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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

 

View original content:https://www.prnewswire.com/news-releases/vipshop-reports-unaudited-second-quarter-2024-financial-results-302226220.html

SOURCE Vipshop Holdings Limited

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Technology

ALTICE USA IS ABANDONING LOCAL SPORTS FANS AND IS KEEPING MSG NETWORKS AND ITS KNICKS, RANGERS, ISLANDERS AND DEVILS COVERAGE OFF THE AIR

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NEW YORK, Jan. 10, 2025 /PRNewswire/ — MSG Networks released the following statement about their dispute with Altice USA:

“Altice USA has pulled their last proposal and walked away from negotiations to bring MSG Networks back to its Optimum subscribers. They also just dropped WPIX Channel 11 in New York and other local stations around the country. If you have been waiting, like we have, for them to do right by their customers – don’t wait any longer. Now is the time to switch to Verizon Fios who has a special offer for Optimum subscribers. Meanwhile, Optimum has been charging their over 1 million customers for local sports programming they have not been receiving and EVERY subscriber should be credited at least $10 a month.

Verizon Fios is ready to take your business. If you are not in Verizon Fios area, you can get games through these other providers DirecTV, DirecTV Stream, Fubo and The Gotham Sports App. For more options on how to switch providers, visit www.keepMSG.com.”

About MSG Networks

MSG Networks, a pioneer in sports media, owns and operates two award-winning regional sports and entertainment networks (MSG and MSG Sportsnet) and MSG+, a direct-to-consumer and authenticated streaming offering (included in the Gotham Sports App), that serve the nation’s number one media market, the New York DMA, as well as other portions of New York, New Jersey, Connecticut and Pennsylvania. The networks feature a wide range of compelling sports content, including exclusive live local games and other programming of the New York Knicks, New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabres, as well as significant coverage of the New York Giants and Buffalo Bills. This content, in addition to a diverse array of other sporting events and critically acclaimed original programming, has established MSG Networks as the gold standard in regional sports. MSG Networks is part of the Sphere Entertainment Co. (NYSE: SPHR).

Contact:

Dan Schoenberg (dan.schoenberg@msg.com)

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SOURCE Sphere Entertainment Co.

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Infor Nexus Unveils NexTrace, its End-to-End Traceability Solution at NRF 2025

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Leveraging AI technology and a supplier-centric philosophy, the solution simplifies the data collection process, helping to promote accuracy and compliance

NEW YORK, Jan. 10, 2025 /PRNewswire/ — Infor Nexus™ , the single-instance supply chain network platform providing unparalleled visibility and collaboration, today announced NexTrace. This innovative solution is designed to improve customer transparency and provide a competitive advantage. With the EU Digital Product Passport (DPP) set to take effect in 2027, companies need to start preparing now by implementing traceability solutions. NexTrace can give customers a head start to meet regulatory requirements like the EU DPP and the Corporate Sustainability Due Diligence Directive (CSDDD). 

NexTrace provides end-to-end transparency by seamlessly tracking raw material through to finished products and beyond, ensuring full traceability throughout the entire supply chain journey. It integrates supplier ESG data and certificates for a holistic view of sustainability and compliance information. Leveraging AI technology and a supplier-centric philosophy, NexTrace simplifies the data collection process, ensuring accuracy and compliance.

“Last June, we launched Map and Trace, which empowers our customers to map their supply chains and collect documentation from multiple supplier tiers. Map and Trace provides evidence of chain of custody compliance with regulations such as the US UFLPA and the French AGEC law. With NexTrace, we’re taking this to the next level by proactively gathering full-scale item-level traceability from each tier of the supply chain. This will help our customers to not only meet upcoming regulations like the EU Digital Product Passport but also gain a competitive edge by providing comprehensive data on their products’ journey, composition, and sustainability,” said Brian Carelli, Infor VP, Sustainability and Partnerships. 

Meeting regulatory and consumer demands for product traceability requires collaboration across supply chain tiers. By connecting to Infor Nexus, companies gain a head start, leveraging an established ecosystem of over 94,000 brands, retailers, and suppliers already on the platform. Managing traceability and chain-of-custody data alongside existing supply chain processes on a unified platform accelerates progress, boosts efficiency, and reduces reliance on multiple systems. 

NexTrace Capability Highlights: 

Enables seamless lot and item-level tracing by tracking the movement of raw material lots and batches through their conversion into finished products Leverages AI to collect data from the multiple tiers of suppliers, while automatically associating transactions from one tier to the next, helping to reduce the burden on suppliers and increase data accuracy and tracing efficiency Allows suppliers to upload data from existing reports in one easy step, rather than necessitating manual data entry RFID scanning of serialized barcodes at source automatically links the multi-tier chain of custody data Integrates supplier ESG data and certificates with traceability information, providing a comprehensive view of sustainability and compliance throughout the supply chain Creates a digital link and visualization to share traceability and product information with consumers, enhancing transparency and trust throughout the supply chain Tracing data automatically updates the network graph creating linkages between products and materials providing a higher fidelity map of your supply chain network 

“Vendors will be eager to tout their Digital Product Passport solutions at NRF, but their focus is often on flashy features, rather than the minutiae of how to feed such data-hungry systems. At NRF, we look forward to demonstrating how trace data is built and how to scale a system of this magnitude,” said Carelli. 

