Vipshop Reports Unaudited Second Quarter 2023 Financial Results

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 18, 2023
GUANGZHOU, China, Aug. 18, 2023 /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 quarter ended June 30, 2023.
Second Quarter 2023 Highlights
Total net revenues for the second quarter of 2023 increased by 13.6% year over year to RMB27.9 billion (US$3.8 billion) from RMB24.5 billion in the prior year period.GMV[1] for the second quarter of 2023 increased by 24.5% year over year to RMB50.6 billion from RMB40.6 billion in the prior year period.Gross profit for the second quarter of 2023 increased by 23.4% year over year to RMB6.2 billion (US$855.3 million) from RMB5.0 billion in the prior year period. Net income attributable to Vipshop’s shareholders for the second quarter of 2023 increased by 63.5% year over year to RMB2.1 billion (US$289.3 million) from RMB1.3 billion in the prior year period.Non-GAAP net income attributable to Vipshop’s shareholders[2] for the second quarter of 2023 increased by 50.8% year over year to RMB2.4 billion (US$331.2 million) from RMB1.6 billion in the prior year period.The number of active customers[3] for the second quarter of 2023 increased by 9.6% year over year to 45.7 million from 41.7 million in the prior year period.Total orders[4] for the second quarter of 2023 increased by 14.7% year over year to 213.8 million from 186.3 million in the prior year period.Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “We had a strong second quarter driven by our well-executed merchandising strategy. During the quarter, our team was able to secure much more quality supply from core brands, which fueled the broad-based strength in apparel-related categories. Customers also showed stronger preference for us as they constantly seek value for money, led by robust momentum in our Super VIP members. With our clear-cut value proposition in discount retail, we are well positioned to capture the opportunity to further gain mindshare among consumers, making Vipshop the first go-to online shopping platform for apparel. To that end, we are building out our capabilities to offer a rich and diverse selection of great value, as well as reassuring customer service and experience. We are convinced that our unique business model will support us for the long-term growth.”
Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, “In the second quarter, we achieved strong top-line growth with profitability beyond expectations. Our commitment to discipline in day-to-day execution helped drive quality growth and greater efficiency, leading to strong margin expansion across the board. Furthermore, we continued to unlock value for shareholders through the existing US$1 billion share repurchase program, with US$348.5 million of our ADSs repurchased during the quarter. Looking forward, we are confident that we will maintain quality and healthy growth in both top line and bottom line.”
Second Quarter 2023 Financial Results
REVENUES 
Total net revenues for the second quarter of 2023 increased by 13.6% year over year to RMB27.9 billion (US$3.8 billion) from RMB24.5 billion in the prior year period, primarily attributable to the growth in active customers and spending driven by the recovery in consumption of discretionary categories.
GROSS PROFIT
Gross profit for the second quarter of 2023 increased by 23.4% year over year to RMB6.2 billion (US$855.3 million) from RMB5.0 billion in the prior year period. Gross margin for the second quarter of 2023 increased to 22.2% from 20.5% in the prior year period.
OPERATING EXPENSES
Total operating expenses for the second quarter of 2023 increased by 13.7% year over year to RMB4.5 billion (US$617.8 million) from RMB3.9 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the second quarter of 2023 was 16.1%, which stayed flat as compared with the prior year period.
Fulfillment expenses for the second quarter of 2023 increased by 22.8% year over year to RMB2.2 billion (US$300.8 million) from RMB1.8 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the second quarter of 2023 was 7.8%, as compared with 7.2% in the prior year period.Marketing expenses for the second quarter of 2023 increased by 60.6% year over year to RMB892.5 million (US$123.1 million) from RMB555.6 million in the prior year period. As a percentage of total net revenues, marketing expenses for the second quarter of 2023 was 3.2%, as compared with 2.3% in the prior year period.Technology and content expenses for the second quarter of 2023 increased by 7.6% year over year to RMB443.0 million (US$61.1 million) from RMB411.8 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the second quarter of 2023 decreased to 1.6% from 1.7% in the prior year period.General and administrative expenses for the second quarter of 2023 decreased by 19.4% year over year to RMB963.1 million (US$132.8 million) from RMB1.2 billion in the prior year period. As a percentage of total net revenues, general and administrative expenses for the second quarter of 2023 decreased to 3.5% from 4.9% in the prior year period.INCOME FROM OPERATIONS
Income from operations for the second quarter of 2023 increased by 51.1% year over year to RMB1.9 billion (US$264.3 million) from RMB1.3 billion in the prior year period. Operating margin for the second quarter of 2023 increased to 6.9% from 5.2% in the prior year period.
Non-GAAP income from operations[5] for the second quarter of 2023, which excluded share-based compensation expenses, increased by 48.2% year over year to RMB2.3 billion (US$316.9 million) from RMB1.6 billion in the prior year period. Non-GAAP operating margin[6] for the second quarter of 2023 increased to 8.2% from 6.3% in the prior year period.
NET INCOME
Net income attributable to Vipshop’s shareholders for the second quarter of 2023 increased by 63.5% year over year to RMB2.1 billion (US$289.3 million) from RMB1.3 billion in the prior year period. Net margin attributable to Vipshop’s shareholders for the second quarter of 2023 increased to 7.5% from 5.2% in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS[7] for the second quarter of 2023 increased to RMB3.75 (US$0.52) from RMB1.97 in the prior year period.
Non-GAAP net income attributable to Vipshop’s shareholders for the second quarter of 2023, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, increased by 50.8% year over year to RMB2.4 billion (US$331.2 million) from RMB1.6 billion in the prior year period. Non-GAAP net margin attributable to Vipshop’s shareholders[8] for the second quarter of 2023 increased to 8.6% from 6.5% in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS[9] for the second quarter of 2023 increased to RMB4.30 (US$0.59) from RMB2.45 in the prior year period.
For the quarter ended June 30, 2023, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 559,098,330.
BALANCE SHEET AND CASH FLOW
As of June 30, 2023, the Company had cash and cash equivalents and restricted cash of RMB18.3 billion (US$2.5 billion) and short term investments of RMB1.5 billion (US$200.2 million).
For the quarter ended June 30, 2023, net cash generated from operating activities was RMB4.1 billion (US$559.0 million), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows:
For the three months ended
June 30, 2022
 
