Vipshop Holdings Limited (NYSE:VIPS)

First Quarter 2020 Financial Results

• Total net revenue for the first quarter of 2020 was RMB18.8 billion (US$2.7 billion), as compared with RMB21.3 billion in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9] for the first quarter of 2020 increased to RMB1.44 (US$0.20) from RMB1.19 in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are pleased to have delivered resilient results for the first quarter of 2020, despite the negative impact from the COVID-19 pandemic on the Chinese economy and consumption in general during this quarter. Through this difficult time, we have worked closely with our brand partners and logistics suppliers to provide desirable products and reliable services to our customers. We are glad to see that daily life in China has returned to normal, and as a result, our business has seen healthy recovery since March. We believe that we are well positioned to gain share in the discount retail market in China, and are committed to continuing to help our suppliers monetize on their excess inventory effectively, while offering our customers the best deals, particularly in our core categories."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "We are glad to have finished the first quarter of 2020 with solid profitability, even amidst the COVID-19 pandemic. We have seen solid customer retention trends in the first quarter of 2020, despite reduced investment in marketing. Looking ahead, we believe that we are presented with opportunities to expand our market share in the current macro-economic environment, due to the counter-cyclical nature of our discount retail business. We are deeply devoted to the execution of our merchandising strategy and will continue to balance our growth and profitability, further strengthening our expertise in apparel-related categories."

Business Outlook

For the second quarter of 2020, the Company expects its total net revenue to be between RMB22.7 billion and RMB23.8 billion, representing a year-over-year growth rate of approximately 0% to 5%, primarily factoring in the continued impact from the COVID-19 pandemic. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Fourth Quarter 2019 Financial Results

• Total net revenue for the fourth quarter of 2019 increased by 12.4% year over year to RMB29.3 billion (US$4.2 billion) from RMB26.1 billion in the prior year period. Total net revenue for the full year of 2019 increased by 10.0% year over year to RMB93.0 billion (US$13.4 billion) from RMB84.5 billion in the prior year.
  
• Non-GAAP net income attributable to Vipshop's shareholders[3] for the fourth quarter of 2019 increased by 111.4% year over year to RMB1.9 billion (US$277.4 million) from RMB913.6 million in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders for the full year of 2019 increased by 84.4% year over year to RMB5.0 billion (US$720.1 million) from RMB2.7 billion in the prior year.
  

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are delighted to have finished the year of 2019 with strong financial results and operating performance. Specifically, our total active customers for the fourth quarter of 2019 maintained a robust year-over-year growth rate of 19%, and our annual active customers for the year of 2019 reached 69.0 million. During the fourth quarter of 2019, we discontinued our delivery unit operated by Pinjun, which has and will continue to save significant delivery cost for the Company. In addition, now our customers are able to enjoy the superior delivery services offered by SF Holding. Although our business is experiencing some short-term impact from the novel coronavirus outbreak, we are fully confident in the long-term potential of the Chinese economy and the growth opportunities in China's discount retail segment. Looking ahead, we remain committed to the execution of our merchandising strategy, providing diversified solutions for our suppliers to monetize their inventory while offering deep value to our customers."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "In the fourth quarter of 2019, we delivered healthy topline growth and extraordinary profitability, even including one-time expenses related to the discontinuation of our delivery unit Pinjun. Our core business is highly profitable, driven by the high margin apparel category. During the fourth quarter of 2019, apparel-related categories contributed to over 70% of our total GMV. Going forward, we will continue to balance our top- and bottom-line, investing to grow our business while maintaining healthy margins." 

Business Outlook

For the first quarter of 2020, the Company expects its total net revenue to be between RMB17.1 billion and RMB18.1 billion, representing a year-over-year decline of approximately 15% to 20%, primarily factoring in the short-term impact from the novel coronavirus outbreak. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

GUANGZHOU, China, Nov. 24, 2019 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today announced business cooperation with SF Holding (SZSE: 002352). The Company will discontinue its delivery business operated by Pinjun, and engage SF Holding to provide delivery services to the Company. In addition, the Company and SF Holding will work closely to ensure the transition is carried out smoothly.

"We are delighted to have entered into the business cooperation with SF Holding," said Mr. Eric Shen, chairman and chief executive officer of Vipshop. "Through this business cooperation, we aim to optimize the efficiency of our logistics operations, decrease our fulfillment expenses, and provide our valued customers with superior delivery services offered by SF Holding."

Third Quarter 2019 Financial Results

• Total net revenue for the third quarter of 2019 increased by 10.0% year over year to RMB19.6 billion (US$2.7 billion) from RMB17.8 billion in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders[2] for the third quarter of 2019 increased by 140.2% year over year to RMB1.2 billion (US$168.3 million) from RMB500.8 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are pleased to have delivered strong operational and financial results for the third quarter of 2019. Our total active customers increased by 21% year over year, demonstrating their healthy growth momentum backed by the successful execution of our merchandising strategy. The robust growth in the number of total active customers continued to drive our topline growth, represented by a 10% year-over-year growth for the third quarter of 2019. Going forward, we will continue to focus on procuring deep discount products and offering superior value to our customers, further expanding our market share in China's discount retail segment. We are confident that we will continue to drive long-term value creation and deliver solid return to all our shareholders."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "In the third quarter of 2019, we delivered solid topline growth with substantial year-over-year improvement in our bottom-line. These successes are the result of our focus on the highly profitable apparel-related categories, of which the GMV grew by 29% year over year, including GMV from the newly acquired Shan Shan Outlets. As we continue to execute on our merchandising strategy and further improve our procurement and negotiation capabilities, we believe we will see further improvement in our financial results and key operating metrics over time."

Business Outlook

For the fourth quarter of 2019, the Company expects its total net revenue to be between RMB26.1 billion and RMB27.4 billion, representing a year-over-year growth rate of approximately 0% to 5%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Second Quarter 2019 Financial Results

• Total net revenue for the second quarter of 2019 increased by 9.7% year over year to RMB22.7 billion (US$3.3 billion) from RMB20.7 billion in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9] for the second quarter of 2019 increased to RMB1.58 (US$0.23) from RMB0.84 in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are delighted to have finished the second quarter of 2019 with strong operational and financial results. During the quarter, we continued to demonstrate healthy growth momentum in our total active customers, which increased by 11% year over year. In addition, we recently announced our strategic acquisition of Shan Shan Outlets, aiming to further enhance our ecosystem and explore opportunities in online-and-offline integration. Since we refocused on discount apparel and our profitability, we have seen substantial improvement in our financial results and key operating metrics, proving our strategy is very effective. We remain committed to executing on our merchandising strategy and further expanding our market share in China's discount apparel sector. We are confident that we can continue to deliver steady profitability improvement in the future."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "We delivered solid financial results this quarter with a substantial improvement in our bottom-line both sequentially and on a year-over-year basis. Additionally, we generated robust free cash flow of RMB1.2 billion during the quarter, which increased by RMB2.2 billion from the prior year period. We continue to focus on our merchandising strategy, particularly in apparel–related categories, in which the GMV grew by 19% year over year in this quarter. The focus on the high margin apparel category has and will enable us to deliver continuous improvement in our gross margin and overall profitability. Going forward, we will continue to closely monitor the return on investment from all our businesses, especially that of our investment in offline stores. We aim to achieve balanced top- and bottom-line growth and are committed to delivering long-term, sustainable shareholder return."

Business Outlook

For the third quarter of 2019, the Company expects its total net revenue to be between RMB17.8 billion and RMB18.7 billion, representing a year-over-year growth rate of approximately 0% to 5%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Fourth Quarter 2018 Financial Results

• Total net revenue for the fourth quarter of 2018 increased by 8.1% year over year to RMB26.1 billion (US$3.8 billion) from RMB24.1 billion in the prior year period.
• Net margin attributable to Vipshop's shareholders for the fourth quarter of 2018 was 2.6%, as compared with 2.8% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS[7] for the fourth quarter of 2018 was RMB1.00 (US$0.15), as compared with RMB1.07 in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are pleased to have finished the fourth quarter of 2018 with solid operational results. During this quarter, our total active customers grew by 13% year over year, which is a testament of the effectiveness of our merchandising strategy. Going forward, we will continue to strengthen our core capabilities, aiming to bring highly desirable selections of products to our valued customers on a daily basis, which will drive our long term growth and profitability."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "In the fourth quarter of 2018, we saw a healthy sequential recovery of our bottom-line, which is mostly attributable to our focus on the highly profitable apparel category. During this quarter, we began to shift some low-margin categories from our first-party business into the marketplace platform, reducing their drag on our bottom-line while still delivering a solid GMV growth of 15% year over year. We remain focused on stabilizing our margins, aiming to drive enhanced shareholder return in the long run."

Business Outlook

Starting from the fourth quarter of 2018, GMV contribution from the apparel category with a relatively high return rate among all categories has increased, and the Company shifted certain standardized categories from its first-party business into the marketplace platform in order to improve profitability. Revenue generated from the marketplace platform is recorded as other revenue instead of product revenue. In light of this development in revenue mix, the Company began to disclose GMV to provide an additional perspective for the market to measure the scale of its business.

