impactvip.com

1VipshopReportsUnauditedSecondQuarter2015FinancialResults2Q15TotalNetRevenueUp77.
6%YoYtoRMB9.
0Billion(US$1.
5Billion)2Q15IncomefromOperationsUp192.
5%toRMB437.
8Million(US$70.
6Million)2Q15NetIncomeAttributabletoShareholdersUp147.
2%toRMB399.
3Million(US$64.
4Million)ConferenceCalltobeHeldat8:00AMU.
S.
EasternTimeonAugust11,2015Guangzhou,China,August10,2015–VipshopHoldingsLimited(NYSE:VIPS),aleadingonlinediscountretailerforbrandsinChina("Vipshop"orthe"Company"),todayannounceditsunauditedfinancialresultsforthesecondquarterendedJune30,2015.
SecondQuarter2015HighlightsTotalnetrevenueincreasedby77.
6%toRMB9.
0billion(US$1.
5billion)fromRMB5.
1billionintheprioryearperiod.
Grossprofitincreasedby78.
6%toRMB2.
3billion(US$363.
0million)fromRMB1.
3billionintheprioryearperiod.
Grossmarginincreasedto25.
0%from24.
8%intheprioryearperiod.
Incomefromoperationsincreasedby192.
5%toRMB437.
8million(US$70.
6million)fromRMB149.
6millionintheprioryearperiod.
Operatingmarginincreasedto4.
9%from2.
9%intheprioryearperiod.
Non-GAAPincomefromoperations1increasedby113.
0%toRMB568.
6million(US$91.
7million)fromRMB267.
0millionintheprioryearperiod.
Non-GAAPoperatingmargin2increasedto6.
3%from5.
3%intheprioryearperiod.
NetincomeattributabletoVipshop'sshareholdersincreasedby147.
2%toRMB399.
3million(US$64.
4million)fromRMB161.
5millionintheprioryearperiod.
NetincomemarginattributabletoVipshop'sshareholdersincreasedto4.
4%from3.
2%intheprioryearperiod.
Non-GAAPnetincomeattributabletoVipshop'sshareholders3increasedby96.
6%toRMB517.
6million(US$83.
5million)fromRMB263.
2millionintheprioryearperiod.
Non-GAAPnetincomemarginattributabletoVipshop'sshareholders4increasedto5.
7%from5.
2%intheprioryearperiod.
Mr.
EricShen,chairmanandchiefexecutiveofficerofVipshop,stated,"Wedeliveredstrongsecondquarterfinancialandoperatingresults,whichweremainlydrivenbymobileexpansion,enhancedoperatingleverageandthecontinuedgrowthinthenumbersofcustomersandordersinourcoreflashsalesbusiness.
Oursmoothandswiftexecutiononthemobilefront–with76%ofourgrossmerchandisevaluenowcomingfrommobiledevices–hashelpedsetusapartinthemarket,andfurtherclarifiestheuniquevalueofourflashsalemodelforon-the-goshoppers.
Ourcross-borderexpansion,supplierfinancinginitiativesandlogisticalenhancementshavefurtherimprovedourecosystemforbrandsand1Non-GAAPincomefromoperationsisanon-GAAPfinancialmeasure,whichisdefinedasincomefromoperationsexcludingshare-basedcompensationexpensesandamortizationofintangibleassetsresultingfromabusinessacquisition.
2Non-GAAPoperatingincomemarginisanon-GAAPfinancialmeasure,whichisdefinedasnon-GAAPincomefromoperationsasapercentageoftotalnetrevenues.
3Non-GAAPnetincomeattributabletoVipshop'sshareholdersisanon-GAAPfinancialmeasure,whichisdefinedasnetincomeattributabletoVipshop'sshareholdersexcludingshare-basedcompensationexpensesandamortizationofintangibleassetsresultingfromabusinessacquisitionandequitymethodinvestments.
4Non-GAAPnetincomemarginattributabletoVipshop'sshareholdersisanon-GAAPfinancialmeasure,whichisdefinedasNon-GAAPnetincomeattributabletoVipshop'sshareholdersasapercentageoftotalnetrevenues.
2customers.