RMB’000
June 30, 2023
 
RMB’000
June 30, 2023
 
US$’000
Net cash generated from operating activities
4,465,779
4,053,402
558,990
Reconciling items:
   Net impact from internet financing activities[11]
107,151
199,429
27,503
   Capital expenditures
(1,311,564)
(1,658,548)
(228,724)
Free cash inflow
3,261,366
2,594,283
357,769
For the trailing twelve months ended
June 30, 2022
 
RMB’000
June 30, 2023
 
RMB’000
June 30, 2023
 
US$’000
Net cash generated from operating activities
8,456,749
11,764,313
1,622,373
Reconciling items:
   Net impact from internet financing activities
232,857
315,313
43,484
   Capital expenditures
(4,165,254)
(3,906,017)
(538,664)
Free cash inflow
4,524,352
8,173,609
1,127,193
 
Share Repurchase Program
During the quarter ended June 30, 2023, the Company repurchased US$348.5 million of its ADSs under its current US$1 billion share repurchase program, which is effective through March 2025. As of June 30, 2023, the Company has an unutilized amount of US$564.9 million under this program.
Business Outlook
For the third quarter of 2023, the Company expects its total net revenues to be between RMB21.6 billion and RMB22.7 billion, representing a year-over-year increase of approximately 0% to 5%. 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 RMB7.2513 to US$1.00, the effective noon buying rate on June 30, 2023 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 June 30, 2023, or at any other rate.
Conference Call Information
The Company will hold a conference call on Friday, August 18, 2023 at 7:30 am U.S. Eastern Time, 7:30 pm Beijing Time to discuss the financial results.
All participants wishing to join the conference call must pre-register online using the link provided below.
Registration Link: https://register.vevent.com/register/BIa5ce1fd594754eeb9ce17294566f615c
Once pre-registration has been completed, each participant will receive dial-in numbers and a unique access PIN via email. To join the conference, participants should use the dial-in details followed by the PIN code.
A live webcast of the earnings conference call can be accessed at https://edge.media-server.com/mmc/p/xoxhojmv. An archived webcast will 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 https://ir.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 needs 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  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 margin, non-GAAP net margin attributable to Vipshop’s shareholders, and free cash flow, each of which is a non-GAAP financial measure. For the periods presented in this press release, 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) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments. 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. Non-GAAP operating margin is non-GAAP income from operations as a percentage of total net revenues. 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 revenues. 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. 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 (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments 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 (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments. 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, technology platform and Shan Shan Outlets. Share-based compensation expenses have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP Results” at the end of this release.
Investor Relations Contact
Tel: +86 (20) 2233-0732Email: IR@vipshop.com 
[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, Shan Shan Outlets, and other offline stores during the relevant period, including through the Company’s websites and mobile apps, third-party websites and mobile apps, Shan Shan Outlets, and other offline stores, which 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, for the periods presented in this press release, is defined as net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments.
[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.
[6] Non-GAAP operating 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 ADSs outstanding for computing diluted earnings per ADS.
[10] Free cash flow is a non-GAAP financial measure, which is defined as 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.
[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
 Six Months Ended 
 June 30,2022 
June 30,2023
June 30,2023
 June 30,2022 
June 30,2023
June 30,2023
RMB’000
RMB’000
 USD’000
RMB’000
RMB’000
USD’000
Product revenues 
23,160,136
26,163,113
3,608,058
47,086,568
52,100,943
7,185,049
Other revenues (1)
1,375,118
1,716,187
236,673
2,693,204
3,314,740
457,124
 Total net revenues 
24,535,254
27,879,300
3,844,731
49,779,772
55,415,683
