PR Newswire | Aug 18, 2021 06:01AM EDT

08/18 05:00 CDT

Vipshop Reports Unaudited Second Quarter 2021 Financial Results GUANGZHOU, China, Aug. 18, 2021

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 18, 2021

GUANGZHOU, China, Aug. 18, 2021 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today announced its unaudited financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 Highlights

* Total net revenue for the second quarter of 2021 increased by 22.8% year over year to RMB29.6 billion (US$4.6 billion) from RMB24.1 billion in the prior year period. * GMV[1] for the second quarter of 2021 increased by 25% year over year to RMB48.1 billion from RMB38.4 billion in the prior year period. * Gross profit for the second quarter of 2021 increased by 20.6% year over year to RMB6.0 billion (US$922.6 million) from RMB4.9 billion in the prior year period. * Net income attributable to Vipshop's shareholders for the second quarter of 2021 was RMB1.1 billion (US$169.2 million), as compared with RMB1.5 billion in the prior year period. * Non-GAAP net income attributable to Vipshop's shareholders[2] for the second quarter of 2021 increased by 11.3% year over year to RMB1.5 billion (US$227.6 million) from RMB1.3 billion in the prior year period. * The number of active customers[3] for the second quarter of 2021 increased by 32% year over year to 51.1 million from 38.8 million in the prior year period. * Total orders[4] for the second quarter of 2021 increased by 30% year over year to 221.5 million from 170.5 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "In the second quarter of 2021, we maintained solid business momentum through robust execution of our merchandising strategy. In the quarter, we observed healthy trends across our core operating metrics, with total number of active users and total GMV growing by 32% and 25% year over year, respectively. We were also delighted to see our value proposition continues to make us the discount platform of choice for brand partners to collaborate with and to incentivize their contribution to our premium product offerings. We believe that our ability to offer differentiated selections of quality products to our customers at competitive prices while adding value for our brand partners will further solidify our leading position in China's discount retail market."

Mr. David Cui, Chief Financial Officer of Vipshop, further commented, "During the second quarter of 2021, we delivered solid topline growth and profitability, driven by sustainable growth momentum in our business. In addition, we generated robust free cash inflow of RMB7.1 billion for the trailing twelve months ended June 30, 2021, compared with RMB4.1 billion in the prior year period. In the second quarter, we repurchased approximately US$301 million of our ADSs in accordance with the US$500 million share repurchase program we adopted in March 2021, showing both our confidence in the robustness of our business model and our dedication to delivering long-term value to our shareholders."

Second Quarter 2021 Financial Results

REVENUE

Total net revenue for the second quarter of 2021 increased by 22.8% year over year to RMB29.6 billion (US$4.6 billion) from RMB24.1 billion in the prior year period, primarily driven by the growth in the number of total active customers.

GROSS PROFIT

Gross profit for the second quarter of 2021 increased by 20.6% year over year to RMB6.0 billion (US$922.6 million) from RMB4.9 billion in the prior year period. Gross margin for the second quarter of 2021 was 20.1% as compared with 20.5% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the second quarter of 2021 were RMB4.8 billion (US$750.7 million), as compared with RMB3.8 billion in the prior year period. As a percentage of total net revenue, total operating expenses for the second quarter of 2021 was 16.4% as compared with 15.8% in the prior year period.

* Fulfillment expenses for the second quarter of 2021 were RMB2.1 billion (US$318.7 million), as compared with RMB1.7 billion in the prior year period. As a percentage of total net revenue, fulfillment expenses for the second quarter of 2021 decreased to 6.9% from 7.0% in the prior year period. * Marketing expenses for the second quarter of 2021 were RMB1.4 billion (US$218.0 million), as compared with RMB1.0 billion in the prior year period. As a percentage of total net revenue, marketing expenses for the second quarter of 2021 were 4.8%, as compared with 4.3% in the prior year period. The increase was primarily attributable to increased investment in advertising activities relating to customer acquisition and retention. * Technology and content expenses for the second quarter of 2021 was RMB369.9 million (US$57.3 million), as compared with RMB305.4 million in the prior year period. As a percentage of total net revenue, technology and content expenses for the second quarter of 2021 decreased to 1.2% from 1.3% in the prior year period. * General and administrative expenses for the second quarter of 2021 were RMB1.0 billion (US$156.7 million), as compared with RMB804.6 million in the prior year period. As a percentage of total net revenue, general and administrative expenses for the second quarter of 2021 was 3.4%, as compared with 3.3% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the second quarter of 2021 increased by 18.6% year over year to RMB1.5 billion (US$227.8 million) from RMB1.2 billion in the prior year period. Operating margin for the second quarter of 2021 was 5.0%, as compared with 5.1% in the prior year period.

