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Vipshop Reports Fourth Quarter and Full Year 2012 Financial Results

     Vipshop Reports Fourth Quarter and Full Year 2012 Financial Results

Achieves Net Profit of US$6.3 Million

4Q12 Net Revenues Up 184.8% YOY

4Q12 Gross Margin Increased to 22.9%

Conference Call to be Held at 8:00 AM U.S. Eastern Time on February 22, 2013

PR Newswire

GUANGZHOU, China, Feb. 21, 2013

GUANGZHOU, China, Feb. 21, 2013 /PRNewswire/ -- Vipshop Holdings Limited
(NYSE: VIPS) ("Vipshop" or the "Company"), China's leading online discount
retailer for brands, today announced its unaudited financial results for the
quarter and full year ended December 31, 2012.

Fourth Quarter 2012 Highlights

  oNet revenues increased by 184.8% over the prior year period to US$299.6
    million, primarily attributable to a 176.9% increase in the number of
    active customers[1] from 934,000 to 2.6 million and a 191.2% increase in
    total orders[2] from 3.0 million to 8.8 million.
  oGross margin increased to 22.9% from 20.0% in the prior year period and
    22.3% in the third quarter of 2012.
  oNon-GAAP income from operations[3] was US$7.2 million, as compared to a
    non-GAAP loss from operations of US$11.1 million in the prior year period.
    Non-GAAP operating income margin[4] was 2.4%, compared to a non-GAAP
    operating loss margin of 10.6% in the prior year period and a non-GAAP
    operating loss margin of 0.7% in the third quarter of 2012.
  oNet income attributable to ordinary shareholders was US$6.3 million,
    compared to a net loss attributable to ordinary shareholders of US$63.5
    million in the prior year period. Net income margin was 2.1%, compared to
    a net loss margin of 60.4% in the prior year period and a net loss margin
    of 0.9% in the third quarter of 2012.
  oNon-GAAP net income attributable to ordinary shareholders[5] was US$8.1
    million compared to a non-GAAP net loss of US$11.2 million in the prior
    year period. Non-GAAP net income margin[6] was 2.7% compared with a
    non-GAAP net loss margin of 10.6% in the prior year period and a non-GAAP
    net income margin of 0.4% in the third quarter of 2012.

Full Year 2012 Highlights

  oNet revenues increased by 204.7% for the full year of 2012 to US$692.1
    million, primarily attributable to a 175.7% increase in the number of
    active customers from 1.5 million to 4.1 million and a 201.5% increase in
    total orders from 7.3 million to 21.9 million.
  oGross margin increased to 22.3% from 19.1% in the prior year.
  oNon-GAAP loss from operations decreased to US$4.3 million from US$33.0
    million in the prior year. Non-GAAP operating loss margin improved to 0.6%
    from 14.5% in the prior year.
  oNet loss attributable to ordinary shareholders decreased to US$9.5 million
    from US$156.5 million in the prior year period. Net loss margin improved
    to 1.4% from 68.9% in the prior year period.
  oNon-GAAP net loss attributable to ordinary shareholders was US$1.9 million
    compared to a non-GAAP net loss of US$82.6 million in the prior year.
    Non-GAAP net loss margin was 0.3% compared with a non-GAAP net loss margin
    of 36.3% in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are very proud of
achieving another major milestone by reaching GAAP profitability in the fourth
quarter of 2012. Over the past year of being a publicly traded company, we
have successfully, consistently and now, profitably executed upon an
e-commerce model that is significantly differentiated from other industry
players. As compared to conventional on-line marketplaces or large-scale
multi-category online retailers, we have successfully created and proven there
is a third e-commerce model that can provide tremendous scale and
profitability. By providing special offers and deep discounts on branded
products, we have pioneered the online discount retail model in China and
become the expert and leader trusted by our customers and brand partners
alike. The success of our model is evidenced by the fact that we more than
tripled our revenues in 2012 and significantly expanded our customer base,
brand partnerships, sales volume and fulfillment capabilities. As we continue
to grow, we will remain focused on improving our special offers and shopping
experience for customers, expanding our logistics platform that is unique to
our business model, cementing brand partnerships, and strengthening our
specialized merchandising expertise. These advantages will further increase
the significant barriers to entry and expand our leadership in China's booming
online retail market."

