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Vipshop Reports Unaudited Second Quarter 2024 Financial Results

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Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 20, 2024

GUANGZHOU, China, Aug. 20, 2024 /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, 2024.

Second Quarter 2024 Highlights

Total net revenues for the second quarter of 2024 were RMB26.9 billion (US$3.7 billion), compared with RMB27.9 billion in the prior year period.GMV[1] for the second quarter of 2024 was RMB50.6 billion, which largely stayed flat compared with that in the prior year period.Gross profit for the second quarter of 2024 increased by 2.2% year over year to RMB6.3 billion (US$872.6 million) from RMB6.2 billion in the prior year period. Net income attributable to Vipshop’s shareholders for the second quarter of 2024 was RMB1.9 billion (US$265.7 million), compared with RMB2.1 billion in the prior year period.Non-GAAP net income attributable to Vipshop’s shareholders[2] for the second quarter of 2024 was RMB2.2 billion (US$298.0 million), compared with RMB2.4 billion in the prior year period.The number of active customers[3] for the second quarter of 2024 was 44.3 million, compared with 45.6 million in the prior year period.Total orders[4] for the second quarter of 2024 were 197.8 million, compared with 213.8 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “Our second quarter results reflected the agility of our team and the resilience of our business model, as we achieved operational excellence in the face of slower sales momentum. The fundamental strength of our business was evidenced by the resilient performance of our core brands and active Super VIP members. In the second quarter, we continued to sharpen our focus on enriching merchandise offerings, delivering value, and providing worry-free services, which are our core competitive edges. Looking ahead, we will stay close to customer needs, continue investing in our merchandising capabilities, and consistently execute on the discount retail fundamentals to achieve quality growth for the long term.”

Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, “In the second quarter, we achieved solid profitability despite ongoing pressure on the topline growth. Our continued efforts in operating efficiency improvement helped us maintain consistent and healthy margins. Moreover, we accelerated our pace of preserving shareholder value with over US$200 million having been utilized for share buybacks during the quarter, and a new share repurchase program of up to US$1 billion will be in place after we fully utilize the remaining amount under the existing program. While uncertainties remain in the near term, we believe that our disciplined approach to managing the business, along with the long-term investments we are making in line with our strategy, positions us well to deliver sustainable and profitable growth in the long run.”

Second Quarter 2024 Financial Results

REVENUES 

Total net revenues for the second quarter of 2024 were RMB26.9 billion (US$3.7 billion), compared with RMB27.9 billion in the prior year period.

GROSS PROFIT

Gross profit for the second quarter of 2024 increased by 2.2% year over year to RMB6.3 billion (US$872.6 million) from RMB6.2 billion in the prior year period. Gross margin for the second quarter of 2024 increased to 23.6% from 22.2% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the second quarter of 2024 decreased by 4.2% year over year to RMB4.3 billion (US$590.8 million) from RMB4.5 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the second quarter of 2024 decreased to 16.0% from 16.1% in the prior year period.

Fulfillment expenses for the second quarter of 2024 decreased by 0.8% year over year to RMB2.16 billion (US$297.9 million) from RMB2.18 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the second quarter of 2024 was 8.1%, compared with 7.8% in the prior year period.Marketing expenses for the second quarter of 2024 decreased by 17.0% year over year to RMB740.7 million (US$101.9 million) from RMB892.5 million in the prior year period. As a percentage of total net revenues, marketing expenses for the second quarter of 2024 decreased to 2.8% from 3.2% in the prior year period.Technology and content expenses for the second quarter of 2024 increased by 10.0% year over year to RMB487.2 million (US$67.0 million) from RMB443.0 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the second quarter of 2024 was 1.8%, compared with 1.6% in the prior year period.General and administrative expenses for the second quarter of 2024 decreased by 6.5% year over year to RMB900.7 million (US$123.9 million) from RMB963.1 million in the prior year period. As a percentage of total net revenues, general and administrative expenses for the second quarter of 2024 decreased to 3.4% from 3.5% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the second quarter of 2024 increased by 16.5% year over year to RMB2.2 billion (US$307.2 million) from RMB1.9 billion in the prior year period. Operating margin for the second quarter of 2024 increased to 8.3% from 6.9% in the prior year period.

