Vipshop Reports Unaudited Fourth Quarter and Full Year 2022 Financial Results

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on February 23,2023

GUANGZHOU,China,Feb. 23,2023 --Vipshop Holdings Limited (NYSE: VIPS),a leading online discount retailer for brands in China ("Vipshop" or the "Company"),today announced its unaudited financial results for the quarter and full year ended December 31,2022.

Fourth Quarter and Full Year 2022 Highlights

Total net revenues for the fourth quarter of 2022 were RMB31.8 billion (US$4.6 billion),as compared with RMB34.1 billion in the prior year period. Total net revenues for the full year of 2022 were RMB103.2 billion (US$15.0 billion),as compared with RMB117.1 billion in the prior year.

GMV[1] for the fourth quarter of 2022 was RMB54.4 billion,as compared with RMB57.0 billion in the prior year period. GMV for the full year of 2022 was RMB175.2 billion,as compared with RMB191.5 billion in the prior year.

Gross profit for the fourth quarter of 2022 increased by 2.8% year over year to RMB6.9 billion (US$1.0 billion) from RMB6.7 billion in the prior year period. Gross profit for the full year of 2022 was RMB21.6 billion (US$3.1 billion),as compared with RMB23.1 billion in the prior year.

Net income attributable to Vipshop's shareholders for the fourth quarter of 2022 increased by 57.9% year over year to RMB2.2 billion (US$323.9 million) from RMB1.4 billion in the prior year period. Net income attributable to Vipshop's shareholders for the full year of 2022 increased by 34.6% year over year to RMB6.3 billion (US$913.2 million) from RMB4.7 billion in the prior year.

Non-GAAP net income attributable to Vipshop's shareholders[2] for the fourth quarter of 2022 increased by 23.9% year over year to RMB2.2 billion (US$323.5 million) from RMB1.8 billion in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders for the full year of 2022 increased by 13.7% year over year to RMB6.8 billion (US$991.3 million) from RMB6.0 billion in the prior year.

The number of active customers[3] for the fourth quarter of 2022 was 47.7 million,as compared with 49.2 million in the prior year period. The number of active customers for the full year of 2022 was 84.8 million,as compared with 93.9 million in the prior year.

Total orders[4] for the fourth quarter of 2022 increased to 218.5 million from 216.9 million in the prior year period. Total orders for the full year of 2022 were 739.5 million,as compared with 786.6 million in the prior year.

Mr. Eric Shen,Chairman and Chief Executive Officer of Vipshop,stated,"We had another quarter of strong earnings to finish off an extremely challenging year. Our business fundamentals are now stronger with the capabilities that we have built in merchandising,operations,and technologies in the past year. We have gained momentum with brand partners,securing a consistent flow of quality merchandise at exceptional values to our platform. We have won loyalty from customers,growing the high-value customer base all year long. And we have stepped up efforts in sustainability that benefits all stakeholders. Our sharp execution in 2022 gives us confidence as we look ahead for the post-pandemic opportunities. We believe that we are now in a healthier position than before to achieve both growth and profitability."

Mr. David Cui,Chief Financial Officer of Vipshop,further commented,"We are pleased to deliver the most profitable quarter in the past two years as we continued with topline recovery. For the full year,we achieved record-high net income with solid margin expansion through consistent efforts to optimize operating efficiency. In addition,we remain committed to delivering value to our shareholders,with a total ofUS$952 millionof ADSs repurchased under our share buyback programs throughout 2022. Looking ahead into 2023,we are confident about regaining growth while sustaining healthy profitability."

Fourth Quarter 2022 Financial Results

REVENUES

Total net revenues for the fourth quarter of 2022 were RMB31.8 billion (US$4.6 billion),as compared with RMB34.1 billion in the prior year period,primarily attributable to short-term disruptions on economic activities from the surge of COVID-19 infections nationwide.

GROSS PROFIT

Gross profit for the fourth quarter of 2022 increased by 2.8% year over year to RMB6.9 billion (US$1.0 billion) from RMB6.7 billion in the prior year period. Gross margin for the fourth quarter of 2022 increased to 21.7% from 19.7% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the fourth quarter of 2022 decreased by 6.5% year over year to RMB4.6 billion (US$673.9 million) from RMB5.0 billion in the prior year period. As a percentage of total net revenues,total operating expenses for the fourth quarter of 2022 was 14.6%,which stayed flat as compared with the prior year period.

Fulfillment expenses for the fourth quarter of 2022 were RMB2.2 billion (US$312.8 million),which largely stayed flat as compared with the prior year period. As a percentage of total net revenues,fulfillment expenses for the fourth quarter of 2022 was 6.8%,as compared with 6.4% in the prior year period.

Marketing expenses for the fourth quarter of 2022 decreased by 17.6% year over year to RMB944.1 million (US$136.9 million) from RMB1.1 billion in the prior year period. As a percentage of total net revenues,marketing expenses for the fourth quarter of 2022 decreased to 3.0% from 3.4% in the prior year period,primarily attributable to more prudent marketing strategy.