For the first quarter of 2019, the Company expects its total net revenue to be between RMB19.9 billion and RMB20.9 billion, representing a year-over-year growth rate of approximately 0% to 5%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

First Quarter 2018 Financial Results

• Total net revenue for the first quarter of 2018 increased by 24.6% year over year to RMB19.9 billion (US$3.2 billion) from RMB16.0 billion in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders, which excludes share-based compensation expenses, impairment loss of investments, and amortization of intangible assets resulting from business acquisitions and equity method investments, was RMB727.7 million (US$116.0 million) as compared with RMB799.4 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[7] for the first quarter of 2018 was 3.7% as compared with 5.0% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[8] was RMB1.05 (US$0.17) as compared with RMB1.31 in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "In the first quarter of 2018, we delivered solid operational results as demonstrated by the continued improvement in customer stickiness and loyalty. We made further progress with our strategic collaboration with Tencent and JD.com, opening up the entry on JD's app homepage in mid-March and the WeChat wallet entry in early April. Looking ahead, we will continue to work closely with Tencent and JD.com in order to improve the traffic flow and conversion rates, which will contribute meaningfully to our long-term customer and revenue growth." 

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "We finished the first quarter of 2018 with a solid 25% year-over-year increase in topline, which was at the high-end of our guidance range. Our average revenue per customer increased by 25% year over year, driven by improved customer shopping frequency. Leveraging the support from Tencent and JD.com, we will continue to grow our topline and expand our market share."

Business Outlook

For the second quarter of 2018, the Company expects its total net revenue to be between RMB20.5 billion and RMB21.3 billion, representing a year-over-year growth rate of approximately 17% to 22%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Fourth Quarter 2017 Financial Results

• Total net revenue for the fourth quarter of 2017 increased by 27.1% year over year to RMB24.1 billion (US$3.7 billion) from RMB19.0 billion in the prior year period. Total net revenue for the full year of 2017 increased by 28.8% year over year to RMB72.9 billion (US$11.2 billion) from RMB56.6 billion in the prior year.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[8] was RMB1.41 (US$0.22) as compared with RMB1.58 in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are pleased to have delivered solid results in the fourth quarter of 2017. During this quarter, we announced our strategic partnership with Tencent and JD.com, which we believe will contribute meaningfully to our customer growth and market share gain. In addition, we are delighted to have become the sponsor and exclusive Chinese e-commerce partner for London Fashion Week, further strengthening our leadership in our core categories and solidifying our strong position in the fashion industry. Through this partnership, we aim to introduce more desirable brands to the Vipshop platform and increase our exposure in the global fashion scene."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "In the fourth quarter of 2017, we delivered robust financial results. Our topline increased by 27% year over year, which was above the high-end of our guidance range. Driven by improved customer loyalty and stickiness, our average revenue per customer increased by a solid 22% year over year. We believe the high-quality traffic from Tencent and JD.com will boost our topline growth, enabling us to achieve further operating leverage in the long run."

BEIJING, Dec. 18, 2017 (GLOBE NEWSWIRE) -- Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017. 

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.  

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.”

Second Quarter 2017 Financial Results

• Total net revenue for the second quarter of 2017 increased by 30.3% to RMB17.52 billion (US$2.58 billion) from RMB13.44 billion in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders, which excludes share-based compensation expenses, impairment loss of investments, and amortization of intangible assets resulting from business acquisitions and equity method investments, increased by 7.5% to RMB728.2 million (US$107.4 million) from RMB677.5 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[7] was 4.2% as compared with 5.0% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[8] increased to RMB1.18 (US$0.17) from RMB1.12 in the prior year period.

"We delivered solid operational results in the second quarter of 2017," said Mr. Eric Shen, chairman and chief executive officer of Vipshop. "Specifically, our total active customers for the trailing twelve months ended June 30, 2017 reached 58.8 million, representing a 32% year-over-year increase. We are also delighted to witness improved average revenue per active customer during the quarter, which was a testament of our ability to effectively manage the lifetime value of our customers. In the past quarter, we made further progress with the trial for our new Super VIP paid membership program, aiming to increase our customer loyalty. We remain focused on strengthening our core capability in merchandising and exploring opportunities to diversify our product categories to improve user stickiness."

Mr. Donghao Yang, chief financial officer of Vipshop, further commented, "In the second quarter of 2017, we made significant strides in the expansion of our logistics footprint and the enhancement of our logistics capabilities. We currently have approximately 27,000 last mile delivery staff and approximately 3,500 delivery stations. Meanwhile, we continue to make solid progress in the exploration of the Internet finance spin-off, which overtime will improve our cash flow and earnings."

Business Outlook

For the third quarter of 2017, the Company expects its total net revenue to be between RMB14.9 billion and RMB15.4 billion, representing a year-over-year growth rate of approximately 24% to 28%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

First Quarter 2017 Financial Results

• Total net revenue for the first quarter of 2017 increased by 31.1% to RMB15.95 billion (US$2.32 billion) from RMB12.17 billion in the prior year period.
• Non-GAAP net margin attributable to Vipshop's shareholders[7] was 5.0% as compared with 5.1% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[8] increased to RMB1.31 (US$0.19) from RMB1.04 in the prior year period.

"We are pleased to have reported continued robust operational results with solid customer gains in the first quarter of 2017, starting the year on a strong note," said Mr. Eric Shen, chairman and chief executive officer of Vipshop. "Our strong results highlight the effectiveness of our strategic focus on expanding our customer base and gaining additional market share in China's fragmented discount retail market. Specifically, we are delighted to witness that our total active customers for the trailing twelve months ended March 31, 2017 increased by 38% to over 55.5 million. In the past quarter, we made a number of strides in improving the end-to-end user experience across our platform, including our strengthened merchandising capability with various new international brands and the further expansion in the variety and selection of our product offerings, as well as the continued enhancement of the customization across the Vipshop platform. Our achievements were further recognized by independent third parties such as BrandZ, which served as endorsements of the value of our brand and the increasing influence of our platform."

Mr. Donghao Yang, chief financial officer of Vipshop, further commented, "We are delighted to have delivered another quarter of strong topline growth with steady margins in addition to improved free cash flow in the first quarter of 2017. Importantly, we are pleased to announce that our Board of Directors authorized the Company to explore a proposed spin-off of our Internet finance business, which could significantly strengthen the Company's cash flow, positively impact our earnings, and enable us to further invest in our core e-commerce business. Looking ahead, we are confident that we will continue to gain market share in our core categories while maintaining our stable and sustainable profitability as China's leading discount retailer."

GUANGZHOU, China, Feb. 22, 2017 /PRNewswire/ -- Vipshop Holdings Limited (VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today announced that it is extending the previously announced put right offer relating to its 1.50% Convertible Senior Notes due 2019 (the "Notes") until 11:59 p.m., New York City time, on Tuesday, March 14, 2017. In addition, the period during which holders of the Notes may withdraw their exercise of the put right with respect to any Notes is also being extended until 11:59 p.m., New York City time, on Tuesday, March 14, 2017. The tender offer is being made pursuant to a Schedule TO (as amended), including a Put Right Notice dated February 14, 2017, which sets forth the terms of the put right. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Put Right Notice.

Holders of Notes in global form that wish to exercise the Put Right with respect to such Notes between 5:00 p.m. and 11:59 p.m., New York City time, on Tuesday, March 14, 2017 must, instead of complying with the DTC procedures, complete and sign a 2017 Repurchase Notice in the form attached to the Put Right Notice as Annex A in accordance with the instructions set forth therein, have the signature thereon guaranteed and deliver such manually signed 2017 Repurchase Notice to the Paying Agent prior to 11:59 p.m., New York City time, on Tuesday, March 14, 2017. All signatures on a 2017 Repurchase Notice must be guaranteed by a recognized participant in the Securities Transfer Agents Medallion Program, the NYSE Medallion Signature Program or the Stock Exchange Medallion Program (each, an "Eligible Institution"); provided, however, that signatures need not be guaranteed if such Notes are tendered for the account of an Eligible Institution. If a 2017 Repurchase Notice is signed by a trustee, executor, administrator, guardian, attorney-in-fact, agent, officer of a corporation or other person acting in a fiduciary or representative capacity, such person must so indicate when signing, and proper evidence satisfactory to the Company of the authority of such person so to act must be submitted.

Holders of Notes in global form that wish to withdraw previous exercise of the Put Right with respect to such Notes between 5:00 p.m. and 11:59 p.m., New York City time, on Tuesday, March 14, 2017 must, instead of complying with the DTC withdrawal procedures, complete and sign a notice of withdrawal specifying (1) the principal amount of the Notes with respect to which such notice of withdrawal is being submitted, which portion must be US$1,000 aggregate principal amount or an integral multiple thereof, (2) the certificate numbers of the Notes in respect of which such notice of withdrawal is being submitted, and (3) the principal amount, if any, of such Note which remains subject to the 2017 Repurchase Notice, which portion must be US$1,000 aggregate principal amount or an integral multiple thereof, and deliver such manually signed notice of withdrawal to the Paying Agent prior to 11:59 p.m., New York City time, on Tuesday, March 14, 2017.

Fourth Quarter 2016 Financial Results

• Total net revenue for the fourth quarter of 2016 increased by 36.5% to RMB18.98 billion (US$2.73 billion) over the prior year period. Total net revenue for the full year of 2016 increased by 40.8% to RMB56.59 billion (US$8.15 billion) over the prior year.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[8] increased to RMB1.58 (US$0.23) from RMB1.22 in the prior year period.