Non-GAAP income from operations[5] for the second quarter of 2024, which excluded share-based compensation expenses, increased by 11.6% year over year to RMB2.6 billion (US$352.9 million) from RMB2.3 billion in the prior year period. Non-GAAP operating margin[6] for the second quarter of 2024 increased to 9.5% from 8.2% in the prior year period.

NET INCOME

Net income attributable to Vipshop’s shareholders for the second quarter of 2024 was RMB1.9 billion (US$265.7 million), compared with RMB2.1 billion in the prior year period. Net margin attributable to Vipshop’s shareholders for the second quarter of 2024 was 7.2%, compared with 7.5% in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS[7] for the second quarter of 2024 was RMB3.49 (US$0.48), compared with RMB3.75 in the prior year period.

Non-GAAP net income attributable to Vipshop’s shareholders for the second quarter of 2024, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, was RMB2.2 billion (US$298.0 million), compared with RMB2.4 billion in the prior year period. Non-GAAP net margin attributable to Vipshop’s shareholders[8] for the second quarter of 2024 was 8.1%, compared with 8.6% in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS[9] for the second quarter of 2024 was RMB3.91 (US$0.54), compared with RMB4.30 in the prior year period.

For the quarter ended June 30, 2024, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 553,677,165.

BALANCE SHEET AND CASH FLOW

As of June 30, 2024, the Company had cash and cash equivalents and restricted cash of RMB21.6 billion (US$3.0 billion) and short term investments of RMB1.9 billion (US$264.3 million).

For the quarter ended June 30, 2024, net cash generated from operating activities was RMB287.1 million (US$39.5 million), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows:

For the three months ended

June 30, 2023

 

RMB’000

June 30, 2024

 

RMB’000

June 30, 2024

 

US$’000

Net cash generated from operating activities

4,053,402

287,090

39,505

Reconciling items:

   Net impact from internet financing activities[11]

199,429

27,193

3,742

   Capital expenditures

(1,658,548)

(1,178,086)

(162,110)

Free cash inflow (outflow)

2,594,283

(863,803)

(118,863)

 

For the trailing twelve months ended

June 30, 2023

 

RMB’000

June 30, 2024

 

RMB’000

June 30, 2024

 

US$’000

Net cash generated from operating activities

11,764,313

9,626,765

1,324,687

Reconciling items:

   Net impact from internet financing activities

315,313

(84,782)

(11,666)

   Capital expenditures

(3,906,017)

(4,360,210)

(599,985)

Free cash inflow

8,173,609

5,181,773

713,036

Share Repurchase Program

During the quarter ended June 30, 2024, the Company repurchased US$205.9 million of its ADSs under its current US$1 billion share repurchase program, which is effective through March 2025. As of June 30, 2024, the Company has an unutilized amount of US$330.3 million under this program.

The board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$1 billion of its American depositary shares or Class A ordinary shares for a 24-month period commencing from the full utilization of the existing share repurchase program adopted in March 2023, as amended.

The Company will implement its share repurchases in accordance with applicable rules and requirements under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policy. The Company’s board of directors will review the share repurchase programs periodically, and may authorize adjustment of their terms and size. The Company expects to fund the repurchases out of its existing cash balance.

Amended and Restated 2014 Share Incentive Plan

The Company adopted an Amended and Restated 2014 Share Incentive Plan, as approved and authorized by the board of directors of the Company and its compensation committee. This plan amends and restates the original plan in its entirety, primarily for the purpose of extending the term of the original plan, and assumes all awards granted under the original plan. The Amended and Restated 2014 Share Incentive Plan will expire upon the tenth anniversary of the effective date.

Business Outlook

For the third quarter of 2024, the Company expects its total net revenues to be between RMB20.5 billion and RMB21.6 billion, representing a year-over-year decrease of approximately 10% 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 translations 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 RMB7.2672 to US$1.00, the effective noon buying rate on June 28, 2024 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 28, 2024, or at any other rate.