Goingforward,wewillfocusonexpandingourmarketshareandscalingouroperationsthroughenhancingthecustomershoppingexperience,attractingnewcustomersandelevatingourbrandvalueinChinaandglobally.
"Mr.
DonghaoYang,chieffinancialofficerofVipshop,commented,"Vipshopcontinuedtodeliverstrongoverallresultsinthesecondquarter,withmobileadoptionacceleratingandmarginsstrengtheningacrosstheboard.
WhatwasparticularlyencouragingwasthescaleeffectwesuccessfullyachievedasfulfillmentandG&Aexpensescamedownasapercentageofrevenues,leadingoperatingmargintoexpandsharplyto4.
9%from2.
9%ayearago.
Inordertofurtherimprovefulfillmentefficiency,wecontinuetoenhanceandexpandourlogisticalcapabilities.
Withapproximately1.
4millionsquaremetersofwarehousecapacityasofJune30,2015andconstructionofanewwarehouseinSichuanProvinceunderway,weareontracktomeetour1.
5million-square-metertargetbyyearend.
Wealsocontinuetoexpandourlocaldeliveryandservicesnetwork,whichwearecurrentlyutilizingtodeliverover70%ofourtotalordersacrossalmostallprovincesinmainlandChina.
"SecondQuarter2015FinancialResultsREVENUETotalnetrevenueforthesecondquarterof2015increasedby77.
6%toRMB9.
0billion(US$1.
5billion)fromRMB5.
1billionintheprioryearperiod,primarilydrivenbythegrowthinthenumbersoftotalactivecustomers,repeatcustomers,totalorders,aswellastheincreasingrevenuecontributionfromthemobileplatform.
Thenumberofactivecustomers5forthesecondquarterof2015increasedby47.
2%to14.
2millionfrom9.
7millionintheprioryearperiod.
Thenumberoftotalorders6forthesecondquarterof2015increasedby55.
2%to44.
9millionfrom28.
9millionintheprioryearperiod7.
Inanefforttoincreasefocusonitscoreflashsalesbusiness,andattractandmaintainhigh-qualitylong-termcustomers,theCompanybegantosubstantiallyscaledownitslower-margingroup-buybusinessinthethirdquarterof2014.
Asaresult,revenuecontributionfromthegroup-buybusinessdecreasedto0.
2%ofVipshop'stotalnetrevenuesinthesecondquarterof2015from5.
5%theprioryearperiod.
Furthermore,theactivecustomersandordersforthegroup-buybusinessasapercentofVipshop'stotalactivecustomersandtotalordersdecreasedto0.
8%and0.
7%,respectively,inthesecondquarterof2015from22.
2%and13.
2%,respectively,intheprioryearperiod.
Excludingtheimpactofthegroup-buybusinessandLefeng,thenumberoftotalcustomersandtotalordersforVipshop'scoreflashsalesbusinessincreasedby84.
4%and86.
1%yearoveryear,respectively.
Onthemobileplatform,thenumber5Beginninginthefirstquarterof2015,theCompanyhasupdateditsdefinitionof"activecustomers"from"registeredmemberswhohavepurchasedproductsfromtheCompanyatleastonceduringtherelevantperiod"to"registeredmemberswhohavepurchasedfromtheCompanyortheCompany'sonlinemarketplaceplatformsatleastonceduringtherelevantperiod.
"Theactivecustomerfiguresin2014and2015includeactiveLefengcustomersaftertheLefengacquisitionwascompletedinFebruary2014.
6Beginninginthefirstquarterof2015,theCompanyhasupdateditsdefinitionof"totalorders"from"thetotalnumberofordersplacedduringtherelevantperiod"to"thetotalnumberofordersplacedduringtherelevantperiod,includingtheordersforproductsandservicessoldintheCompany'sonlinesalesbusinessandontheCompany'sonlinemarketplaceplatforms,netofordersreturned.
"Thetotalorderfiguresin2014and2015includeordersattributabletoLefengaftertheLefengacquisitionwascompletedinFebruary2014.
7Theprioryearperiodfiguresofactivecustomers,totalordersandrepeatcustomersinthisreleasehavealsobeenrevisedtoreflectthebroadeneddefinitionstoensurecomparability.
3oftotalactivecustomersandtotalordersforVipshop'scoreflashsalesbusinessincreasedby185.
