar 31, 2017 Mar 31, 2018 Mar 31, 2018
RMB'000 RMB'000 US$'000
------- ------- -------
Net cash from operating activities 3,414,946 415,752 66,281
Add: Impact from Internet financing activities[10] 2,557,169 2,304,275 367,356
Less: Capital expenditures (2,715,495) (2,705,155) (431,265)
---------- ---------- --------
Free cash flow in 3,256,620 14,872 2,372
========= ====== =====
Accounting Pronouncements Adopted During the Quarter Ended March 31, 2018
In May 2014, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The Company adopted this ASU on January 1, 2018 for all revenue contracts with our customers using the modified retrospective approach and increased retained earnings by approximately RMB176.4 million (US$28.1 million). In addition, the impact of applying this ASU for the three months ended March 31, 2018 primarily resulted in an increase in product sales and a change in deferred revenue driven by the Weipin Coins that are now accounted as a single performance obligation and identified as variable consideration.
The Company offers customers with an unconditional right of return for a period of 7 days upon receipt of products on sales from its platforms. Under the previous revenue standard, revenue was deferred until the 7 days return period expired. However, under the new revenue standard, revenue is recognized at the point of time when the control of goods has been passed to the customers upon the receipt of goods by the customers. The Company makes accrual on the expected sales returns in relation to the 7 day unconditional return policy.
Business Outlook
For the second quarter of 2018, the Company expects its total net revenue to be between RMB20.5 billion and RMB21.3 billion, representing a year-over-year growth rate of approximately 17% to 22%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.
Exchange Rate
The Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.2726 to US$1.00, the effective noon buying rate for March 30, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on March 30, 2018, or at any other rate.
Conference Call Information
The Company will hold a conference call on Tuesday, May 15, 2018 at 8:00 am Eastern Time or 8:00 pm Beijing Time to discuss its financial results and operating performance for the first quarter of 2018.
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: #1856707
The replay will be accessible through May 23, 2018 by dialing the following numbers:
United States Toll Free: +1-855-452-5696
International: +61-2-9003-4211
Conference ID: #1856707
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 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 the consolidated statements of cash flows, and the detailed footnote disclosure required by Accounting Standards Codification 270, Interim Reporting ("ASC270"), have not 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 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. 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, supplier financing and cooperative lending that the Company provides to customers, suppliers and individuals respectively. 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.
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
Jessie Fan
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.
[10] Impact from Internet
financing activities added back
to (deducted from) free cash flow
contains changes in the balances
of financial products, which are
primarily consumer financing,
supplier financing and
cooperative lending that the
Company provides to customers,
suppliers and individuals
respectively.
Vipshop Holdings Limited
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income
(In thousands, except per share data)
Three Months Ended
------------------
March 31,2017 March 31,2018 March 31,2018
------------- ------------- -------------
RMB'000 RMB'000 USD'000
Product revenues 15,606,804 19,367,515 3,087,637
Other revenues (1) 346,141 503,113 80,208
Total net revenues 15,952,945 19,870,628 3,167,845
---------- ---------- ---------
Cost of revenues (12,258,473) (15,861,214) (2,528,651)
Gross profit 3,694,472 4,009,414 639,194
--------- --------- -------
Operating expenses:
Fulfillment expenses (2) (1,436,200) (1,733,697) (276,392)
Marketing expenses (729,549) (645,342) (102,883)
Technology and content expenses (419,533) (466,354) (74,348)
General and administrative expenses (3) (542,172) (613,602) (97,823)
-------- -------- -------
Total operating expenses (3,127,454) (3,458,995) (551,446)
---------- ---------- --------
Other operating income 169,578 112,273 17,899
------- ------- ------
Income from operations 736,596 662,692 105,647
Interest expenses (25,113) (28,945) (4,615)
Interest income 25,860 60,334 9,619
Exchange loss (10,437) (63,738) (10,161)
Income before income taxes and share of result of affiliates 726,906 630,343 100,490
Income tax expenses (4) (165,911) (106,481) (16,975)
Share of (loss) gain of affiliates (17,686) 737 118
------- --- ---
Net income 543,309 524,599 83,633
Net loss attributable to noncontrolling interests 8,608 5,129 818
----- ----- ---
Net income attributable to Vipshop's shareholders 551,917 529,728 84,451
Shares used in calculating earnings per share (5):
Class A and Class B ordinary shares:
-Basic 116,819,173 131,605,256 131,605,256
-Diluted 125,067,816 140,490,311 140,490,311
Net earnings per Class A and Class B share
Net income attributable to Vipshop's shareholders--Basic 4.72 4.03 0.64
Net income attributable to Vipshop's shareholders--Diluted 4.59 3.86 0.62
Net earnings per ADS (1 ordinary share equals to 5 ADSs)
Net income attributable to Vipshop's shareholders--Basic 0.94 0.81 0.13
Net income attributable to Vipshop's shareholders--Diluted 0.92 0.77 0.12
(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 771
million and RMB 1.01 billion in the three month periods ended March 31,2017 and March 31,2018,
respectively.