Technology and content expenses for the fourth quarter of 2022 decreased by 7.8% year over year to RMB408.5 million (US$59.2 million) from RMB443.0 million in the prior year period. As a percentage of total net revenues,technology and content expenses for the fourth quarter of 2022 was 1.3%,which stayed flat as compared with the prior year period.

General and administrative expenses for the fourth quarter of 2022 decreased by 5.2% year over year to RMB1.1 billion (US$165.0 million),as compared with RMB1.2 billion in the prior year period. As a percentage of total net revenues,general and administrative expenses for the fourth quarter of 2022 was 3.6%,as compared with 3.5% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the fourth quarter of 2022 increased by 37.1% year over year to RMB2.5 billion (US$363.8 million),as compared with RMB1.8 billion in the prior year period. Operating margin for the fourth quarter of 2022 increased to 7.9% from 5.4% in the prior year period.

Non-GAAP income from operations[5] for the fourth quarter of 2022,which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions,increased by 33.6% year over year to RMB2.8 billion (US$402.2 million) from RMB2.1 billion in the prior year period. Non-GAAP operating income margin[6] for the fourth quarter of 2022 increased to 8.7% from 6.1% in the prior year period.

NET INCOME

Net income attributable to Vipshop's shareholders for the fourth quarter of 2022 increased by 57.9% year over year to RMB2.2 billion (US$323.9 million) from RMB1.4 billion in the prior year period. Net margin attributable to Vipshop's shareholders for the fourth quarter of 2022 increased to 7.0% from 4.1% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS[7] for the fourth quarter of 2022 increased to RMB3.66 (US$0.53) from RMB2.07 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders for the fourth quarter of 2022,which excluded (i) share-based compensation expenses,(ii) impairment loss of investments,(iii) investment loss (gain) and revaluation of investments excluding dividends,(iv) reconciling items on the share of equity method investments,(v) amortization of intangible assets resulting from business acquisitions,and (vi) tax effects on non-GAAP adjustments,increased by 23.9% year over year to RMB2.2 billion (US$323.5 million) from RMB1.8 billion in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[8] for the fourth quarter of 2022 increased to 7.0% from 5.3% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9] for the fourth quarter of 2022 increased to RMB3.65 (US$0.53) from RMB2.64 in the prior year period.

For the quarter ended December 31,2022,the Company's weighted average number of ADSs used in computing diluted income per ADS was 610,448,180.

BALANCE SHEET AND CASH FLOW

As of December 31,the Company had cash and cash equivalents and restricted cash of RMB23.1 billion (US$3.3 billion) and short term investments of RMB1.6 billion (US$231.4 million).

For the quarter ended December 31,net cash generated from operating activities was RMB6.5 billion (US$946.1 million),and free cash flow[10],a non-GAAP measurement of liquidity,was as follows:

For the three months ended

Dec 31,2021

Dec 31,2022

Dec 31,2022

RMB'000

RMB'000

US$'000

Net cash generated from operating activities

6,873,191

6,525,597

946,123

Reconciling items:

Net impact from Internet financing activities[11]

(4,926)

243,833

35,352

Capital expenditures

(1,204,433)

(587,100)

(85,121)

Free cash inflow

5,663,832

6,182,330

896,354

Full Year 2022 Financial Results

Total net revenues for the full year of 2022 were RMB103.2 billion (US$15.0 billion),as compared with RMB117.1 billion in the prior year.

Gross profit for the full year of 2022 was RMB21.6 billion (US$3.1 billion),as compared with RMB23.1 billion in the prior year. Gross margin for the full year of 2022 increased to 21.0% from 19.7% in the prior year.

Income from operations for the full year of 2022 increased by 11.0% year over year to RMB6.2 billion (US$898.5 million) from RMB5.6 billion in the prior year. Operating margin for the full year increased to 6.0% from 4.8% in the prior year.

Non-GAAP income from operations for the full year of 2022,increased by 12.1% year over year to RMB7.4 billion (US$1.1 billion) from RMB6.6 billion in the prior year. Non-GAAP operating income margin for the full year of 2022 increased to 7.2% from 5.6% in the prior year.

Net income attributable to Vipshop's shareholders for the full year of 2022 increased by 34.6% year over year to RMB6.3 billion (US$913.2 million) from RMB4.7 billion in the prior year. Net margin attributable to Vipshop's shareholders for the full year of 2022 increased to 6.1% from 4.0% in the prior year. Net income attributable to Vipshop's shareholders per diluted ADS for the full year of 2022 increased to RMB9.83 (US$1.43) from RMB6.75 in the prior year.

Non-GAAP net income attributable to Vipshop's shareholders for the full year of 2022,(iii) investment loss(gain) and revaluation of investments excluding dividends,increased by 13.7% year over year to RMB6.8 billion (US$991.3 million) from RMB6.0 billion in the prior year. Non-GAAP net margin attributable to Vipshop's shareholders for the full year of 2022 increased to 6.6% from 5.1% in the prior year. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS for the full year of 2022 increased to RMB10.67(US$1.55) from RMB8.67 in the prior year.