7%and194.
1%yearoveryear,respectively.
GROSSPROFITGrossprofitforthesecondquarterof2015increasedby78.
6%toRMB2.
3billion(US$363.
0million)fromRMB1.
3billionintheprioryearperiod,primarilyattributabletotheincreasedbargainingpowerwithitssuppliersduetotheexpandingscaleofthebusiness,aswellasthegrowthofitsmarketplaceplatforms.
Grossmarginincreasedto25.
0%inthesecondquarterof2015from24.
8%intheprioryearperiod.
OPERATINGINCOMEANDEXPENSESTotaloperatingexpensesforthesecondquarterof2015wereRMB1.
9billion(US$299.
1million),ascomparedwiththeRMB1.
1billionintheprioryearperiod.
Asapercentageoftotalnetrevenue,totaloperatingexpensesdecreasedto20.
6%from22.
5%intheprioryearperiod.
Fulfillmentexpensesforthesecondquarterof2015wereRMB819.
6million(US$132.
2million),ascomparedwithRMB513.
4millionintheprioryearperiod,primarilyreflectingtheincreaseinsalesvolume,andnumberofordersfulfilled.
Asapercentageoftotalnetrevenue,fulfillmentexpensesdecreasedto9.
1%from10.
1%intheprioryearperiod,primarilyreflectingthescaleeffectassociatedwiththerapidgrowthintotalnetrevenueandtheincreaseinaverageticketsize.
Marketingexpensesforthesecondquarterof2015wereRMB502.
6million(US$81.
1million),ascomparedwithRMB274.
2millionintheprioryearperiod.
Asapercentageoftotalnetrevenue,marketingexpenseswere5.
6%,ascomparedwith5.
4%intheprioryearperiod,reflectingtheCompany'sstrategytodrivelong-termgrowththroughincreasinginvestmentsinstrengtheningitsbrandawareness,attractingnewusersparticularlyforitsmobileapplication,andexpandingmarketshareespeciallywithinproductcategoriessuchascosmetics,homegoods,andbabyandchildcareproducts.
Technologyandcontentexpensesforthesecondquarterof2015wereRMB245.
7million(US$39.
6million),ascomparedwithRMB131.
0millionintheprioryearperiod.
Asapercentageoftotalnetrevenue,technologyandcontentexpenseswere2.
7%,ascomparedwith2.
6%intheprioryearperiod,primarilyreflectingtheCompany'scontinuedefforttoexpandheadcounttobettersupportfuturegrowth,aswellasitsinvestmentsindataanalytics,whichcanhelpimprovetheabilitytopredictconsumerbehaviorandfurtherenhanceuserexperience.
Generalandadministrativeexpensesforthesecondquarterof2015wereRMB286.
7million(US$46.
2million),ascomparedwithRMB225.
9millionintheprioryearperiod.
Asapercentageoftotalnetrevenue,generalandadministrativeexpensesdecreasedto3.
2%from4.
4%intheprioryearperiod,primarilyreflectingthescaleeffectassociatedwiththerapidgrowthintotalnetrevenue.
Incomefromoperationsforthesecondquarterof2015increasedby192.
5%toRMB437.
8million(US$70.
6million)fromRMB149.
6millionintheprioryearperiodduetothegrowingscaleoftheCompany'soperationsanddecreaseinfulfillment,andgeneralandadministrativeexpensesasapercentageoftotalnetrevenue.
Operatingincomemarginincreasedto4.
9%from2.
9%intheprioryearperiod.
4Non-GAAPincomefromoperations,whichexcludesshare-basedcompensationexpensesandamortizationofintangibleassetsresultingfromabusinessacquisition,increasedby113.
0%toRMB568.
6million(US$91.
7million)fromRMB267.
0millionintheprioryearperiod.
Non-GAAPoperatingincomemarginincreasedto6.
3%from5.
3%intheprioryearperiod.
NETINCOMENetincomeattributabletoVipshop'sshareholdersincreasedby147.
2%toRMB399.
3million(US$64.
4million)fromRMB161.
5millionintheprioryearperiod.
NetincomemarginattributabletoVipshop'sshareholdersincreasedto4.
4%from3.