7,642,173
 Cost of revenues 
(19,510,909)
(21,677,355)
(2,989,444)
(39,746,961)
(43,309,175)
(5,972,608)
 Gross profit 
5,024,345
6,201,945
855,287
10,032,811
12,106,508
1,669,565
 Operating expenses: 
 Fulfillment expenses (2) 
(1,776,011)
(2,181,066)
(300,783)
(3,470,954)
(3,964,897)
(546,784)
 Marketing expenses 
(555,570)
(892,505)
(123,082)
(1,314,845)
(1,729,399)
(238,495)
 Technology and content expenses 
(411,756)
(443,046)
(61,099)
(802,127)
(835,809)
(115,263)
 General and administrative expenses 
(1,195,167)
(963,117)
(132,820)
(2,249,881)
(2,010,788)
(277,300)
 Total operating expenses 
(3,938,504)
(4,479,734)
(617,784)
(7,837,807)
(8,540,893)
(1,177,842)
 Other operating income 
182,444
194,288
26,794
355,896
336,577
46,416
 Income from operations 
1,268,285
1,916,499
264,297
2,550,900
3,902,192
538,139
 Investment (loss) gain and revaluation of investments 
(7,344)
39,354
5,427
(41,802)
81,334
11,216
 Impairment loss of investments 
(50,000)
(19,105)
(2,635)
(50,000)
(19,105)
(2,635)
 Interest expense 
(6,494)
(1,989)
(274)
(11,229)
(7,696)
(1,061)
 Interest income 
189,982
183,168
25,260
389,676
405,133
55,870
 Exchange gain 
217,299
282,636
38,977
205,117
274,449
37,848
 Income before income tax expense and share of  (loss)income of equity method investees 
1,611,728
2,400,563
331,052
3,042,662
4,636,307
639,377
 Income tax expenses  
(296,717)
(339,056)
(46,758)
(588,560)
(729,201)
(100,561)
 Share of (loss) income of equity method investees 
(27,885)
49,202
6,785
(70,891)
81,009
11,172
 Net income 
1,287,126
2,110,709
291,079
2,383,211
3,988,115
549,988
Net income attributable to non-controlling interests
(4,236)
(13,255)
(1,828)
(4,657)
(31,931)
(4,403)
 Net income attributable to Vipshop’s shareholders 
1,282,890
2,097,454
289,251
2,378,554
3,956,184
545,585
 Shares used in calculating earnings per share (3): 
 Weighted average number of Class A and Class B ordinary shares: 
 —Basic 
129,149,941
110,053,473
110,053,473
132,186,466
112,975,907
112,975,907
 —Diluted 
129,934,399
111,819,666
111,819,666
132,973,941
114,669,108
114,669,108
 Net earnings per Class A and Class B ordinary share 
 Net income attributable to Vipshop’s shareholders——Basic 
9.93
19.06
2.63
17.99
35.02
4.83
 Net income attributable to Vipshop’s shareholders——Diluted 
9.87
18.76
2.59
17.89
34.50
4.76
 Net earnings per ADS (1 ordinary share equals to 5 ADSs) 
 Net income attributable to Vipshop’s shareholders——Basic 
1.99
3.81
0.53
3.60
7.00
0.97
 Net income attributable to Vipshop’s shareholders——Diluted 
1.97
3.75
0.52
3.58
6.90
0.95
(1) Other revenues primarily consist of product promotion and online advertising revenues, lease income mainly earned fromthe Shan Shan Outlets ,fees charged to third-party merchants which the Company provides platform access for sales of theirproducts, revenue from third-party logistics services, loan facilitation service income and membership fee income.
(1) Other revenues primarily consist of product promotion andonline advertising revenues, lease income mainly earned fromthe Shan Shan Outlets ,fees charged to third-party merchantswhich the Company provides platform access for sales of theirproducts, revenue from third-party logistics services, loanfacilitation service income and membership fee income.
(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB1.3 billion and RMB 1.6 billion in thethree month periods ended June 30,2022 and June 30,2023, respectively.
 (2) Fulfillment expenses include shipping and handlingexpenses, which amounted RMB2.5 billion and RMB2.9 billionin the six month periods ended June 30,2022 and June30,2023, respectively. 
(3) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, witheach Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to ten votes on allmatters that are subject to shareholder vote.
(3) Authorized share capital is re-classified and re-designatedinto Class A ordinary shares and Class B ordinary shares, witheach Class A ordinary share being entitled to one vote andeach Class B ordinary share being entitled to ten votes on allmatters that are subject to shareholder vote.
Three Months Ended
 Six Months Ended 
 June 30,2022 
June 30,2023
June 30,2023
 June 30,2022 
 June 30,2023 
 June 30,2023 
 RMB’000 
 RMB’000 
 USD’000 
 RMB’000 
 RMB’000 
 USD’000 
 Share-based compensation expenses are included in theoperating expenses as follows: 
 Fulfillment expenses 
19,362
23,173
3,196
37,629
38,542
5,315
 Marketing expenses 
3,839
8,383
1,156
6,203
17,711
2,442
 Technology and content expenses 
68,930
92,906
12,812
124,137
154,273
21,275
 General and administrative expenses 
190,668
256,996
35,441
352,500
475,076
65,516
 Total 
282,799
381,458
52,605
520,469
685,602
94,548
 
 
 