To learn more about building a more responsible supply chain, visit https://www.infor.com/solutions/scm/infor-nexus/sustainability

About Infor Nexus 

Infor Nexus™ is the leading global supply chain platform. Infor Nexus connects a network of over 94,000 brands, retailers, manufacturers, suppliers, logistics providers and banks on single-instance network platform to seamlessly orchestrate global supply chain processes from source through to delivery and payment. Companies streamline their operations to eliminate inefficiencies and waste while gaining data-driven insights and optimizing the flow of capital for improved agility, resilience, and sustainability. Visit www.infor.com/solutions/scm/infor-nexus

Media Contact: 
Alexandria Truby 
Senior Public Relations Specialist, Infor 
Alexandria.Truby@infor.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/infor-nexus-unveils-nextrace-its-end-to-end-traceability-solution-at-nrf-2025-302348430.html

SOURCE Infor

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Technology

Security Camera Market to Grow by USD 3.85 Billion from 2025-2029, Driven by Video Analytics for Surveillance and AI-Powered Market Evolution – Technavio

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NEW YORK, Jan. 10, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global security camera market size is estimated to grow by USD 3.85 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  12.1%  during the forecast period. Growth of video analytics helpful for surveillance video analyses is driving market growth, with a trend towards growing adoption of iot and smart homes. However, challenges regarding privacy and data loss  poses a challenge. Key market players include ADT Inc., Amazon.com Inc., Canon Inc., Cisco Systems Inc., Costar Technologies Inc., Dahua Technology Co. Ltd., Hangzhou Hikvision Digital Technology Co. Ltd., Hanwha Techwin America, Honeywell International Inc., Johnson Controls International Plc, JVCKENWOOD Corp., Motorola Solutions Inc., Panasonic Holdings Corp., Robert Bosch GmbH, Schneider Electric SE, Simplisafe Inc., Sony Group Corp., Teledyne Technologies Inc., Vicon Industries Inc., and Xiaomi Inc..

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Security Camera Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 12.1%

Market growth 2025-2029

USD 3851.2 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

9.9

Regional analysis

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

Performing market contribution

North America at 38%

Key countries

US, China, Germany, Canada, UK, France, Japan, India, South Korea, and Italy

Key companies profiled

ADT Inc., Amazon.com Inc., Canon Inc., Cisco Systems Inc., Costar Technologies Inc., Dahua Technology Co. Ltd., Hangzhou Hikvision Digital Technology Co. Ltd., Hanwha Techwin America, Honeywell International Inc., Johnson Controls International Plc, JVCKENWOOD Corp., Motorola Solutions Inc., Panasonic Holdings Corp., Robert Bosch GmbH, Schneider Electric SE, Simplisafe Inc., Sony Group Corp., Teledyne Technologies Inc., Vicon Industries Inc., and Xiaomi Inc.

Market Driver

The security camera market is experiencing significant growth due to increasing operational needs for safety and crime prevention. Traditional security cameras are being replaced by smart security solutions, including AI-powered appliances and IP cameras with high-definition and infrared capabilities. Innovations like facial recognition, motion detection, and anomaly detection are driving consumer interest. Cost-effective options, such as box cameras and dome cameras, offer ease of installation and scalability. Strategic partnerships and promotions are making advanced security solutions more accessible to homeowners and businesses. With the rise of the Internet of Things, cloud-based video surveillance and mobile surveillance systems are becoming essential for both home and commercial security. Despite investment costs, the benefits of AI-driven analytics, incident response times, and thermal imaging outweigh the risks of misuse and privacy concerns. Security camera systems are essential for crime prevention, border security, and critical infrastructure protection, making them a worthwhile investment for private properties and public spaces. 

The Security Camera market is experiencing significant growth due to the increasing adoption of Internet of Things (IoT) devices, specifically smart cameras, for residential security. These advanced cameras come equipped with video analytics and recognition capabilities, enabling them to monitor and identify family members, pets, and objects. Consumers can record and view security events in real-time via their smartphones. Additionally, vendors offer smart doorbells and peepholes, replacing traditional models with cameras that detect people entering or exiting homes and monitor objects outside. Indoor smart cameras can also be used to monitor pets or babies from a distance. 

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 Market Challenges

•         The security camera market is witnessing significant growth due to the increasing operational needs for safety and crime prevention in various sectors. Traditional security solutions like analog surveillance and dome cameras are being replaced by smart security cameras with advanced features like infrared, AI-powered appliances, and high-definition cameras. These innovations offer benefits such as anomaly detection, facial recognition, and two-way audio. However, challenges include investment costs, ease of installation, and privacy concerns. In high-risk areas like border security and critical infrastructure, scalable AI-driven analytics and thermal imaging are essential. Homeowners seek cost-effective, smart home technology solutions with long battery life and remote control. Strategic partnerships and promotions drive consumer interest. Despite these advancements, security risks and privacy protections remain crucial considerations. Incident response times and evidence collection are essential for investigations. Smart city development and mobile surveillance systems offer new opportunities. Overall, the market requires continuous innovation to address operational needs and consumer demands.