2%intheprioryearperiod.
NetincomeattributabletoVipshop'sshareholdersperdilutedADS8increasedtoRMB0.
66(US$0.
11)fromRMB0.
27intheprioryearperiod.
Non-GAAPnetincomeattributabletoVipshop'sshareholders,whichexcludesshare-basedcompensationexpensesandamortizationofintangibleassetsresultingfromabusinessacquisitionandequitymethodinvestments,increasedby96.
6%toRMB517.
6million(US$83.
5million)fromRMB263.
2millionintheprioryearperiod.
Non-GAAPnetincomemarginattributabletoVipshop'sshareholdersincreasedto5.
7%from5.
2%intheprioryearperiod.
Non-GAAPnetincomeattributabletoVipshop'sshareholdersperdilutedADSincreasedtoRMB0.
86(US$0.
14)fromRMB0.
44intheprioryearperiod.
ForthequarterendedJune30,2015,theCompany'sweightedaveragenumberofADSsusedincomputingdilutedincomeperADSwas601,002,280.
AsofJune30,2015,theCompanyhadcashandcashequivalents,andrestrictedcashofRMB4.
4billion(US$716.
2million)andheld-to-maturitysecuritiesofRMB2.
9billion(US$462.
3million).
ForthequarterendedJune30,2015,netcashusedinoperatingactivitieswasRMB467.
4million(US$75.
4million),ascomparedwithnetcashfromoperationsofRMB183.
7millionintheprioryearperiod.
ThiswasprimarilyduetotheCompanysubstantiallyexpeditingitspaymentstosuppliers,inordertosupporttheirgrowthandcreateanecosystemthatwillstrengthenVipshop'scompetitiveadvantages.
Asaresult,accountspayableturnoverdaysdecreasedto71daysinthesecondquarterof2015,from80daysinthepriorquarter.
BusinessOutlookForthethirdquarterof2015,theCompanyexpectsitstotalnetrevenuetobebetweenRMB9.
1billionandRMB9.
3billion,representingayear-over-yeargrowthrateofapproximately71%to74%.
TheseforecastsreflecttheCompany'scurrentandpreliminaryviewonthemarketandoperationalconditions,whichissubjecttochange.
ExchangeRateThisannouncementcontainscurrencyconversionsofcertainRenminbiamountsintoU.
S.
dollarsatspecifiedratessolelyfortheconvenienceofthereader.
Unlessotherwisenoted,alltranslationsfrom8"ADS"meansAmericanDepositaryShare.
EffectiveNovember3,2014,theCompanychangeditsADStoClassAOrdinaryShare("Share")ratiofromoneADSrepresentingtwoordinarysharestofiveADSsrepresentingoneordinaryshare.
ThecomputationofGAAPandnon-GAAPincomeperdilutedADShavebeenadjustedretroactivelyforallperiodspresentedtoreflectthischange.
5RenminbitoU.
S.
dollarsaremadeatarateofRMB6.
2000toUS$1.
00,theeffectivenoonbuyingrateforJune30,2015assetforthintheH.
10statisticalreleaseoftheFederalReserveBoard.
ConferenceCallInformationTheCompanywillholdaconferencecallonTuesday,August11,2015at8:00amEasternTimeor8:00pmBeijingTimetodiscussitsfinancialresultsandoperatingperformanceforthesecondquarter2015.
UnitedStates:+1-845-675-0438InternationalTollFree:+1-855-500-8701ChinaDomestic:400-1200654HongKong:+852-3018-6776ConferenceID:#97698899ThereplaywillbeaccessiblethroughAugust19,2015bydialingthefollowingnumbers:UnitedStatesTollFree:+1-855-452-5696International:+61290034211ConferenceID:#97698899AliveandarchivedwebcastoftheconferencecallwillalsobeavailableattheCompany'sinvestorrelationswebsiteathttp://ir.
vip.
com.
AboutVipshopHoldingsLimitedVipshopHoldingsLimitedisaleadingonlinediscountretailerforbrandsinChina.
VipshopoffershighqualityandpopularbrandedproductstoconsumersthroughoutChinaatasignificantdiscounttoretailprices.
SinceitwasfoundedinAugust2008,theCompanyhasrapidlybuiltasizeableandgrowingbaseofcustomersandbrandpartners.