Non-GAAP income from operations[5] for the second quarter of 2021, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 16.1% year over year to RMB1.7 billion (US$268.6 million) from RMB1.5 billion in the prior year period. Non-GAAP operating income margin[6] for the second quarter of 2021 was 5.9%, as compared with 6.2% in the prior year period.

NET INCOME

Net income attributable to Vipshop's shareholders for the second quarter of 2021 was RMB1.1 billion (US$169.2 million), as compared with RMB1.5 billion in the prior year period. Net margin attributable to Vipshop's shareholders for the second quarter of 2021 was 3.7%, as compared with 6.4% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS[7] for the second quarter of 2021 decreased to RMB1.56(US$0.24) from RMB2.24 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders for the second quarter of 2021 , which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment gain and revaluation of investments excluding dividends, (iv) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees, (v) amortization of intangible assets resulting from business acquisitions, and (vi) tax effects on non-GAAP adjustments, increased by 11.3% year over year to RMB1.5 billion (US$227.6 million) from RMB1.3 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[8] for the second quarter of 2021 was 5.0%, as compared with 5.5% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9] for the second quarter of 2021 increased to RMB2.10(US$0.32) from RMB1.92 in the prior year period.

For the quarter ended June 30, 2021, the Company's weighted average number of ADSs used in computing diluted income per ADS was 701,295,575.

BALANCE SHEET AND CASH FLOW

As of June 30, 2021, the Company had cash and cash equivalents and restricted cash of RMB16.5 billion (US$2.6 billion) and short term investments of RMB3.6 billion (US$564.2 million).

For the quarter ended June 30, 2021, net cash generated from operating activities was RMB2.0 billion (US$309.2 million), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows:

For the three months ended

June 30, 2020 June 30, 2021 June 30, 2021

RMB'000 RMB'000 US$'000

Net cash generated from operating activities 5,088,869 1,996,409 309,204

Reconciling items: (311,652) (21,535) (3,335) Net impact from Internet financing activities^[11]

Capital expenditures (452,630) (637,190) (98,688)

Free cash inflow 4,324,587 1,337,684 207,181

For the trailing twelve months ended

June 30, 2020 June 30, 2021 June 30, 2021

RMB'000 RMB'000 US$'000

Net cash generated from operating activities 11,549,627 9,987,575 1,546,878

Reconciling items: (4,027,419) (344,367) (53,336) Net impact from Internet financing activities^[11]

Capital expenditures (3,375,199) (2,497,859) (386,869)

Free cash inflow 4,147,009 7,145,349 1,106,673

Share Repurchase Program

On March 30, 2021, the Company's board of directors approved a share repurchase program, pursuant to which the Company may purchase up to US$500 million of its Class A ordinary shares over a 24-month period, ending on March 29, 2023. As of June 30, 2021, the Company had repurchased approximately US$301 million of its ADSs representing Class A ordinary shares under the program.

Business Outlook

For the third quarter of 2021, the Company expects its total net revenue to be between RMB24.3 billion and RMB25.5 billion, representing a year-over-year growth rate of approximately 5% to 10%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Exchange Rate

The Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi. This announcement contains currency conversions of Renminbi amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the effective noon buying rate on June 30, 2021 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, 2021, or at any other rate.

Conference Call Information

The Company will hold a conference call on Wednesday, August 18, 2021 at 7:30 am US 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. Once pre-registration has been completed, participants will receive dial-in numbers, a passcode, and a unique registrant ID via email. To join the conference, participants should use the dial-in details in the email and then enter the event passcode followed by the registrant ID.

Conference ID #2472109

Registration Link http://apac.directeventreg.com/registration/event/2472109

A replay of the conference call will be accessible until August 25, 2021 via the following dial-in details:

United States Toll Free: +1-855-452-5696 International: +61-2-8199-0299 Conference ID: #2472109

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.vip.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, offline stores, Shan Shan Outlets and city outlets during the relevant period, including through the Company's websites and mobile apps, third-party websites and mobile apps, Vipshop offline stores and Vipmaxx offline stores, as well as Shan Shan Outlets and city outlets that were fulfilled by either the Company or its third-party merchants, regardless of whether or not the goods were delivered or returned.GMV includes shipping charges paid by buyers to sellers. For prudent considerations, the Company does not consider products or services to be soldif the relevant orders were placed and canceled pre-shipment and only included orders that left the Company's or other third-party vendors' warehouses.