Conference Call Information

The Company will hold a conference call on Tuesday, August 20, 2024 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/BIfbccf9124acb48109bcc343f7ada8c5b

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/7y28oi6a. 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; 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 cash flows for the period presented and the 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 (gain) loss 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 (gain) loss 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 (gain) loss 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 given period, including 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 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 (gain) loss 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 self-operated online sales business or the Company’s online marketplace platforms, excluding those who made their purchases from the Company’s online stores operated at third-party platforms, at least once during the relevant period. Beginning in the fourth quarter of 2023, the Company updated its definition of “active customers” to exclude registered members who make their purchases from the Company’s online stores operated at third-party platforms. The active customer figures for the historical periods presented in this press release have been retrospectively adjusted accordingly.

[4] “Total orders” is defined as the total number of orders placed during the given period, including the orders for products and services sold through the Company’s online sales business and on 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 30,2023

June 30,2024

June 30,2024

June 30,2023

June 30,2024

June 30,2024

RMB’000

RMB’000

USD’000

RMB’000

RMB’000

USD’000

Product revenues 

26,163,113

25,077,607

3,450,794

52,100,943

50,924,737

7,007,477

Other revenues (1)

1,716,187

1,797,561

247,353

3,314,740

3,596,311

494,869

 Total net revenues 

27,879,300

26,875,168

3,698,147

55,415,683

54,521,048

7,502,346

 Cost of revenues 

(21,677,355)

(20,533,956)

(2,825,566)

(43,309,175)

(41,634,335)

(5,729,075)

 Gross profit 

6,201,945

6,341,212

872,581

12,106,508

12,886,713

1,773,271

 Operating expenses: 

 Fulfillment expenses (2) 

(2,181,066)

(2,164,681)

(297,870)

(3,964,897)

(4,150,206)

(571,087)

 Marketing expenses 

(892,505)

(740,662)

(101,918)

(1,729,399)

(1,431,546)

(196,987)

 Technology and content expenses 

(443,046)

(487,156)

(67,035)

(835,809)

(969,057)

(133,347)

 General and administrative expenses 

(963,117)

(900,671)

(123,936)

(2,010,788)

(1,829,758)

(251,783)

 Total operating expenses 

(4,479,734)

(4,293,170)

(590,759)

(8,540,893)

(8,380,567)

(1,153,204)

 Other operating income 

194,288

184,380

25,372

336,577

485,978

66,873

 Income from operations 

1,916,499

2,232,422

307,194

3,902,192

4,992,124

686,940

 Investment gain (loss) and revaluation of investments 

39,354

(17,855)

(2,457)

81,334

(21,413)

(2,947)

 Impairment loss of investments 

(19,105)

(14,691)

(2,022)

(19,105)

(14,691)

(2,022)

 Interest expense 

(1,989)

(13,666)

(1,881)

(7,696)

(24,221)

(3,333)

 Interest income 

183,168

191,656

26,373

405,133

407,713

56,103

 Exchange gain (loss) 

282,636

(74,896)

(10,306)

274,449

(77,263)

(10,632)

 Income before income tax expense and share of income of equity
method investees 

2,400,563

2,302,970

316,901

4,636,307

5,262,249

724,109

 Income tax expenses  

(339,056)

(405,646)

(55,819)

(729,201)

(1,024,932)

(141,035)

 Share of income of equity method investees 

49,202

47,203

6,495

81,009

55,138

7,587

 Net income 

2,110,709

1,944,527

267,577

3,988,115

4,292,455

590,661

Net income attributable to non-controlling interests

(13,255)

(13,320)

(1,833)

(31,931)

(44,538)

(6,129)

 Net income attributable to Vipshop’s shareholders 

2,097,454

1,931,207

265,744

3,956,184

4,247,917

584,532

 Shares used in calculating earnings per share (3): 

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

 —Basic 

110,053,473

108,709,998

108,709,998

112,975,907

108,584,522

108,584,522

 —Diluted 

111,819,666

110,735,433

110,735,433

114,669,108

110,708,271

110,708,271

 Net earnings per Class A and Class B ordinary share 

 Net income attributable to Vipshop’s shareholders——Basic 

19.06

17.76

2.44

35.02

39.12

5.38

 Net income attributable to Vipshop’s shareholders——Diluted 

18.76

17.44

2.40

34.50

38.37

5.28

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

 Net income attributable to Vipshop’s shareholders——Basic 

3.81

3.55

0.49

7.00

7.82

1.08

 Net income attributable to Vipshop’s shareholders——Diluted 

3.75

3.49

0.48

6.90

7.67

1.06

(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 RMB 1.6 billion and RMB1.5 billion in the three
month periods ended June 30,2023 and June 30,2024, respectively.