Formoreinformation,pleasevisitwww.
vip.
com.
SafeHarborStatementThisannouncementcontainsforward-lookingstatements.
Thesestatementsaremadeunderthe"safeharbor"provisionsoftheU.
S.
PrivateSecuritiesLitigationReformActof1995.
Theseforward-lookingstatementscanbeidentifiedbyterminologysuchas"will,""expects,""anticipates,""future,""intends,""plans,""believes,""estimates"andsimilarstatements.
Amongotherthings,thebusinessoutlookandquotationsfrommanagementinthisannouncement,aswellasVipshop'sstrategicandoperationalplans,containforward-lookingstatements.
Vipshopmayalsomakewrittenororalforward-lookingstatementsinitsperiodicreportstotheU.
S.
SecuritiesandExchangeCommission(the"SEC"),initsannualreporttoshareholders,inpressreleasesandotherwrittenmaterialsandinoralstatementsmadebyitsofficers,directorsoremployeestothirdparties.
Statementsthatarenothistoricalfacts,includingstatementsaboutVipshop'sbeliefsandexpectations,areforward-lookingstatements.
Forward-lookingstatementsinvolveinherentrisksanduncertainties.
Anumberoffactorscouldcauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstatement,includingbutnotlimitedtothefollowing:Vipshop'sgoalsandstrategies;Vipshop'sfuturebusinessdevelopment,resultsofoperationsandfinancialcondition;theexpectedgrowthoftheonlinediscountretailmarketinChina;Vipshop'sabilitytoattractcustomersandbrandpartnersandfurtherenhanceitsbrandrecognition;Vipshop'sexpectationsregardingdemandforandmarketacceptanceofflashsalesproductsandservices;competitioninthediscountretailindustry;fluctuationsingeneraleconomicandbusinessconditionsinChinaandassumptionsunderlyingorrelatedtoanyoftheforegoing.
FurtherinformationregardingtheseandotherrisksisincludedinVipshop'sfilingswiththeSEC.
Allinformationprovidedinthispressreleaseandintheattachmentsisasofthedate6ofthispressrelease,andVipshopdoesnotundertakeanyobligationtoupdateanyforward-lookingstatement,exceptasrequiredunderapplicablelaw.
UseofNon-GAAPFinancialMeasuresTheunauditedcondensedconsolidatedfinancialinformationispreparedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica("U.
S.
GAAP"),exceptthattheconsolidatedstatementofshareholders'equity,consolidatedstatementsofcashflows,andthedetailednotesrequiredbyAccountingStandardsCodification270InterimReporting("ASC270"),havenotbeenpresented.
Vipshopusesnon-GAAPnetincomeattributabletoVipshop'sshareholders,non-GAAPnetincomeperdilutedADS,non-GAAPincomefromoperations,non-GAAPnetincomemargin,andnon-GAAPoperatingincomemargin,eachofwhichisanon-GAAPfinancialmeasure.
Non-GAAPnetincomeattributabletoVipshop'sshareholdersisnetincomeattributabletoVipshop'sshareholdersexcludingshare-basedcompensationexpensesandamortizationofintangibleassetsresultingfromabusinessacquisitionandequitymethodinvestments.
Non-GAAPnetincomeperdilutedADSisnon-GAAPnetincomedividedbyweightedaveragenumberofdilutedADS.
Non-GAAPincomefromoperationsisincomefromoperationsexcludingshare-basedcompensationexpensesandamortizationofintangibleassetsresultingfromabusinessacquisition.
Non-GAAPoperatingincomemarginisnon-GAAPincomefromoperationsasapercentageoftotalnetrevenue.
Non-GAAPnetincomemarginisnon-GAAPnetincomeasapercentageoftotalnetrevenue.
TheCompanybelievesthatseparateanalysisandexclusionofthenon-cashimpactofshare-basedcompensationandamortizationofintangibleassetsaddsclaritytotheconstituentpartsofitsperformance.
TheCompanyreviewsthesenon-GAAPfinancialmeasurestogetherwithGAAPfinancialmeasurestoobtainabetterunderstandingofitsoperatingperformance.