"We are delighted to have delivered strong operational results with solid customer and market share gain in the year of 2016," said Mr. Eric Shen, chairman and chief executive officer of Vipshop. "We continued to focus on improving the customer experience across our platform through enhanced personalization and diverse merchandising. As such, we have added a number of high-quality and popular brands to our platform over the last few quarters and will continue to strengthen our merchandising capabilities going forward. Our robust results are a testament to the solid strength of our business model and we are confident that we can continue to maintain our market leadership going forward."

Mr. Donghao Yang, chief financial officer of Vipshop, further commented, "In the fourth quarter of 2016, we had strong free cash flow and delivered solid topline growth while maintaining steady margins. Importantly, we continued to expand our logistics and warehousing network by adding five local distribution centers to further improve the efficiency and speed of our fulfillment and distribution capabilities. Looking ahead, we will continue to invest in areas that are crucial to the customer experience across our platform while balancing revenue growth and margins."

Business Outlook

For the first quarter of 2017, the Company expects its total net revenue to be between RMB15.3 billion and RMB15.8 billion, representing a year-over-year growth rate of approximately 26% to 30%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

GUANGZHOU, China, Feb. 14, 2017 /PRNewswire/ -- Vipshop Holdings Limited (VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today announced that it is notifying holders of its 1.50% Convertible Senior Notes due 2019 (CUSIP No. 92763WAA1) (the "Notes") that pursuant to the Indenture dated as of March 17, 2014 relating to the Notes by and between the Company and Deutsche Bank Trust Company Americas, as trustee and paying agent, as amended by the First Supplemental Indenture dated as of March 17, 2014 and further amended by the Second Supplemental Indenture dated as of November 11, 2014, each holder has the right, at the option of such holder, to require the Company to purchase all of such holder's Notes or any portion of the principal thereof that is equal to US$1,000 principal amount (or an integral multiple thereof) for cash on March 15, 2017 (the "Put Right"). The Put Right expires at 5:00 p.m., New York City time, on Monday, March 13, 2017.

As required by rules of the United States Securities and Exchange Commission (the "SEC"), the Company will file a Tender Offer Statement on Schedule TO today. In addition, documents specifying the terms, conditions and procedures for exercising the Put Right will be available through the Depository Trust Company and the paying agent, which is Deutsche Bank Trust Company Americas. None of the Company, its board of directors, or its employees has made or is making any representation or recommendation to any holder as to whether to exercise or refrain from exercising the Put Right.

The Put Right entitles each holder of the Notes to require the Company to repurchase all or a portion of such holder's Notes in principal amounts equal to US$1,000 or integral multiples thereof. The repurchase price for such Notes will be equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but not including, March 15, 2017, which is the date specified for repurchase in the Indenture (the "2017 Repurchase Date"), subject to the terms and conditions of the Indenture and the Notes. The 2017 Repurchase Date is an interest payment date under the terms of the Indenture and the Notes. Accordingly, on March 15, 2017, the Company will pay accrued and unpaid interest on all of the Notes through March 14, 2017, to all holders who were holders of record on March 1, 2017, regardless of whether the Put Right is exercised with respect to such Notes. On the 2017 Repurchase Date, there will be no accrued and unpaid interest on the Notes. As of February 13, 2017, there was U$632,500,000 in aggregate principal amount of the Notes outstanding. If all outstanding Notes are surrendered for repurchase through exercise of the Put Right, the aggregate cash purchase price will be US$632,500,000.

Third Quarter 2016 Financial Results

• Total net revenue increased by 38.4% to RMB12.00 billion (US$1.80 billion), primarily attributable to a 43% year-over-year increase in the number of active customers[1] to 20.8 million and a 34% year-over-year increase in total orders[2] to 60.1 million.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to RMB1.00 (US$0.15) from RMB0.76 in the prior year period.

"We are pleased to have delivered solid financial results and healthy customer growth despite a seasonally soft quarter for retail," said Mr. Eric Shen, chairman and chief executive officer of Vipshop, "As a leading online discount retailer for brands in China, we are committed to advancing the end-to-end shopping experience on our platform by providing our customers with diverse products and more personalized merchandising. The superior user experience across our platform led to improved user stickiness, as demonstrated by the strong 49% year-over-year increase in repeat customers[6] to 16.7 million. Despite macro weakness, our robust customer growth and retention is a testament to the resilience of our business model. We are confident that our strong foundation will continue to drive our overall secular business growth and enable us to maintain our market leadership regardless of macro environment changes."

Mr. Donghao Yang, chief financial officer of Vipshop, further commented, "In the third quarter of 2016, we continued to deliver strong growth in revenues, active customers and total orders. Importantly, we were able to achieve solid top-line growth and market share gain while maintaining stable margins. In addition, we continue to expand our Internet finance business which is increasingly beneficial to our core retail business and will further strengthen our overall ecosystem. By balancing revenue and profitability, we aim to continue to expand our user base and gain additional market share from China's highly fragmented discount retail market."

Business Outlook

For the fourth quarter of 2016, the Company expects its total net revenue to be between RMB18.0 billion and RMB18.5 billion, representing a year-over-year growth rate of approximately 30% to 33%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Second Quarter 2016 Financial Results

• Total net revenue increased by 49.0% to RMB13.44 billion (US$2.02 billion), primarily attributable to a 62% year-over-year increase in the number of active customers^[1] to 23.0 million and a 54% year-over-year increase in total orders^[2] to 68.9 million.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to RMB1.12 (US$0.17) from RMB0.86 in the prior year period.

"We are pleased to have announced solid results for the second quarter of 2016," said Mr. Eric Shen, chairman and chief executive officer of Vipshop, "Despite the challenging macro environment, we successfully delivered accelerated growth in revenues, active customers and total orders over the past quarter. With the addition of more than 8.2 million new customers in the second quarter, which represents a 50% increase compared to the same period in the prior year, we also experienced further diversification of our customer base towards younger and more Internet- and mobile-savvy shoppers. To better target these expanding demographics, we have enhanced the customization of our product offerings which are tailored to shoppers in various age groups. Looking forward, we will continue to focus on diversifying our product offerings and delivering more personalized products and services to our valued customers. We are confident that we have the right strategic plan and team in place to continue to grow our business and create significant value for our shareholders."

Mr. Donghao Yang, chief financial officer of Vipshop, commented, "Consistent with our growth strategy, in the past quarter, we reaccelerated our top-line growth and significantly strengthened our operating cash flow. Additionally, we remain focused on enhancing and expanding our logistics capabilities and are on track to add approximately 500,000 square meters of warehousing capacity by the end of this year. Looking ahead, we aim to continue delivering solid top-line growth while maintaining our margins. We remain focused on providing our customers with high quality end-to-end user experience through our robust logistics platform. By doing so, we are confident that we will continue to drive sustainable growth and generate additional value for all of our stakeholders."

Business Outlook

For the third quarter of 2016, the Company expects its total net revenue to be between RMB11.9 billion and RMB12.4 billion, representing a year-over-year growth rate of approximately 37% to 43%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Fourth Quarter 2015 Financial Results

• Total net revenue increased by 65% to RMB13.90 billion (US$2.15 billion), primarily attributable to a 58% year-over-year increase in the number of active customers[1] to 19.8 million and a 67% year-over-year increase in total orders[2] to 64.9 million.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to RMB1.18 (US$0.18) from RMB0.77 in the prior year period.

Mr. Eric Shen, chairman and chief executive officer of Vipshop, stated, "In 2015, we topped RMB40 billion in annual sales and attracted nearly 37 million active customers as of the end of the year. Looking at the fourth quarter 2015 results, we are very pleased to see our strategies to expand market share pay off, as evidenced by the reacceleration of revenue, active users and total orders on our platform. We also continued to enhance the user experience by optimizing our platform for mobile interaction and purchasing, as well as expanding our product categories through various initiatives including the build out of our emerging cross-border offering. In the fourth quarter of 2015, mobile accounted for approximately 82% of our GMV, up from 66% a year ago, further validating the appeal of our flash sale offering to on-the-go shoppers. Our cross-border business continues to gain momentum and has reached approximately 5% of GMV, demonstrating solid potential to be a strong growth driver in the future. As we diversify our product offering and further enhance the customer experience, we are confident in our ability to drive further growth and value for investors."

Mr. Donghao Yang, chief financial officer of Vipshop, commented, "We are very pleased with our fourth quarter and full year 2015 results. What was particularly encouraging was our ability to simultaneously reaccelerate growth in revenue, active users and total orders in the fourth quarter, while maintaining stable customer acquisition costs and marketing expenses as a percentage of total revenue. Furthermore, we were able to continue to strengthen our quarterly operating margins to 5.8% from 4.5% in the prior year period, even as our gross margins slightly contracted due to increased promotional activities to expand market share. We continued to make progress building out our warehousing and logistics capabilities. By the end of January 2016, our in-house and invested last mile capabilities supported over 83% of the orders on our platform. Looking ahead, our goal is to further grow our market share and top-line through investments in new user acquisition and marketing, while maintaining discipline with our expenses and investments."

Business Outlook

For the first quarter of 2016, the Company expects its total net revenue to be between RMB11.8 billion and RMB12.3 billion, representing a year-over-year growth rate of approximately 37% to 43%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Third Quarter 2015 Financial Results

• Total net revenue increased by 63% to RMB8.67 billion (US$1.36 billion) from RMB5.33 billion in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to RMB0.76 (US$0.12) from RMB0.47 in the prior year period.

