Vipshop Reports Unaudited Second Quarter 2021 Financial Results

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 18,2021

GUANGZHOU,China,Aug. 18,2021 -- Vipshop Holdings Limited (NYSE: VIPS),a leading online discount retailer for brands in China ("Vipshop" or the "Company"),today announced its unaudited financial results for the second quarter ended June 30,2021.

Second Quarter 2021 Highlights

Total net revenue for the second quarter of 2021 increased by 22.8% year over year to RMB29.6 billion (US$4.6 billion) from RMB24.1 billion in the prior year period.

GMV[1]for the second quarter of 2021 increased by 25% year over year to RMB48.1 billion from RMB38.4 billion in the prior year period.

Gross profit for the second quarter of 2021 increased by 20.6% year over year to RMB6.0 billion (US$922.6 million) from RMB4.9 billion in the prior year period.

Net income attributable to Vipshop's shareholders for the second quarter of 2021 was RMB1.1 billion (US$169.2 million),as compared with RMB1.5 billion in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders[2] for the second quarter of 2021 increased by 11.3% year over year to RMB1.5 billion (US$227.6 million) from RMB1.3 billion in the prior year period.

The number of active customers[3] for the second quarter of 2021 increased by 32% year over year to 51.1 million from 38.8 million in the prior year period.

Total orders[4] for the second quarter of 2021 increased by 30% year over year to 221.5 million from 170.5 million in the prior year period.

Mr. Eric Shen,Chairman and Chief Executive Officer of Vipshop,stated,"In the second quarter of 2021,we maintained solid business momentum through robust execution of our merchandising strategy. In the quarter,we observed healthy trends across our core operating metrics,with total number of active users and total GMV growing by 32% and 25% year over year,respectively. We were also delighted to see our value proposition continues to make us the discount platform of choice for brand partners to collaborate with and to incentivize their contribution to our premium product offerings. We believe that our ability to offer differentiated selections of quality products to our customers at competitive prices while adding value for our brand partners will further solidify our leading position in China's discount retail market."

Mr. David Cui,Chief Financial Officer of Vipshop,further commented,"During the second quarter of 2021,we delivered solid topline growth and profitability,driven by sustainable growth momentum in our business. In addition,we generated robust free cash inflow of RMB7.1 billion for the trailing twelve months ended June 30,2021,compared with RMB4.1 billion in the prior year period. In the second quarter,we repurchased approximately US$301 million of our ADSs in accordance with the US$500 million share repurchase program we adopted in March 2021,showing both our confidence in the robustness of our business model and our dedication to delivering long-term value to our shareholders."

Second Quarter 2021 Financial Results

REVENUE

Total net revenue for the second quarter of 2021 increased by 22.8% year over year to RMB29.6 billion (US$4.6 billion) from RMB24.1 billion in the prior year period,primarily driven by the growth in the number of total active customers.

GROSS PROFIT

Gross profit for the second quarter of 2021 increased by 20.6% year over year to RMB6.0 billion (US$922.6 million) from RMB4.9 billion in the prior year period. Gross margin for the second quarter of 2021 was 20.1% as compared with 20.5% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the second quarter of 2021 were RMB4.8 billion (US$750.7 million),as compared with RMB3.8 billion in the prior year period. As a percentage of total net revenue,total operating expenses for the second quarter of 2021 was 16.4% as compared with 15.8% in the prior year period.

Fulfillment expenses for the second quarter of 2021 were RMB2.1 billion (US$318.7 million),as compared with RMB1.7 billion in the prior year period. As a percentage of total net revenue,fulfillment expenses for the second quarter of 2021 decreased to 6.9% from 7.0% in the prior year period.

Marketing expenses for the second quarter of 2021 were RMB1.4 billion (US$218.0 million),as compared with RMB1.0 billion in the prior year period. As a percentage of total net revenue,marketing expenses for the second quarter of 2021 were 4.8%,as compared with 4.3% in the prior year period. The increase was primarily attributable to increased investment in advertising activities relating to customer acquisition and retention.

Technology and content expenses for the second quarter of 2021 was RMB369.9 million (US$57.3 million),as compared with RMB305.4 million in the prior year period. As a percentage of total net revenue,technology and content expenses for the second quarter of 2021 decreased to 1.2% from 1.3% in the prior year period.

General and administrative expenses for the second quarter of 2021 were RMB1.0 billion (US$156.7 million),as compared with RMB804.6 million in the prior year period. As a percentage of total net revenue,general and administrative expenses for the second quarter of 2021 was 3.4%,as compared with 3.3% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the second quarter of 2021 increased by 18.6% year over year to RMB1.5 billion (US$227.8 million) from RMB1.2 billion in the prior year period. Operating margin for the second quarter of 2021 was 5.0%,as compared with 5.1% in the prior year period.

