Vipshop Reports Unaudited Fourth Quarter and Full Year 2020 Financial Results
GUANGZHOU, China, Feb. 25, 2021 /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 fourth quarter and full year ended December 31, 2020.
Fourth Quarter and Full Year 2020 Highlights
-- Total net revenue for the fourth quarter of 2020 increased by 22.0% year
over year to RMB35.8 billion (US$5.5 billion) from RMB29.3 billion in
the prior year period. Total net revenue for the full year of 2020
increased by 9.5% year over year to RMB101.9 billion (US$15.6 billion)
from RMB93.0 billion in the prior year.
-- GMV([1]) for the fourth quarter of 2020 increased by 25% year over year
to RMB59.3 billion from RMB47.6 billion in the prior year period. GMV
for the full year of 2020 increased by 11% year over year to RMB165.0
billion from RMB148.2 billion in the prior year.
-- Gross profit for the fourth quarter of 2020 increased by 12.1% year over
year to RMB7.8 billion (US$1.2 billion) from RMB7.0 billion in the prior
year period. Gross profit for the full year of 2020 increased by 2.9%
year over year to RMB21.3 billion (US$3.3 billion) from RMB20.7 billion
in the prior year.
-- Net income attributable to Vipshop's shareholders for the fourth quarter
of 2020 increased by 67.7% year over year to RMB2.4 billion (US$374.1
million) from RMB1.5 billion in the prior year period. Net income
attributable to Vipshop's shareholders for the full year of 2020
increased by 47.1% year over year to RMB5.9 billion (US$905.3 million)
from RMB4.0 billion in the prior year.
-- Non-GAAP net income attributable to Vipshop's shareholders(([2])) for
the fourth quarter of 2020 increased by 33.4% year over year to RMB2.6
billion (US$394.8 million) from RMB1.9 billion in the prior year period.
Non-GAAP net income attributable to Vipshop's shareholders for the full
year of 2020 increased by 25.0% year over year to RMB6.3 billion
(US$960.7 million) from RMB5.0 billion in the prior year.
-- The number of active customers([3]) for the fourth quarter of 2020
increased by 37% year over year to 53.0 million from 38.6 million in the
prior year period. The number of active customers for the full year of
2020 increased by 22% year over year to 83.9 million from 69.0 million
in the prior year.
-- Total orders([4] )for the fourth quarter of 2020 increased by 30% year
over year to 227.3 million from 174.6 million in the prior year period.
Total orders for the full year of 2020 increased by 22% year over year
to 692.4 million from 566.3 million in the prior year.
Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are delighted to have finished the year of 2020 with strong financial and operational results in the fourth quarter. The growth in our number of active customers in the fourth quarter of 2020 continued to accelerate, reaching 37% year over year. Our GMV in the quarter has also shown strong growth momentum, with total GMV increasing by 25% year over year to 59.3 billion from 47.6 billion in the prior year period, driven by a strong 28% year-over-year increase in apparel-related GMV. We are glad that our customers, old and new, are recognizing the value of our differentiated offerings, as exemplified by a 10% year-over-year increase in our conversion rate in the fourth quarter of 2020. Looking ahead, we will continue to be keenly focused on our merchandising strategy, while at the same time, enhancing our big data and technological capabilities to cater to the diversified needs of a broader customer base, particularly in our core categories, aiming to further expand our market share in China's discount retail market."
Mr. David Cui, Chief Financial Officer of Vipshop, further commented, "We continued to deliver accelerated topline growth in the fourth quarter of 2020, driven by the strong growth in our number of active customers, of which new customers grew even faster on a year-over-year basis. In addition, our net income grew faster than our revenues, demonstrating enhanced profitability, and we generated robust free cash inflow for the trailing twelve months ended December 31, 2020. We believe these successes result from our focus on offering our customers desirable merchandises at deep discounts, while providing them with superior shopping experience. We are committed to continuing to offer value to our customers while helping our brand partners grow their business and monetize their excess inventory quickly and effectively, ultimately generating sustainable return for our shareholders."
Fourth Quarter 2020 Financial Results
REVENUE
Total net revenue for the fourth quarter of 2020 increased by 22.0% year over year to RMB35.8 billion (US$5.5 billion) from RMB29.3 billion in the prior year period, primarily driven by the growth in the number of total active customers.
GROSS PROFIT
Gross profit for the fourth quarter of 2020 increased by 12.1% year over year to RMB7.8 billion (US$1.2 billion) from RMB7.0 billion in the prior year period. Gross margin for the fourth quarter of 2020 was 21.9%, as compared with 23.9% in the prior year period.
