Vip.Com Announced Third Quarter Earnings: Net Profit Increased By 130.3% Over The Same Period Last Year

According to the data collected by YAHOO finance, 11 analysts in Wall Street expect not to be calculated according to the US general accounting standards (Non-GAAP), and the third quarter earnings per share of the US Depositary Receipts (ADS) of vip.com are 0.07 US dollars. Earnings report showed that vip.com's diluted earnings per ADS in the third quarter were US $0.08, exceeding analysts' expectations.

In addition, Wall Street's 10 analysts expected that vip.com's total revenue in the third quarter was $863 million 120 thousand. Earnings showed that vip.com's total revenue in the third quarter was US $882 million 600 thousand, exceeding analysts' expectations.

　 Main achievements :

Vip.com's total net revenue in the third quarter was $882 million 600 thousand, an increase of 130% over the same period last year, mainly because the number of active users increased by 136.8% from the same period last year to 9 million 500 thousand, and the total number of orders increased 117.6% to 25 million 500 thousand over the same period last year.

- vip.com's gross profit margin in the third quarter was 24.9%, up from 24.2% in the same period last year.

Vip.com's operating profit in the third quarter was US $21 million 300 thousand, an increase of 76.6% over the same period last year of US $12 million.

- vip.com's operating profit in the third quarter was $42 million 100 thousand, not up to the US general accounting standards (excluding the equity awards and the amortization expense of intangible assets derived from business M & A activities), an increase of 178.9% over the same period last year of 15 million 100 thousand US dollars. In the third quarter, the operating profit margin of vip.com was 4.8%, higher than the 3.9% of the same period last year.

- ascription The net profit of vip.com shareholders was 27 million 700 thousand US dollars, up 130.3% from 12 million US dollars in the same period last year.

- vip.com's net profit is $46 million 300 thousand, which is 206.8% higher than the US $15 million 100 thousand in the same period last year. The third quarter net profit margin of vip.com was 5.2%, higher than 3.9% of the same period last year.

　 Financial analysis:

revenue

　　 Vip.com The total net revenue in the third quarter was US $882 million 600 thousand, an increase of 130% over the same period last year of $383 million 700 thousand, mainly due to the increase in active users and total orders, as well as the increase in revenue contributed from mobile platforms.

The number of active users in vip.com in the third quarter was 9 million 500 thousand, an increase of 136.8% over 4 million in the same period last year. The total number of orders for vip.com in the third quarter was 25 million 500 thousand, up 117.6% from 11 million 700 thousand in the same period last year. The increase in vip.com's active subscribers and total orders is mainly due to the rise of vip.com's brand awareness. The company continues to focus on optimizing and increasing brand and product selection on PC and mobile platforms, as well as vip.com's acquisition of Le bee network.

Gross profit

Vip.com's gross profit in the third quarter was US $219 million 500 thousand, an increase of 136.1% over last year's US $93 million. Vip.com's gross profit margin in the third quarter was 24.9%, up from 24.2% in the same period last year. The increase in gross profit and gross profit margin of vip.com is mainly due to the increase in the scale of the company's business, thus increasing its bargaining power with its suppliers, as well as the growth of the company's market business.

　　 Operating expenditure

Vip.com's total operating expenditure in the third quarter was US $205 million 600 thousand, an increase of 147.7% over last year's US $83 million. Vip.com's total operating expenses in the third quarter accounted for 23.3% of net revenues, up from 21.6% in the same period last year.

Vip.com's performance expenditure in the third quarter was $84 million 400 thousand, an increase of 91.5% over the 44 million 100 thousand US dollars in the same period last year. Vip.com's growth in expenditure reflects mainly the growth in sales and the number of orders that have been fulfilled. Vip.com's third quarter performance expenditure accounted for 9.6% of net revenue, down from 11.5% in the same period last year. The decline of vip.com's share in net revenue and the proportion of vip.com's share in net revenue reflects mainly the efforts made by the company to reduce storage and personnel costs and to obtain better freight through negotiation through the growth of orders.

Vip.com's marketing expenditure in the third quarter was US $47 million 100 thousand, an increase of 170.8% over the same period last year of US $17 million 400 thousand. Vip.com accounted for 5.3% of its net revenue in the third quarter, up from 4.5% in the same period last year, reflecting the strategy adopted by the company to use its business profits for reinvestment activities, and to promote long-term growth through establishing a higher brand awareness, gaining more mobile users and expanding market share in core product categories (such as cosmetics, household products and baby products) rather than in the apparel sector.