(2) Fulfillment expenses include shipping and handling expenses,
which amounted RMB2.9 billion and RMB2.9 billion in the six month
periods ended June 30,2023 and June 30,2024, 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 30,2023

June 30,2024

June 30,2024

June 30,2023

June 30,2024

June 30,2024

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 

23,173

20,727

2,852

38,542

41,091

5,654

 Marketing expenses 

8,383

7,516

1,034

17,711

15,335

2,110

 Technology and content expenses 

92,906

96,856

13,328

154,273

190,288

26,185

 General and administrative expenses 

256,996

206,985

28,482

475,076

380,832

52,404

 Total 

381,458

332,084

45,696

685,602

627,546

86,353

 

 

 Vipshop Holdings Limited 

 Unaudited Condensed Consolidated Balance Sheets 

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

December 31,2023

June 30,2024

June 30,2024

RMB’000

RMB’000

USD’000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

25,414,729

21,030,780

2,893,932

Restricted cash 

882,637

587,796

80,883

Short term investments

1,983,201

1,920,872

264,321

Accounts receivable, net

778,767

932,010

128,249

Amounts due from related parties,net

553,502

574,880

79,106

Other receivables and prepayments,net

2,298,612

2,529,655

348,092

Loan receivables,net

4,437

5,476

754

Inventories

5,644,713

4,172,868

574,206

Total current assets

37,560,598

31,754,337

4,369,543

NON-CURRENT ASSETS

Property and equipment, net

16,882,100

17,585,608

2,419,860

Deposits for property and equipment

200,739

178,269

24,531

Land use rights, net

10,132,626

10,433,786

1,435,737

Intangible assets, net

332,821

329,733

45,373

Investment in equity method investees

2,155,561

2,063,075

283,889

Other investments

2,916,189

3,163,209

435,272

Other long-term assets

147,669

237,930

32,740

Goodwill

755,213

755,213

103,921

Deferred tax assets, net

685,017

689,995

94,946

Operating lease right-of-use assets

554,061

459,412

63,217

Total non-current assets

34,761,996

35,896,230

4,939,486

TOTAL ASSETS

72,322,594

67,650,567

9,309,029

 LIABILITIES AND  EQUITY  

 CURRENT LIABILITIES 

 Short term loans 

1,425,576

2,485,533

342,021

 Accounts payable 

17,259,395

12,225,160

1,682,238

 Advance from customers  

1,689,881

1,319,266

181,537

 Accrued expenses and other current liabilities  

9,560,449

8,029,983

1,104,963

 Amounts due to related parties  

150,373

184,165

25,342

 Deferred income  

457,594

432,360

59,495

 Operating lease liabilities 

80,868

66,052

9,089

Total current liabilities

30,624,136

24,742,519

3,404,685

 NON-CURRENT LIABILITIES 

Deferred tax liability 

692,492

647,273

89,068

Deferred income-non current 

1,756,949

1,951,942

268,596

 Operating lease liabilities 

689,259

607,278

83,564

Total non-current liabilities

3,138,700

3,206,493

441,228

TOTAL LIABILITIES

33,762,836

27,949,012

3,845,913

EQUITY:

Class A ordinary shares (US$0.0001 par value, 483,489,642
shares authorized,98,877,929 and 99,958,367 shares issued,of
which 92,900,247 and 91,129,644 shares were outstanding as of
December 31,2023 and June 30,2024, respectively) 

62

63

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, 2023 and June 30,2024,
respectively) 

11

11

2

Treasury shares,at cost(5,977,682 and 8,828,723 Class A shares
as of December 31,2023 and June 30,2024, respectively )

(3,624,763)

(5,205,735)

(716,333)

Additional paid-in capital

4,444,755

4,751,653

653,849

Retained earnings

36,836,928

39,414,170

5,423,570

Accumulated other comprehensive loss

(695,589)

(684,551)

(94,197)

Non-controlling interests

1,598,354

1,425,944

196,216

Total shareholders’ equity

38,559,758

39,701,555

5,463,116

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 

72,322,594

67,650,567

9,309,029

 