OPERATING EXPENSES
Total operating expenses for the fourth quarter of 2020 were RMB5.4 billion (US$830.9 million), as compared with RMB5.4 billion in the prior year period. As a percentage of total net revenue, total operating expenses for the fourth quarter of 2020 decreased to 15.2% from 18.3% in the prior year period.
-- Fulfillment expenses for the fourth quarter of 2020 were RMB2.2 billion
(US$335.6 million), as compared with RMB2.1 billion in the prior year
period. As a percentage of total net revenue, fulfillment expenses for
the fourth quarter of 2020 decreased to 6.1% from 7.0% in the prior year
period, primarily attributable to the change in fulfillment logistic
arrangement.
-- Marketing expenses for the fourth quarter of 2020 were RMB1.7 billion
(US$261.1 million), as compared with RMB944.1 million in the prior year
period. As a percentage of total net revenue, marketing expenses for the
fourth quarter of 2020 were 4.8%, as compared with 3.2% in the prior
year period, primarily attributable to increased investment in customer
acquisition.
-- Technology and content expenses for the fourth quarter of 2020 decreased
to RMB272.4 million (US$41.7 million) from RMB362.2 million in the prior
year period. As a percentage of total net revenue, technology and
content expenses for the fourth quarter of 2020 decreased to 0.8% from
1.2% in the prior year period.
-- General and administrative expenses for the fourth quarter of 2020 were
RMB1.3 billion (US$192.5 million), as compared with RMB1.7 billion in
the prior year period. As a percentage of total net revenue, general and
administrative expenses for the fourth quarter of 2020 decreased to 3.5%
from 5.9% in the prior year period.
INCOME FROM OPERATIONS
Income from operations for the fourth quarter of 2020 increased by 45.9% year over year to RMB2.6 billion (US$396.9 million) from RMB1.8 billion in the prior year period. Operating margin for the fourth quarter of 2020 increased to 7.2% from 6.1% in the prior year period.
Non-GAAP income from operations[5]for the fourth quarter of 2020, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 30.2% year over year to RMB2.8 billion (US$432.1 million) from RMB2.2 billion in the prior year period. Non-GAAP operating income margin([6]) for the fourth quarter of 2020 increased to 7.9% from 7.4% in the prior year period.
NET INCOME
Net income attributable to Vipshop's shareholders for the fourth quarter of 2020 increased by 67.7% year over year to RMB2.4 billion (US$374.1 million) from RMB1.5 billion in the prior year period. Net margin attributable to Vipshop's shareholders for the fourth quarter of 2020 increased to 6.8% from 5.0% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS([7]) for the fourth quarter of 2020 increased to RMB3.51 (US$0.54) from RMB2.14 in the prior year period.
Non-GAAP net income attributable to Vipshop's shareholders for the fourth quarter of 2020, which excluded (i) share-based compensation expenses, (ii) tax effect of share-based compensation expenses, (iii) impairment loss of investments, (iv) amortization of intangible assets resulting from business acquisitions, (v) tax effect of amortization of intangible assets resulting from business acquisitions, (vi) investment gain and revaluation of investments excluding dividends, (vii) tax effect of investment gain and revaluation of investments excluding dividends, and (viii) share of loss in investment of limited partnerships that are accounted for as equity method investees, increased by 33.4% year over year to RMB2.6 billion (US$394.8 million) from RMB1.9 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[8] for the fourth quarter of 2020 increased to 7.2% from 6.6% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9] for the fourth quarter of 2020 increased to RMB3.70 (US$0.57) from RMB2.84 in the prior year period.
For the quarter ended December 31, 2020, the Company's weighted average number of ADSs used in computing diluted income per ADS was 696,098,755.
BALANCE SHEET AND CASH FLOW
As of December 31, 2020, the Company had cash and cash equivalents and restricted cash of RMB12.8 billion (US$2.0 billion) and short term investments of RMB7.3 billion (US$1.1 billion).
For the quarter ended December 31, 2020, net cash from operating activities was RMB7.2 billion (US$1.1 billion), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows:
For the three months ended
Dec 31, 2019
Dec 31, 2020 Dec 31, 2020
RMB'000
RMB'000 US$'000
Net
cash
from
operating
activities 6,091,889 7,227,682 1,107,691
Add:
Net
impact
from
Internet
financing (1,231,955) (90,565) (13,880)
activities[11]
Less:
Capital
expenditures (1,135,856) (499,787) (76,596)
Free
cash
inflow 3,724,078 6,637,330 1,017,215
Full Year 2020 Financial Results
Total net revenue for the full year of 2020 increased by 9.5% year over year to RMB101.9 billion (US$15.6 billion) from RMB93.0 billion in the prior year, primarily driven by the growth in the number of total active customers.