 Vipshop Holdings Limited
 Unaudited Condensed Consolidated Balance Sheets
 (In thousands, except for share and per share data) 
 December 31,2022 
June 30,2023
June 30,2023
RMB’000
 RMB’000 
 USD’000 
ASSETS
CURRENT ASSETS
Cash and cash equivalents
21,938,653
17,279,939
2,383,013
Restricted cash 
1,164,748
1,006,743
138,836
Short term investments
1,595,904
1,451,565
200,180
Accounts receivable, net
567,730
715,435
98,663
Amounts due from related parties,net
670,187
697,735
96,222
Other receivables and prepayments,net
2,280,449
2,011,608
277,413
Loan receivables,net
882
1,939
267
Inventories
5,515,880
4,081,458
562,859
Total current assets
33,734,433
27,246,422
3,757,453
NON-CURRENT ASSETS
Property and equipment, net
16,225,589
16,435,045
2,266,496
Deposits for property and equipment
296,717
32,760
4,518
Land use rights, net
7,638,506
7,920,624
1,092,304
Intangible assets, net
336,599
334,710
46,159
Investment in equity method investees
2,162,872
2,150,450
296,561
Other investments
2,660,305
3,026,766
417,410
Other long-term assets
91,762
1,301,765
179,522
Goodwill
755,213
755,213
104,149
Deferred tax assets, net
681,770
690,820
95,268
Operating lease right-of-use assets
891,744
592,035
81,645
Total non-current assets
31,741,077
33,240,188
4,584,032
TOTAL ASSETS
65,475,510
60,486,610
8,341,485
 LIABILITIES AND  EQUITY  
 CURRENT LIABILITIES 
 Short term loans 
2,687,438
507,971
70,052
 Accounts payable 
15,018,138
13,363,632
1,842,929
 Advance from customers  
1,737,424
1,345,158
185,506
 Accrued expenses and other current liabilities  
8,394,742
7,998,783
1,103,081
 Amounts due to related parties  
151,736
151,807
20,935
 Deferred income  
400,207
350,632
48,354
 Operating lease liabilities 
136,435
82,909
11,434
Total current liabilities
28,526,120
23,800,892
3,282,291
 NON-CURRENT LIABILITIES 
Deferred tax liability 
573,734
557,137
76,833
Deferred income-non current 
1,469,685
1,691,196
233,227
 Operating lease liabilities 
832,928
724,807
99,955
Total non-current liabilities
2,876,347
2,973,140
410,015
TOTAL LIABILITIES
31,402,467
26,774,032
3,692,306
EQUITY:
Class A ordinary shares (US$0.0001 par value, 483,489,642shares authorized,124,060,090 and 98,537,695 sharesissued,of which 101,621,330 and 92,789,889 shares wereoutstanding as of December 31,2022 and June 30,2023,respectively) 
80
62
9
Class B ordinary shares (US$0.0001 par value, 16,510,358shares authorized, and 15,560,358 and 15,560,358 sharesissued and outstanding as of December 31, 2022 and June30,2023, respectively) 
11
11
2
Treasury shares,at cost(22,438,760 and 5,747,806 Class Ashares as of December 31, 2022 and June 30,2023,respectively )
(8,352,511)
(3,502,901)
(483,072)
Additional paid-in capital
13,091,781
3,918,724
540,417
Retained earnings
28,720,304
32,676,488
4,506,294
Accumulated other comprehensive loss
(707,628)
(736,986)
(101,635)
Non-controlling interests
1,321,006
1,357,180
187,164
Total shareholders’ equity
34,073,043
33,712,578
4,649,179
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 
65,475,510
60,486,610
8,341,485
 
 
 
 Vipshop Holdings Limited
 Reconciliations of GAAP and Non-GAAP Results 
Three Months Ended
Six Months Ended
 June 30,2022 
 June 30,2023 
 June 30,2023 
 June 30,2022 
 June 30,2023 
 June 30,2023 
 RMB’000 
 RMB’000 
 USD’000 
 RMB’000 
 RMB’000 
 USD’000 
 Income from operations 
1,268,285
1,916,499
264,297
2,550,900
3,902,192
538,139
 Share-based compensation expenses 
282,799
381,458
52,605
520,469
685,602
94,548
 Non-GAAP income from operations 
1,551,084
2,297,957
316,902
3,071,369
4,587,794
632,687
 Net income attributable to Vipshop’s shareholders 
1,282,890
2,097,454
289,251
2,378,554
3,956,184
545,585
 Share-based compensation expenses 
282,799
381,458
52,605
520,469
685,602
94,548
 Impairment loss of investments 
50,000
19,105
2,635
50,000
19,105
2,635
 Investment loss (gain) and revaluation of investmentsexcluding dividends 
9,884
(39,352)
(5,427)
45,619
(81,333)
(11,216)
 Reconciling items on the share of equity methodinvestments(4) 
(31,777)
(22,897)
(3,158)
19,737
(37,612)
(5,187)
 Tax effects on non-GAAP adjustments 
(1,387)
(34,432)
(4,748)
(3,144)
(71,390)
(9,845)
 Non-GAAP net income attributable to Vipshop’s shareholders 
1,592,409
2,401,336
331,158
3,011,235
4,470,556
616,520
(4) To exclude the GAAP to non-GAAP reconciling items relating to investment loss (gain) and revaluation of investments on the share of equity method investments.
 Shares used in calculating earnings per share: 
 Weighted average number of Class A and Class B ordinary shares: 
 —Basic 
129,149,941
110,053,473
110,053,473
132,186,466
112,975,907
112,975,907
 —Diluted 
129,934,399
111,819,666
111,819,666
132,973,941
114,669,108
114,669,108
 Non-GAAP net income per Class A and Class B ordinaryshare 
 Non-GAAP net income attributable to Vipshop’sshareholders——Basic 
12.33
21.82
3.01
22.78
39.57
5.46
 Non-GAAP net income attributable to Vipshop’sshareholders——Diluted 
12.26
21.48
2.96
22.65
38.99
5.38
 Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs) 
 Non-GAAP net income attributable to Vipshop’sshareholders——Basic 
2.47
4.36
0.60
4.56
7.91
1.09
 Non-GAAP net income attributable to Vipshop’sshareholders——Diluted 
2.45
4.30
0.59
4.53
7.80
1.08
 
 
View original content:https://www.prnewswire.com/news-releases/vipshop-reports-unaudited-second-quarter-2023-financial-results-301904354.html
SOURCE Vipshop Holdings Limited 

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 18, 2023

GUANGZHOU, China, Aug. 18, 2023 /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 quarter ended June 30, 2023.

