Source: PR Newswire Asia

Press Release: Vipshop : 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, 2018GUANGZHOU, China, May 15, 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 HighlightsTotal 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 HighlightsVipshop 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 ResultsREVENUE 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 PROFITGross 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 EXPENSESTotal 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 INCOMENet 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 FLOWAs 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$27.3 million), and free cash flow[9], a non-GAAP measurement of liquidity, was as follows:For the three months endedMar 31, 2017 RMB'000Mar 31, 2018 RMB'000Mar 31, 2018 US$'000Net cash from operating activities736,744171,24527,300Add: 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 endedMar 31, 2017 RMB'000Mar 31, 2018 RMB'000Mar 31, 2018 US$'000Net cash from operating activities3,414,946415,75266,281Add: Impact from Internet financing activities[10]2,557,1692,304,275367,356Less: Capital expenditures(2,715,495)(2,705,155)(431,265)Free cash flow in 3,256,62014,8722,372Accounting Pronouncements Adopted During the Quarter Ended March 31, 2018In 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$28.1 million). In addition, the impact of applying this ASU for the three months ended March 31, 2018 primarily resulted in an increase in product sales and a change in deferred revenue driven by the Weipin Coins that are now accounted as a single performance obligation and identified as variable consideration.The Company offers customers with an unconditional right of return for a period of 7 days upon receipt of products on sales from its platforms. Under the previous revenue standard, revenue was deferred until the 7 days return period expired. However, under the new revenue standard, revenue is recognized at the point of time when the control of goods has been passed to the customers upon the receipt of goods by the customers. The Company makes accrual on the expected sales returns in relation to the 7 day unconditional return policy.Business OutlookFor the second quarter of 2018, the Company expects its total net revenue to be between RMB20.5 billion and RMB21.3 billion, representing a year-over-year growth rate of approximately 17% to 22%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.Exchange RateThe Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") 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 InformationThe 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: +1-845-675-0438International Toll Free:+1-855-500-8701China Domestic: 400-1200-654Hong Kong:+852-3018-6776Conference ID: #1856707The 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: #1856707A 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 LimitedVipshop 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 StatementThis 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 MeasuresThe 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 ContactJessie FanTel: +86 (20) 2233-0732Email: [email protected][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 LimitedUnaudited Condensed Consolidated Statements of Income and Comprehensive Income (In thousands, except per share data)Three Months EndedMarch 31,2017March 31,2018March 31,2018RMB'000RMB'000USD'000Product revenues 15,606,80419,367,5153,087,637Other revenues (1)346,141503,11380,208Total net revenues15,952,94519,870,6283,167,845Cost of revenues(12,258,473)(15,861,214)(2,528,651)Gross profit3,694,4724,009,414639,194Operating 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 income169,578112,27317,899Income from operations736,596662,692105,647Interest expenses(25,113)(28,945)(4,615)Interest income25,86060,3349,619Exchange loss(10,437)(63,738)(10,161)Income before income taxes and share of result of affiliates726,906630,343100,490Income tax expenses (4)(165,911)(106,481)(16,975)Share of (loss) gain of affiliates(17,686)737118Net income543,309524,59983,633Net loss attributable to noncontrolling interests8,6085,129818Net income attributable to Vipshop's shareholders551,917529,72884,451Shares used in calculating earnings per share (5):Class A and Class B ordinary shares:-Basic116,819,173131,605,256131,605,256-Diluted125,067,816140,490,311140,490,311Net earnings per Class A and Class B shareNet income attributable to Vipshop's shareholders--Basic4.724.030.64Net income attributable to Vipshop's shareholders--Diluted4.593.860.62Net earnings per ADS (1 ordinary share equals to 5 ADSs)Net income attributable to Vipshop's shareholders--Basic0.940.810.13Net income attributable to Vipshop's shareholders--Diluted0.920.770.12(1) Other revenues primarily consist of revenues from third-party logistics services, productpromotion and online advertising, fees charged to third-party merchants which the Companyprovides platform access for sales of their products,and inventory and warehouse managementservices to certain suppliers.(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB 771million 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 frombusiness acquisitions, which amounted to RMB 87 million and RMB 44 million in the three monthsperiod 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 relatedto the reversal of deferred tax liabilities, which was recognized on business acquisitions for thethree 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 andClass B ordinary shares, with each Class A ordinary share being entitled to one vote and eachClass B ordinary share being entitled to ten votes on all matters that are subject to shareholdervote.Net income543,309524,59983,633Other comprehensive income, net of tax: Foreign currency translation adjustments 25,243(20,868)(3,327)Unrealized gain from available-for-sale investments22,45100Comprehensive income591,003503,73180,306Less: Comprehensive loss attributable to noncontrolling interests(8,608)(5,129)(818)Comprehensive income attributable to Vipshop's shareholders599,611508,86081,124Three Months EndedMarch 31,2017March 31,2018March 31,2018RMB'000RMB'000USD'000Share-based compensation expenses included are as followsFulfillment expenses18,09619,1303,050Marketing expenses10,29810,8341,727Technology and