Itusesthesenon-GAAPfinancialmeasuresforplanning,forecastingandmeasuringresultsagainsttheforecast.
TheCompanybelievesthatnon-GAAPfinancialmeasuresareusefulsupplementalinformationforinvestorsandanalyststoassessitsoperatingperformancewithouttheeffectofnon-cashshare-basedcompensationexpensesandamortizationofintangibleassets,whichhavebeenandwillcontinuetobesignificantrecurringexpensesinitsbusiness.
However,theuseofnon-GAAPfinancialmeasureshasmateriallimitationsasananalyticaltool.
Oneofthelimitationsofusingnon-GAAPfinancialmeasuresisthattheydonotincludeallitemsthatimpacttheCompany'snetincomefortheperiod.
Inaddition,becausenon-GAAPfinancialmeasuresarenotmeasuredinthesamemannerbyallcompanies,theymaynotbecomparabletoothersimilartitledmeasuresusedbyothercompanies.
Inlightoftheforegoinglimitations,youshouldnotconsidernon-GAAPfinancialmeasureinisolationfromorasanalternativetothefinancialmeasurepreparedinaccordancewithU.
S.
GAAP.
Thepresentationofthesenon-GAAPfinancialmeasuresisnotintendedtobeconsideredinisolationfrom,orasasubstitutefor,thefinancialinformationpreparedandpresentedinaccordancewithU.
S.
GAAP.
Formoreinformationonthesenon-GAAPfinancialmeasures,pleaseseethetablecaptioned"VipshopHoldingsLimitedReconciliationsofGAAPandNon-GAAPResults"attheendofthisrelease.
InvestorRelationsContactVipshopHoldingsLimitedMillicentTuTel:+86(20)2233-0732Email:IR@vipshop.
comICR,Inc.
JeremyPeruskiTel:+1(646)405-4866Email:IR@vipshop.
com7VipshopHoldingsLimitedCondensedConsolidatedStatementsofIncomeandComprehensiveIncome(Inthousands,exceptpersharedata)ThreeMonthsEndedJune30,2014June30,2015June30,2015RMB'000RMB'000USD'000(Unaudited)(Unaudited)(Unaudited)Productrevenues5,000,8448,829,7141,424,147Otherrevenues(1)78,042188,40830,388Totalnetrevenues5,078,8869,018,1221,454,535Costofgoodssold(3,818,868)(6,767,452)(1,091,525)Grossprofit1,260,0192,250,670363,010OperatingexpensesFulfillmentexpenses(2)(513,385)(819,612)(132,194)Marketingexpenses(274,208)(502,566)(81,059)Technologyandcontentexpenses(131,020)(245,695)(39,628)Generalandadministrativeexpenses(3)(225,910)(286,743)(46,249)Totaloperatingexpenses(1,144,524)(1,854,616)(299,130)Otherincome34,14441,7146,728Incomefromoperations149,639437,76870,608Interestexpenses(28,679)(16,981)(2,739)Interestincome82,30175,75012,218Exchangegain4,37719,9593,219Incomebeforeincometaxesandshareoflossofaffiliates207,638516,49683,306Incometaxexpense(4)(57,988)(112,603)(18,162)Shareoflossofaffiliates(11,184)(19,922)(3,213)Netincome138,466383,97161,931Netlossattributabletononcontrollinginterests23,07915,3202,471NetincomeattributabletoVipshop'sshareholders161,545399,29164,402Sharesusedincalculatingearningspershare(5):ClassAordinaryshares:—Basic96,704,29799,369,29599,369,295—Diluted102,917,277103,690,098103,690,098ClassBordinaryshares:—Basic16,510,35816,510,35816,510,358—Diluted16,510,35816,510,35816,510,358NetearningsperClassAshareNetincomeattributabletoVipshop'sshareholders——Basic1.
463.
450.
56NetincomeattributabletoVipshop'sshareholders——Diluted1.
373.
320.
54NetearningsperClassBshareNetincomeattributabletoVipshop'sshareholders——Basic1.
463.
450.
56NetincomeattributabletoVipshop'sshareholders——Diluted1.
373.
320.
548NetearningsperADS(1ordinaryshareequalsto5ADSs)NetincomeattributabletoVipshop'sshareholders——Basic0.