Non-GAAP income from operations[5] for the second quarter of 2021,which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions,increased by 16.1% year over year to RMB1.7 billion (US$268.6 million) from RMB1.5 billion in the prior year period. Non-GAAP operating income margin[6] for the second quarter of 2021 was 5.9%,as compared with 6.2% in the prior year period.

NET INCOME

Net income attributable to Vipshop's shareholders for the second quarter of 2021 was RMB1.1 billion (US$169.2 million),as compared with RMB1.5 billion in the prior year period. Net margin attributable to Vipshop's shareholders for the second quarter of 2021 was 3.7%,as compared with 6.4% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS[7]for the second quarter of 2021 decreased to RMB1.56 (US$0.24) from RMB2.24 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders for the second quarter of 2021,which excluded (i) share-based compensation expenses,(ii) impairment loss of investments,(iii) investment gain and revaluation of investments excluding dividends,(iv) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees,(v) amortization of intangible assets resulting from business acquisitions,and (vi) tax effects on non-GAAP adjustments,increased by 11.3% year over year to RMB1.5 billion (US$227.6 million) from RMB1.3 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[8]for the second quarter of 2021 was 5.0%,as compared with 5.5% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9]for the second quarter of 2021 increased to RMB2.10 (US$0.32) from RMB1.92 in the prior year period.

For the quarter ended June 30,the Company's weighted average number of ADSs used in computing diluted income per ADS was 701,295,575.

BALANCE SHEET AND CASH FLOW

As of June 30,the Company had cash and cash equivalents and restricted cash of RMB16.5 billion (US$2.6 billion) and short term investments of RMB3.6 billion (US$564.2 million).

For the quarter ended June 30,net cash generated from operating activities was RMB2.0 billion (US$309.2 million),and free cash flow[10],a non-GAAP measurement of liquidity,was as follows:

For the three months ended

June 30,2020

RMB'000

June 30,2021

RMB'000

June 30,2021

US$'000

Net cash generated fromoperating activities

5,088,869

1,996,409

309,204

Reconciling items:

Net impact from Internet financing activities[11]

(311,652)

(21,535)

(3,335)

Capital expenditures

(452,630)

(637,190)

(98,688)

Free cash inflow

4,324,587

1,337,684

207,181

For the trailing twelve months ended

June 30,2021

US$'000

Net cash generated fromoperating activities

11,549,627

9,987,575

1,546,878

Reconciling items:

Net impact from Internet financing activities[11]

(4,027,419)

(344,367)

(53,336)

Capital expenditures

(3,375,199)

(2,497,859)

(386,869)

Free cash inflow

4,147,009

7,145,349

1,106,673

Share Repurchase Program

On March 30,the Company's board of directors approved a share repurchase program,pursuant to which the Company may purchase up to US$500 million of its Class A ordinary shares over a 24-month period,ending on March 29,2023. As of June 30,the Company had repurchased approximately US$301 million of its ADSs representing Class A ordinary shares under the program.

Business Outlook

For the third quarter of 2021,the Company expects its total net revenue to be between RMB24.3 billion and RMB25.5 billion,representing a year-over-year growth rate of approximately 5% to 10%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions,which is subject to change.

Exchange Rate

The Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi. This announcement contains currency conversions of Renminbi amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted,all translations from Renminbi to U.S. dollars are made at a rate of RMB6.4566 to US$1.00,the effective noon buying rate on June 30,2021 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the Renminbi amounts could have been,or could be,converted,realized or settled into U.S. dollars at that rate on June 30,or at any other rate.

Conference Call Information

The Company will hold a conference call on Wednesday,August 18,2021 at 7:30 am US Eastern Time,7:30 pm Beijing Time to discuss the financial results.

All participants wishing to join the conference call must pre-register online using the link provided below. Once pre-registration has been completed,participants will receive dial-in numbers,a passcode,and a unique registrant ID via email. To join the conference,participants should use the dial-in details in the email and then enter the event passcode followed by the registrant ID.