^^[2] Non-GAAP net income attributable to Vipshop's shareholders is a non-GAAP financial measure, which is defined as net income attributable to Vipshop's shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment gain and revaluation of investments excluding dividends, (iv) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees, (v) amortization of intangible assets resulting from business acquisitions, and (vi) 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 theCompany's offline stores and outlets), net of orders returned.

^[5] Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions.

^[6] Non-GAAP operating income margin is a non-GAAP financial measure, which is defined as non-GAAP income from operations as a percentage of total net revenues.

^[7] "ADS" means American depositary share, each of which represents 0.2 Class A ordinary share.

^[8] Non-GAAP net margin attributable to Vipshop's shareholders is a non-GAAPfinancial measure, which is defined as non-GAAP net income attributable to Vipshop's shareholders, as a percentage of total net revenues.

^[9] Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Vipshop's shareholders, divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

^[10] Free cash flow is a non-GAAP financial measure, which is defined as netcash from (used in) operating activities adding back the impact from Internetfinancing activities and less capital expenditures, which include purchase and deposits of property and equipment and land use rights, and purchase of other assets.

^[11] Net impact from Internet financing activities represents net cash flow relating to the Company's financial products, which are primarily consumer financing and supplier financing that the Company provides to its customers and suppliers.

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 demand for and market acceptance of flash sales products and services; competition in the discount retail industry; the potential impact of the COVID-19 to Vipshop's business operations and the economy in China and elsewhere generally; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshop's filings with the SEC. All information provided in this press release is as of the date of this press release, and Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

The condensed consolidated financial information is derived from the Company's unaudited interim condensed consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that comparative consolidated statements of income and cash flows for the period presented and detailed footnote disclosures required by Accounting Standards Codification 270, Interim Reporting ("ASC270"), have been omitted. Vipshop uses non-GAAP net income attributable to Vipshop's shareholders, non-GAAP net income attributable to Vipshop's shareholders per diluted ADS, non-GAAP income from operations, non-GAAP operating income margin, non-GAAP net margin attributable to Vipshop's shareholders, and free cash flow, each of which is a non-GAAP financial measure. Non-GAAP net income attributable to Vipshop's shareholders is net income attributable to Vipshop's shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment gain and revaluation of investments excluding dividends, (iv) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees, (v) amortization of intangible assets resulting from business acquisitions, and (vi) 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 and amortization of intangible assets resulting from business acquisitions. Non-GAAP operating income margin is non-GAAP income from operations as a percentage of total net revenue. Non-GAAP net margin attributable to Vipshop's shareholders is non-GAAP net income attributable to Vipshop's shareholders as a percentage of total net revenue. Free cash flow is net cash from operating activities adding back the impact from Internet financing activities and less capital expenditures, which include purchase and deposits of property and equipment and land use rights, and purchase of other assets. Impact from Internet financing activities added back or deducted from free cash flow contains changes in the balances of financial products, which are primarily consumer financing and supplier financing that the Company provides to customers and suppliers. The Company believes that separate analysis and exclusion of the non-cash impact of (a) share-based compensation, (b) impairment loss of investments, (c) amortization of intangible assets resulting from business acquisitions, (d) investment gain and revaluation of investments excluding dividends, and (e) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of (1) non-cash share-based compensation expenses, (2) impairment loss of investments, (3) amortization of intangible assets resulting from business acquisitions, (4) investment gain and revaluation of investments excluding dividends, and (5) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees. Free cash flow enables the Company to assess liquidity and cash flow, taking into account the impact from Internet financing activities and the financial resources needed for the expansion of fulfillment infrastructure and technology platform. Share-based compensation expenses and amortization of intangible assets have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures.