290.
690.
11NetincomeattributabletoVipshop'sshareholders——Diluted0.
270.
660.
11(1)Otherrevenuesprimarilyconsistofrevenuesfromproductpromotionandonlineadvertising,feeschargedtothird-partymerchantswhichtheCompanyprovidesplatformaccessforsalesoftheirproducts.
(2)Includingshippingandhandlingexpenses,whichamountedRMB245millionandRMB301millioninthethreemonthperiodsendedJune30,2014andJune30,2015,respectively.
(3)Includingamortizationofintangibleassetsresultingfromabusinessacquisition,whichamountedtoRMB62millionandRMB61millioninthethreemonthsperiodendedJune30,2014andJune30,2015,respectively.
(4)IncludedincometaxbenefitsofRMB15millionandRMB15millionrelatedtothereversalofdeferredtaxliabilities,whichwasrecognizedonthebusinssacquisitionofLefengforthethreemonthsperiodendedJune30,2014andJune30,2015,respectively.
(5)Authorizedsharecapitalarere-classifiedandre-designatedintoClassAordinarysharesandClassBordinaryshares,witheachClassAordinarysharebeingentitledtoonevoteandeachClassBordinarysharebeingentitledtotenvotesonallmattersthataresubjecttoshareholdervote.
Netincome138,466383,97161,931Othercomprehensiveincome,netoftax:Foreigncurrencytranslationadjustments(976)(15,797)(2,548)Unrealizedgainorlossofavailable-for-salessecurities(918)(148)Comprehensiveincome137,490367,25659,235Less:Comprehensivelossattributabletonon-controllinginterests(23,261)(16,273)(2,625)ComprehensiveincomeattributabletoVipshop'sshareholders160,751383,52961,860ThreeMonthsEndedJune30,2014June30,2015June30,2015RMB'000RMB'000USD'0009(Unaudited)(Unaudited)(Unaudited)Share-basedcompensationchargesincludedarefollowsFulfillmentexpenses2,2474,149669Marketingexpenses4,5064,176674Technologyandcontentexpenses27,05331,0855,014Generalandadministrativeexpenses22,32130,8084,969Total56,12770,21811,326VipshopHoldingsLimitedCondensedConsolidatedBalanceSheets(Inthousands,exceptpersharedata)December31,2014June30,2015June30,2015RMB'000RMB'000USD'000ASSETS(Unaudited)(Unaudited)(Unaudited)CURRENTASSETSCashandcashequivalents4,790,7514,430,522714,600Restrictedcash4009,7001,565Held-to-maturitysecurities3,768,3382,866,146462,282Accountsreceivable,net155,099419,85967,719Amountsduefromrelatedparties30,99120,8663,366Otherreceivables550,122645,762104,155Inventories3,588,3042,719,500438,628Advancetosuppliers81,95290,37514,577Prepaidexpenses21,34835,2885,692Deferredtaxassets233,149260,36541,994Totalcurrentassets13,220,45411,498,3831,854,578NON-CURRENTASSETS-Propertyandequipment,net1,911,4532,570,392414,579Depositsforpropertyandequipment207,509232,65737,525Prepaidlanduseright81,991169,28327,303Intangibleassets,net1,038,949902,776145,609Investmentinaffiliates287,390357,89457,725Otherinvestments102,792436,61370,42210Available-for-salesecuritiesinvestment,non-current61,8219,971Otherlong-termassets40,503104,23516,812Goodwill60,00064,81910,455Totalnon-currentassets3,730,5874,900,490790,401TOTALASSETS16,951,04116,398,8732,644,979LIABILTIESANDEQUITYCURRENTLIABILITIESAccountspayable(IncludingaccountspayableoftheVIEwithoutrecoursetotheCompanyofRMB7,490andRMB14,942asofDecember31,2014andJune30,2015,respectively)6,121,2564,740,239764,555Advancefromcustomers(IncludingadvancefromcustomersoftheVIEwithoutrecoursetotheCompanyofRMB1,217,429andRMB607,928asofDecember31,2014andJune30,2015,respectively)1,422,9351,243,044200,491Accruedexpensesandothercurrentliabilities(IncludingaccruedexpensesandothercurrentliabilitiesoftheVIEwithoutrecoursetotheCompanyofRMB944,097andRMB793,497asofDecember31,2014andJune30,2015,respectively)2,340,7552,311,201372,774Amountsduetorelatedparties(IncludingamountsduetorelatedpartiesoftheVIEwithoutrecoursetotheCompanyofRMB2,474andRMB33,497asofDecember31,2014andJune30,2015,respectively)75,784155,45225,073Deferredincome(IncludingdeferredincomeoftheVIEwithoutrecoursetotheCompanyofRMB178,920andRMB199,353asofDecember31,2014andJune30,2015,respectively)194,560292,68447,207Shorttermloans(IncludingshorttermloansoftheVIEwithoutrecoursetotheCompanyofnilasofDecember31,2014andJune30,2015)-6,000968Totalcurrentliabilities10,155,2908,748,6201,411,068NON-CURRENTLIABILITIESDeferredtaxliability242,697212,61634,293Convertibleseniornotes3,854,9853,868,137623,893Totalnon-currentliabilities4,097,6824,080,753658,186Totalliabilities14,252,97312,829,3732,069,254EQUITY:11ClassAordinaryshares(US$0.