Gross profit for the full year of 2020 increased by 2.9% year over year to RMB21.3 billion (US$3.3 billion) from RMB20.7 billion in the prior year. Gross margin for the full year of 2020 was 20.9%, as compared with 22.2% in the prior year.
Income from operations for the full year of 2020 increased by 22.8% year over year to RMB5.9 billion (US$898.1 million) from RMB4.8 billion in the prior year. Operating margin for the full year of 2020 increased to 5.8% from 5.1% in the prior year.
Non-GAAP income from operations for the full year of 2020, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 19.0% year over year to RMB6.8 billion (US$1.0 billion) from RMB5.8 billion in the prior year. Non-GAAP operating income margin for the full year of 2020 increased to 6.7% from 6.2% in the prior year.
Net income attributable to Vipshop's shareholders for the full year of 2020 increased by 47.1% year over year to RMB5.9 billion (US$905.3 million) from RMB4.0 billion in the prior year. Net margin attributable to Vipshop's shareholders for the full year of 2020 increased to 5.8% from 4.3% in the prior year. Net income attributable to Vipshop's shareholders per diluted ADS for the full year of 2020 increased to RMB8.56 (US$1.31) from RMB5.92 in the prior year.
Non-GAAP net income attributable to Vipshop's shareholders for the full year of 2020, which excluded (i) share-based compensation expenses, (ii) tax effect of share-based compensation expenses, (iii) impairment loss of investments, (iv) amortization of intangible assets resulting from business acquisitions, (v) tax effect of amortization of intangible assets resulting from business acquisitions, (vi) investment gain and revaluation of investments excluding dividends, (vii) tax effect of investment gain and revaluation of investments excluding dividends, and (viii) share of loss in investment of limited partnership that is accounted for as an equity method investee, increased by 25.0% year over year to RMB6.3 billion (US$960.7 million) from RMB5.0 billion in the prior year. Non-GAAP net margin attributable to Vipshop's shareholders for the full year of 2020 increased to 6.2% from 5.4% in the prior year. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS for the full year of 2020 increased to RMB9.08 (US$1.39) from RMB7.38 in the prior year.
For the full year of 2020, the Company's weighted average number of ADSs used in computing diluted earnings per ADS was 690,180,050.
For the full year of 2020, net cash from operating activities was RMB11.8 billion (US$1.8 billion), and free cash flow, a non-GAAP measurement of liquidity, was as follows:
For the trailing twelve months ended
Dec 31, 2019
Dec 31, 2020 Dec 31, 2020
RMB'000
RMB'000 US$'000
Net cash from
operating activities 12,290,183 11,820,444 1,811,562
Add: Net impact from
Internet financing (5,542,083) (1,226,467) (187,964)
activities[11]
Less: Capital
expenditures (4,277,673) (2,271,896) (348,183)
Free cash inflow 2,470,427 8,322,081 1,275,415
Business Outlook
For the first quarter of 2021, the Company expects its total net revenue to be between RMB27.2 billion and RMB28.2 billion, representing a year-over-year growth rate of approximately 45% to 50%. 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 RMB6.5250 to US$1.00, the effective noon buying rate on December 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 December 31, 2020, or at any other rate.
Conference Call Information
The Company will hold a conference call on Thursday, February 25, 2021 at 7:30 am Eastern Time or 8:30 pm Beijing Time to discuss its financial results and operating performance for the fourth quarter and full year 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
#2154516
---
Registration
Link
http://apac.directeventreg.com/registration/event/2154516
---
The replay will be accessible through March 5, 2021 by dialing the following numbers:
United States Toll Free:
+1-855-452-5696
International:
+61-2-8199-0299
Conference ID:
#2154516
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) tax effect of share-based compensation expenses, (iii) impairment loss of investments, (iv) amortization of intangible assets resulting from business acquisitions, (v) tax effect of amortization of intangible assets resulting from business acquisitions, (vi) investment gain and revaluation of investments excluding dividends, (vii) tax effect of investment gain and revaluation of investments excluding dividends, and (viii) share of loss in investment of limited partnerships that are accounted for as equity method investees. 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 loss in investment of limited partnerships that are accounted for as equity method investees add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of (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 loss in investment of limited partnerships that are accounted for as equity method investees. 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) tax
effect of share-based compensation expenses, (iii)
impairment loss of investments, (iv) amortization of
intangible assets resulting from business acquisitions, (v)
tax effect of amortization of intangible assets resulting
from business acquisitions, (vi) investment gain and
revaluation of investments excluding dividends, (vii) tax
effect of investment gain and revaluation of investments
excluding dividends, and (viii) share of loss in investment
of limited partnerships that are accounted for as equity
method investees.