Mr. Donghao Yang, CFO of Vipshop, commented, "We are pleased with our
exceptional growth in both top line and bottom line, which exceeded consensus
estimates. Our continued efforts in optimizing and expanding our product
offerings allowed us to further leverage the scale effects inherent in our
business in attracting online shoppers and brands. Looking forward, we see
expanding market opportunities ahead of us driven by China's growing
population of online shoppers eager to buy branded products at bargain prices.
Through our increased scale and improved operational efficiency, we remain
confident in our capabilities to keep up with this surging demand, while
delivering sustainable growth over the years to come."

Fourth Quarter 2012 Financial Results

NET REVENUES

Net revenues for the fourth quarter of 2012 increased by 184.8% to US$299.6
million from US$105.2 million in the prior year period, primarily driven by
growth in the number of active customers and total orders.

The number of active customers for the fourth quarter of 2012 increased by
176.9% to 2.6 million from approximately 934,000 in the prior year period. The
number of total orders for the fourth quarter of 2012 increased by 191.2% to
8.8 million from 3.0 million in the prior year period. This increase was
primarily due to the Company's continued efforts to optimize brand and product
selection, increase the number of sales events and increase the number of SKUs
available on its website. In addition, the Company's regional warehouse
expansion into Shanghai, Chengdu and Beijing has enhanced its ability to
accommodate increased demand from end customers.

GROSS PROFIT

Gross profit for the fourth quarter of 2012 increased by 227.4% to US$68.7
million from US$21.0 million in the prior year period. This reflects both the
significant increase in net revenues as well as continued margin expansion.
Gross margin increased to 22.9% in the fourth quarter of 2012 from 20.0% in
the prior year period and 22.3% in the third quarter of 2012. This increase is
attributable to the Company's increased bargaining power with its suppliers
due to increased purchasing scale.

OPERATING INCOME AND EXPENSES

Total operating expenses for the fourth quarter of 2012 decreased by 24.4% to
US$64.1 million from US$84.8 million in the prior year period, primarily due
to decreased share-based compensation charges, offset by an increase in
fulfillment, marketing, technology and content and general and administrative
expenses in line with the increased net revenues. As a percentage of net
revenues, total operating expenses decreased to 21.4% from 80.6% in the prior
year period and 24.7% in the third quarter of 2012.

  oFulfillment expenses increased by 90.9% to US$37.4 million from US$19.6
    million in the prior year period, primarily reflecting the increase in
    sales volume and number of orders fulfilled. As a percentage of net
    revenues, fulfillment expenses decreased to 12.5% from 18.6% in the prior
    year period and 13.9% in the third quarter of 2012, which reflects the
    Company's strategy of shifting towards using regional and local delivery
    services and capacity expansion of regional warehouses. The sequential
    improvement in fulfillment expenses as a percentage of net revenues also
    reflected the seasonality associated with increased average revenue per
    order due to higher priced winter season products.
  oMarketing expenses increased by 85.9% to US$12.5 million from US$6.7
    million in the prior year period. As a percentage of net revenues,
    marketing expenses decreased to 4.2% from 6.4% in the prior year period
    and 4.7% in the third quarter of 2012, demonstrating the Company's ability
    to control marketing expenses by retaining repeat customers and achieving
    high growth of new customers through word-of-mouth referrals.
  oTechnology and content expenses increased by 112.5% to US$6.3 million from
    US$3.0 million in the prior year period, primarily reflecting the
    Company's continued efforts to invest in its website and IT systems to
    better support future growth. As a percentage of net revenues, technology
    and content expenses remained stable at 2.1% compared with 2.8% in the
    prior year period and 2.1% in the third quarter of 2012.
  oGeneral and administrative expenses decreased by 85.8% to US$7.9 million
    from US$55.5 million in the prior year period, primarily due to decreased
    share-based compensation expenses. As a percentage of net revenues,
    general and administrative expenses decreased to 2.6% compared with 52.8%
    in the prior year period and 4.1% in the third quarter of 2012, reflecting
    the effect of the decrease in share-based compensation expenses, the
    Company's increased operational leverage as well as continued cost-control
    efforts.

