Vipshop Reports Unaudited First Quarter 2020 Financial Results
GUANGZHOU, China, May 27, 2020 /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, 2020.
First Quarter 2020 Highlights
-- Total net revenue for the first quarter of 2020 was RMB18.8 billion
(US$2.7 billion), as compared with RMB21.3 billion in the prior year
period, primarily attributable to soft consumer demand for discretionary
categories, delayed logistic services and slow response from the supply
chain during the COVID-19 pandemic.
-- GMV([1]) for the first quarter of 2020 was RMB28.9 billion, as compared
with RMB33.8 billion in the prior year period.
-- Gross profit for the first quarter of 2020 was RMB3.6 billion (US$510.8
million), as compared with RMB4.4 billion in the prior year period.
-- Net income attributable to Vipshop's shareholders for the first quarter
of 2020 was RMB684.8 million (US$96.7 million), as compared with
RMB872.3 million in the prior year period.
-- Non-GAAP net income attributable to Vipshop's shareholders([2]) for the
first quarter of 2020 increased by 20.8% year over year to RMB986.1
million (US$139.3 million) from RMB816.3 million in the prior year
period.
-- The number of active customers([3]) for the first quarter of 2020 was
29.6 million, as compared with 29.7 million in the prior year period.
-- Total orders([4]) for the first quarter of 2020 increased by 4% year
over year to 121.7 million from 116.5 million in the prior year period.
Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are pleased to have delivered resilient results for the first quarter of 2020, despite the negative impact from the COVID-19 pandemic on the Chinese economy and consumption in general during this quarter. Through this difficult time, we have worked closely with our brand partners and logistics suppliers to provide desirable products and reliable services to our customers. We are glad to see that daily life in China has returned to normal, and as a result, our business has seen healthy recovery since March. We believe that we are well positioned to gain share in the discount retail market in China, and are committed to continuing to help our suppliers monetize on their excess inventory effectively, while offering our customers the best deals, particularly in our core categories."
Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "We are glad to have finished the first quarter of 2020 with solid profitability, even amidst the COVID-19 pandemic. We have seen solid customer retention trends in the first quarter of 2020, despite reduced investment in marketing. Looking ahead, we believe that we are presented with opportunities to expand our market share in the current macro-economic environment, due to the counter-cyclical nature of our discount retail business. We are deeply devoted to the execution of our merchandising strategy and will continue to balance our growth and profitability, further strengthening our expertise in apparel-related categories."
First Quarter 2020 Financial Results
REVENUE
Total net revenue for the first quarter of 2020 was RMB18.8 billion (US$2.7 billion), as compared with RMB21.3 billion in the prior year period, primarily attributable to soft consumer demand for discretionary categories, delayed logistic services and slow response from the supply chain during the COVID-19 pandemic.
GROSS PROFIT
Gross profit for the first quarter of 2020 was RMB3.6 billion (US$510.8 million), as compared with RMB4.4 billion in the prior year period. Gross margin for the first quarter of 2020 was 19.2%, as compared with 20.4% in the prior year period, primarily attributable to higher revenue contribution from standardized products with lower gross margin during the COVID-19 pandemic.
OPERATING EXPENSES
Total operating expenses for the first quarter of 2020 decreased to RMB3.0 billion (US$421.4 million) from RMB3.6 billion in the prior year period. As a percentage of total net revenue, total operating expenses for the first quarter of 2020 decreased to 15.9% from 16.9% in the prior year period, primarily attributable to strict cost control.
-- Fulfillment expenses for the first quarter of 2020 decreased to RMB1.4
billion (US$196.8 million) from RMB1.8 billion in the prior year period.
As a percentage of total net revenue, fulfillment expenses for the first
quarter of 2020 decreased to 7.4% from 8.3% in the prior year period,
primarily attributable to the change in fulfillment logistic
arrangement.
-- Marketing expenses for the first quarter of 2020 decreased to RMB412.3
million (US$58.2 million) from RMB780.9 million in the prior year
period. As a percentage of total net revenue, marketing expenses for the
first quarter of 2020 decreased to 2.2% from 3.7% in the prior year
period, primarily attributable to reduced spending during the COVID-19
pandemic.
-- Technology and content expenses for the first quarter of 2020 decreased
to RMB338.4 million (US$47.8 million) from RMB383.0 million in the prior
year period. As a percentage of total net revenue, technology and
content expenses for the first quarter of 2020 remained stable at 1.8%
year over year.