content expenses51,83254,2338,646General and administrative expenses100,14787,11713,888Total180,373171,31427,311Vipshop Holdings LimitedUnaudited Condensed Consolidated Balance Sheets(In thousands, except per share data)December 31,2017March 31,2018March 31,2018RMB'000RMB'000USD'000ASSETSCURRENT ASSETSCash and cash equivalents9,973,8917,008,1021,117,256Restricted cash 248,101348,47655,555Short term investments245,9811,806,977288,075Accounts receivable, net4,803,5274,520,362720,652Amounts due from related parties10,1919,6411,537Other receivables and prepayments,net3,674,1963,468,664552,987Loan Receivables,net0164,45826,218Inventories6,960,2515,081,878810,171Total current assets25,916,13822,408,5583,572,451NON-CURRENT ASSETSProperty and equipment, net6,660,8256,701,5931,068,392Deposits for property and equipment307,859441,27070,349Land use rights, net3,077,7703,309,546527,620Intangible assets, net400,994355,77656,719Investment in affiliates66,33465,63410,464Other investments387,640376,61360,041Available-for-sale investments146,282142,57122,729Other long-term assets366,760415,46466,235Goodwill367,106367,10658,525Deferred tax assets285,112355,73956,713Total non-current assets12,066,68212,531,3121,997,787TOTAL ASSETS37,982,82034,939,8705,570,238LIABILTIES AND EQUITY CURRENT LIABILITIESShort term loans (Including short term loans of the VIE without recourse tothe Company of nil and nil as of December 31, 2017 and March 31, 2018,respectively) 907,310751,000119,727Accounts payable (Including accounts payable of the VIE without recourseto the Company of RMB 87,926 and RMB 25,917 as of December 31, 2017and March 31, 2018, respectively) 11,445,1099,569,7871,525,649Advance from customers (Including advance from customers of the VIEwithout recourse to the Company of RMB 965,275 and RMB 720,916 as of December 31, 2017 and March 31, 2018, respectively) 2,339,9141,157,942184,603Accrued expenses and other current liabilities (Including accrued expensesand other current liabilities of the VIE without recourse to the Company ofRMB 1,618,716 and RMB 1,379,548 as of December 31, 2017 and March31, 2018, respectively) 3,537,1513,284,473523,622Amounts due to related parties (Including amounts due to related parties ofthe VIE without recourse to the Company of RMB 616 and RMB 276 as ofDecember 31, 2017 and March 31, 2018, respectively) 65,02246,7997,461Deferred income (Including deferred income of the VIE without recourse tothe Company of RMB 54,543 and RMB 79,651 as of December 31, 2017and March 31, 2018, respectively) 203,179237,00337,784Securitization debt (Including securitization debt of the VIE without recourse tothe Company of nil and nil as of December 31, 2017 and March 31, 2018,respectively) 760,000475,00075,726Convertible senior notes03,947,818629,375Total current liabilities19,257,68519,469,8223,103,947NON-CURRENT LIABILITIESDeferred tax liability (Including deferred tax of the VIE without recourse to theCompany of RMB 4,224 and nil as of December 31, 2017 and March 31,2018, respectively) 17,0076,3291,009Deferred income-non current (Including deferred income-non current of theVIE without recourse to the Company of RMB 838 and RMB 480 as ofDecember 31, 2017 and March 31, 2018, respectively) 362,649360,87257,532Convertible senior notes4,094,90300Total non-current liabilities4,474,559367,20158,541Total liabilities23,732,24419,837,0233,162,488EQUITY:Class A ordinary shares (US$0.0001 par value, 483,489,642 sharesauthorized, and 114,716,587 and 115,293,345 shares issued andoutstanding as of December 31, 2017 and March 31, 2018, respectively) 747512Class B ordinary shares (US$0.0001 par value, 16,510,358 sharesauthorized, and 16,510,358 and 16,510,358 shares issued andoutstanding as of December 31, 2017 and March 31, 2018, respectively) 11112Additional paid-in capital8,715,9958,887,8131,416,927Retained earnings5,602,6816,309,1301,005,824Accumulated other comprehensive loss(24,242)(45,109)(7,192)Noncontrolling interests(43,943)(49,073)(7,823)Total shareholders' equity14,250,57615,102,8472,407,750TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 37,982,82034,939,8705,570,238Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP ResultsThree Months EndedMarch 31,2017March 31,2018March 31,2018RMB'000RMB'000USD'000Income from operations736,596662,692105,647Share-based compensation expenses180,373171,31427,311Amortization of intangible assets resulting from business acquisitions87,18644,0557,023Non-GAAP income from operations1,004,155878,061139,981Net income543,309524,59983,633Share-based compensation expenses180,373171,31427,311Amortization of intangible assets resulting from business acquisitionsand equity method investments101,61544,0557,023Tax effect of amortization of intangible assets resulting from businessacquisitions(21,797)(11,014)(1,756)Non-GAAP net income803,500728,954116,211Net income attributable to Vipshop's shareholders551,917529,72884,451Share-based compensation expenses180,373171,31427,311Amortization of intangible assets resulting from business acquisitions andequity method investments84,72135,5735,671Tax effect of amortization of intangible assets resulting from businessacquisitions (17,573)(8,893)(1,418)Non-GAAP net income attributable to Vipshop's shareholders799,438727,722116,015Shares used in calculating earnings per share:Basic ordinary shares:Class A and Class B ordinary shares:--Basic116,819,173131,605,256131,605,256--Diluted125,067,816140,490,311140,490,311Non-GAAP net income per Class A and Class B shareNon-GAAP net income attributable to Vipshop's shareholders--Basic6.845.530.88Non-GAAP net income attributable to Vipshop's shareholders--Diluted6.575.270.84Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)Non-GAAP net income attributable to Vipshop's shareholders--Basic1.371.110.18Non-GAAP net income attributable to Vipshop's shareholders--Diluted1.311.050.17 View original content:http://www.prnewswire.com/news-releases/vipshop-reports-unaudited-first-quarter-2018-financial-results-300647578.html

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Eric Ya Shen's photo - Chairman & CEO of Vipshop

Chairman & CEO

Eric Ya Shen

CEO Approval Rating

81/100

Vipshop is an online portal that offers casual wear, jeans, outerwear, swimsuits, lingerie and pajamas.

Vipshop's headqua...
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