Income from operations was US$5.4 million, compared to a loss from operations
of US$63.5 million in the prior year period reflecting the growing scale of
the Company's operations, improved gross margin and costs control. Operating
income margin was 1.8%, compared to an operating loss margin of 60.3% in the
prior year period and an operating loss margin of 2.1% in the third quarter of
2012.

Non-GAAP income from operations, which excludes the impact of share-based
compensation expense, was US$7.2 million, compared to a non-GAAP loss from
operations of US$11.1 million in the prior year period. Non-GAAP operating
income margin was 2.4%, compared to a non-GAAP operating loss margin of 10.6%
in the prior year period and a non-GAAP operating loss margin of 0.7% in the
third quarter of 2012.

NET INCOME/LOSS

Net income attributable to ordinary shareholders was US$6.3 million, compared
to a net loss attributable to ordinary shareholders of US$63.5 million in the
prior year period. Net income margin was 2.1%, compared with a net loss margin
of 60.4% in the prior year period and from a net loss margin of 0.9% from the
third quarter of 2012. Net income attributable to ordinary shareholders per
diluted ADS[7] was US$0.12, compared to a net loss attributable to ordinary
shareholders per diluted ADS of US$2.75 in the prior year period.

Non-GAAP net income attributable to ordinary shareholders, which excludes
share-based compensation expenses, was US$8.1 million compared to a non-GAAP
net loss of US$11.2 million in the prior year period. Non-GAAP net income
margin was 2.7% compared with a non-GAAP net loss margin of 10.6% in the prior
year period and a non-GAAP net income margin of 0.4% from the third quarter of
2012. Non-GAAP net income attributable to ordinary shareholders per diluted
ADS was US$0.16 in the fourth quarter of 2012 compared to a non-GAAP net loss
attributable to ordinary shareholders per diluted ADS of US$0.48 in the prior
year period.

For the quarter ended December 31, 2012, the Company's weighted average number
of ADSs used in computing diluted income per ADS was 52,514,478.

As of December 31, 2012, the Company had cash and cash equivalents of US$124.5
million and held-to-maturity securities of US$86.1 million.

For the fourth quarter of 2012, net cash from operating activities was US$86.0
million.

Full Year 2012 Financial Results

Net revenues increased by 204.7% year-over-year for the full year of 2012 to
US$692.1 million, primarily driven by growth in the number of active customers
and total orders.

The number of active customers for the full year of 2012 increased by 175.7%
to 4.1 million from 1.5 million in the prior year. The number of total orders
for the full year of 2012 increased by 201.5% to 21.9 million from 7.3 million
in the prior year. This increase was primarily due to the Company's addition
of several regional sub-sites in 2011, as well as continued efforts to
optimize brand and product selection, increase the number of sales events and
increase the number of SKUs available on its website. In addition, the
Company's regional warehouse expansion into Shanghai, Chengdu and Beijing has
enhanced its ability to accommodate increased demand from end customers.

Gross profit increased by 256.4% to US$154.5 million for the full year of 2012
from US$43.3 million in the prior year. Gross margin increased to 22.3% from
19.1% in the prior year. This increase was attributable to the Company's
increased bargaining power with its suppliers due to increased purchasing
scale.

Loss from operations for the full year of 2012 decreased by 88.8% to US$11.9
million from US$106.9 million in the prior year, reflecting the growing scale
of the Company's operations, improved gross margin and costs control.
Operating loss margin improved to 1.7% from 47.1% in the prior year.

Non-GAAP loss from operations for the full year of 2012 decreased to US$4.3
million from US$33.0 million in the prior year. Non-GAAP operating loss margin
improved to 0.6% from 14.5% in the prior year.