 

 Vipshop Holdings Limited 

 Reconciliations of GAAP and Non-GAAP Results 

Three Months Ended

Six Months Ended

June 30,2023

June 30,2024

June 30,2024

June 30,2023

June 30,2024

June 30,2024

RMB’000

RMB’000

USD’000

RMB’000

RMB’000

USD’000

 Income from operations 

1,916,499

2,232,422

307,194

3,902,192

4,992,124

686,940

 Share-based compensation expenses 

381,458

332,084

45,696

685,602

627,546

86,353

 Non-GAAP income from operations 

2,297,957

2,564,506

352,890

4,587,794

5,619,670

773,293

 Net income attributable to Vipshop’s shareholders 

2,097,454

1,931,207

265,744

3,956,184

4,247,917

584,532

 Share-based compensation expenses 

381,458

332,084

45,696

685,602

627,546

86,353

 Impairment loss of investments 

19,105

14,691

2,022

19,105

14,691

2,022

 Investment (gain) loss and revaluation of investments excluding dividends 

(39,352)

17,855

2,457

(81,333)

21,413

2,947

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

(22,897)

(15,124)

(2,081)

(37,612)

(28,647)

(3,942)

 Tax effects on non-GAAP adjustments 

(34,432)

(115,297)

(15,865)

(71,390)

(134,789)

(18,548)

 Non-GAAP net income attributable to Vipshop’s shareholders 

2,401,336

2,165,416

297,973

4,470,556

4,748,131

653,364

(4) To exclude the GAAP to non-GAAP reconciling items relating to investment (gain) loss 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 

110,053,473

108,709,998

108,709,998

112,975,907

108,584,522

108,584,522

 —Diluted 

111,819,666

110,735,433

110,735,433

114,669,108

110,708,271

110,708,271

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

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

21.82

19.92

2.74

39.57

43.73

6.02

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

21.48

19.55

2.69

38.99

42.89

5.90

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

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

4.36

3.98

0.55

7.91

8.75

1.20

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

4.30

3.91

0.54

7.80

8.58

1.18

 

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Vortex Companies Acquires Sancon Technologies

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Expanding Its Leadership in Water and Wastewater Infrastructure Solutions

HOUSTON, Jan. 10, 2025 /PRNewswire/ — Vortex Companies, LLC (Vortex), the nation’s fastest-growing provider of trenchless infrastructure solutions, is proud to announce its acquisition of Sancon Technologies, Inc. (Sancon). Headquartered in Huntington Beach, California, Sancon has been a trusted leader in structure and trenchless rehabilitation across California and Nevada, since 2012.

“Sancon has earned an outstanding reputation in our industry, driven by its strong management team and proven expertise,” said Mike Vellano, CEO of Vortex Companies. “As a long-time licensee of CIPP Corp and a user of Vortex UV technology, sewer robotics, epoxies, and geopolymer lining products, Sancon’s established presence on the West Coast makes them an ideal addition to the Vortex portfolio.”

Led by Chuck Parsons, Gary Drew, and Ryan Helmuth, Sancon’s management team brings decades of trenchless technology experience. “Joining the Vortex family allows us to access resources that were previously unavailable, broadening our service offerings,” said Chuck Parsons. “We’ve cultivated a strong relationship with Vortex over the years and look forward to expanding our comprehensive portfolio of solutions.”

This acquisition bolsters Vortex’s capabilities by adding decades of experience, specialized equipment, and long-standing customer relationships, further strengthening its presence on the West Coast. “The market demand for trenchless rehabilitation solutions continues to grow, particularly in the western states and the California market,” said Ryan Graham, COO of Vortex. “Sancon’s expertise aligns with our mission to deliver environmentally friendly and cost-effective infrastructure solutions to our customers.”

Financial terms of the transaction were not disclosed.

About Vortex Companies
Celebrating its 10th anniversary, Vortex Companies is a global leader in trenchless water and sewer infrastructure solutions. The company provides advanced technologies and turnkey services for municipal, industrial, and commercial systems. Operating from 27 locations worldwide, Vortex specializes in manhole and pipe rehabilitation, polymeric coatings, CIPP liners, sewer robotics, and high-speed drain cleaning tools. For more information, visit www.vortexcompanies.com.