(3) General and administrative expenses include amortization of intangible assets resulting from
business acquisitions, which amounted to RMB 87 million and RMB 44 million in the three months
period ended March 31,2017 and March 31,2018, respectively.
(4) Income tax expenses include income tax benefits of RMB 22 million and RMB 11 million related
to the reversal of deferred tax liabilities, which was recognized on business acquisitions for the
three months period ended March 31,2017 and March 31,2018, 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 543,309 524,599 83,633
Other comprehensive income, net of tax:
Foreign currency translation adjustments 25,243 (20,868) (3,327)
Unrealized gain from available-for-sale investments 22,451 0 0
Comprehensive income 591,003 503,731 80,306
------- ------- ------
Less: Comprehensive loss attributable to noncontrolling interests (8,608) (5,129) (818)
Comprehensive income attributable to Vipshop's shareholders 599,611 508,860 81,124
======= ======= ======
Three Months Ended
March 31,2017 March 31,2018 March 31,2018
------------- ------------- -------------
RMB'000 RMB'000 USD'000
Share-based compensation expenses included are as follows
Fulfillment expenses 18,096 19,130 3,050
Marketing expenses 10,298 10,834 1,727
Technology and content expenses 51,832 54,233 8,646
General and administrative expenses 100,147 87,117 13,888
Total 180,373 171,314 27,311
======= ======= ======
Vipshop Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
December 31,2017 March 31,2018 March 31,2018
---------------- ------------- -------------
RMB'000 RMB'000 USD'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents 9,973,891 7,008,102 1,117,256
Restricted cash 248,101 348,476 55,555
Short term investments 245,981 1,806,977 288,075
Accounts receivable, net 4,803,527 4,520,362 720,652
Amounts due from related parties 10,191 9,641 1,537
Other receivables and prepayments,net 3,674,196 3,468,664 552,987
Loan Receivables,net 0 164,458 26,218
Inventories 6,960,251 5,081,878 810,171
Total current assets 25,916,138 22,408,558 3,572,451
---------- ---------- ---------
NON-CURRENT ASSETS
Property and equipment, net 6,660,825 6,701,593 1,068,392
Deposits for property and equipment 307,859 441,270 70,349
Land use rights, net 3,077,770 3,309,546 527,620
Intangible assets, net 400,994 355,776 56,719
Investment in affiliates 66,334 65,634 10,464
Other investments 387,640 376,613 60,041
Available-for-sale investments 146,282 142,571 22,729
Other long-term assets 366,760 415,464 66,235
Goodwill 367,106 367,106 58,525
Deferred tax assets 285,112 355,739 56,713
Total non-current assets 12,066,682 12,531,312 1,997,787
---------- ---------- ---------
TOTAL ASSETS 37,982,820 34,939,870 5,570,238
========== ========== =========
LIABILTIES AND EQUITY
CURRENT LIABILITIES
Short term loans (Including short term loans of the VIE without recourse to 907,310 751,000 119,727
the Company of nil and nil as of December 31, 2017 and March 31, 2018,
respectively)
Accounts payable (Including accounts payable of the VIE without recourse 11,445,109 9,569,787 1,525,649
to the Company of RMB 87,926 and RMB 25,917 as of December 31, 2017
and March 31, 2018, respectively)
Advance from customers (Including advance from customers of the VIE 2,339,914 1,157,942 184,603
without recourse to the Company of RMB 965,275 and RMB 720,916 as of
December 31, 2017 and March 31, 2018, respectively)
Accrued expenses and other current liabilities (Including accrued expenses 3,537,151 3,284,473 523,622
and other current liabilities of the VIE without recourse to the Company of
RMB 1,618,716 and RMB 1,379,548 as of December 31, 2017 and March
31, 2018, respectively)
Amounts due to related parties (Including amounts due to related parties of 65,022 46,799 7,461
the VIE without recourse to the Company of RMB 616 and RMB 276 as of
December 31, 2017 and March 31, 2018, respectively)