Mr. Eric Shen, chairman and chief executive officer of Vipshop, stated, "Even though we are disappointed that we didn't achieve our revenue guidance for the third quarter 2015, we firmly believe that the business fundamentals and growth dynamics of our platform, in terms of orders, customers and revenues, remain solid. We added 5.4 million new active customers[5] in the third quarter, bringing our number of total active customers to 14.6 million. Customer loyalty and buying activity also continued to strengthen during the quarter: Customers made 3.1 purchases and spent RMB595 on average, up from 2.9 purchases and RMB541, respectively, in the prior year period; and 92.5% of our total orders were made by repeat customers. Our GMV from mobile rose to 79% in the third quarter, up from 57% one year ago, further demonstrating the strong appeal of our flash sale offering to on-the-go shoppers. Our cross-border e-commerce business continued to ramp up, with 164% sequential growth. Overall, our cross-border initiatives, supplier and consumer financing programs and logistical enhancements further characterize our platform as an ecosystem designed to drive value for global brands and customers alike."

Mr. Donghao Yang, chief financial officer of Vipshop, commented, "Unfortunately, our forecast for the third quarter did not hold up due to unexpected seasonal patterns this year especially late into the quarter, as well as new customer acquisition growth being slightly softer than expected. This was partly due to our conservative approach in optimizing our marketing budget allocation and not investing more aggressively into new user acquisition, leading us to miss our top-line guidance. However, we still managed to increase revenues by over 63% year over year, as well as expand our operating margin to 5.0% from 2.4% in the prior year period. By the close of the third quarter, our warehouse capacity reached 1.6 million square meters, and our total orders covered by our network of in-house and invested couriers reached 80%; in both cases we met our year-end targets one quarter ahead of time. We are also announcing that our board of directors has given us an additional authorization to repurchase up to $300 million of our ADSs. We believe that this initiative demonstrates our confidence in the long-term outlook for our business. Looking ahead, we remain confident in our ability to continue to scale our platform in terms of revenue, order and customer growth as well as logistical expansion and optimization, as we build upon our proven model and create enduring value for our shareholders."

Business Outlook

For the fourth quarter of 2015, the Company expects its total net revenue to be between RMB12.0 billion and RMB12.5 billion, representing a year-over-year growth rate of approximately 43% to 49%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

Second Quarter 2015 Financial Results

Mr. Eric Shen, chairman and chief executive officer of Vipshop, stated, "We delivered strong second quarter financial and operating results, which were mainly driven by mobile expansion, enhanced operating leverage and the continued growth in the numbers of customers and orders in our core flash sales business. Our smooth and swift execution on the mobile front - with 76% of our gross merchandise value now coming from mobile devices - has helped set us apart in the market, and further clarifies the unique value of our flash sale model for on-the-go shoppers. Our cross-border expansion, supplier financing initiatives and logistical enhancements have further improved our ecosystem for brands and customers. Going forward, we will focus on expanding our market share and scaling our operations through enhancing the customer shopping experience, attracting new customers and elevating our brand value in China and globally."

Mr. Donghao Yang, chief financial officer of Vipshop, commented, "Vipshop continued to deliver strong overall results in the second quarter, with mobile adoption accelerating and margins strengthening across the board. What was particularly encouraging was the scale effect we successfully achieved as fulfillment and G&A expenses came down as a percentage of revenues, leading operating margin to expand sharply to 4.9% from 2.9% a year ago. In order to further improve fulfillment efficiency, we continue to enhance and expand our logistical capabilities. With approximately 1.4 million square meters of warehouse capacity as of June 30, 2015 and construction of a new warehouse in Sichuan Province underway, we are on track to meet our 1.5 million-square-meter target by year end. We also continue to expand our local delivery and services network, which we are currently utilizing to deliver over 70% of our total orders across almost all provinces in mainland China."

GUANGZHOU, China, May 15, 2015 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today issued the following statement in response to the allegations made by a short seller on May 13, 2015:

Vipshop has been and will always endeavor to be in compliance with applicable U.S. and PRC laws and regulations. Vipshop believes the allegations are based upon unsupported speculation and contain numerous errors, representing a general misunderstanding of the Company's business model and are entirely groundless. In particular, these allegations attempt to cite publicly available filings with local bureaus of the PRC State Administration For Industry & Commerce ("SAIC") made by the Company's subsidiaries in China. However, the alleged low SAIC financial numbers used to support these allegations deviate substantially from the Company's actual SAIC filings in all of the cited regions. For example, one of the allegations is that the Company's revenue in 2014 is US$354,077,936 according to the "Consolidated SAIC Financials," but even the revenue of Vipshop (China) Co., Ltd., one of the wholly-owned subsidiaries of the Company, is approximately RMB 11.1 billion (US$1.79 billion) for 2014 as reported in its publicly available SAIC filing. The Company wishes to inform investors that SAIC filings in China are publicly accessible and encourage people to conduct their own check through legitimate means.

GUANGZHOU, China, May 13, 2015 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today issued the following statement in response to recent allegations made by a few short sellers. Vipshop believes these allegations are unfounded and contain numerous errors, unsupported speculation, and a general misunderstanding of the Company's business model. The Company has made its board of directors and its independent auditors aware of the reports, and will continue to review and address the allegations as appropriate, but today the Company would like to clarify certain key errors contained in the allegations.

Accusations regarding Accounting:

i) Revenue Recognition:

The allegations question the Company's method of revenue recognition and allege that the Company relied upon an incorrect application of gross revenue basis reporting. As disclosed and elaborated in the Company's annual report on Form 20-F for the fiscal year of 2014 (the "2014 Form 20-F"), the Company appropriately records its revenue on a gross basis where the ownerships, risks and rewards of these inventories have been fully transferred to the Company after it takes ownership upon deliveries to its warehouses, any loss related to damages to these inventories after the Company receives them from vendors are absorbed by the Company, and it reports these inventories on the Company's balance sheets as its assets.

ii) Inventory Accounting

The allegations state that the Company improperly commingled inventory-held-on-consignment with purchased inventory, thereby increasing its reported ending inventory and decreasing its cost-of-sales. The conclusion is based on the short seller's own erroneous assumptions. The Company's inventory is reported at the lower of cost or market, and the Company's cost of inventory is determined using the "weighted-average cost" method. The Company believes this approach is appropriate given the nature of its business and its arrangements with its vendors. During the periods reported, the Company has full ownership on inventories that are recorded on the balance sheet.

iii) Other Receivables

The allegations contend that the Company recorded significantly increased levels of "Other Receivables" which potentially reflect abusive related-party transactions ("RPTs"). This allegation is also unsupported. The breakdown of "Other Receivables" has been clearly disclosed in note 5 to the Company's consolidated financial statements for the year ended December 31, 2014 included in the 2014 Form 20-F, and the increase was mainly due to the increase of deposits and VAT receivables. In addition, as disclosed in note 4 to the Company's consolidated financial statements for the year ended December 31, 2014, other trade receivables in the amount of US$18.3 million relates to lending to some of the Company's suppliers who are not related parties.

iv) Capital Expenditures

The allegations assert that the Company exaggerated and accelerated its capital expenditures ("CAPEX") to industry-leading levels, despite having significant excess capacity. As reported in the Company's public disclosures, the Company's CAPEX amounted to US$12.4 million, US$22.2 million, and US$256.0 million in the years ended December 31, 2012, 2013 and 2014, respectively. In 2014, the Company's CAPEX increased significantly largely because of the Company's expansion of its warehouses and other logistical infrastructure, the details of which have been disclosed in the Company's 2014 Form 20-F. This expansion is aimed to lower costs associated with logistics and property leasing in the long term.

v) Cash Flow

The allegations assert that the Company's cash flow from operations is driven not by earnings, but by significant growth in both accounts payables and accrued expenses. This conclusion is also incorrect. As disclosed in its 2014 Form 20-F, the Company's net cash from operating activities amounted to US$505.7 million in 2014, which was primarily attributable to a net income of US$122.8 million, adjusted for non-cash expenses in an aggregate amount of US$382.9 million consisting primarily of share-based compensation expenses, inventory write-downs, amortization of intangible assets and changes in operating assets and liabilities.

Other Accusations:

Held-to-Maturity Investments

Additionally, the allegations question the Company's Held-to-Maturity ("HTM") investments, including the rates of interest earned thereon, and suggest that they could constitute low-interest loans offered to the Company's founders. These allegations are false. The Company invests in debt securities which are made with third party banks and entered into at market rates. The Company classifies these investments as HTM. None of these HTM investments were extended to the Company's founders or other related parties.

i) Lefeng and Ovation

The allegations assert that the Company grossly overpaid for stakes in Lefeng and its parent company, Ovation, and that these transactions may not have been conducted at arms-length. The Company believes the valuations of the Lefeng and Ovation investments were reasonable based on prevailing market conditions and both investments were negotiated at arms-length. The acquisitions of Lefeng and Ovation were strategic moves that were intended to strengthen the Company's market share in the large and fast growing cosmetics sector and help expand its reach to female customers.

ii) Logistics Companies

In addition, there were false allegations regarding the Company's investments into regional logistics companies. This allegation is subjective and is based on inaccurate financial figures. In 2014, the Company made minority investments in several regional logistic companies. Strategically, these investments reflect the Company's effort to expand its nationwide delivery capabilities.