-- General and administrative expenses for the first quarter of 2020 were
RMB839.2 million (US$118.5 million), as compared with RMB668.9 million
in the prior year period. As a percentage of total net revenue, general
and administrative expenses for the first quarter of 2020 were 4.5%, as
compared with 3.1% in the prior year period, primarily attributable to
operating expenses related to the Company's offline stores and share
options granted to the Company's co-founders.
INCOME FROM OPERATIONS
Income from operations for the first quarter of 2020 was RMB782.2 million (US$110.5 million), as compared with RMB863.2 million in the prior year period. Operating margin for the first quarter of 2020 increased to 4.2% from 4.0% in the prior year period.
Non-GAAP income from operations([5]) for the first quarter of 2020, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, was RMB1.0 billion (US$147.8 million), as compared with RMB1.0 billion in the prior year period. Non-GAAP operating income margin([6]) for the first quarter of 2020 increased to 5.6% from 4.9% in the prior year period.
NET INCOME
Net income attributable to Vipshop's shareholders for the first quarter of 2020 was RMB684.8 million (US$96.7 million), as compared with RMB872.3 million in the prior year period. Net margin attributable to Vipshop's shareholders for the first quarter of 2020 was 3.6%, as compared with 4.1% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS([7]) for the first quarter of 2020 was RMB1.00 (US$0.14), as compared with RMB1.27 in the prior year period.
Non-GAAP net income attributable to Vipshop's shareholders for the first quarter of 2020, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) amortization of intangible assets resulting from business acquisitions, (iv) tax effect of amortization of intangible assets resulting from business acquisitions, (v) investment gain and revaluation of investments excluding dividends, (vi) tax effect of investment gain and revaluation of investments excluding dividends, and (vii) share of gain (loss) in investment of limited partnership that is accounted for as an equity method investee, increased by 20.8% year over year to RMB986.1 million (US$139.3 million) from RMB816.3 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders([8]) for the first quarter of 2020 increased to 5.2% from 3.8% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS([9]) for the first quarter of 2020 increased to RMB1.44 (US$0.20) from RMB1.19 in the prior year period.
For the quarter ended March 31, 2020, the Company's weighted average number of ADSs used in computing diluted income per ADS was 684,546,211.
BALANCE SHEET AND CASH FLOW
As of March 31, 2020, the Company had cash and cash equivalents and restricted cash of RMB5.8 billion (US$819.1 million) and short term investments of RMB3.4 billion (US$483.6 million).
For the quarter ended March 31, 2020, net cash used in operating activities was RMB1.7 billion (US$239.9 million), and free cash flow([10]), a non-GAAP measurement of liquidity, was as follows:
For the three months ended
Mar 31, 2019
Mar 31, 2020 Mar 31, 2020
RMB'000
RMB'000 US$'000
---
Net cash from (used in) operating activities 692,005 (1,698,611) (239,890)
Add: Net impact from Internet financing (1,217,177) (645,838) (91,210)
activities[11]
Less: Capital expenditures (1,111,025) (692,045) (97,735)
Free cash outflow (1,636,197) (3,036,494) (428,835)
For the trailing twelve months ended
Mar 31, 2019
Mar 31, 2020 Mar 31, 2020
RMB'000
RMB'000 US$'000
---
Net cash from operating activities 6,266,508 9,899,567 1,398,086
Add: Net impact from Internet financing (104,832) (4,970,744) (702,003)
activities[11]
Less: Capital expenditures (3,888,818) (3,858,693) (544,952)
Free cash inflow 2,272,858 1,070,130 151,131
Business Outlook
For the second quarter of 2020, the Company expects its total net revenue to be between RMB22.7 billion and RMB23.8 billion, representing a year-over-year growth rate of approximately 0% to 5%, primarily factoring in the continued impact from the COVID-19 pandemic. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.
Exchange Rate
The Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi. This announcement contains currency conversions of Renminbi amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB7.0808 to US$1.00, the effective noon buying rate on March 31, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on March 31, 2020, or at any other rate.
Conference Call Information
The Company will hold a conference call on Wednesday, May 27, 2020 at 7:30 am Eastern Time or 7:30 pm Beijing Time to discuss its financial results and operating performance for the first quarter of 2020.
All participants wishing to join the conference call must pre-register online using the link provided below. Once pre-registration has been complete, participants will receive dial-in numbers, a passcode, and a unique registrant ID. To join the conference, simply dial the number in the calendar invite you receive after pre-registration, enter the passcode followed by your PIN, and you will join the conference instantly.