Conference ID

#2472109

Registration Link

http://apac.directeventreg.com/registration/event/2472109

A replay of the conference call will be accessible until August 25,2021 via the following dial-in details:

United States Toll Free: +1-855-452-5696

International: +61-2-8199-0299

Conference ID: #2472109

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

[1]"Gross merchandise value (GMV)"is defined as the total Renminbi value of all products and services sold throughthe Company's online sales business,online marketplaceplatform,offline stores,Shan Shan Outlets and city outlets during the relevant period,including through the Company's websites and mobile apps,third-party websites and mobile apps,Vipshop offline stores and Vipmaxx offline stores,as well as Shan Shan Outlets and city outlets that were fulfilled by either the Company or its third-party merchants,regardless of whether or not the goods weredelivered or returned. GMV includes shipping charges paid by buyers to sellers. For prudent considerations,the Company does not consider products or services to be sold if the relevant orders were placed and canceled pre-shipment and only included orders that left the Company's or other third-party vendors' warehouses.

[2]Non-GAAP net income attributable to Vipshop's shareholders is a non-GAAP financial measure,which is defined as net income attributable to Vipshop's shareholders excluding (i) share-based compensation expenses,and (vi) tax effects on non-GAAP adjustments.

[3]"Active customers" isdefined as registered members who have purchased from the Company's online sales businessor the Company's online marketplace platforms at least once during the relevant period.

[4]"Total orders" isdefined as the total number of orders placed during the relevant period,including the orders for products and services sold throughthe Company's online sales business and the Company's online marketplace platforms(excluding,for the avoidance of doubt,orders from the Company's offline stores and outlets),net of orders returned.

[5]Non-GAAP income from operations is a non-GAAP financial measure,which is defined as income from operations excluding share-based compensation expensesandamortization of intangible assets resulting from business acquisitions.

[6]Non-GAAP operating income margin is a non-GAAP financial measure,which is defined as non-GAAP income from operations as a percentage of total net revenues.

[7]"ADS" means American depositary share,each of which represents 0.2 Class A ordinary share.

[8]Non-GAAP net margin attributable to Vipshop's shareholders is a non-GAAP financial measure,which is defined as non-GAAP netincome attributable to Vipshop's shareholders,as a percentage of total net revenues.

[9]Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS is a non-GAAP financial measure,which is defined as non-GAAP net income attributable to Vipshop's shareholders,divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

[10]Free cash flow is a non-GAAP financial measure,which is defined as net cash from (used in) operating activities adding back the impact from Internet financing activities and less capital expenditures,which include purchase and deposits of property and equipment and land use rights,and purchase of other assets.

[11]Net impact from Internet financing activities represents net cash flow relating to the Company's financial products,which are primarily consumer financing and supplier financing that the Company provides to its customersand suppliers.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008,the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information,please visit https://ir.vip.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things,the business outlook and quotations from management in this announcement,as well as Vipshop's strategic and operational plans,contain forward-looking statements. Vipshop may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"),in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Vipshop's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: Vipshop's goals and strategies; Vipshop's future business development,results of operations and financial condition; the expected growth of the online discount retail market in China; Vipshop's ability to attract customers and brand partners and further enhance its brand recognition; Vipshop's expectations regarding demand for and market acceptance of flash sales products and services; competition in the discount retail industry; the potential impact of the COVID-19 to Vipshop's business operations and the economy in China and elsewhere generally; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshop's filings with the SEC. All information provided in this press release is as of the date of this press release,and Vipshop does not undertake any obligation to update any forward-looking statement,except as required under applicable law.

Use of Non-GAAP Financial Measures

The condensed consolidated financial information is derived from the Company's unaudited interim condensed consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"),except that comparative consolidated statements of income and cash flows for the period presented and detailed footnote disclosures required by Accounting Standards Codification 270,Interim Reporting ("ASC270"),have been omitted. Vipshop uses non-GAAP net income attributable to Vipshop's shareholders,non-GAAP net income attributable to Vipshop's shareholders per diluted ADS,non-GAAP income from operations,non-GAAP operating income margin,non-GAAP net margin attributable to Vipshop's shareholders,and free cash flow,each of which is a non-GAAP financial measure. Non-GAAP net income attributable to Vipshop's shareholders is net income attributable to Vipshop's shareholders excluding (i) share-based compensation expenses,and (vi) tax effects on non-GAAP adjustments. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS is computed using non-GAAP net income attributable to Vipshop's shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP income from operations is income from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions. Non-GAAP operating income margin is non-GAAP income from operations as a percentage of total net revenue. Non-GAAP net margin attributable to Vipshop's shareholders is non-GAAP net income attributable to Vipshop's shareholders as a percentage of total net revenue. Free cash flow is net cash from operating activities adding back the impact from Internet financing activities and less capital expenditures,and purchase of other assets. Impact from Internet financing activities added back or deducted from free cash flow contains changes in the balances of financial products,which are primarily consumer financing and supplier financing that the Company provides to customers and suppliers. The Company believes that separate analysis and exclusion of the non-cash impact of (a) share-based compensation,(b) impairment loss of investments,(c) amortization of intangible assets resulting from business acquisitions,(d) investment gain and revaluation of investments excluding dividends,and (e) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning,forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of (1) non-cash share-based compensation expenses,(2) impairment loss of investments,(3) amortization of intangible assets resulting from business acquisitions,(4) investment gain and revaluation of investments excluding dividends,and (5) share of loss (gain) in investment of limited partnerships that are accounted for as equity method investees. Free cash flow enables the Company to assess liquidity and cash flow,taking into account the impact from Internet financing activities and the financial resources needed for the expansion of fulfillment infrastructure and technology platform. Share-based compensation expenses and amortization of intangible assets have been and will continue to be significant recurring expenses in its business. However,the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition,because non-GAAP financial measures are not measured in the same manner by all companies,they may not be comparable to other similar titled measures used by other companies. One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from,or as a substitute for,the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures,please see the table captioned "Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP Results" at the end of this release.