Net loss attributable to ordinary shareholders decreased to US$9.5 million
from US$156.5 million in the prior year. Net loss margin improved to 1.4% from
68.9% in the prior year. Net loss attributable to ordinary shareholders per
diluted ADS was US$0.21, compared to a net loss attributable to ordinary
shareholders per diluted ADS of US$6.77 in the prior year.

Non-GAAP net loss attributable to ordinary shareholders decreased to US$1.9
million from US$82.6 million in the prior year. Non-GAAP net loss margin
improved to 0.3% from 36.3% in the prior year. Non-GAAP net loss attributable
to ordinary shareholders per diluted ADS was US$0.04 compared to a non-GAAP
net loss attributable to ordinary shareholders per diluted ADS of US$3.57 in
the prior year.

For the full year ended December 31, 2012, the Company's weighted average
number of ADSs used in computing diluted loss per ADS was 44,424,603.

Business Outlook

For the first quarter of 2013, the Company expects its net revenues to be
between US$265 million and US$270 million, representing a year-over-year
growth rate of approximately 162% to 167%. These forecasts take into
consideration the seasonality associated with the Chinese New Year holiday
period and reflect the Company's current and preliminary view on the market
and operational conditions, which are subject to change.

Conference Call Information

The Company will hold a conference call on Friday, February 22, 2013 at 8:00
am Eastern Time or 9:00 pm Beijing Time to discuss its financial results and
operating performance for the fourth quarter and full year of 2012.

To participate in the call, please dial the following numbers:

United States:  +1-646-254-3515
International Toll Free:     +1-855-500-8701
China Domestic:     400-1200654
Hong Kong:   +852-3051-2745
Conference ID:    #94462443

The replay will be accessible through March 1, 2013 by dialing the following
numbers:

United States Toll Free:       +1-855-452-5696
International:  +61 2 8199 0299
Conference ID:      #94462443

A live and archived webcast of the conference call will also be available at
the Company's investor relations website at http://ir.vipshop.com.

About Vipshop Holdings Limited

Vipshop Holdings Limited ("Vipshop" or the "Company") is China's leading
online discount retailer for brands. 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 ir.vipshop.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 ("SEC"), in its annual report to shareholders, in press
releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are not
historical facts, including statements about Vipshop's beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following:
Vipshop's goals and strategies; Vipshop's future business development, results
of operations and financial condition; the expected growth of the online
discount retail market in China; Vipshop's ability to attract customers and
brand partners and further enhance its brand recognition; Vipshop's
expectations regarding demand for and market acceptance of flash sales
products and services; competition in the discount retail industry;
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 and in the attachments 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 unaudited condensed consolidated financial information is prepared in
conformity with accounting principles generally accepted in the United States
of America ("U.S. GAAP"), except that the consolidated statement of
shareholders' equity, consolidated statements of cash flows, and the detailed
notes required by Accounting Standards Codification 270 Interim Reporting
("ASC270"), have not been presented. Vipshop uses non-GAAP net income/(loss)
attributable to ordinary shareholders, non-GAAP net income/(loss) attributable
to ordinary shareholders per diluted ADS, non-GAAP income/(loss) from
operations, non-GAAP net income (loss) margin, and non-GAAP operating income/
(loss) margin, each of which is a non-GAAP financial measure. Non-GAAP net
income/(loss) attributable to ordinary shareholders is net income/(loss)
attributable to ordinary shareholders excluding share-based compensation
expenses. Non-GAAP income/(loss) from operations is income/(loss) from
operations excluding share-based compensation expenses. Non-GAAP operating
income/ (loss) margin is non-GAAP income/(loss) from operations as a
percentage of net revenues. Non-GAAP net income/ (loss) margin is non-GAAP
net income /(loss) attributable to ordinary shareholders as a percentage of
net revenues. The Company believes that separate analysis and exclusion of the
non-cash impact of share-based compensation adds 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 non-cash share-based compensation expenses, which 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/(loss) 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. In light
of the foregoing limitations, you should not consider non-GAAP financial
measure in isolation from or as an alternative to the financial measure
prepared in accordance with U.S. GAAP.