0001parvalue,483,489,642sharesauthorized,and99,475,664and98,028,314sharesissuedandoutstandingasofJune30,2015andDecember31,2014,respectively)636410ClassBordinaryshares(US$0.
0001parvalue,16,510,358sharesauthorized,and16,510,358and16,510,358sharesissuedandoutstandingasofJune30,2015andDecember31,2014,respectively)11112Additionalpaid-incapital2,538,2172,679,358432,154Retainedearnings26,544793,345127,959Accumulatedothercomprehensiveincome(loss)(10,711)(11,555)(1,864)Non-controllinginterests143,944108,27717,464Totalshareholders'equity2,698,0683,569,500575,725TOTALLIABILITIESANDSHAREHOLDERS'EQUITY16,951,04116,398,8732,644,979--VipshopHoldingsLimitedReconciliationsofGAAPandNon-GAAPResultsThreeMonthsEndedJune30,2014June30,2015June30,2015RMB'000RMB'000USD'000(Unaudited)(Unaudited)(Unaudited)Incomefromoperations149,639437,76870,608Share-basedcompensationexpenses56,12770,21811,326Amortizationofintangibleassetsresultingfromabusinessacquisition61,22460,6289,779Non-GAAPincomefromoperations266,990568,61491,713Netincome138,466383,97161,931Share-basedcompensationexpenses56,12770,21811,326Amortizationofintangibleassetsresultingfromabusinessacquisitionandequitymethodinvestments(netoftax)57,05559,4349,586Non-GAAPnetincome251,648513,62382,843NetincomeattributabletoVipshop'sshareholders161,545399,29164,402Share-basedcompensationexpenses56,12770,21811,326Amortizationofintangibleassetsresultingfromabusinessacquisitionandequitymethodinvestments(excludenon-controllinginterestsandnetoftax)45,57648,1187,761Non-GAAPnetincomeattributabletoVipshop'sshareholders263,248517,62783,489Sharesusedincalculatingearningspershare:12Basiccommonshares:ClassAordinaryshares:—Basic96,704,29799,369,29599,369,295—Diluted102,917,277103,690,098103,690,098ClassBordinaryshares:—Basic16,510,35816,510,35816,510,358—Diluted16,510,35816,510,35816,510,358Non-GAAPnetincomeperClassAshareNon-GAAPnetincomeattributabletoVipshop'sshareholders——Basic2.
334.
470.
72Non-GAAPnetincomeattributabletoVipshop'sshareholders——Diluted2.
204.
310.
69Non-GAAPnetincomeperClassBshareNon-GAAPnetincomeattributabletoVipshop'sshareholders——Basic2.
334.
470.
72Non-GAAPnetincomeattributabletoVipshop'sshareholders——Diluted2.
204.
310.
69Non-GAAPnetincomeperADS(1ordinaryshareequalto5ADSs)Non-GAAPnetincomeattributabletoVipshop'sshareholders——Basic0.
470.
890.
14Non-GAAPnetincomeattributabletoVipshop'sshareholders——Diluted0.
440.
860.
14