[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
Twelve Months Ended
---
December 31,2019
December 31,2020
December 31,2020
December 31,2019
December 31,2020
December 31,2020
---
RMB'000
RMB'000
USD'000
RMB'000
RMB'000
USD'000
Product revenues 28,062,306 34,111,067 5,227,750 88,721,311 97,449,712 14,934,822
Other revenues (1) 1,256,798 1,663,874 255,000 4,273,107 4,408,777 675,675
Total net revenues 29,319,104 35,774,941 5,482,750 92,994,418 101,858,489 15,610,497
Cost of revenues (22,318,374) (27,927,515) (4,280,079) (72,314,190) (80,573,181) (12,348,380)
Gross profit 7,000,730 7,847,426 1,202,671 20,680,228 21,285,308 3,262,117
Operating expenses:
Fulfillment expenses (2) (2,052,916) (2,189,585) (335,569) (7,317,706) (6,878,991) (1,054,251)
Marketing expenses (944,100) (1,703,582) (261,085) (3,323,927) (4,284,274) (656,594)
Technology and content expenses (362,160) (272,379) (41,744) (1,568,107) (1,221,264) (187,167)
General and administrative expenses (1,732,020) (1,256,115) (192,508) (4,064,264) (3,748,548) (574,490)
Goodwill impairment loss (278,263) 0 0 (278,263) 0 0
Total operating expenses (5,369,459) (5,421,661) (830,906) (16,552,267) (16,133,077) (2,472,502)
Other operating income 144,162 164,011 25,136 645,413 707,855 108,483
Income from operations 1,775,433 2,589,776 396,901 4,773,374 5,860,086 898,098
Investment gain and revaluation of investments (30,529) 200,276 30,694 166,932 980,868 150,325
Impairment loss of investments (43,973) (38,114) (5,841) (127,589) (43,160) (6,614)
Interest expense (14,740) (6,269) (961) (86,004) (67,357) (10,323)
Interest income 70,287 155,255 23,794 217,027 449,017 68,815
Foreign exchange loss (35,162) (98,021) (15,022) (935) (160,097) (24,536)
Income before income tax expense and share of gain of equity method investees 1,721,316 2,802,903 429,565 4,942,805 7,019,357 1,075,765
Income tax expenses (313,802) (384,660) (58,952) (983,554) (1,130,016) (173,183)
Share of gain of equity method investees 2,488 29,468 4,516 27,182 30,015 4,600
Net income 1,410,002 2,447,711 375,129 3,986,433 5,919,356 907,182
Net loss(income) attributable to non-controlling interests 45,556 (6,898) (1,057) 30,399 (12,399) (1,900)
Net income attributable to Vipshop's shareholders 1,455,558 2,440,813 374,072 4,016,832 5,906,957 905,282
Shares used in calculating earnings per share (3):
Weighted average number of Class A and Class B ordinary shares:
-Basic 133,954,320 135,646,247 135,646,247 133,524,129 135,077,790 135,077,790
-Diluted 135,976,408 139,219,751 139,219,751 136,081,415 138,036,010 138,036,010
Net earnings per Class A and Class B ordinary share
Net income attributable to Vipshop's shareholders--Basic 10.87 17.99 2.76 30.08 43.73 6.70
Net income attributable to Vipshop's shareholders--Diluted 10.70 17.53 2.69 29.58 42.79 6.56
Net earnings per ADS (1 ordinary share equals to 5 ADSs)
Net income attributable to Vipshop's shareholders--Basic 2.17 3.60 0.55 6.02 8.75 1.34
Net income attributable to Vipshop's shareholders--Diluted 2.14 3.51 0.54 5.92 8.56 1.31
(1) Other revenues primarily consist of revenues from third-party logistics services, product promotion and online advertising, fees charged to third-party (1) Other revenues primarily consist of revenues from third-
party logistics
merchants which the Company provides platform access for sales of their products, interest income from microcredit and consumer financing services, services, product promotion and online advertising, fees
charged to third-
inventory and warehouse management services to certain suppliers, loan facilitation service income, and lease income earned from the Shan Shan party merchants which the Company provides platform access for
sales of
Outlets. their products, interest income from microcredit and consumer
financing
services, inventory and warehouse management services to
certain
suppliers, loan facilitation service income, and lease income
earned from
the Shan Shan Outlets.