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.

[1] Active customers are defined as any registered member who has purchased
    products from the Company at least once during the period.
[2] Total orders are defined as the total number of orders placed during the
    period.
    Non-GAAP income/(loss) from operations is a non-GAAP financial measure,
[3] which is defined as income/(loss) from operations excluding share-based
    compensation expenses.
    Non-GAAP operating income/(loss) margin is a non-GAAP financial measure,
[4] which is defined as non-GAAP income/(loss) from operations as a percentage
    of net revenues.
    Non-GAAP net income/(loss) attributable to ordinary shareholders is a
[5] non-GAAP financial measure, which is defined as net income/(loss)
    attributable to ordinary shareholders excluding share-based compensation
    expenses.
    Non-GAAP net income/(loss) margin is a non-GAAP financial measure, which
[6] is defined as non-GAAP net income /(loss) attributable to ordinary
    shareholders as a percentage of net revenues.
[7] "ADS" is American Depositary Share. Each ADS represents two ordinary
    shares.



Vipshop Holdings Limited

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

(In US dollars, except for share data)
                                             Three Months Ended                                      Twelve Months Ended
                                             December31,2011 December31,2012 September30,2012  December31,2010 December31,2011 December31,2012
                                             USD               USD               USD                 USD               USD               USD
                                             (Unaudited)       (Unaudited)       (Unaudited)         (Audited)         (Audited)         (Unaudited)
Net revenues                                 105,205,829       299,626,573       155,944,583         32,582,115        227,142,876       692,112,964
Costofgoodssold                           (84,211,219)      (230,893,516)     (121,180,318)       (29,374,315)      (183,801,334)     (537,637,860)
Gross profit                                 20,994,610        68,733,057        34,764,265          3,207,800         43,341,542        154,475,104
Operatingexpenses
Fulfillmentexpenses*                        (19,592,188)      (37,402,282)      (21,703,487)        (5,809,118)       (45,478,327)      (96,523,444)
Marketing expenses                           (6,721,359)       (12,495,522)      (7,310,957)         (2,438,066)       (15,253,325)      (32,272,629)
Technologyandcontentexpenses              (2,981,439)       (6,336,055)       (3,218,857)         (562,120)         (5,516,361)       (14,644,113)
Generalandadministrativeexpenses          (55,510,374)      (7,888,972)       (6,321,337)         (2,843,583)       (84,575,539)      (25,541,812)
Total operating expenses                     (84,805,360)      (64,122,831)      (38,554,638)        (11,652,887)      (150,823,552)     (168,981,998)
Other income                                 327,199           813,545           538,739             78,675            564,182           2,563,321
Income (loss) from operations                (63,483,551)      5,423,771         (3,251,634)         (8,366,412)       (106,917,828)     (11,943,573)
Interest expense                             (287,576)         (969)             (1,197)             -                 (494,509)         (222,868)
Interest income                              103,772           1,643,898         1,372,350           564               122,437           3,558,013
Exchange (loss) gain                         142,428           (10,725)          424,454             -                 18,375            (157,473)
Income (loss) before income taxes            (63,524,927)      7,055,975         (1,456,027)         (8,365,848)       (107,271,525)     (8,765,901)
Income tax expenses                          -                 (706,173)         -                   -                 -                 (706,173)