About Sancon Technologies
Sancon Technologies provides trenchless rehabilitation of sewer and water structures through advanced coatings and custom-developed pipelining systems. With over 40 years of experience, Sancon has rehabilitated millions of square feet of sewer structures and several million linear feet of pipelines for over 100 public agencies. For more information, visit www.sancon.com

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SOURCE Vortex Companies

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Sensors for Smartphones Market to Grow by USD 809 Million from 2025-2029, Driven by Mobile AR Adoption and AI-Redefined Market Landscape – Technavio

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NEW YORK, Jan. 10, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global sensors for smartphones market size is estimated to grow by USD 809 million from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 2.7% during the forecast period. Increasing implementation of mobile ar applications by enterprises is driving market growth, with a trend towards emergence of sensor fusion technology. However, design complexity poses a challenge. Key market players include Alps Alpine Co. Ltd., ams OSRAM AG, Broadcom Inc., CEVA Inc., Fingerprint Cards AB, Fujitsu Ltd., Murata Manufacturing Co. Ltd., OmniVision Technologies Inc., Panasonic Holdings Corp., Qualcomm Inc., Robert Bosch GmbH, ROHM Co. Ltd., Samsung Electronics Co. Ltd., Sensirion AG, Shenzhen Goodix Technology Co. Ltd, Sony Group Corp., STMicroelectronics International NV, Synaptics Inc., and TDK Corp..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Forecast period

2025-2029

Base Year

2024

Historic Data

2019 – 2023

Segment Covered

Price (Premium range, Medium range, and Low range) and Geography (APAC, North America, Europe, South America, and Middle East and Africa)

Region Covered

APAC, North America, Europe, South America, and Middle East and Africa

Key companies profiled

Alps Alpine Co. Ltd., ams OSRAM AG, Broadcom Inc., CEVA Inc., Fingerprint Cards AB, Fujitsu Ltd., Murata Manufacturing Co. Ltd., OmniVision Technologies Inc., Panasonic Holdings Corp., Qualcomm Inc., Robert Bosch GmbH, ROHM Co. Ltd., Samsung Electronics Co. Ltd., Sensirion AG, Shenzhen Goodix Technology Co. Ltd, Sony Group Corp., STMicroelectronics International NV, Synaptics Inc., and TDK Corp.

Key Market Trends Fueling Growth

The smartphone sensors market is experiencing significant growth, driven by trends in videos, standard smartphones, and mobile operating systems. New features such as augmented reality (AR) applications, artificial intelligence (AI) technology, and image stabilization are becoming essential for users. Sensors like accelerometers, gyroscopes, proximity, compass, barometer, and optical are commonly used in smartphones and wearable devices. Quality of experience is a key focus for smartphone manufacturers, with improvements in call quality, display, and battery life. The use of sensors in health monitoring applications, including heart rate monitors and blood pressure sensors, is also increasing. Industrial design and software development are crucial for integrating these sensors into smartphones and other electronic devices. Cyber security is a concern, with the potential for fake sensors and data collection posing risks. Overall, the market for smartphone sensors is expected to continue growing, driven by user purposes, networks, and new materials. 

Sensor fusion is a technology that combines data from multiple sensors in smartphones to deliver more accurate results. This includes data from gyroscopes, compasses, and accelerometers, which are used to calculate elevation, linear translation, gravity, direction, and rotation. Efficient interoperability between sensors is crucial, and sensor-fusion technology plays a vital role in achieving this. Vendors like Bosch Sensortec GmbH offer complete 9-axis fusion solutions, such as FusionLib, to enable sensors to work. These algorithm solutions enhance the overall performance and accuracy of smartphone sensors. 