Accusations regarding Corporate Governance:

The allegations also challenge the independence of the Company's board and its audit firm. This allegation is unfounded. As required by U.S. securities laws and the NYSE listing requirements, the board of directors of the Company performs annual assessments of director independence, and the independent directors identified in the Company's 2014 annual report on Form 20-F were determined to have met the independence requirements set forth in applicable laws and listing rules.

As disclosed in the 2014 Form 20-F, the Company has a majority independent board of directors as required by U.S. securities laws and the NYSE listing requirements. The Company has implemented its disclosure procedures and corporate governance protocols in compliance with public company standards and applicable legal requirements and will continue to meet corporate governance standards under applicable SEC and NYSE rules and legal requirements.

SINGAPORE, March 13, 2015 /PRNewswire/ -- Ensogo Ltd (ASX:E88), the No 1 e-Commerce business in the South East Asia and Hong Kong region, is pleased to announce it has entered into an agreement with WF Asian Reconnaissance Fund Limited ("Ward Ferry", a fund managed by Ward Ferry Management) for the placement of 58,823,530 new Ensogo shares to Ward Ferry at a price of A$0.17c per share. The placement is subject to shareholder approval and will raise A$10,000,000.10 in new capital for Ensogo.

The announcement of this new placement and fresh capital comes on the heels of Ensogo's recent announcement that China's leading online discount retailer, Vipshop, had taken a strategic stake in the Company.

Kris Marszalek, chief executive officer of Ensogo, commented, "We are extremely excited to welcome a fund of the caliber of Ward Ferry onto our register. The additional A$10m of funding means we are perfectly positioned to execute on the tremendous opportunity our strategic relationship with Vipshop brings, as well as on the enormous opportunity for e-Commerce in Southeast Asia."

Commenting on the Vipshop alliance, Mr. Marszalek continued: "As a part of the strategic investment, the companies will also enter a strategic operating partnership, whereby Ensogo will have access to Vipshop's vast volume and selection of existing inventory, all to be made available for immediate shipping. The companies also intend to cooperate in the areas of logistics, merchandising, technology, marketing and user acquisition; the very expertise, which enabled Vipshop to scale its revenues from US$32m in 2010 to US$3.77 billion in 2014. We're excited to be in the perfect position to build the Vipshop of Southeast Asia."

Fourth Quarter 2014 Financial Results

• Total net revenue increased by 108.9% year over year to US$1.36 billion, primarily attributable to a 114.2% year-over-year increase in the number of active customers[1] to 12.2 million and a 99.6% year-over-year increase in total orders[2] to 35.3 million.
• Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS increased to US$0.12 from US$0.05 in the prior year period.

Mr. Eric Shen, chairman and chief executive officer of Vipshop, stated, "We are very pleased with our robust fourth quarter and full year 2014 financial and operational results, which were largely driven by our continued efforts in enhancing our mobile shopping experience. As mobile is increasingly becoming the ideal solution for eCommerce users, we believe our flash sales model, which allows shoppers to act instantly on sales events any time and anywhere, is particularly well suited for users shopping via mobile devices. Additionally, we have witnessed our initiatives in logistics expansion and warehousing efficiency take shape as we progressed in terms of both customer satisfaction and cost control. Going forward, we will continue to strengthen our mobile capabilities and focus on attracting new customers by continuing to provide a convenient and pleasant shopping experience."

Mr. Donghao Yang, chief financial officer of Vipshop, commented, "We are very proud of our fourth quarter financial results, which exceeded our prior expectations. Our progress in mobile, market expansion, along with our long-standing commitment to customers enabled us to further boost both the total net revenue and the net income attributable to our shareholders. During the fourth quarter of 2014, the mobile contribution of our platform reached approximately 66% of our gross merchandise volume. Looking ahead, we are firmly confident that by executing our growth strategies and further investing judiciously in fulfillment, technology and talent, we will be able to further fortify our position as the leading online discount retailer in China and continue delivering a satisfying shopping experience to our growing base of customers."

Business Outlook

For the first quarter of 2015, the Company expects its total net revenue to be between US$1.25 billion and US$1.30 billion, representing a year-over-year growth rate of approximately 78% to 85%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

GUANGZHOU, China, Dec. 16, 2014 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS, vip.com), the largest online discount retailer for brands both in China and globally, as well as the No.1 female-oriented vertical E-commerce retailer in China, has initiated and partnered with The Economist Intelligence Unit of the Economist Group on a survey regarding the growing buying power of female consumers in Asia.

The report, titled "On the rise and online: Female consumers in Asia," was released today, and it surveyed 5,500 women across major urban areas in Greater China, India, Japan, South Korea and Singapore, as well as consumer analysts, major retailers and brand owners. The study found that women are driving the growth of online shopping in the region, with many preferring online to offline. Among survey respondents, 63 percent browse the Internet at least once a day for products and services, with nearly 30 percent doing so twice or more per day. Slightly fewer than 80 percent of women regionally buy groceries online, 83 percent for cosmetics and the figure rises to nearly 90 percent for clothing and accessories.

"Women are a unique and important driving force in the Asian market. And at Vipshop, over 80 percent of the accumulative 90 million members are females, who contribute to 90 percent of our sales. The partnership with the EIU allowed us the opportunity to learn more about consumer shopping habits and to further expand upon its leadership position in China's online retail market," said Eric Shen, Chairman and CEO of Vipshop.

Perhaps most troubling for retailers focused on the brick-and-mortar business, nearly half - 49 percent, of women polled agreed or strongly agreed that they preferred the experience of shopping online to doing so in stores. The figure was as high as 69 percent in mainland China.

Additional key findings from the report:

• Women in Asia's major cities are increasingly empowered. Region-wide, 43 percent of the women responding to the survey were in managerial, executive or professional services jobs, while 83 percent contribute to household income.
• Most women are in charge of budgeting decisions on cosmetics (81 percent), clothing and accessories (73 percent), groceries (67 percent) and maternity and children's products (57 percent), and they are at least co-decision makers in most other product categories like electronics and travel services.
• At least on the Internet, many Asian women do not seem to be living up to the stereotype of selfless, family-focused individuals. Over 62 percent of women are buying for themselves most of the time when shopping online; in mainland China that rate rises to 74 percent, and to 77 percent among 18-29 year olds.
• Women have a variety of reasons to prefer online shopping. Most point to cost (62 percent) and time (60 percent) savings, but they also feel that online retailers can be relied upon to have the products they want to buy (59 percent), and they appreciate the range of choice online shopping offers (56 percent).
• When choosing an online retailer, women say price (83 percent) is important or very important, but so are quality (83 percent), genuine products (82 percent) and convenience (77 percent).
• Getting the messaging right will be tricky. While messages that address them as independent, intelligent consumers were found appealing to 56 percent of women, 54 percent said they found messages addressing them as wives, mothers or girlfriends to be attractive.
• The future of online shopping looks mobile and impulsive. 58 percent of the youngest (18-29) demographic surveyed shop online with their smartphones at home, versus 38 percent of 40-49 year olds. While overall some 43 percent reported spending more money online than they do in physical shops, again the rates among those 18-29 were even higher (56 percent). Over half of women 18-29 year olds agreed that they were more likely to buy impulsively online.

Laurel West, editor of the report, said, "Women are controlling spending in a variety of categories where you would expect them to, such as clothing and accessories, cosmetics and groceries. But they also have an increasing influence in bigger ticket items such as electronics. Many brands are realizing this and making efforts to better understand what is important to female consumers."

According to the EIU report, Asian women regard "quality (83 percent), price (83 percent) and genuine products (82 percent) as the top three factors when they choose online retailers. Obviously, Vipshop's business model of "online discount retailing for branded and genuine products" naturally matches with women's demands and criteria for online shopping.

The EIU report also reveals that women have dominant online spending control in the buying of clothing and accessories, cosmetics, maternity and children's products, and home goods, which coincidently proves the rightness of Vipshop's she-economy strategies that it conducted one year ago. Since then, Vipshop has expanded its categories from apparel and accessories to cosmetics, maternity and children's products, as well as home goods to leverage the increasing power of the she-economy.

Fully understanding women's comprehensive roles and shopping demands both as independent career women and good wives/mothers/daughters, Vipshop provides the goods of 12,000 brands for women and their families. And in September of this year, Vipshop launched its "Global Sales" business to enrich the online shopping offerings to women.

Tony Feng, Vice President of Vipshop, said at the survey launch press conference, "At Vipshop, we are continually pushing ourselves to deliver the best products and services in the best format, and this study is born from these efforts aimed at the rapidly growing women's market. It showcases our determination to go further in focusing our resources on better understanding and creating bigger innovations and deploying them at scale in areas where we want to win."

Third Quarter 2014 Financial Results

• Total net revenues increased by 130.0% year over year to US$882.6 million, primarily attributable to a 136.8% year-over-year increase in the number of active customers[1] to 9.5 million and a 117.6% year-over-year increase in total orders to 25.5 million.
• Non-GAAP net income margin increased to 5.2% from 3.9% in the prior year period. Non-GAAP net income per diluted ADS increased to US$0.08 from US$0.03 in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are very pleased with our robust third-quarter financial and operational results. We achieved strong growth in total active customers and total orders, which enabled us to further boost both the total net revenues and the net income attributable to our shareholders. Additionally, we continue to have strong adoption in mobile shopping with approximately 57% of our gross merchandise volume coming from mobile devices in the third quarter. As mobile migration on our platform continues unabated, we will continue investing R&D dollars in enhancing the mobile user experience, and further simplifying and reinforcing our quality value proposition with shoppers on the Vipshop platform. Going forward, we believe such investments, along with continued investments in merchandizing, marketing and big data, will further strengthen the foundation of our expanding platforms and enhance our users' shopping experience on different devices."