Net income (loss)                            (63,524,927)      6,349,802         (1,456,027)         (8,365,848)       (107,271,525)     (9,472,074)
DeemeddividendonissuanceofSeriesA      -                 -                 -                   -                 (49,214,977)      -
Preferred Shares
Net income (loss) attributable to ordinary   (63,524,927)      6,349,802         (1,456,027)         (8,365,848)       (156,486,502)     (9,472,074)
shareholders
Weighted average numbers of shares used in calculating earnings (loss) per share:
-- Basic                                     46,255,574        101,183,145       101,139,801         47,775,000        46,255,574        88,849,206
-- Diluted                                   46,255,574        105,028,955       101,139,801         47,775,000        46,255,574        88,849,206
Net earnings (loss) per share
-- Basic                                     (1.37)            0.06              (0.01)              (0.18)            (3.38)            (0.11)
-- Diluted                                   (1.37)            0.06              (0.01)              (0.18)            (3.38)            (0.11)
Net earnings (loss) per ADS (2 ordinary
shares equal to 1 ADS)
-- Basic                                     (2.75)            0.12              (0.03)              (0.35)            (6.77)            (0.21)
-- Diluted                                   (2.75)            0.12              (0.03)              (0.35)            (6.77)            (0.21)
*Includingshippingandhandlingexpenses,                                                         *Including shipping and handling
whichamountedUS$13million,US$19million                                                          expenses, which amounted US$4
and US$13 million in the three month periods                                                         million, US$29 million and US$54
endedDecember31,2011,December31,2012                                                           million in the three month periods
and September 30, 2012, respectively.                                                                ended December 31, 2010, 2011 and
                                                                                                     2012, respectively.
Net loss                                    (63,524,927)      6,349,802         (1,456,027)         (8,365,848)       (107,271,525)     (9,472,074)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments    (218,493)         628,902           274,895             (195,771)         (569,628)         994,606
Comprehensive loss                          (63,743,420)      6,978,704         (1,181,132)         (8,561,619)       (107,841,153)     (8,477,468)
                                             Three Months Ended                                      Twelve Months Ended
                                             December 31, 2011 December 31, 2012 September 30, 2012  December 31, 2010 December 31, 2011 December 31, 2012
                                             USD               USD               USD                 USD               USD               USD
                                             (Unaudited)       (Unaudited)       (Unaudited)         (Audited)         (Audited)         (Unaudited)
Share-basedcompensationchargesincludedare asfollows
Fulfillment expenses                         225,047           78,229            79,090              -                 297,095           292,866
Marketing expenses                           168,497           81,449            30,203              -                 184,404           169,100
Technology and content expenses              595,149           263,332           258,947             -                 729,420           897,133
General and administrative expenses          51,352,722        1,370,327         1,728,329           -                 72,716,983        6,237,850
Total                                        52,341,415        1,793,337         2,096,569                             73,927,902        7,596,949