Second Quarter 2023 Highlights

Total net revenues for the second quarter of 2023 increased by 13.6% year over year to RMB27.9 billion (US$3.8 billion) from RMB24.5 billion in the prior year period.GMV[1] for the second quarter of 2023 increased by 24.5% year over year to RMB50.6 billion from RMB40.6 billion in the prior year period.Gross profit for the second quarter of 2023 increased by 23.4% year over year to RMB6.2 billion (US$855.3 million) from RMB5.0 billion in the prior year period. Net income attributable to Vipshop’s shareholders for the second quarter of 2023 increased by 63.5% year over year to RMB2.1 billion (US$289.3 million) from RMB1.3 billion in the prior year period.Non-GAAP net income attributable to Vipshop’s shareholders[2] for the second quarter of 2023 increased by 50.8% year over year to RMB2.4 billion (US$331.2 million) from RMB1.6 billion in the prior year period.The number of active customers[3] for the second quarter of 2023 increased by 9.6% year over year to 45.7 million from 41.7 million in the prior year period.Total orders[4] for the second quarter of 2023 increased by 14.7% year over year to 213.8 million from 186.3 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “We had a strong second quarter driven by our well-executed merchandising strategy. During the quarter, our team was able to secure much more quality supply from core brands, which fueled the broad-based strength in apparel-related categories. Customers also showed stronger preference for us as they constantly seek value for money, led by robust momentum in our Super VIP members. With our clear-cut value proposition in discount retail, we are well positioned to capture the opportunity to further gain mindshare among consumers, making Vipshop the first go-to online shopping platform for apparel. To that end, we are building out our capabilities to offer a rich and diverse selection of great value, as well as reassuring customer service and experience. We are convinced that our unique business model will support us for the long-term growth.”

Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, “In the second quarter, we achieved strong top-line growth with profitability beyond expectations. Our commitment to discipline in day-to-day execution helped drive quality growth and greater efficiency, leading to strong margin expansion across the board. Furthermore, we continued to unlock value for shareholders through the existing US$1 billion share repurchase program, with US$348.5 million of our ADSs repurchased during the quarter. Looking forward, we are confident that we will maintain quality and healthy growth in both top line and bottom line.”

Second Quarter 2023 Financial Results

REVENUES 

Total net revenues for the second quarter of 2023 increased by 13.6% year over year to RMB27.9 billion (US$3.8 billion) from RMB24.5 billion in the prior year period, primarily attributable to the growth in active customers and spending driven by the recovery in consumption of discretionary categories.

GROSS PROFIT

Gross profit for the second quarter of 2023 increased by 23.4% year over year to RMB6.2 billion (US$855.3 million) from RMB5.0 billion in the prior year period. Gross margin for the second quarter of 2023 increased to 22.2% from 20.5% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the second quarter of 2023 increased by 13.7% year over year to RMB4.5 billion (US$617.8 million) from RMB3.9 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the second quarter of 2023 was 16.1%, which stayed flat as compared with the prior year period.

Fulfillment expenses for the second quarter of 2023 increased by 22.8% year over year to RMB2.2 billion (US$300.8 million) from RMB1.8 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the second quarter of 2023 was 7.8%, as compared with 7.2% in the prior year period.Marketing expenses for the second quarter of 2023 increased by 60.6% year over year to RMB892.5 million (US$123.1 million) from RMB555.6 million in the prior year period. As a percentage of total net revenues, marketing expenses for the second quarter of 2023 was 3.2%, as compared with 2.3% in the prior year period.Technology and content expenses for the second quarter of 2023 increased by 7.6% year over year to RMB443.0 million (US$61.1 million) from RMB411.8 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the second quarter of 2023 decreased to 1.6% from 1.7% in the prior year period.General and administrative expenses for the second quarter of 2023 decreased by 19.4% year over year to RMB963.1 million (US$132.8 million) from RMB1.2 billion in the prior year period. As a percentage of total net revenues, general and administrative expenses for the second quarter of 2023 decreased to 3.5% from 4.9% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the second quarter of 2023 increased by 51.1% year over year to RMB1.9 billion (US$264.3 million) from RMB1.3 billion in the prior year period. Operating margin for the second quarter of 2023 increased to 6.9% from 5.2% in the prior year period.

Non-GAAP income from operations[5] for the second quarter of 2023, which excluded share-based compensation expenses, increased by 48.2% year over year to RMB2.3 billion (US$316.9 million) from RMB1.6 billion in the prior year period. Non-GAAP operating margin[6] for the second quarter of 2023 increased to 8.2% from 6.3% in the prior year period.

NET INCOME

Net income attributable to Vipshop’s shareholders for the second quarter of 2023 increased by 63.5% year over year to RMB2.1 billion (US$289.3 million) from RMB1.3 billion in the prior year period. Net margin attributable to Vipshop’s shareholders for the second quarter of 2023 increased to 7.5% from 5.2% in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS[7] for the second quarter of 2023 increased to RMB3.75 (US$0.52) from RMB1.97 in the prior year period.