Conference ID
#5898143
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Registration
Link
http://apac.directeventreg.com/registration/event/5898143
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The replay will be accessible through June 4, 2020 by dialing the following numbers:
United States Toll Free:
+1-855-452-5696
International:
+61-2-8199-0299
Conference ID:
#5898143
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; the potential impact of the COVID-19 to Vipshop's business operations and the economy in China and elsewhere generally; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshop's filings with the SEC. All information provided in this press release is as of the date of this press release, and Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
The condensed consolidated financial information is derived from the Company's unaudited interim condensed consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that comparative consolidated statements of income and cash flows for the period presented and detailed footnote disclosures required by Accounting Standards Codification 270, Interim Reporting ("ASC270"), have been omitted. Vipshop uses non-GAAP net income attributable to Vipshop's shareholders, non-GAAP net income attributable to Vipshop's shareholders per diluted ADS, non-GAAP income from operations, non-GAAP operating 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 (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) amortization of intangible assets resulting from business acquisitions, (iv) tax effect of amortization of intangible assets resulting from business acquisitions, (v) investment gain and revaluation of investments excluding dividends, (vi) tax effect of investment gain and revaluation of investments excluding dividends, and (vii) share of gain (loss) in investment of limited partnership that is accounted for as an equity method investee. 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 net cash from operating activities adding back the impact from Internet financing activities and less capital expenditures, which include purchase and deposits of property and equipment and land use rights, 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 and supplier financing that the Company provides to customers and suppliers. The Company believes that separate analysis and exclusion of the non-cash impact of (a) share-based compensation, (b) impairment loss of investments, (c) amortization of intangible assets resulting from business acquisitions, (d) investment gain and revaluation of investments excluding dividends, and (e) share of gain (loss) in investment of limited partnership that is accounted for as an equity method investee 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 (1) non-cash share-based compensation expenses, (2) impairment loss of investments, (3) amortization of intangible assets resulting from business acquisitions, (4) investment gain and revaluation of investments excluding dividends, and (5) share of gain (loss) in investment of limited partnership that is accounted for as an equity method investee. 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.
[1] "Gross merchandise value (GMV)" is defined as the total
Renminbi value of all products and services sold through the
Company's online sales business, online marketplace
platform, offline stores, and Shan Shan Outlets during the
relevant period, including through the Company's websites
and mobile apps, third-party websites and mobile apps,
Vipshop offline stores and Vipmaxx offline stores, as well
as Shan Shan Outlets that were fulfilled by either the
Company or its third-party merchants, regardless of whether
or not the goods were delivered or returned. GMV includes
shipping charges paid by buyers to sellers. For prudent
considerations, the Company does not consider products or
services to be sold if the relevant orders were placed and
canceled pre-shipment and only included orders that left
the Company's or other third-party vendors' warehouses.
[2] Non-GAAP net income attributable to Vipshop's
shareholders is a non-GAAP financial measure, which is
defined as net income attributable to Vipshop's shareholders
excluding (i) share-based compensation expenses, (ii)
impairment loss of investments, (iii) amortization of
intangible assets resulting from business acquisitions, (iv)
tax effect of amortization of intangible assets resulting
from business acquisitions, (v) investment gain and
revaluation of investments excluding dividends, (vi) tax
effect of investment gain and revaluation of investments
excluding dividends, and (vii) share of gain (loss) in
investment of limited partnership that is accounted for as
an equity method investee.
[3] "Active customers" is defined as registered members who
have purchased from the Company's online sales business or
the Company's online marketplace platforms at least once
during the relevant period.
[4] "Total orders" is defined as the total number of orders
placed during the relevant period, including the orders for
products and services sold through the Company's online
sales business and the Company's online marketplace
platforms (excluding, for the avoidance of doubt, orders
from the Company's offline stores and outlets), net of
orders returned.
[5] 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.
[6] 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.
[7] "ADS" means American depositary share, each of which
represents 0.2 Class A ordinary share.
[8] Non-GAAP net margin attributable to Vipshop's
shareholders is a non-GAAP financial measure, which is
defined as non-GAAP net income attributable to Vipshop's
shareholders, as a percentage of total net revenues.
[9] Non-GAAP net income attributable to Vipshop's
shareholders per diluted ADS is a non-GAAP financial
measure, which is defined as non-GAAP net income
attributable to Vipshop's shareholders, divided by the
weighted average number of diluted ADS outstanding for
computing diluted earnings per ADS.
[10] Free cash flow is a non-GAAP financial measure, which
is defined as net cash from (used in) operating activities
adding back the impact from Internet financing activities
and less capital expenditures, which include purchase and
deposits of property and equipment and land use rights, and
purchase of other assets.