Mr. Donghao Yang, CFO of Vipshop, commented, "We are proud of our third quarter operational performance, which drove strong top- and bottom-line growth. In anticipation of escalating demand, we are accelerating our warehouse expansion plan and gradually building out our last-mile delivery capabilities. We are firmly confident that by successfully executing our growth strategies, we will be able to further enhance our operational efficiency through strengthened cost controls and deliver a superior user experience to our growing base of customers."

Business Outlook

For the fourth quarter of 2014, the Company expects its total net revenues to be between US$1.20 billion and US$1.22 billion, representing a year-over-year growth rate of approximately 84% to 87%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

GUANGZHOU, China, October 9, 2014 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), China's leading online discount retailer ("Vipshop" or the "Company"), today announced that it will change its American depositary share ("ADS") to Class A Ordinary Share ("Share") ratio from one (1) ADS representing two (2) Shares to five (5) ADSs representing one (1) Share, effective November 3, 2014.

Vipshop ADS holders of record as of the close of business on October 31, 2014 will receive nine (9) additional ADSs for every one ADS held on that date. For Vipshop's ADS holders, this ratio change will have the same effect as a 10-for-1 ADS split.

The ADS ratio change will have no impact on Vipshop's underlying Shares. Furthermore, no action by ADS holders is required to effect the ratio change.

GUANGZHOU, China, September 16, 2014 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), China's leading online discount retailer ("Vipshop" or the "Company"), today announced that, at the annual general meeting of shareholders held on September 15, 2014 (the "AGM"), the Company's shareholders voted in favor of the proposal to adopt a dual-class share structure (the "Dual-class Share Structure"), pursuant to which the Company's authorized share capital shall be 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 (1) vote and each Class B ordinary share being entitled to ten (10) votes on all matters that are subject to shareholder vote, as well as the proposal to amend and restate the Company's memorandum and articles of association to reflect the adoption of the Dual-class Share Structure and other related matters.

Second Quarter 2014 Financial Results

• Total net revenues increased by 136.1% over the prior year period to US$829.4 million, primarily attributable to a 167.9% increase in the number of active customers[1] to 9.3 million from 3.5 million and a 138.4% increase in total orders[2] to 26.3 million from 11.0 million in the prior year period.
• Non-GAAP net income per diluted ADS increased to US$0.72 from US$0.20 in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are very pleased with our robust second quarter financial and operational results. Operationally, our total active customers amassed to 9.3 million, of which 4.1 million were new active customers during the quarter. In addition, this quarter also witnessed continued integration with Lefeng, which contributed nearly 2.0 million total orders, and more than 1.3 million total active customers. With mobile becoming a more important revenue stream, we recently launched our first U.S. R&D center. Based in San Jose, this facility will leverage the deep pool of mobile and data mining talent in Silicon Valley to improve our business in the areas of Big Data, data mining, and machine-to-machine learning, further tailoring and optimizing the shopping experience on our platform."

Mr. Donghao Yang, CFO of Vipshop, commented, "We're proud of our second quarter operational performance, which reflects strong growth and improving margins. In addition, we continue to expand our warehousing capacity, in order to optimize inventory management and overall operational efficiency. We expect that by the end of 2016, the total capacity of our warehouses will reach over 700,000 square meters. We believe that our ongoing investments in merchandising, marketing, research and development, and warehouse automation will enable us to continue to provide superior customer experience and drive long-term value for our shareholders."

Business Outlook

For the third quarter of 2014, the Company expects its total net revenues to be between US$850 million and US$860 million, representing a year-over-year growth rate of approximately 122% to 124%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

First Quarter 2014 Financial Results

• Total net revenues increased by 125.9% over the prior year period to US$701.9 million, primarily attributable to a 165.1% increase in the number of active customers[1] to 7.4 million from 2.8 million and a 129.3% increase in total orders[2] to 20.2 million from 8.8 million over the prior year period.
• Non-GAAP net income per diluted ADS increased to US$0.63 from US$0.17 in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are very excited to report robust first quarter 2014 financial results, which reflect our continued strong growth momentum and increasing operational efficiencies, evidenced by 125.9% year-over-year growth in net revenues and incremental gross margin expansion to 24.9%. As the integration of our strategic acquisition of Lefeng commences, we expect to benefit from synergies associated with streamlining our comprehensive cosmetics offerings and cross selling to our customer bases and lowering our combined operating expenses. In addition, we aim to further improve the customer experience for viewing and purchasing products across both the PC and mobile platforms and evolve with our customers' purchasing habits. We are confident that our initiatives in 2014 of expanding our warehousing, merchandizing and IT capabilities will help further enhance our ability to satisfy, retain and attract customers, through delivering the best-in-class customer experience and product selection, and drive long-term value for our shareholders."

Mr. Donghao Yang, CFO of Vipshop, commented, "We're proud of our first quarter financial performance and initial results of our integration with Lefeng. We believe that our on-going investments in warehousing expansion and management will continue to help us improve sales capacity and reduce our operating costs, providing a strong foundation for our continued growth over the coming years. We are committed to further growing our product portfolio both organically and through acquisitions when appropriate."

Business Outlook

For the second quarter of 2014, the Company expects its total net revenues to be between US$780 million and US$790 million, representing a year-over-year growth rate of approximately 122.0% to 124.9%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

Vipshop Holdings Limited

The selling shareholders, including some of our directors and executive officers, are offering 1,140,000 ADSs by this prospectus supplement and the accompanying prospectus dated March 10, 2014. Each ADS represents two ordinary shares, par value US$0.0001 per ordinary share.

Concurrently with this offering, we are offering up to US$550 million aggregate principal amount of 1.50% convertible senior notes, or the Notes, assuming no exercise of the underwriters' over-allotment option to purchase additional US$82.5 million aggregate principal amount of the Notes, pursuant to a separate prospectus supplement and accompanying prospectus. This prospectus supplement does not constitute an offer to sell or the solicitation of an offer to buy the Notes. The closing of this offering of the ADSs is not contingent upon the closing of the concurrent offering of the Notes, and the closing of the concurrent offering of the Notes is not contingent upon the closing of this offering of the ADSs.

1.50% Convertible Senior Notes due 2019

We are offering US$550,000,000 aggregate principal amount of our 1.50% Convertible Senior Notes due 2019 (the "Notes").

The Notes will bear interest at a rate of 1.50% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2014. The Notes will mature on March 15, 2019.

Holders may convert their Notes at their option at any time prior to 5:00 p.m., New York City time, on the second business day immediately preceding March 15, 2019.

The conversion rate for the Notes will initially be 4.9693 American Depositary Shares ("ADSs") per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$201.24 per ADS. As of the date of this prospectus supplement, each ADS represents two ordinary shares. The conversion rate will be subject to adjustment in some events but will not be adjusted for accrued and unpaid interest, if any. In addition, if a make-whole fundamental change (as defined herein) occurs prior to the maturity date of the Notes, or upon a tax redemption (as described below), we will, under certain circumstances, increase the conversion rate for a holder that elects to convert its Notes in connection with such make-whole fundamental change or tax redemption, as applicable.

GUANGZHOU, China, March 12, 2014 /PRNewswire/ --Vipshop Holdings Limited (NYSE: VIPS) (the "Company") announced today the pricing of (i) its public offering of US$550,000,000 aggregate principal amount of its 1.50% convertible senior notes due 2019 (the "Notes"), which has been upsized from the previously announced offer amount of US$400,000,000 and (ii) the public offering by certain selling shareholders of the Company of an aggregate of 1,140,000 American Depositary Shares (the "ADSs") at a price to public of US$143.74 per ADS. Each ADS represents two ordinary shares of the Company. The Company has granted to the underwriters a 30-day option to purchase up to an additional US$82,500,000 aggregate principal amount of the Notes and the selling shareholders have granted to the underwriters a 30-day option to purchase up to an additional 171,000 ADSs.

The Notes will bear interest at a rate of 1.50% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning on September 15, 2014. The Notes will mature on March 15, 2019, unless earlier converted, redeemed or repurchased in accordance with the terms of the Notes.

The Notes will be convertible into the ADSs at any time prior to the close of business on the second business day immediately preceding March 15, 2019. The Notes will initially be convertible at a conversion rate of 4.9693 ADSs per US$1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately US$201.24 per ADS, which represents an approximately 40% conversion premium over the price to public of the ADSs in the ADS offering described above. The initial conversion rate is subject to adjustment upon the occurrence of certain events, but will not be adjusted for any accrued and unpaid interest. On March 15, 2017, the holders of the Notes will have the right to require the Company to repurchase for cash all or part of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but not including, the repurchase date.

GUANGZHOU, China, March 11, 2014 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS) (the "Company"), China's leading online discount retailer for brands, announced today the commencement of (i) a registered underwritten public offering by the Company of its convertible senior notes due 2019 (the "Notes") and (ii) a registered underwritten public offering by certain shareholders of the Company of American Depositary Shares, each representing two ordinary shares, par value $0.0001 per share, of the Company (the "ADSs").