Investor Relations Contact

Tel: +86 (20) 2233-0732

Email: IR@vipshop.com

Vipshop Holdings Limited

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income

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

Three Months Ended

June 30,2020

March 31,2021

June 30,2021

RMB'000

RMB'000

RMB'000

USD'000

Product revenues

23,213,007

27,221,752

28,226,826

4,371,779

Other revenues (1)

897,660

1,176,745

1,380,876

213,870

Total net revenues

24,110,667

28,398,497

29,607,702

4,585,649

Cost of revenues

(19,170,864)

(22,803,674)

(23,650,875)

(3,663,054)

Gross profit

4,939,803

5,594,823

5,956,827

922,595

Operating expenses:

Fulfillment expenses (2)

(1,676,229)

(1,793,138)

(2,057,504)

(318,667)

Marketing expenses

(1,028,903)

(1,294,068)

(1,407,584)

(218,007)

Technology and content expenses

(305,381)

(337,516)

(369,936)

(57,296)

General and administrative expenses

(804,619)

(956,688)

(1,011,849)

(156,716)

Total operating expenses

(3,815,132)

(4,381,410)

(4,846,873)

(750,686)

Other operating income

115,336

298,000

360,554

55,843

Income from operations

1,240,007

1,511,413

1,470,508

227,752

Investment gain and revaluation of investments

551,443

97,936

(74,173)

(11,488)

Impairment loss of investments

(161,734)

(25,049)

Interest expense

(21,070)

(3,696)

(1,614)

(250)

Interest income

100,286

153,424

160,114

24,799

Foreign exchange gain(loss)

(14,272)

30,950

(50,684)

(7,850)

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

1,856,394

1,790,027

1,342,417

207,914

Income tax expenses

(324,883)

(306,959)

(312,749)

(48,439)

Share of gain of equity method investees

7,588

64,642

55,596

8,611

Net income

1,539,099

1,547,710

1,085,264

168,086

Net loss(income) attributable to non-controlling interests

(2,179)

(2,240)

7,218

1,118

Net income attributable to Vipshop's shareholders

1,536,920

1,545,470

1,092,482

169,204

Shares used in calculating earnings per share (3):

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

—Basic

134,142

136,459,216

137,142,451

137,451

—Diluted

137,322,667

141,842,600

140,259,115

140,115

Net earnings per Class A and Class B ordinary share

Net income attributable to Vipshop's shareholders——Basic

11.39

11.33

7.97

1.23

Net income attributable to Vipshop's shareholders——Diluted

11.19

10.90

7.79

1.21

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

Net income attributable to Vipshop's shareholders——Basic

2.28

2.27

1.59

0.25

Net income attributable to Vipshop's shareholders——Diluted

2.24

2.18

1.56

0.24

(1) Other revenues primarily consist of revenues from third-party logistics services,product promotion and online advertising,fees

charged to third-party merchants which the Company provides platform access for sales of their products,interest income from

microcredit and consumer financing services,inventory and warehouse management services to certain suppliers,loan facilitation

service income,and lease income earned from the Shan Shan Outlets.

(2) Fulfillment expenses include shipping and handling expenses,which amounted RMB 1.1 billion,1.2 billion and RMB 1.5 billion in

the three month periods ended June 30,2020,March 31,2021 and June 30,respectively.

(3) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares,with each

Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to ten votes on all matters that are

subject to shareholder vote.