Non-GAAP net income attributable to Vipshop’s shareholders for the second quarter of 2023, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, increased by 50.8% year over year to RMB2.4 billion (US$331.2 million) from RMB1.6 billion in the prior year period. Non-GAAP net margin attributable to Vipshop’s shareholders[8] for the second quarter of 2023 increased to 8.6% from 6.5% in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS[9] for the second quarter of 2023 increased to RMB4.30 (US$0.59) from RMB2.45 in the prior year period.

For the quarter ended June 30, 2023, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 559,098,330.

BALANCE SHEET AND CASH FLOW

As of June 30, 2023, the Company had cash and cash equivalents and restricted cash of RMB18.3 billion (US$2.5 billion) and short term investments of RMB1.5 billion (US$200.2 million).

For the quarter ended June 30, 2023, net cash generated from operating activities was RMB4.1 billion (US$559.0 million), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows:

For the three months ended

June 30, 2022

 

RMB000

June 30, 2023

 

RMB000

June 30, 2023

 

US$000

Net cash generated from operating activities

4,465,779

4,053,402

558,990

Reconciling items:

   Net impact from internet financing activities[11]

107,151

199,429

27,503

   Capital expenditures

(1,311,564)

(1,658,548)

(228,724)

Free cash inflow

3,261,366

2,594,283

357,769

For the trailing twelve months ended

June 30, 2022

 

RMB000

June 30, 2023

 

RMB000

June 30, 2023

 

US$000

Net cash generated from operating activities

8,456,749

11,764,313

1,622,373

Reconciling items:

   Net impact from internet financing activities

232,857

315,313

43,484

   Capital expenditures

(4,165,254)

(3,906,017)

(538,664)

Free cash inflow

4,524,352

8,173,609

1,127,193

 

Share Repurchase Program

During the quarter ended June 30, 2023, the Company repurchased US$348.5 million of its ADSs under its current US$1 billion share repurchase program, which is effective through March 2025. As of June 30, 2023, the Company has an unutilized amount of US$564.9 million under this program.

Business Outlook

For the third quarter of 2023, the Company expects its total net revenues to be between RMB21.6 billion and RMB22.7 billion, representing a year-over-year increase of approximately 0% to 5%. 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 RMB7.2513 to US$1.00, the effective noon buying rate on June 30, 2023 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 June 30, 2023, or at any other rate.

Conference Call Information

The Company will hold a conference call on Friday, August 18, 2023 at 7:30 am U.S. Eastern Time, 7:30 pm Beijing Time to discuss the financial results.

All participants wishing to join the conference call must pre-register online using the link provided below.

Registration Link: https://register.vevent.com/register/BIa5ce1fd594754eeb9ce17294566f615c

Once pre-registration has been completed, each participant will receive dial-in numbers and a unique access PIN via email. To join the conference, participants should use the dial-in details followed by the PIN code.

A live webcast of the earnings conference call can be accessed at https://edge.media-server.com/mmc/p/xoxhojmv. An archived webcast will 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 https://ir.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 needs 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  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 margin, non-GAAP net margin attributable to Vipshop’s shareholders, and free cash flow, each of which is a non-GAAP financial measure. For the periods presented in this press release, 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) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments. 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. Non-GAAP operating margin is non-GAAP income from operations as a percentage of total net revenues. 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 revenues. 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. 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 (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments 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 (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments. 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, technology platform and Shan Shan Outlets. Share-based compensation expenses have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP Results” at the end of this release.

Investor Relations Contact

Tel: +86 (20) 2233-0732
Email: IR@vipshop.com 

[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, Shan Shan Outlets, and other offline stores during the relevant period, including through the Company’s websites and mobile apps, third-party websites and mobile apps, Shan Shan Outlets, and other offline stores, which 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, for the periods presented in this press release, is defined as net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments.

[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.

[6] Non-GAAP operating 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 ADSs outstanding for computing diluted earnings per ADS.

[10] Free cash flow is a non-GAAP financial measure, which is defined as 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.

[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

 Six Months Ended 

 June 30,2022 

June 30,2023

June 30,2023

 June 30,2022 

June 30,2023

June 30,2023

RMB’000

RMB’000

 USD’000

RMB’000

RMB’000

USD’000

Product revenues 

23,160,136

26,163,113

3,608,058

47,086,568

52,100,943

7,185,049

Other revenues (1)

1,375,118

1,716,187

236,673

2,693,204

3,314,740

457,124

 Total net revenues 

24,535,254

27,879,300

3,844,731

49,779,772

55,415,683

7,642,173

 Cost of revenues 

(19,510,909)

(21,677,355)

(2,989,444)

(39,746,961)

(43,309,175)

(5,972,608)

 Gross profit 

5,024,345

6,201,945

855,287

10,032,811

12,106,508

1,669,565

 Operating expenses: 

 Fulfillment expenses (2) 

(1,776,011)

(2,181,066)

(300,783)

(3,470,954)

(3,964,897)

(546,784)

 Marketing expenses 

(555,570)

(892,505)

(123,082)

(1,314,845)

(1,729,399)

(238,495)

 Technology and content expenses 

(411,756)

(443,046)

(61,099)

(802,127)

(835,809)

(115,263)