Deferred income (Including deferred income of the VIE without recourse to 203,179 237,003 37,784
the Company of RMB 54,543 and RMB 79,651 as of December 31, 2017
and March 31, 2018, respectively)
Securitization debt (Including securitization debt of the VIE without recourse to 760,000 475,000 75,726
the Company of nil and nil as of December 31, 2017 and March 31, 2018,
respectively)
Convertible senior notes 0 3,947,818 629,375
Total current liabilities 19,257,685 19,469,822 3,103,947
---------- ---------- ---------
NON-CURRENT LIABILITIES
Deferred tax liability (Including deferred tax of the VIE without recourse to the 17,007 6,329 1,009
Company of RMB 4,224 and nil as of December 31, 2017 and March 31,
2018, respectively)
Deferred income-non current (Including deferred income-non current of the 362,649 360,872 57,532
VIE without recourse to the Company of RMB 838 and RMB 480 as of
December 31, 2017 and March 31, 2018, respectively)
Convertible senior notes 4,094,903 0 0
Total non-current liabilities 4,474,559 367,201 58,541
--------- ------- ------
Total liabilities 23,732,244 19,837,023 3,162,488
========== ========== =========
EQUITY:
Class A ordinary shares (US$0.0001 par value, 483,489,642 shares 74 75 12
authorized, and 114,716,587 and 115,293,345 shares issued and
outstanding as of December 31, 2017 and March 31, 2018, 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, 2017 and March 31, 2018, respectively)
Additional paid-in capital 8,715,995 8,887,813 1,416,927
Retained earnings 5,602,681 6,309,130 1,005,824
Accumulated other comprehensive loss (24,242) (45,109) (7,192)
Noncontrolling interests (43,943) (49,073) (7,823)
Total shareholders' equity 14,250,576 15,102,847 2,407,750
---------- ---------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 37,982,820 34,939,870 5,570,238
========== ========== =========
Vipshop Holdings Limited
Reconciliations of GAAP and Non-GAAP Results
Three Months Ended
March 31,2017 March 31,2018 March 31,2018
------------- ------------- -------------
RMB'000 RMB'000 USD'000
Income from operations 736,596 662,692 105,647
Share-based compensation expenses 180,373 171,314 27,311
Amortization of intangible assets resulting from business acquisitions 87,186 44,055 7,023
Non-GAAP income from operations 1,004,155 878,061 139,981
========= ======= =======
Net income 543,309 524,599 83,633
Share-based compensation expenses 180,373 171,314 27,311
Amortization of intangible assets resulting from business acquisitions 101,615 44,055 7,023
and equity method investments
Tax effect of amortization of intangible assets resulting from business (21,797) (11,014) (1,756)
acquisitions
Non-GAAP net income 803,500 728,954 116,211
======= ======= =======
Net income attributable to Vipshop's shareholders 551,917 529,728 84,451
Share-based compensation expenses 180,373 171,314 27,311
Amortization of intangible assets resulting from business acquisitions and 84,721 35,573 5,671
equity method investments
Tax effect of amortization of intangible assets resulting from business (17,573) (8,893) (1,418)
acquisitions
Non-GAAP net income attributable to Vipshop's shareholders 799,438 727,722 116,015
======= ======= =======
Shares used in calculating earnings per share:
Basic ordinary shares:
Class A and Class B ordinary shares:
--Basic 116,819,173 131,605,256 131,605,256
--Diluted 125,067,816 140,490,311 140,490,311
Non-GAAP net income per Class A and Class B share
Non-GAAP net income attributable to Vipshop's shareholders--Basic 6.84 5.53 0.88
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 6.57 5.27 0.84
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)
Non-GAAP net income attributable to Vipshop's shareholders--Basic 1.37 1.11 0.18
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 1.31 1.05 0.17
View original content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-first-quarter-2018-financial-results-300647578.html
SOURCE Vipshop Holdings Limited