The Company proposes to offer US$400 million aggregate principal amount of the Notes, subject to market conditions. The Company intends to grant to the underwriters of the Notes offering a 30-day option to purchase up to an additional US$60 million aggregate principal amount of the Notes. The Notes will be convertible at any time prior to the close of business on the second business day immediately preceding the maturity date. Upon conversion, holders will receive ADSs. The interest rate, conversion rate and certain other terms of the Notes will be determined at the time of pricing of the Notes. The Company intends to use a portion of the proceeds of the Notes offering for repayment of existing indebtedness under certain of its facility agreements, which were incurred in connection with a recent acquisition, and the remainder for general corporate purposes.

Concurrently with the offering of the Notes, certain shareholders of the Company are offering an aggregate of 1,140,000 ADSs, representing 2,280,000 ordinary shares, par value $0.0001 per share, subject to market conditions. The selling shareholders intend to grant to the underwriters a 30-day option to purchase up to an aggregate of 171,000 additional ADSs. The Company will not receive any proceeds from the sale of the ADSs by the selling shareholders.

The offering of the Notes is not contingent on the closing of the concurrent secondary offering of the ADSs, and the concurrent secondary offering of the ADSs is not contingent on the closing of the offering of the Notes.

Goldman Sachs (Asia) L.L.C. and Deutsche Bank Securities are acting as joint book-running managers for the offerings and BofA Merrill Lynch and China Renaissance Securities (Hong Kong) Limited are acting as co-managers.

Fourth Quarter 2013 Financial Results

• Total net revenues for the fourth quarter of 2013 increased by 117.3% to US$651.0 million from US$299.6 million in the prior year period, primarily driven by growth in the number of active customers and total orders.
• Non-GAAP net income per diluted ADS increased to US$0.49 from US$0.16 in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are very proud and excited to have exited 2013 with four quarters of consecutive profitability and strong momentum heading into 2014. This success was driven by our solid financial growth which remained in triple-digit percentages for both the top line and bottom line throughout the year. Particularly, our total revenues grew by 145% to over US$1.7 billion for the full year of 2013, and net income grew to US$52.3 million, compared with a net loss of US$9.5 million in 2012. Behind our impressive financial performance was a dedicated focus on strengthening our core operations including expanding and optimizing of our product offering, ramping up warehousing capabilities and enhancing our merchandising and IT infrastructures. This effort has laid the foundation for continued growth of our unique online flash sales business model. With a successful year of robust growth, combined with our recent acquisition of Lefeng and the investment in Ovation, we're very excited to further expand and solidify our leadership in China's discount retail market as we head into 2014."

Mr. Donghao Yang, CFO of Vipshop, commented, "We're pleased with our results for the fourth quarter and full year 2013, which demonstrate the continually improving scale effects associated with our growing business. With the total number of customers and orders in 2013 increasing by 129.8% and 124.1% year-over-year, respectively, we established a more powerful virtuous cycle of business, which will help propel our revenue growth going forward. Heading into 2014, as our recent initiatives suggest, we are committed to further scaling our platform by improving our brand reputation, broadening our product offering, and enlarging our warehousing and logistics capabilities. We also plan to continue to invest in strengthening our mobile and IT capabilities, in order to more optimally position ourselves to capitalize on the opportunities in China's dynamic, evolving eCommerce market."

Business Outlook

For the first quarter of 2014, the Company expects its total net revenues to be between US$640 million and US$650 million, representing a year-over-year growth rate of approximately 106% to 109%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

GUANGZHOU, China, Feb. 21, 2014 /PRNewswire/ -- Vipshop Holdings Limited (VIPS), China's leading online discount retailer for brands ("Vipshop" or the "Company"), announced today that it has acquired a 23% equity interest in Ovation Entertainment Limited ("Ovation") for a total consideration of approximately US$55.8 million pursuant to a share purchase and subscription agreement with Ovation and certain of its existing shareholders. Ovation's business, conducted through its subsidiaries based in China, focuses on the development of cosmetic products under its proprietary brands and media products.

"This strategic investment provides Vipshop access to a consistent supply of Ovation branded cosmetic products, which are in high demand among our growing base of users, about 75% of whom are female," said Mr. Eric Shen, chairman and chief executive officer of Vipshop. "Ovation's expertise in branding and marketing will also help drive up our brand equity, and will support our efforts to expand our user base and increase buying activities on our platform. With Ovation as a strategic partner, we are well positioned to expand full-force into the booming cosmetics segment in China and fortify our competitive advantages, as we capitalize on our synergies to build out this sophisticated and comprehensive cosmetics offering."

Ms. Jing Li, chairwoman and founder of Ovation, commented, "We are pleased to deepen our partnership with Vipshop. We have seen great potential in cosmetics and other consumer products developed under our proprietary brands in a new era of online retailing. By adding our products to the Vipshop platform, we will have immediate access to Vipshop's large base of brand-conscious consumers, significantly expanding sales potential for both companies. Ovation is proud to partner with Vipshop while continuing to independently develop our branded products."

Third Quarter 2013 Financial Results

• Total net revenues for the third quarter of 2013 increased by 146.1% to US$383.7 million from US$155.9 million in the prior year period
• Non-GAAP net income per diluted ADS increased to US$0.26 in the third quarter of 2013 from US$0.01 in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "During the third quarter, our business continued to deliver solid financial and operational results with revenues growing by 146% year-over-year. We are pleased with the growth in our customer base, brand partnerships as well as our warehouse capacity. Our strong improvements in scale, warehousing capacity, merchandizing and logistical expertise and mobile capabilities speak to the continuing attractiveness of our distinguished discount retail platform. Looking ahead, we will continue to focus on strengthening our market leadership and expertise in online discount retail and capitalize on the robust growth of online retail sector in China. We are very confident in our ability to leverage our core competencies to embrace future opportunities and are committed to ensure that Vipshop is a long-standing leader in China's discount retail market."

Mr. Donghao Yang, CFO of Vipshop, commented, "Despite the third quarter traditionally being a slow season, we were still able to expand our gross margin to 24.2% thanks to the pronounced scale effects in our growing business. Moreover, since we achieved non-GAAP net income profitability one year ago, we have thereafter successfully continued to increase our profitability, achieving 3.1% net margin and 3.9% non-GAAP net margin this quarter. These results are a testament to the strength of our reputation as a channel for brand partners to liquidate overstocked products and for customers to purchase discounted quality products, as well as our improving ability to control costs and achieve greater operational efficiency. We believe that our strong internal capabilities and multifaceted growth strategies, coupled with the exogenous trends of middle class expansion and e-commerce growth in China, positions us optimally to achieve sustainable long-term growth."

Business Outlook

For the fourth quarter of 2013, the Company expects its total net revenues to be between US$580 million and US$590 million, representing a year-over-year growth rate of approximately 94% to 97%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

Second Quarter 2013 Financial Results

• Total net revenues increased by 159.7% over the prior year period to US$351.3 million, primarily attributable to a 138.7% increase in the number of active customers[1] from 1.5 million to 3.5 million and a 136.3% increase in total orders[2] from 4.7 million to 11.0 million.
• Gross margin increased to 23.5% from 21.8% in the prior year period.
• Net income increased to US$9.0 million, compared to a net loss of US$5.8 million in the prior year period. Net income margin increased to 2.6%, compared with a net loss margin of 4.3% in the prior year period. Net income per diluted ADS[7] increased to US$0.16, compared to a net loss per diluted ADS of US$0.11 in the prior year period.
• Non-GAAP net income, which excludes share-based compensation expenses, increased to US$11.8 million compared to a non-GAAP net loss of US$4.2 million in the prior year period. Non-GAAP net income margin increased to 3.4% compared with a non-GAAP net loss margin of 3.1% in the prior year period. Non-GAAP net income per diluted ADS increased to US$0.20 in the second quarter of 2013 compared to a non-GAAP net loss per diluted ADS of US$0.08 in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are proud to report another solid quarter with strong revenue growth and margin expansion. We believe that these results attest to our growing market leadership and brand reputation as China's leading online discount retailer for brands. Our unique positioning is underpinned by our core competency in merchandizing, logistics and consumer intelligence that are specifically designed and integrated into our differentiated business model. As we continue to leverage our strong market position, we have further grown our loyal customer base and deepened our relationships with our brand partners, strengthening the scale effects associated with our growing business operation. With almost 140% year-over-year increase in both active customer count and the number of total orders, Vipshop has increasingly become the preferred online discount outlet for our customers to shop for their favorite brands and for brand partners to provide special offers on their merchandise. Building upon our increased operation and scale effect, we remain confident that our market leadership position will continue to help us deliver strong returns for our shareholders over the long term."

Mr. Donghao Yang, CFO of Vipshop, commented, "We are pleased that our increased business scale and brand recognition have and will continue to strengthen our bargaining power and operational efficiency, further improving our overall profitability. As we remain focused on enlarging our warehouse capacity, improving operational efficiency and expanding our mobile commerce capabilities, we aim to further expand upon growth opportunities associated with China's large and underdeveloped discount retail market. We believe this dedication will further strengthen Vipshop's customer loyalty and brand partner satisfaction while fostering sustained growth."