 General and administrative expenses 

(1,195,167)

(963,117)

(132,820)

(2,249,881)

(2,010,788)

(277,300)

 Total operating expenses 

(3,938,504)

(4,479,734)

(617,784)

(7,837,807)

(8,540,893)

(1,177,842)

 Other operating income 

182,444

194,288

26,794

355,896

336,577

46,416

 Income from operations 

1,268,285

1,916,499

264,297

2,550,900

3,902,192

538,139

 Investment (loss) gain and revaluation of investments 

(7,344)

39,354

5,427

(41,802)

81,334

11,216

 Impairment loss of investments 

(50,000)

(19,105)

(2,635)

(50,000)

(19,105)

(2,635)

 Interest expense 

(6,494)

(1,989)

(274)

(11,229)

(7,696)

(1,061)

 Interest income 

189,982

183,168

25,260

389,676

405,133

55,870

 Exchange gain 

217,299

282,636

38,977

205,117

274,449

37,848

 Income before income tax expense and share of  (loss)
income of equity method investees 

1,611,728

2,400,563

331,052

3,042,662

4,636,307

639,377

 Income tax expenses  

(296,717)

(339,056)

(46,758)

(588,560)

(729,201)

(100,561)

 Share of (loss) income of equity method investees 

(27,885)

49,202

6,785

(70,891)

81,009

11,172

 Net income 

1,287,126

2,110,709

291,079

2,383,211

3,988,115

549,988

Net income attributable to non-controlling interests

(4,236)

(13,255)

(1,828)

(4,657)

(31,931)

(4,403)

 Net income attributable to Vipshop’s shareholders 

1,282,890

2,097,454

289,251

2,378,554

3,956,184

545,585

 Shares used in calculating earnings per share (3): 

 Weighted average number of Class A and Class B
ordinary shares: 

 —Basic 

129,149,941

110,053,473

110,053,473

132,186,466

112,975,907

112,975,907

 —Diluted 

129,934,399

111,819,666

111,819,666

132,973,941

114,669,108

114,669,108

 Net earnings per Class A and Class B ordinary share 

 Net income attributable to Vipshop’s shareholders——Basic 

9.93

19.06

2.63

17.99

35.02

4.83

 Net income attributable to Vipshop’s shareholders——Diluted 

9.87

18.76

2.59

17.89

34.50

4.76

 Net earnings per ADS (1 ordinary share equals to 5 ADSs) 

 Net income attributable to Vipshop’s shareholders——Basic 

1.99

3.81

0.53

3.60

7.00

0.97

 Net income attributable to Vipshop’s shareholders——Diluted 

1.97

3.75

0.52

3.58

6.90

0.95

(1) Other revenues primarily consist of product promotion and online advertising revenues, lease income mainly earned from
the Shan Shan Outlets ,fees charged to third-party merchants which the Company provides platform access for sales of their
products, revenue from third-party logistics services, loan facilitation service income and membership fee income.

(1) Other revenues primarily consist of product promotion and
online advertising revenues, lease income mainly earned from
the Shan Shan Outlets ,fees charged to third-party merchants
which the Company provides platform access for sales of their
products, revenue from third-party logistics services, loan
facilitation service income and membership fee income.

(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB1.3 billion and RMB 1.6 billion in the
three month periods ended June 30,2022 and June 30,2023, respectively.

 (2) Fulfillment expenses include shipping and handling
expenses, which amounted RMB2.5 billion and RMB2.9 billion
in the six month periods ended June 30,2022 and June
30,2023, 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.

(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

 Six Months Ended 

 June 30,2022 

June 30,2023

June 30,2023

 June 30,2022 

 June 30,2023 

 June 30,2023 

 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 

19,362

23,173

3,196

37,629

38,542

5,315

 Marketing expenses 

3,839

8,383

1,156

6,203

17,711

2,442

 Technology and content expenses 

68,930

92,906

12,812

124,137

154,273

21,275

 General and administrative expenses 

190,668

256,996

35,441

352,500

475,076

65,516

 Total 

282,799

381,458

52,605

520,469

685,602

94,548

 

 

 

 Vipshop Holdings Limited

 Unaudited Condensed Consolidated Balance Sheets

 (In thousands, except for share and per share data) 