(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB 1.36 billion and RMB 1.5 billion in the three month periods (2) Fulfillment expenses include shipping and handling
expenses, which
ended December 31,2019 and December 31,2020, respectively. amounted RMB 4.63 billion and RMB 4.5 billion in the twelve
month
periods ended December 31,2019 and 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 (3) Authorized share capital is re-classified and re-
designated into Class A
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. 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 e
ntitled to ten votes on all matters that are subject to
shareholder vote.
Three Months Ended
Twelve Months Ended
---
December 31,2019
December 31,2020
December 31,2020
December 31,2019
December 31,2020
December 31,2020
---
RMB'000
RMB'000
USD'000
RMB'000
RMB'000
USD'000
Share-based compensation expenses are included in the operating expenses as follows:
Fulfillment expenses 24,044 23,025 3,529 112,683 100,486 15,400
Marketing expenses 1,725 3,529 541 35,038 16,534 2,534
Technology and content expenses 8,098 20,598 3,157 180,493 152,234 23,331
General and administrative expenses 65,315 176,701 27,081 359,869 681,794 104,490
Total 99,182 223,853 34,308 688,083 951,048 145,755
Vipshop Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except for share and per share data)
December 31,2019
December 31,2020
December 31,2020
---
RMB'000
RMB'000
USD'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents 6,573,808 11,995,415 1,838,378
Restricted cash 1,145,477 815,906 125,043
Short term investments 3,052,726 7,328,719 1,123,175
Accounts receivable, net 1,295,766 334,529 51,269
Amounts due from related parties 47,964 333,539 51,117
Other receivables and prepayments,net 2,897,893 2,286,359 350,400
Loan receivables,net 306,115 27,258 4,177
Inventories 7,708,292 7,642,509 1,171,266
Assets held for sale 0 408,748 62,643
Total current assets 23,028,041 31,172,982 4,777,468
NON-CURRENT ASSETS
Property and equipment, net 11,256,810 13,584,459 2,081,909
Deposits for property and equipment 101,800 73,718 11,298
Land use rights, net 5,541,108 6,062,792 929,164
Intangible assets, net 337,310 333,022 51,038
Investment in equity method investees 3,112,952 1,949,787 298,818
Other investments 2,002,756 2,861,034 438,472
Other long-term assets 608,073 100,328 15,376
Amounts due from related party-non current 102,000 0 0
Goodwill 236,711 593,662 90,983
Deferred tax assets, net 539,561 628,267 96,286
Operating lease right-of-use assets 1,715,556 1,580,763 242,263
Total non-current assets 25,554,637 27,767,832 4,255,607
TOTAL ASSETS 48,582,678 58,940,814 9,033,075
LIABILTIES AND EQUITY
CURRENT LIABILITIES
Short term loans 1,093,645 1,043,426 159,912
Accounts payable 13,792,200 15,191,313 2,328,171
Advance from customers 1,233,165 1,558,891 238,911
Accrued expenses and other current liabilities 6,534,575 7,696,996 1,179,616
Amounts due to related parties 532,788 444,100 68,061
Deferred income 405,994 334,431 51,254
Operating lease liabilities 333,268 299,791 45,945
Total current liabilities 23,925,635 26,568,948 4,071,870
NON-CURRENT LIABILITIES
Long term loans 64,515 0 0
Deferred tax liability 165,098 432,995 66,359
Deferred income-non current 782,068 1,070,891 164,121
Operating lease liabilities 1,395,665 1,360,946 208,574
Other long term liabilities 0 121,245 18,582
Total non-current liabilities 2,407,346 2,986,077 457,636
TOTAL LIABILITIES 26,332,981 29,555,025 4,529,506
EQUITY:
Class A ordinary shares (US$0.0001 par value, 483,489,642 shares authorized, and 117,584,362 76 77 12
and 119,223,484 shares issued and outstanding as of December 31, 2019 and December
31,2020, respectively)
Class B ordinary shares (US$0.0001 par value, 16,510,358 shares authorized, and 16,510,358 11 11 2
and 16,510,358 shares issued and outstanding as of December 31, 2019 and December
31,2020, respectively)
Additional paid-in capital 9,959,497 10,816,185 1,657,653