•         IP-based security cameras offer valuable surveillance solutions for businesses, but they also present significant cybersecurity risks. Hackers can launch various attacks, such as DDoS, MiTM, data breaches, APTs, and ransomware, exploiting vulnerabilities in these devices. Weak passwords and mass-produced, identical cameras make them easy targets. Compromised security cameras can disrupt networks and potentially provide a gateway to larger IT infrastructure breaches. Businesses must prioritize securing their IP-based security cameras to mitigate these risks.

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Segment Overview 

This security camera market report extensively covers market segmentation by  

Technology 1.1 Analog1.2 IP basedProduct Type2.1 HD and full-HD2.2 Non-HDGeography 3.1 North America3.2 APAC3.3 Europe3.4 South America3.5 Middle East and AfricaSystemApplicationFeatureCamera resolutionType

1.1 Analog-  Analog cameras are a cost-effective solution for businesses seeking continuous surveillance through closed-circuit television (CCTV) systems. These cameras transmit video signals over cable to video cassette recorders (VCRs) and digital video recorders (DVRs), offering resolution ranges compliant with National Television Standards Committee (NTSC) and Phase Alternating Line (PAL) standards. Resolutions range from 420 to 1080 pixels, ensuring clear images. Analog cameras can connect via coax cables, twisted-pair cables, or wireless connections. Vendors provide advanced features such as infrared light-emitting diodes (IR LEDs) for night vision, 1080 pixels analog high definition (AHD), 1080 composite video interface (CVI), and complementary metal-oxide-semiconductor (CMOS) sensors with Infrared Cutfilter Removal (ICR) for accurate color reproduction. Cameras are built with Ingress Protection rated metal, safeguarding against dust, sand, rain, and snow. VCRs and DVRs are essential for video recording, with offerings up to 50 terabytes of storage, motion-detecting push notifications, remote viewing via smartphones, tablets, and computers, advanced recording and playback options, and scheduling recording 24/7 or by motion detection. Vendors also provide customer care services and a three-year warranty. Analog cameras are commonly used in city infrastructure surveillance, ATM banking outlets, construction sites, and indoor retail environments due to their affordability and advanced features. With a lower average selling price (ASP) and technological advancements like AHD and pan-tilt-zoom (PTZ), the analog segment will continue driving growth in the global security camera market.

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Research Analysis

The Security Camera Market encompasses various segments, including video surveillance systems, CCTV, and smart home security. Accessories such as lenses, mounts, and cables enhance the functionality of these systems. Security camera technology continues to evolve, offering advanced features like analytics, remote monitoring, and cloud-based solutions. Organizations across industries rely on security cameras for benefits like deterrence, evidence collection, and improved safety. Installation and integration with business systems are crucial considerations. Security camera pricing varies based on factors like resolution, type, and advanced features. Privacy concerns and cybersecurity are essential aspects of the security camera market. Standards and regulations ensure data protection. Comparison of different security camera solutions based on their features, advantages, and ROI is vital for making informed decisions. The market’s growth is driven by increasing security concerns, technological advancements, and the integration of security systems with other business solutions. Security camera revenue is expected to continue growing as demand for advanced and cost-effective solutions increases. Innovations like AI and machine learning are transforming the market, offering improved monitoring, analytics, and cybersecurity. Maintenance and software updates are essential for ensuring optimal performance and security. Security camera manufacturers cater to various applications, from residential to industrial, providing customized solutions to meet diverse needs. The market’s trends reflect the shift towards more advanced, cost-effective, and user-friendly systems.

Market Research Overview

The security camera market is experiencing significant growth due to the increasing operational needs for safety and crime prevention in various sectors. Traditional security solutions, such as analog surveillance cameras, are being replaced by innovative smart security cameras with features like infrared technology, AI-powered appliances, and high-definition cameras. These advanced security solutions offer benefits like anomaly detection, facial recognition, and two-way audio. Investment costs for security camera systems have decreased with the advent of scalable IP cameras and the Internet of Things. Smart city development and border security are major drivers of growth, with AI-driven analytics and cloud-based video surveillance becoming essential components. Consumers, including homeowners, are showing increased interest in smart home devices and security solutions, leading to promotions and discounts. Expertise in security camera installation and maintenance is crucial for effective surveillance coverage. In high-risk areas, security cameras are used to prevent incidents like burglary, unauthorized access, and intruders. Thermal imaging and motion detection are effective surveillance tools for crime prevention. However, privacy concerns and data protection laws necessitate privacy protections and data redundancy. Security risks and misuse are potential challenges, requiring strategic partnerships and incident response times. Scalability and cost-effectiveness are essential considerations for commercial security and mobile surveillance systems. Overall, the market for security cameras is continuously evolving with innovations like machine learning and deep learning engines.

Table of Contents:

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

TechnologyAnalogIP BasedProduct TypeHD And Full-HDNon-HDGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And AfricaSystemApplicationFeatureCamera resolutionType

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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