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market Challenges

The smartphone sensors market is experiencing significant growth as sensors become increasingly integrated into various electronic devices. One challenge is ensuring compatibility with standard smartphones and mobile operating systems. Wearable devices and new features like AR applications require high-quality sensors for optimal user experience. Processors and communication technologies play a crucial role in data collection and transmission. However, concerns around fake sensors and cyber attacks pose threats to the market. For instance, fake fingerprint sensors or iris recognition can compromise user security. To address this, manufacturers focus on improving sensor quality and implementing advanced technologies like artificial intelligence and time-of-flight sensing. Smartphone sales continue to rise, driving demand for various sensors, including image sensors for cameras, pressure sensors for health monitoring applications, and proximity sensors for usability. Additionally, sensors in wearable devices like smartwatches, such as heart rate monitors and accelerometers, are gaining popularity. The use of sensors extends beyond smartphones to digital media players, remote monitoring systems, and even industrial design. New materials like steel and natural materials are being explored to enhance sensor performance and durability. As sensors become more sophisticated, they enable new applications, such as 5G smartphones, mobile gaming consoles, and surveillance systems. Overall, the smartphone sensors market presents significant opportunities for innovation and growth.The sensors for smartphones market faces a significant challenge due to the restricted board size in mobile devices. With the increasing integration of sensors like fingerprint and facial recognition, the need for more board space becomes a concern. Manufacturers aim to minimize the size of sensors’ ICs while maintaining their functionality and affordability. Continuous advancements in technology, such as shrinking circuit and chip sizes, offer potential solutions to this issue. However, ensuring uncompromised performance remains crucial for sensor manufacturers in this competitive market.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview

This sensors for smartphones market report extensively covers market segmentation by

Price1.1 Premium range1.2 Medium range1.3 Low rangeGeography2.1 APAC2.2 North America2.3 Europe2.4 South America2.5 Middle East and Africa

1.1 Premium range- The premium smartphone market continues to evolve, with devices priced above USD400 featuring advanced technologies such as Human-Machine Interface (HMI) systems and AI. HMI technologies, including pattern recognition, gesture recognition, facial recognition, fingerprint recognition, and iris recognition, require sophisticated sensors and processors for functionality. In 2023, smartphones from leading brands like Apple and Samsung incorporate sensors such as air gestures, face ID, fingerprint, and iris sensors. The trend towards bezel-less screens is driving the adoption of in-display fingerprint sensors, while the integration of AI chips is facilitating the functioning of HMI technologies and increasing the number of sensors used in premium smartphones. These factors are expected to fuel growth in the premium smartphone sensors market during the forecast period.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2025-2029) and historic data (2019 – 2023) 

Research Analysis

The Sensors for Smartphones market is witnessing significant growth due to the increasing demand for advanced features in mobile devices. Smartphone camera technology is a major driver, with sensors enabling improved image and video quality. Mobile app development is also benefiting from sensor integration, allowing for more interactive and personalized experiences. Health monitoring is another area of focus, with sensors enabling well-being monitoring and accessibility features. Mobile device security is also a priority, with sensors playing a role in biometric authentication and remote analysis. Smartphone trends include mid-level and high-end devices, mobile gaming, VR applications, and sensor-driven innovation. Sensor range includes temperature, humidity, light, proximity, and gyroscopic sensors. Smartphone usage statistics indicate that users prioritize battery life, mobile network performance, and mobile device compatibility. Sensor technology is also driving design trends, with slim designs and sleek aesthetics. Mobile payment solutions and sensor data ethics are also important considerations in the sensor industry. Mobile device repair and recycling are also growing areas of focus. Smartphone manufacturer strategies include segmentation, software updates, and pricing. Overall, the sensor industry is a key player in the innovation and development of smartphone technology. However, concerns around fake face recognition and sensor data privacy remain challenges to be addressed.

Market Research Overview

The sensors for smartphones market is witnessing significant growth due to the increasing demand for new features and improved quality of experience in standard smartphones and wearable devices. Mobile operating systems are continually integrating advanced sensors such as optical sensors, accelerometer sensors, gyroscope sensors, proximity sensors, compass, barometer, and time-of-flight sensing technology to enhance user experiences. New smartphone types, including 5G smartphones, are incorporating more sensors for AR applications, image stabilization, and EIS. Sensors play a crucial role in various applications, including digital media players, remote monitoring, smartphone sales, and health monitoring applications. Cyber attackers are also targeting sensors to gain unauthorized access, leading to the development of advanced security features such as fingerprint sensors, iris recognition sensors, and pressure sensors. The use of new materials, such as steel and natural materials, is also driving innovation in sensor technology. Overall, the sensors market for smartphones and wearable devices is expected to continue growing, driven by the increasing demand for smart devices and the integration of artificial intelligence and other advanced technologies.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