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

Investor Relations Contact

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

Vipshop Holdings Limited

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income

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

Three Months Ended

June 30,2020 March 31,2021 June 30,2021 June 30,2021

RMB'000 RMB'000 RMB'000 USD'000

Product revenues 23,213,007 27,221,752 28,226,826 4,371,779

Other revenues (1) 897,660 1,176,745 1,380,876 213,870

Total net revenues 24,110,667 28,398,497 29,607,702 4,585,649

Cost of revenues (19,170,864) (22,803,674) (23,650,875) (3,663,054)

Gross profit 4,939,803 5,594,823 5,956,827 922,595

Operating expenses:

Fulfillment expenses (2) (1,676,229) (1,793,138) (2,057,504) (318,667)

Marketing expenses (1,028,903) (1,294,068) (1,407,584) (218,007)

Technology and content expenses (305,381) (337,516) (369,936) (57,296)

General and administrative expenses (804,619) (956,688) (1,011,849) (156,716)

Total operating expenses (3,815,132) (4,381,410) (4,846,873) (750,686)

Other operating income 115,336 298,000 360,554 55,843

Income from operations 1,240,007 1,511,413 1,470,508 227,752

Investment gain and revaluation of investments 551,443 97,936 (74,173) (11,488)

Impairment loss of investments 0 0 (161,734) (25,049)

Interest expense (21,070) (3,696) (1,614) (250)

Interest income 100,286 153,424 160,114 24,799

Foreign exchange gain(loss) (14,272) 30,950 (50,684) (7,850)

Income before income tax expense and share of gain of equity method investees 1,856,394 1,790,027 1,342,417 207,914

Income tax expenses (324,883) (306,959) (312,749) (48,439)

Share of gain of equity method investees 7,588 64,642 55,596 8,611

Net income 1,539,099 1,547,710 1,085,264 168,086

Net loss(income) attributable to non-controlling interests (2,179) (2,240) 7,218 1,118

Net income attributable to Vipshop's shareholders 1,536,920 1,545,470 1,092,482 169,204

Shares used in calculating earnings per share (3):

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

-Basic 134,956,142 136,459,216 137,142,451 137,142,451

-Diluted 137,322,667 141,842,600 140,259,115 140,259,115

Net earnings per Class A and Class B ordinary share

Net income attributable to Vipshop's shareholders--Basic 11.39 11.33 7.97 1.23

Net income attributable to Vipshop's shareholders--Diluted 11.19 10.90 7.79 1.21

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

Net income attributable to Vipshop's shareholders--Basic 2.28 2.27 1.59 0.25

Net income attributable to Vipshop's shareholders--Diluted 2.24 2.18 1.56 0.24

(1) Other revenues primarily consist of revenues from third-party logisticsservices, product promotion and online advertising, feescharged to third-party merchants which the Company provides platform access forsales of their products, interest income frommicrocredit and consumer financing services, inventory and warehouse managementservices to certain suppliers, loan facilitationservice income, and lease income earned from the Shan Shan Outlets.

(2) Fulfillment expenses include shipping and handling expenses, which amountedRMB 1.1 billion,1.2 billion and RMB 1.5 billion inthe three month periods ended June 30,2020,March 31,2021 and June 30,2021,respectively.

(3) Authorized share capital is re-classified and re-designated into Class Aordinary shares and Class B ordinary shares, with eachClass A ordinary share being entitled to one vote and each Class B ordinaryshare being entitled to ten votes on all matters that aresubject to shareholder vote.

Three Months Ended

June 30,2020 March 31,2021 June 30,2021 June 30,2021

RMB'000 RMB'000 RMB'000 USD'000

Share-based compensation expenses are includedin the operating expenses as follows:

Fulfillment expenses 25,905 19,750 22,336 3,459

Marketing expenses 4,661 4,289 4,153 643

Technology and content expenses 45,201 52,581 67,238 10,414

General and administrative expenses 172,136 143,517 163,899 25,385

Total 247,903 220,137 257,626 39,901

Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

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

December June June 31, 2020 30, 2021 30, 2021

RMB'000 RMB'000 USD'000

ASSETS

CURRENT ASSETS

Cash and cash equivalents 11,995,415 15,666,775 2,426,475

Restricted cash 815,906 798,450 123,664

Short term investments 7,328,719 3,642,851 564,206

Accounts receivable, net 334,529 376,443 58,304

Amounts due from related parties 333,539 353,333 54,724

Other receivables and prepayments,net 2,286,359 2,177,100 337,190

Loan receivables,net 27,258 4,345 673

Inventories 7,642,509 5,941,222 920,178

Assets held for sale 408,748 19,528 3,024

Total current assets 31,172,982 28,980,047 4,488,438

NON-CURRENT ASSETS

Property and equipment, net 13,584,459 13,925,275 2,156,750

Deposits for property and equipment 73,718 264,260 40,929

Land use rights, net 6,062,792 6,029,328 933,824

Intangible assets, net 333,022 320,989 49,715

Investment in equity method investees 1,949,787 2,323,273 359,829

Other investments 2,861,034 2,722,120 421,603

Other long-term assets 100,328 292,604 45,319

Goodwill 593,662 593,662 91,947

Deferred tax assets, net 628,267 706,254 109,385

Operating lease right-of-use assets 1,580,763 1,355,352 209,917

Total non-current assets 27,767,832 28,533,117 4,419,218

TOTAL ASSETS 58,940,814 57,513,164 8,907,656

LIABILTIES AND EQUITY

CURRENT LIABILITIES

Short term loans 1,043,426 1,959,516 303,490

Accounts payable 15,191,313 12,289,830 1,903,452

Advance from customers 1,558,891 1,238,674 191,846

Accrued expenses and other current liabilities 7,696,996 7,108,980 1,101,041

Amounts due to related parties 444,100 410,538 63,584

Deferred income 334,431 314,409 48,696

Operating lease liabilities 299,791 313,508 48,556

Total current liabilities 26,568,948 23,635,455 3,660,665

NON-CURRENT LIABILITIES

Deferred tax liability 432,995 452,105 70,022

Deferred income-non current 1,070,891 1,086,398 168,262

Operating lease liabilities 1,360,946 1,129,494 174,936

Other long term liabilities 121,245 176,055 27,267

Total non-current liabilities 2,986,077 2,844,052 440,487

TOTAL LIABILITIES 29,555,025 26,479,507 4,101,152

EQUITY:

Class A ordinary shares (US$0.0001 par value, 483,489,642 sharesauthorized,119,223,484 and 122,424,418 shares issued,of which 77 79 12119,223,484 and 119,681,428 shares were outstanding as of December31, 2020 and June 30,2021, respectively)

Class B ordinary shares (US$0.0001 par value, 16,510,358 sharesauthorized, and 16,510,358 and 15,560,358 shares issued and 11 11 2outstanding as of December 31, 2020 and June 30,2021, respectively)

Treasury shares,at cost(Nil and 2,742,990 Class A shares as of December 0 (1,927,719) (298,566)31, 2020 and June 30,2021, respectively )

Additional paid-in capital 10,816,185 11,692,079 1,810,872

Retained earnings 17,740,415 20,378,367 3,156,207

Accumulated other comprehensive loss (58,954) (103,681) (16,055)

Non-controlling interests 888,055 994,521 154,032

Total shareholders' equity 29,385,789 31,033,657 4,806,504

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 58,940,814 57,513,164 8,907,656



Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

June 30,2020 June 30,2021 June 30,2021

RMB'000 RMB'000 USD'000

Income from operations 1,240,007 1,470,508 227,752

Share-based compensation expenses 247,903 257,626 39,901

Amortization of intangible assets resulting from business acquisitions 5,896 5,896 913

Non-GAAP income from operations 1,493,806 1,734,030 268,566

Net income attributable to Vipshop's shareholders 1,536,920 1,092,482 169,204

Share-based compensation expenses 247,903 257,626 39,901

Impairment loss of investments 0 161,734 25,049

Investment gain and revaluation of investments excluding dividends (551,443) 103,043 15,959

Share of loss(gain) in investment of limited partnerships that are accounted 27,739 (50,009) (7,745)for as an equity method investee

Amortization of intangible assets resulting from business acquisitions 5,896 5,896 913

Tax effects on non-GAAP adjustments 53,570 (101,261) (15,683)

Non-GAAP net income attributable to Vipshop's shareholders 1,320,585 1,469,511 227,598

Shares used in calculating earnings per share:

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

-Basic 134,956,142 137,142,451 137,142,451

-Diluted 137,322,667 140,259,115 140,259,115

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

Non-GAAP net income attributable to Vipshop's shareholders--Basic 9.79 10.72 1.66

Non-GAAP net income attributable to Vipshop's shareholders--Diluted 9.62 10.48 1.62

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

Non-GAAP net income attributable to Vipshop's shareholders--Basic 1.96 2.14 0.33

Non-GAAP net income attributable to Vipshop's shareholders--Diluted 1.92 2.10 0.32

View original content: https://www.prnewswire.com/news-releases/vipshop-reports-unaudited-second-quarter-2021-financial-results-301357775.html

SOURCE Vipshop Holdings Limited