Vipshop Holdings Limited

Condensed Consolidated Balance Sheets
(Amounts in US dollars)
                                                                            AsofDecember31,2011 AsofDecember31,2012
                                                                            USD                     USD
ASSETS (Audited)               (Unaudited)
CURRENT ASSETS
Cash and cash equivalents                                                   44,954,778              124,472,629
Restricted deposits                                                         14,214,585              -
Held-to-maturity securities                                                 -                       86,097,191
Accounts receivable                                                         4,150,664               6,990,560
Amounts due from related parties                                            2,101,853               177,237
Other receivables                                                           9,410,481               9,993,887
Inventories                                                                 69,742,200              143,963,931
Advance to suppliers                                                        12,626,286              9,569,795
Prepaid expenses                                                            1,077,194               686,876
Total current assets                                                        158,278,041             381,952,106
NON-CURRENT ASSETS
Property and equipment, net                                                 9,148,162               12,637,567
Deposits for property and equipment                                         -                       4,322,217
Other assets                                                                9,117                   5,230
Total non-current assets                                                    9,157,279               16,965,014
TOTAL ASSETS                                                                167,435,320             398,917,120
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable (Including accounts
payable of the VIE without recourse to the Company of $2,243,711 and        88,020,376              193,455,827
$101,556 as of December 31, 2011 and December 31, 2012, respectively)
Advance from customers (Including advance from customers of the VIE without
recourse to the Company of $15,378,465 and $55,948,713 as of December 31,   15,381,357              55,948,713
2011 and December 31, 2012, respectively)
Accrued expenses and other current liabilities(Including accrued expenses
and other current liabilities of the VIE without recourse to the Company of 26,666,502              52,676,443
$11,825,417 and $24,908,418 as of December 31, 2011 and December 31, 2012,
respectively)
Amounts due to related parties(Including amounts due to related parties of
the VIE without recourse to the Company of $2,992,516 and 789,057 as of     3,797,508               1,335,756
December 31, 2011 and December 31, 2012, respectively)
Deferred income (Including deferred income of the VIE without recourse to
the Company of $2,569,655 and $10,850,319 as of December 31, 2011 and       2,569,655               12,917,567
December 31, 2012, respectively)
Bank borrowings                                                             12,710,720              -
Total current liabilities                                                   149,146,118             316,334,306
Total liabilities                                                           149,146,118             316,334,306
EQUITY:
Ordinary shares (US$0.0001 par value, 471,620,833 shares authorized, and
46,234,659 and 101,284,881 shares issued and outstanding as of December 31, 4,624                   10,128
2011 and December 31, 2012, respectively)
Series A Preferred Shares (US$0.0001 par value, 20,212,500 shares           20,113,898              -
authorized, issued and outstanding as of December 31, 2011)
Series B Preferred Shares (US$0.0001 par value, 8,166,667 shares            41,147,021              -
authorized, issued and outstanding as of December 31, 2011)
Additional paid-in capital                                                  124,341,953             258,368,448
Accumulated losses                                                          (166,553,261)           (176,025,335)
Accumulated other comprehensive income (loss)                               (765,033)               229,573
Total shareholders' equity                                                  18,289,202              82,582,814
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                  167,435,320             398,917,120



Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results
                                                        Three Months Ended                                      Twelve Months Ended
                                                        December31,2011 December31,2012 September30,2012  December31,2010 December31,2011 December31,2012
                                                        USD               USD               USD                 USD               USD               USD
                                                        (Unaudited)       (Unaudited)       (Unaudited)         (Audited)         (Audited)         (Unaudited)
Income(loss)fromoperations (63,483,551)      5,423,771         (3,251,634)         (8,366,412)       (106,917,828)     (11,943,573)
Share-based compensation expenses                       52,341,415        1,793,337         2,096,569           -                 73,927,902        7,596,949
Non-GAAP income (loss) from operation                   (11,142,136)      7,217,108         (1,155,065)         (8,366,412)       (32,989,926)      (4,346,624)
Net income (loss) attributable to ordinary shareholders (63,524,927)      6,349,802         (1,456,027)         (8,365,848)       (156,486,502)     (9,472,074)
Share-based compensation expenses                       52,341,415        1,793,337         2,096,569           -                 73,927,902        7,596,949
Non-GAAP net income(loss) attributable to ordinary      (11,183,512)      8,143,139         640,542             (8,365,848)       (82,558,600)      (1,875,125)
shareholders
Non-GAAP weighted average numbers of shares used in calculating net income (loss) per share:
-- Basic                                                46,255,574        101,183,145       101,139,801         47,775,000        46,255,574        88,849,206
-- Diluted                                              46,255,574        105,028,955       102,440,611         47,775,000        46,255,574        88,849,206
Non-GAAP net income (loss) per share
-- Basic                                                (0.24)            0.08              0.01                (0.18)            (1.78)            (0.02)
-- Diluted                                              (0.24)            0.08              0.01                (0.18)            (1.78)            (0.02)
Non-GAAP net income (loss) attributable to ordinary shareholders per ADS (2 ordinary shares equal to 1 ADS)
-- Basic                                                (0.48)            0.16              0.01                (0.35)            (3.57)            (0.04)
-- Diluted                                              (0.48)            0.16              0.01                (0.35)            (3.57)            (0.04)



SOURCE Vipshop Holdings Limited

Website: http://ir.vipshop.com
Contact: Vipshop Holdings Limited, Millicent Tu, +86 (20) 2233-0732,
IR@vipshop.com; ICR, Inc., Jeremy Peruski, +1 (646) 405-4866, IR@vipshop.com