Business Outlook

For the third quarter of 2013, the Company expects its total net revenues to be between US$365 million and US$370 million, representing a year-over-year growth rate of approximately 134% to 137%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

GUANGZHOU, China, May 29, 2013 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS) ("Vipshop" or the "Company"), China's leading online discount retailer for brands, today issued the following statement in response to recent allegations made by short sellers. Vipshop believes that these allegations contain numerous errors, unsupported speculation and a general misunderstanding of the Company's business model. The Company would like to clarify certain key errors contained in the allegations.

User Traffic Data:

The allegations stipulate that user traffic, as measured by Alexa, does not match with the data provided by the Company. Alexa tracks internet traffic through browser based tool-bar plug-ins, but many Chinese internet users do not have Alexa plug-ins on their computers. Therefore, Alexa's user traffic data cited in the allegations under-estimate Vipshop.com's actual user traffic, which has grown rapidly.

Revenue Growth:

The allegations question the Company's rapid growth without the number of website visitors increasing. This conclusion is very misleading in that it failed to take into account the Company's actual user traffic growth as well as other factors in the Company's operation that drive business growth, including growth in total active customers and increase in the average order size, which was in turn 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 the Company's website, all in an effort to enhance customer experience.

Fulfillment Expenses:

The allegations challenge the Company's decreased fulfillment expenses as a percentage of total revenues despite its opening of new regional logistics centers. All these logistics centers are leased and the related expenses have been recognized in fulfillment expenses. In addition, the Company continued to shift more fulfillment needs to quality regional and local couriers, which generally have lower average delivery charges than national delivery companies. The above factors coupled with the Company's improved operational efficiency have led to the decrease in the fulfillment expenses as a percentage of total revenues.

Certain Other Claims:

The allegations stipulate that the Company did not fully disclose related party transactions. The Company has made explicit and transparent disclosures in the relevant filings with the SEC, including disclosure of related party transactions on pages 82, 83, F-34 and F-35 of the Company's annual report on Form 20-F for year 2012. The allegations also speculate that the Company's appearance at recent investor conferences is related to a potential follow-on offering in the near future. The Company clarifies that it is attending investor conferences and meeting with investors in the ordinary course of its business consistent with past practice.

Vipshop is dedicated to continuing open and transparent communications with investors, analysts and the public. The Company welcomes opportunities for direct dialog with all parties that are genuinely interested in gaining a better understanding of the Company's business model, operations, as well as the China's online discount retail market. Vipshop always aspires to act in the best interests of the Company and its shareholders, and reserves legal rights against any deliberately false accusations or attacks.

First Quarter 2013 Financial Results

• Net revenues for the first quarter of 2013 increased by 206.8% to US$310.7 million from US$101.3 million in the prior year period, primarily driven by growth in the number of active customers and total orders.
• Net income was US$5.8 million, compared to a net loss of US$8.6 million in the prior year period. Net income margin was 1.9%, compared with a net loss margin of 8.5% in the prior year period.
• Non-GAAP net income, which excludes share-based compensation expenses, was US$9.0 million compared to a non-GAAP net loss of US$6.5 million in the prior year period. Non-GAAP net income margin was 2.9% compared with a non-GAAP net loss margin of 6.4% in the prior year period. Non-GAAP net income per diluted ADS was US$0.17 in the first quarter of 2013 compared to a non-GAAP net loss per diluted ADS of US$0.25 in the prior year period.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "This quarter, we are very pleased with our strong momentum, which continues to validate the strengths of our differentiated e-commerce model. Our revenues, fueled by steady growth in both active customers and total orders, again exceeded our expectations during the quarter. Despite the seasonality associated with the Chinese New Year holiday, we saw a faster and stronger rebound in customer spending and activities in the wake of the holiday period as compared to previous years, demonstrating the increased appeal of our platform to customers looking for uniquely priced offers on their favorite brands. Moreover, benefiting from our focus on optimizing product selection, we expanded our partnerships with higher-end brands, which enabled us to attract more high-income customers, further driving our sales volume while elevating our overall brand image. These network and scale effects associated with our unique online discount retail model, offering our thousands of brand partners higher financial returns, faster turnover and, most importantly, reduced brand dilution, further separate us from our existing or emerging competitors in China. These attributes exemplify the long-term value and sustainability we provide to our growing base of brand partners and customers and provides us increasing confidence in our ability to continue our success."

Mr. Donghao Yang, CFO of Vipshop, commented, "Through growing scale and leverage in our business operation, we have been able to successfully grow our top line by over 200% while expanding our margins. Our ability to capitalize on our first-mover advantage in China's nascent discount retail market, compounded by our recent successful follow-on offering, provides us with the capital and confidence to further implement our expansion strategy and extend our leadership position. We believe we are well-capitalized to continue delivering strong and sustainable growth by accelerating the expansion of our logistics network and fulfillment capabilities while enhancing our IT infrastructure and mobile commerce capabilities for China's increasingly active online shoppers."

Business Outlook

For the second quarter of 2013, the Company expects its net revenues to be between US$330 million and US$335 million, representing a year-over-year growth rate of approximately 144% to 148%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

Second Quarter 2012 Highlights

• Net revenues increased by 233.5% over prior year period to US$135.3 million, primarily attributable to a 227.3% increase in the number of active customers[1] to 1.5 million and a 242.3% increase in total orders[2] to 4.7 million.
• Gross margin increased to 21.8% from 18.3% in the prior year period and 21.2% in the first quarter of 2012.
• Non-GAAP loss from operations[3] decreased to US$3.8 million from US$6.9 million in the prior year period. Non-GAAP operating loss margin[4] improved to 2.8% from 17.1% in the prior year period and 6.5% in the first quarter of 2012.
• Net loss attributable to ordinary shareholders decreased to US$5.8 million from US$19.5 million in the prior year period. Net loss margin improved to 4.3% from 48.1% in the prior year period and 8.5% in the first quarter of 2012.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are excited to have had another quarter of solid growth in both financial and operational results, further underscoring our strong operational expertise and capabilities in China's rapidly growing e-commerce market. Even with the backdrop of slowing economic growth in China, demand for discounted branded products on our platform grew by over 227% year over year to 4.7 million total orders as our 1.5 million shoppers increasingly search for bargain deals. Looking ahead, we expect to leverage our increasing scale, expand our relationships with brand partners and focused on further streamlining fulfillment operations, which we believe will lead to further improvement in our bottom line performance. We believe that these initiatives will further reinforce our market leadership and growth capabilities over the long run."

Mr. Donghao Yang, CFO of Vipshop, commented, "Our robust growth in both top line and bottom line continues to highlight the network and scale effect associated with the value that we provide to our customers and brand partners.  This effect resulted in gross margin further improving to 21.8% as our negotiating position with our brand partners improves and we continue to attract more shoppers.  In addition, our focus on optimizing the efficiency of our fulfillment operations resulted in our non-GAAP net loss margin[5] improving dramatically to 3.1% as compared to 17.6% in the second quarter of 2011 and 6.4% in the first quarter of 2012.  The growing scalability of our brand partnerships, products portfolio, and active user base will drive increased operational leverage, providing us increased confidence in the sustainability of our business model."  

Business Outlook

For the third quarter of 2012, the Company expects its net revenues to be between US$145 million and US$150 million, representing a year-over-year growth rate of approximately 176% to 186%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

First Quarter 2012 Results

• Net revenues for the first quarter of 2012 increased by 250.7% year-over-year to US$101.3 million, primarily attributable to a 247.2% increase in the number of active customers(1) to 1.0 million and a 276.4% increase in total orders(2) to 3.1 million.
• Gross margin increased to 21.2% from 17.0% in the prior year period and 20.0% in the fourth quarter of 2011.
• Net loss was US$8.6 million compared to US$6.7 million in the prior year period. Net loss margin improved to 8.5% from 23.2% in the prior year period and 60.4% in the fourth quarter of 2011.
• Non-GAAP loss from operations(3) was US$6.6 million compared to US$4.2 million in the prior year period. Non-GAAP operating loss margin improved to 6.5% from 14.6% in the prior year period and 10.6% in the fourth quarter of 2011.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are excited to report our first quarter 2012 financial results that reflect our continued strong growth momentum and increasing operational efficiencies. Despite the first quarter typically being our seasonally weakest quarter, we not only grew our net revenue by 250.7% year-over-year, but also expanded gross margin to 21.2%. We believe these results attest to both the sustainability of our model and our superior operational expertise and execution capabilities. By offering our consumers great savings on popular brands and our brand partners an effective means of monetizing excess inventory, we are confident in our ability to deliver strong returns for our shareholders over the long term."

Mr. Donghao Yang, CFO of Vipshop, commented, "In addition to strong top-line growth, we also remain focused on leveraging our brand, scale and market leadership to further enhance our gross and operating margins. Sequentially, we achieved increased operating leverage, as demonstrated by our continued gross and operating margin improvements. In particular, we continued to decrease fulfillment expenses as a percentage of net revenues to 16.7%. This was primarily due to new capacity ramp-up in our four warehouses and a continued shift to lower-cost local couriers from national couriers for order fulfillment. Overall, we are confident that our dual focus on growth and efficiency will lead to stronger shareholder returns as well as customer and brand partner loyalty."

Business Outlook

For the second quarter of 2012, the Company expects its net revenues to be between US$120 million and US$125 million, representing a year-over-year growth rate of approximately 196% to 208%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.