Vip.com's technology and content expenditures in the third quarter amounted to $31 million 300 thousand, an increase of 225.4% over the 9 million 600 thousand US dollars in the same period last year. The growth of vip.com technology and content expenditure mainly reflects that the company continues to invest in the overall IT system and expand the staff team to better support future growth. Vip.com's technology and content expenditures accounted for 3.5% of net revenue in the third quarter, up from 2.5% in the same period last year.

Vip.com's expenditure on administrative and general services in the third quarter was $42 million 800 thousand, an increase of 259.4% over the same period last year of $11 million 900 thousand. Vip.com's administrative and general expenses accounted for 4.9% of net revenue, up from 3.1% in the same period last year. The increase in the proportion of vip.com's administrative and general expenses in net revenue is mainly due to the increase in the number of administrative and general staff, the increase in the cost of office leasing related to the overall business growth of the company, the transaction of the acquisition of Lok bee net, the expense of intangible assets amortization, and the growth of online payment expenditure.

　　 Operating profit

Vip.com's operating profit in the third quarter was US $21 million 300 thousand, an increase of 76.6% over the same period last year of US $12 million. The growth of vip.com's operating profit mainly reflects the growth of the company's business scale and the implementation of cost control measures. Vip.com's third quarter operating profit margin was 2.4%, down from 3.1% in the same period last year.

In the third quarter, operating profit of $42 million 100 thousand was not up to the US general accounting standards (excluding the equity awards and the amortization expense of intangible assets derived from business M & A activities), an increase of 178.9% over the same period last year of 15 million 100 thousand US dollars. In the third quarter, the operating profit margin of vip.com was 4.8%, higher than the 3.9% of the same period last year.

　 Net loss

Vip.com's net profit attributable to shareholders in the third quarter was $27 million 700 thousand, an increase of 130.3% over the same period last year of $12 million. Vip.com's net profit margin attributable to shareholders in the third quarter was 3.1%, unchanged from the same period last year. Vip.com's diluted earnings per US depository receipts in the third quarter were $0.05, up from 0.02 US dollars in the same period last year.

The net profit of vip.com was $46 million 300 thousand, not up to the US general accounting standards (excluding the equity awards and the amortization expense of intangible assets derived from M & A activities), an increase of 206.8% over the same period last year of $15 million 100 thousand. The third quarter net profit margin of vip.com was 5.2%, higher than 3.9% of the same period last year. Not in accordance with GAAP (excluding equity incentive payments and amortization expenses of intangible assets derived from business M & A activities), the diluted earnings per share of American Depository Receipts belonging to common shareholders in the third quarter of the 0.08 quarter were $0.08, up from 0.03 US dollars in the same period last year.

In the quarter ended September 30, 2014, the average weighted amount of us depositary receipts used by vip.com for calculating diluted losses was 597102980 shares.

As of September 30, 2014, the total value of cash and cash equivalents at the club was $668 million 200 thousand, and the value of securities held to maturity was $491 million 100 thousand. In the third quarter, vip.com's net cash from business operations was US $80 million 800 thousand.

　 Performance outlook

Vip.com expects net revenues of $1 billion 200 million to $1 billion 220 million in the fourth quarter of fiscal year 2014, an increase of about 84% to 87% over the same period last year.

This expectation reflects the current and initial views of vip.com on the market and operation and may change in the future.

Teleconferencing:

After the release of the earnings report, vip.com will hold a conference call at 8:00 a.m. Eastern time on November 19th (21:00 PM Beijing time November 19th). The company's management will attend the meeting to discuss the financial performance and operational performance of the company. To listen to vip.com's teleconference, American investors can call +1-845-675-0438, international investors can call toll free +1-855-500-8701, mainland Chinese investors can make a call 400-1200654, Hongkong investors can call +852-3018-6776, password is "31704899".

Before the eastern time of November 27th, American investors can make a call to +1-855-452-5696. International investors can dial +61 290034211 to listen to vip.com's teleconference. The passwords are "#31704899". In addition, investors can also log on to vip.com's investor relations channel http://ir.vipshop.com to listen to the live broadcast and recording of the conference call.

　　 Stock price fluctuation :

On the same day, vip.com shares fell $0.28 in the NASDAQ regular trading, closing at $23.71, or 1.1.