Three Months Ended

June 30,2021

RMB'000

RMB'000

RMB'000

USD'000

Share-based compensation expenses are included

in the operating expenses as follows:

Fulfillment expenses

25,905

19,750

22,336

3,459

Marketing expenses

4,661

4,289

4,153

643

Technology and content expenses

45,201

52,581

67,238

10,414

General and administrative expenses

172,136

143,517

163,899

25,385

Total

247,903

220,137

257,626

39,901

Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

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

December

31,2020

June

30,2021

June

30,2021

RMB'000

RMB'000

USD'000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

11,995,415

15,666,775

2,426,475

Restricted cash

815,906

798,450

123,664

Short term investments

7,328,719

3,642,851

564,206

Accounts receivable,net

334,529

376,443

58,304

Amounts due from related parties

333,539

353,333

54,724

Other receivables and prepayments,net

2,286,359

2,177,100

337,190

Loan receivables,net

27,258

4,345

673

Inventories

7,509

5,941,222

920,178

Assets held for sale

408,748

19,528

3,024

Total current assets

31,172,982

28,980,047

4,488,438

NON-CURRENT ASSETS

Property and equipment,net

13,584,459

13,925,275

2,156,750

Deposits for property and equipment

73,718

264,260

40,929

Land use rights,net

6,062,792

6,029,328

933,824

Intangible assets,net

333,022

320,989

49,715

Investment in equity method investees

1,949,787

2,323,273

359,829

Other investments

2,861,034

2,722,120

421,603

Other long-term assets

100,328

292,604

45,319

Goodwill

593,662

593,662

91,947

Deferred tax assets,net

628,267

706,254

109,385

Operating lease right-of-use assets

1,580,763

1,355,352

209,917

Total non-current assets

27,767,832

28,533,117

4,419,218

TOTAL ASSETS

58,940,814

57,513,164

8,907,656

LIABILTIES AND EQUITY

CURRENT LIABILITIES

Short term loans

1,043,426

1,959,516

303,490

Accounts payable

15,191,313

12,289,830

1,903,452

Advance from customers

1,558,891

1,238,674

191,846

Accrued expenses and other current liabilities

7,696,996

7,108,980

1,101,041

Amounts due to related parties

444,100

410,538

63,584

Deferred income

334,431

314,409

48,696

Operating lease liabilities

299,791

313,508

48,556

Total current liabilities

26,568,948

23,635,455

3,660,665

NON-CURRENT LIABILITIES

Deferred tax liability

432,995

452,105

70,022

Deferred income-non current

1,070,086,398

168,262

Operating lease liabilities

1,360,946

1,129,494

174,936

Other long term liabilities

121,245

176,055

27,267

Total non-current liabilities

2,986,077

2,844,052

440,487

TOTAL LIABILITIES

29,555,025

26,479,507

4,152

EQUITY:

Class A ordinary shares (US$0.0001 par value,483,489,642 shares

authorized,119,223,484 and 122,424,418 shares issued,of which

119,484 and 119,681,428 shares were outstanding as of December

31,2020 and June 30,respectively)

77

79

12

Class B ordinary shares (US$0.0001 par value,16,510,358 shares

authorized,and 16,358 and 15,560,358 shares issued and

outstanding as of December 31,respectively)

11

11

2

Treasury shares,at cost(Nil and 2,742,990 Class A shares as of December

31,respectively )

(1,927,719)

(298,566)

Additional paid-in capital

10,816,185

11,692,079

1,810,872

Retained earnings

17,740,415

20,378,367

3,207

Accumulated other comprehensive loss

(58,954)

(103,681)

(16,055)

Non-controlling interests

888,055

994,521

154,032

Total shareholders' equity

29,385,789

31,033,657

4,806,504

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

58,656

Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

June 30,2020

June 30,2021

RMB'000

RMB'000

USD'000

Income from operations

1,752

Share-based compensation expenses

247,903

257,901

Amortization of intangible assets resulting from business acquisitions

5,896

5,896

913

Non-GAAP income from operations

1,493,806

1,734,030

268,566

Net income attributable to Vipshop's shareholders

1,204

Share-based compensation expenses

247,901

Impairment loss of investments

161,734

25,049

Investment gain and revaluation of investments excluding dividends

(551,443)

103,043

15,959

Share of loss(gain) in investment of limited partnerships that are accounted

for as an equity method investee

27,739

(50,009)

(7,745)

Amortization of intangible assets resulting from business acquisitions

5,896

913

Tax effects on non-GAAP adjustments

53,570

(101,261)

(15,683)

Non-GAAP net income attributable to Vipshop's shareholders

1,320,585

1,469,511

227,598

Shares used in calculating earnings per share:

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

—Basic

134,142

137,451

—Diluted

137,667

140,115

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

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

9.79

10.72

1.66

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

9.62

10.48

1.62

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

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

1.96

2.14

0.33

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

1.92

2.10

0.32