 December 31,2022 

June 30,2023

June 30,2023

RMB’000

 RMB’000 

 USD’000 

ASSETS

CURRENT ASSETS

Cash and cash equivalents

21,938,653

17,279,939

2,383,013

Restricted cash 

1,164,748

1,006,743

138,836

Short term investments

1,595,904

1,451,565

200,180

Accounts receivable, net

567,730

715,435

98,663

Amounts due from related parties,net

670,187

697,735

96,222

Other receivables and prepayments,net

2,280,449

2,011,608

277,413

Loan receivables,net

882

1,939

267

Inventories

5,515,880

4,081,458

562,859

Total current assets

33,734,433

27,246,422

3,757,453

NON-CURRENT ASSETS

Property and equipment, net

16,225,589

16,435,045

2,266,496

Deposits for property and equipment

296,717

32,760

4,518

Land use rights, net

7,638,506

7,920,624

1,092,304

Intangible assets, net

336,599

334,710

46,159

Investment in equity method investees

2,162,872

2,150,450

296,561

Other investments

2,660,305

3,026,766

417,410

Other long-term assets

91,762

1,301,765

179,522

Goodwill

755,213

755,213

104,149

Deferred tax assets, net

681,770

690,820

95,268

Operating lease right-of-use assets

891,744

592,035

81,645

Total non-current assets

31,741,077

33,240,188

4,584,032

TOTAL ASSETS

65,475,510

60,486,610

8,341,485

 LIABILITIES AND  EQUITY  

 CURRENT LIABILITIES 

 Short term loans 

2,687,438

507,971

70,052

 Accounts payable 

15,018,138

13,363,632

1,842,929

 Advance from customers  

1,737,424

1,345,158

185,506

 Accrued expenses and other current liabilities  

8,394,742

7,998,783

1,103,081

 Amounts due to related parties  

151,736

151,807

20,935

 Deferred income  

400,207

350,632

48,354

 Operating lease liabilities 

136,435

82,909

11,434

Total current liabilities

28,526,120

23,800,892

3,282,291

 NON-CURRENT LIABILITIES 

Deferred tax liability 

573,734

557,137

76,833

Deferred income-non current 

1,469,685

1,691,196

233,227

 Operating lease liabilities 

832,928

724,807

99,955

Total non-current liabilities

2,876,347

2,973,140

410,015

TOTAL LIABILITIES

31,402,467

26,774,032

3,692,306

EQUITY:

Class A ordinary shares (US$0.0001 par value, 483,489,642
shares authorized,124,060,090 and 98,537,695 shares
issued,of which 101,621,330 and 92,789,889 shares were
outstanding as of December 31,2022 and June 30,2023,
respectively) 

80

62

9

Class B ordinary shares (US$0.0001 par value, 16,510,358
shares authorized, and 15,560,358 and 15,560,358 shares
issued and outstanding as of December 31, 2022 and June
30,2023, respectively) 

11

11

2

Treasury shares,at cost(22,438,760 and 5,747,806 Class A
shares as of December 31, 2022 and June 30,2023,
respectively )

(8,352,511)

(3,502,901)

(483,072)

Additional paid-in capital

13,091,781

3,918,724

540,417

Retained earnings

28,720,304

32,676,488

4,506,294

Accumulated other comprehensive loss

(707,628)

(736,986)

(101,635)

Non-controlling interests

1,321,006

1,357,180

187,164

Total shareholders’ equity

34,073,043

33,712,578

4,649,179

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 

65,475,510

60,486,610

8,341,485

 

 

 

 Vipshop Holdings Limited

 Reconciliations of GAAP and Non-GAAP Results 

Three Months Ended

Six Months Ended

 June 30,2022 

 June 30,2023 

 June 30,2023 

 June 30,2022 

 June 30,2023 

 June 30,2023 

 RMB’000 

 RMB’000 

 USD’000 

 RMB’000 

 RMB’000 

 USD’000 

 Income from operations 

1,268,285

1,916,499

264,297

2,550,900

3,902,192

538,139

 Share-based compensation expenses 

282,799

381,458

52,605

520,469

685,602

94,548

 Non-GAAP income from operations 

1,551,084

2,297,957

316,902

3,071,369

4,587,794

632,687

 Net income attributable to Vipshop’s shareholders 

1,282,890

2,097,454

289,251

2,378,554

3,956,184

545,585

 Share-based compensation expenses 

282,799

381,458

52,605

520,469

685,602

94,548

 Impairment loss of investments 

50,000

19,105

2,635

50,000

19,105

2,635

 Investment loss (gain) and revaluation of investments
excluding dividends 

9,884

(39,352)

(5,427)

45,619

(81,333)

(11,216)

 Reconciling items on the share of equity method
investments(4) 

(31,777)

(22,897)

(3,158)

19,737

(37,612)

(5,187)

 Tax effects on non-GAAP adjustments 

(1,387)

(34,432)

(4,748)

(3,144)

(71,390)

(9,845)

 Non-GAAP net income attributable to Vipshop’s
shareholders 

1,592,409

2,401,336

331,158

3,011,235

4,470,556

616,520

(4) To exclude the GAAP to non-GAAP reconciling items relating to investment loss (gain) and revaluation of investments
on the share of equity method investments.

 Shares used in calculating earnings per share: 

 Weighted average number of Class A and Class B
ordinary shares: 

 —Basic 

129,149,941

110,053,473

110,053,473

132,186,466

112,975,907

112,975,907

 —Diluted 

129,934,399

111,819,666

111,819,666

132,973,941

114,669,108

114,669,108

 Non-GAAP net income per Class A and Class B ordinary
share 

 Non-GAAP net income attributable to Vipshop’s
shareholders——Basic 

12.33

21.82

3.01

22.78

39.57

5.46

 Non-GAAP net income attributable to Vipshop’s
shareholders——Diluted 

12.26

21.48

2.96

22.65

38.99

5.38

 Non-GAAP net income per ADS (1 ordinary share equal to
5 ADSs) 

 Non-GAAP net income attributable to Vipshop’s
shareholders——Basic 

2.47

4.36

0.60

4.56

7.91

1.09

 Non-GAAP net income attributable to Vipshop’s
shareholders——Diluted 

2.45

4.30

0.59

4.53

7.80

1.08

 

 

View original content:https://www.prnewswire.com/news-releases/vipshop-reports-unaudited-second-quarter-2023-financial-results-301904354.html

SOURCE Vipshop Holdings Limited

 

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