[11] Net impact from Internet financing activities represents
net cash flow relating to the Company's financial products,
which are primarily consumer financing and supplier
financing that the Company provides to its customers and
suppliers.
Vipshop Holdings Limited
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income
(In thousands, except for share and per share data)
Three Months Ended
March 31, 2019
March 31, 2020
March 31, 2020
---
RMB'000
RMB'000
USD'000
Product revenues 20,459,633 17,964,195 2,537,029
Other revenues(1) 858,983 828,660 117,029
Total net revenues 21,318,616 18,792,855 2,654,058
Cost of revenues (16,962,283) (15,175,739) (2,143,224)
Gross profit 4,356,333 3,617,116 510,834
Operating expenses:
Fulfillment expenses(2) (1,761,770) (1,393,690) (196,827)
Marketing expenses (780,920) (412,305) (58,229)
Technology and content expenses (382,956) (338,398) (47,791)
General and administrative expenses (668,920) (839,220) (118,521)
Total operating expenses (3,594,566) (2,983,613) (421,368)
Other operating income 101,404 148,688 20,999
Income from operations 863,171 782,191 110,465
Investment gain and revaluation of investments 214,085 42,553 6,010
Impairment loss of investments 0 (5,046) (713)
Interest expense (31,983) (35,395) (4,999)
Interest income 70,560 81,190 11,466
Foreign exchange (loss) gain (41,631) 48,754 6,885
Income before income tax expense and share of gain (loss) of equity method investees 1,074,202 914,247 129,114
Income tax expenses (243,897) (172,716) (24,392)
Share of gain (loss) of equity method investees 46,659 (60,639) (8,564)
Net income 876,964 680,892 96,158
Net (loss) gain attributable to non-controlling interests (4,682) 3,933 555
Net income attributable to Vipshop's shareholders 872,282 684,825 96,713
Shares used in calculating earnings per share(3):
Weighted average number of Class A and Class B ordinary shares:
--Basic 133,037,380 134,326,928 134,326,928
--Diluted 139,290,699 136,909,242 136,909,242
Net earnings per Class A and Class B ordinary share
Net income attributable to Vipshop's shareholders--Basic 6.56 5.10 0.72
Net income attributable to Vipshop's shareholders--Diluted 6.33 5.00 0.71
Net earnings per ADS (1 ordinary share equals to 5 ADSs)
Net income attributable to Vipshop's shareholders--Basic 1.31 1.02 0.14
Net income attributable to Vipshop's shareholders--Diluted 1.27 1.00 0.14
(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, interest income from microcredit and consumer financing services, and inventory and
warehouse management services to certain suppliers.
(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB 1.1 billion and RMB
0.8 billion in the three month periods ended March 31,2019 and March 31,2020, respectively.
(3) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B
ordinary shares, with each Class A ordinary share being entitled to one vote and each Class B ordinary share
being entitled to ten votes on all matters that are subject to shareholder vote.
Three Months Ended
March 31, 2019
March 31, 2020
March 31, 2020
---
RMB'000
RMB'000
USD'000
Share-based compensation expenses included are as follows
Fulfillment expenses 19,466 27,215 3,844
Marketing expenses 10,843 3,939 556
Technology and content expenses 52,605 44,402 6,271
General and administrative expenses 89,813 171,455 24,214
Total 172,727 247,011 34,885
Vipshop Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except for share and per share data)
December 31, 2019
March 31, 2020
March 31, 2020
---
RMB'000
RMB'000
USD'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents 6,573,808 4,917,949 694,547
Restricted cash 1,145,477 882,083 124,574
Short term investments 3,052,726 3,424,104 483,576
Accounts receivable, net 1,295,766 776,386 109,647
Amounts due from related parties 47,964 169,644 23,958
Other receivables and prepayments,net 2,897,893 2,985,171 421,587
Loan receivables,net 306,115 157,750 22,279
Inventories 7,708,292 5,112,160 721,975
Total current assets 23,028,041 18,425,247 2,602,143
NON-CURRENT ASSETS
Property and equipment, net 11,256,810 11,291,491 1,594,663
Deposits for property and equipment 101,800 101,925 14,395
Land use rights, net 5,541,108 5,517,928 779,280
Intangible assets, net 337,310 366,498 51,759
Investment in equity method investees 3,112,952 2,899,930 409,548
Other investments 2,002,756 2,353,997 332,448
Other long-term assets 608,073 519,949 73,431
Amounts due from related party-non current 102,000 89,250 12,605
Goodwill 236,711 186,711 26,369