PricePremium RangeMedium RangeLow RangeGeographyAPACNorth AmericaEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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UGREEN Unveils Groundbreaking AI NAS with Built-In LLM at CES 2025

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LAS VEGAS, Jan. 10, 2025 /PRNewswire/ — UGREEN, a leading innovator in consumer electronics, made waves at CES 2025 with the unveiling of pioneering AI NAS solutions and other cutting-edge products. Under the launch event theme of “Activate the Possibility of AI NAS” on January 8th. UGREEN showcased the world’s first AI NAS with a built-in Large Language Model (LLM), as well as the ultra-powerful Nexode 500W GaN charger and an industry-leading Thunderbolt™ 5 docking station.

UGREEN inked a strategic partnership deal with Intel in 2023, paving the way for the launch of the UGREEN NASync DXP series of NAS products in 2024. This series proved to be a resounding success, and UGREEN is now well-established as a top competitor in the NAS space.

In 2025, UGREEN’s strategic partnership with Intel has now shifted its focus to the exciting new frontier of AI NAS. Following close collaboration, this has now led to the unveiling of the next generation of AI-powered smart storage. The stars of the show at CES were the groundbreaking UGREEN NASync iDX 6011 and 6011 Pro models, introduced by UGREEN North America NAS Manager, Hernan Lopez. A world-first, the iDX series is the inaugural AI NAS solution with a built-in Large Language Model (LLM), delivers exceptional performance, revolutionizing intelligent network-attached storage. The NASync iDX6011 is equipped with the new generation Intel® Core™ Ultra 5 Processor 125H, featuring 14 cores, 18 threads, and a turbo frequency of 4.5GHz. Its AI capabilities are exceptional, with three major AI engines: CPU, GPU, and NPU. This makes it highly efficient across a variety of AI application scenarios.

“Alongside the momentum of AIPC, NAS has the unique opportunity to bring AI to every home,” states Sam Gao, Vice President & General Manager of Intel Client Computing Group China. “Intel® Core™ Ultra 200 Series Processors fit the AI workloads very well which can significantly benefit new AI NAS solutions. Intel is collaborating closely with Ugreen to drive consumer friendly use cases and unleash the future of NAS.” 

UGREEN showcased the impressive AI capabilities of the iDX series, including an AI Photo Album that intelligently recognizes text and objects, supports semantic search, and allows custom learning to create user-defined categories. Notably, UGREEN’s integrated AI LLM, the world’s first local-based LLM for NAS, powers features such as natural and intuitive AI chat, file tag generation, and automated meeting minutes creation.

Other innovative offerings include the UGREEN Revodok 1231 Thunderbolt™ 5 docking station which offers 80 Gbps bidirectional bandwidth and an enhanced mode supporting up to 120 Gbps. The Nexode 500W GaN 6-port desktop charger is the world’s first 500W gallium nitride model, featuring 240W single-port charging up to 48V for high-performance laptops and e-bikes, with intelligent multi-port power allocation.

Following the unveiling, a media roundtable was held featuring Intel’s NAS and Thunderbolt Marketing Director Larry Blackburn, Western Digital’s HDD Marketing Director Brian Mallari, NAS expert Robert Andrews of NASCompares, and UGREEN NAS Product Manager Markus Xie. The group discussed the practical applications of AI-powered NAS, UGREEN’s collaboration with Intel, and concerns regarding security and privacy in the AI landscape.

More than 30 media and industry experts attended the event, praising it for offering valuable insights into AI advancements in the NAS sector and fostering innovation within the industry.

With its groundbreaking AI NAS solutions and other innovations, UGREEN is shaping the future of smart storage and redefining the role of AI in consumer electronics. By pushing the boundaries of what network-attached storage can achieve, UGREEN is driving progress and setting new standards across the industry.

©Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.

About UGREEN

Since 2012, UGREEN has been dedicated to creating innovative electronic devices and accessories that are both technologically advanced and affordable for consumers. Its user-focused approach lies at the core of the brand, which has earned the trust of over 200 million users globally. Lately, the brand has expanded into innovative new fields, including AI-powered NAS solutions, further enhancing its commitment to meet evolving consumer needs.

For more information, please contact: pr@ugreen.com 

 

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SOURCE UGREEN GROUP LIMITED

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