Retained earnings 11,924,228 17,740,415 2,718,838
Accumulated other comprehensive loss (56,656) (58,954) (9,036)
Non-controlling interests 422,541 888,055 136,100
Total shareholders' equity 22,249,697 29,385,789 4,503,569
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 48,582,678 58,940,814 9,033,075
Vipshop Holdings Limited
Reconciliations of GAAP and Non-GAAP Results
Three Months Ended
Twelve Months Ended
---
December 31,2019
December 31,2020
December 31,2020
December 31,2019
December 31,2020
December 31,2020
---
RMB'000
RMB'000
USD'000
RMB'000
RMB'000
USD'000
Income from operations 1,775,433 2,589,776 396,901 4,773,374 5,860,086 898,098
Share-based compensation expenses 99,182 223,853 34,308 688,083 951,048 145,755
Goodwill impairment loss 278,263 278,263 -
Amortization of intangible assets resulting from business acquisitions 13,032 5,896 904 14,468 35,377 5,422
Non-GAAP income from operations 2,165,910 2,819,525 432,113 5,754,188 6,846,511 1,049,275
Net income 1,410,002 2,447,711 375,129 3,986,433 5,919,356 907,182
Share-based compensation expenses 99,182 223,853 34,308 688,083 951,048 145,755
Goodwill impairment loss 278,263 278,263 -
Impairment loss of investments 43,973 38,114 5,841 127,589 43,160 6,614
Investment gain and revaluation of investments excluding dividends 39,998 (22,269) (3,413) (155,390) (668,568) (102,462)
Share of loss in investment of limited partnerships that are accounted for as an equity method 28,459 4,085 626 41,707 83,404 12,782
investee
Tax effect of investment gain and revaluation of investments excluding dividends (6,483) (9,253) (1,418) 22,588 29,513 4,523
Tax effect of share-based compensation expenses 0 (103,438) (15,853) 0 (103,438) (15,853)
Amortization of intangible assets resulting from business acquisitions 13,032 5,896 904 14,468 35,377 5,422
Tax effect of amortization of intangible assets resulting from business acquisitions (3,258) (1,474) (226) (3,617) (8,844) (1,355)
Non-GAAP net income 1,903,168 2,583,225 395,898 5,000,124 6,281,008 962,608
Net income attributable to Vipshop's shareholders 1,455,558 2,440,813 374,072 4,016,832 5,906,957 905,282
Share-based compensation expenses 99,182 223,853 34,308 688,083 951,048 145,755
Goodwill impairment loss 261,259 261,259 -
Impairment loss of investments 43,973 38,114 5,841 127,589 43,160 6,614
Investment gain and revaluation of investments excluding dividends 39,998 (22,269) (3,413) (155,390) (668,568) (102,462)
Share of loss in investment of limited partnerships that are accounted for as an equity method 28,459 4,085 626 41,707 83,404 12,782
investee
Tax effect of investment gain and revaluation of investments excluding dividends (6,483) (9,253) (1,418) 22,588 29,513 4,523
Tax effect of share-based compensation expenses 0 (103,438) (15,853) 0 (103,438) (15,853)
Amortization of intangible assets resulting from business acquisitions 12,639 5,896 904 14,045 35,377 5,422
Tax effect of amortization of intangible assets resulting from business acquisitions (3,160) (1,474) (226) (3,511) (8,844) (1,355)
Non-GAAP net income attributable to Vipshop's shareholders 1,931,425 2,576,327 394,841 5,013,202 6,268,609 960,708
Shares used in calculating earnings per share:
Weighted average number of Class A and Class B ordinary shares:
-Basic 133,954,320 135,646,247 135,646,247 133,524,129 135,077,790 135,077,790
-Diluted 135,976,408 139,219,751 139,219,751 136,081,415 138,036,010 138,036,010
Non-GAAP net income per Class A and Class B ordinary share
Non-GAAP net income attributable to Vipshop's shareholders--Basic 14.42 18.99 2.91 37.55 46.41 7.11
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 14.20 18.51 2.84 36.91 45.41 6.96
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)
Non-GAAP net income attributable to Vipshop's shareholders--Basic 2.88 3.80 0.58 7.51 9.28 1.42
Non-GAAP net income attributable to Vipshop's shareholders--Diluted 2.84 3.70 0.57 7.38 9.08 1.39
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SOURCE Vipshop Holdings Limited