Deferred tax assets, net 539,561 624,088 88,138
Operating lease right-of-use assets 1,715,556 1,685,534 238,043
Total non-current assets 25,554,637 25,637,301 3,620,679
TOTAL ASSETS 48,582,678 44,062,548 6,222,822
LIABILTIES AND EQUITY
CURRENT LIABILITIES
Short term loans 1,093,645 1,860,198 262,710
Accounts payable 13,792,200 9,279,575 1,310,526
Advance from customers 1,233,165 1,187,978 167,775
Accrued expenses and other current liabilities 6,534,575 4,758,596 672,042
Amounts due to related parties 532,788 411,608 58,130
Deferred income 405,994 344,312 48,626
Operating lease liabilities 333,268 372,200 52,565
Total current liabilities 23,925,635 18,214,467 2,572,374
NON-CURRENT LIABILITIES
Long term loans 64,515 262,373 37,054
Deferred tax liability 165,098 154,862 21,871
Deferred income-non current 782,068 880,978 124,418
Operating lease liabilities 1,395,665 1,375,428 194,248
Other long term liabilities 0 22,906 3,235
Total non-current liabilities 2,407,346 2,696,547 380,826
TOTAL LIABILITIES 26,332,981 20,911,014 2,953,200
EQUITY:
Class A ordinary shares (US$0.0001 par value, 483,489,642 shares authorized, and 76 77 11
117,584,362 and 117,973,624 shares issued and outstanding as of December 31,
2019 and March 31,2020, respectively)
Class B ordinary shares (US$0.0001 par value, 16,510,358 shares authorized, and 11 11 2
16,510,358 and 16,510,358 shares issued and outstanding as of December 31, 2019
and March 31,2020, respectively)
Additional paid-in capital 9,959,497 10,190,489 1,439,172
Retained earnings 11,924,228 12,518,285 1,767,920
Accumulated other comprehensive loss (56,656) (34,901) (4,929)
Non-controlling interests 422,541 477,573 67,446
Total shareholders' equity 22,249,697 23,151,534 3,269,622
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 48,582,678 44,062,548 6,222,822
Vipshop Holdings Limited
Reconciliations of GAAP and Non-GAAP Results
Three Months Ended
March 31, 2019
March 31, 2020
March 31, 2020
---
RMB'000
RMB'000
USD'000
Income from operations 863,171 782,191 110,465
Share-based compensation expenses 172,727 247,011 34,885
Amortization of intangible assets resulting from business acquisitions 607 17,689 2,498
Non-GAAP income from operations 1,036,505 1,046,891 147,848
Net income 876,964 680,892 96,158
Share-based compensation expenses 172,727 247,011 34,885
Impairment loss in investments 0 5,046 713
Investment gain and revaluation of investments excluding dividends (214,085) (9,895) (1,397)
Share of (gain) loss in investment of limited partnership that is accounted for as an (44,532) 56,327 7,955
equity method investee
Tax effect of investment gain and revaluation of investments excluding dividends 29,437 (10,468) (1,478)
Amortization of intangible assets resulting from business acquisitions 607 17,689 2,498
Tax effect of amortization of intangible assets resulting from business acquisitions (152) (4,422) (625)
Non-GAAP net income 820,966 982,180 138,709
Net income attributable to Vipshop's shareholders 872,282 684,825 96,713
Share-based compensation expenses 172,727 247,011 34,885
Impairment loss in investments 0 5,046 713
Investment gain and revaluation of investments excluding dividends (214,085) (9,895) (1,397)
Share of (gain) loss in investment of limited partnership that is accounted for as an (44,532) 56,327 7,955
equity method investee
Tax effect of investment gain and revaluation of investments excluding dividends 29,437 (10,468) (1,478)
Amortization of intangible assets resulting from business acquisitions 597 17,689 2,498
Tax effect of amortization of intangible assets resulting from business acquisitions (149) (4,422) (625)
Non-GAAP net income attributable to Vipshop's shareholders 816,277 986,113 139,264
Shares used in calculating earnings per share:
Weighted average number of Class A and Class B ordinary shares:
--Basic 133,037,380 134,326,928 134,326,928
--Diluted 139,290,699 136,909,242 136,909,242
Non-GAAP net income per Class A and Class B ordinary share
Non-GAAP net income attributable to Vipshop's shareholders--Basic 6.14 7.34 1.04
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 5.93 7.20 1.02
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)
Non-GAAP net income attributable to Vipshop's shareholders--Basic 1.23 1.47 0.21
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 1.19 1.44 0.20
View original content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-first-quarter-2020-financial-results-301065845.html
SOURCE Vipshop Holdings Limited