For the full year of 2022,the Company's weighted average number of ADSs used in computing diluted earnings per ADS was 640,786,520.

For the full year of 2022,net cash generated from operating activities was RMB10.5 billion (US$1.5 billion),and free cash flow,was as follows:

For the trailing twelve months ended

Dec 31,744,644

10,519,692

1,212

Reconciling items:

Net impact from Internet financing activities[11]

(89,546)

408,550

59,234

Capital expenditures

(3,578,645)

(3,102,589)

(449,833)

Free cash inflow

3,076,453

7,825,653

1,134,613

Share Repurchase Program

During the quarter ended December 31,the Company repurchased US$317.9 million of its ADSs under its current US$1 billion share repurchase program,which is effective through March 2024. As of December 31,the Company has an un-utilized amount of US$247.5 million under this program.

Business Outlook

For the first quarter of 2023,the Company expects its total net revenues to be between RMB25.2 billion and RMB26.5 billion,representing a year-over-year increase 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.

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 RMB6.8972 to US$1.00,the effective noon buying rate on December 30,2022 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 December 30,or at any other rate.

Conference Call Information

The Company will hold a conference call on Thursday,February 23,2023 at 7:30 am U.S. Eastern Time,8:30 pm Beijing Time to discuss the financial results.

All participants wishing to join the conference call must pre-register online using the link provided below.

Registration Link: https://register.vevent.com/register/BI6984a3247975465ba30e29f8757ef611

Once pre-registration has been completed,each participant will receive dial-in numbers and a unique access PIN via email. To join the conference,participants should use the dial-in details followed by the PIN code.

A live webcast of the earnings conference call can be accessed at https://edge.media-server.com/mmc/p/wo4ejch9. An archived webcast will be available at the Company's investor relations website at http://ir.vip.com.

About Vipshop Holdings Limited

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

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things,the business outlook and quotations from management in this announcement,as well as Vipshop's strategic and operational plans,contain forward-looking statements. Vipshop may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"),in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Vipshop's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: Vipshop's goals and strategies; Vipshop's future business development,results of operations and financial condition; the expected growth of the online discount retail market in China; Vipshop's ability to attract customers and brand partners and further enhance its brand recognition; Vipshop's expectations regarding needs for and market acceptance of flash sales products and services; competition in the discount retail industry; 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,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'sshareholders 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 revenues. Non-GAAP net margin attributable to Vipshop's shareholders is non-GAAP net income attributable to Vipshop'sshareholders as a percentage of total net revenues. Free cash flow is net cash from operating activities adding back the impact from internet financing activities and less capital expenditures,which include purchase and deposits of property and equipment and land use rights. Impact from internet financing activities added back or deducted from free cash flow contains changes in the balances of financial products,which are primarily consumer financing and supplier financing that the Company provides to customers and suppliers. The Company believes that separate analysis and exclusion of the non-cash impact of (i) share-based compensation,and (vi) tax effects on non-GAAP adjustments add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning,forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses,and (vi) tax effects on non-GAAP adjustments. Free cash flow enables the Company to assess liquidity and cash flow,taking into account the impact from internet financing activities and the financial resources needed for the expansion of fulfillment infrastructure,technology platform and Shan Shan Outlets. Share-based compensation expenses have been and will continue to be significant recurring expenses in its business. However,the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition,because non-GAAP financial measures are not measured in the same manner by all companies,they may not be comparable to other similar titled measures used by other companies. One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures.

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

Investor Relations Contact

Tel: +86 (20) 2233-0732

Email: IR@vipshop.com

[1] "Gross merchandise value (GMV)" is defined as the total Renminbi value of all products and services sold through the Company's online sales business,online marketplace platform,Shan Shan Outlets,and other offline stores during the relevant period,including through the Company's websites and mobile apps,third-party websites and mobile apps,and other offline stores,which were fulfilled by either the Company or its third-party merchants,regardless of whether or not the goods were delivered or returned. GMV includes shipping charges paid by buyers to sellers. For prudent considerations,the Company does not consider products or services to be sold if the 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" is defined as registered members who have purchased from the Company's online sales business or the Company's online marketplace platforms at least once during the relevant period.

[4] "Total orders" is defined as the total number of orders placed during the relevant period,including the orders for products and services sold through the 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 expenses and amortization 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 net income attributable to Vipshop's shareholders,as a percentage of total net revenues.

[9] Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS is a non-GAAP financial measure,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 operating activities adding back the impact from Internet financing activities and less capital expenditures,which include purchase and deposits of property and equipment and land use rights.

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

Vipshop Holdings Limited

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income

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

Three Months Ended

Twelve Months Ended

Dec 31,2021

Dec 31,2022

Dec 31,2022

Dec 31,2022

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Product revenues

32,276,319

29,914,304

4,337,166

111,256,902

97,250,078

14,099,936

Other revenues (1)

1,855,354

1,843,456

267,276

5,802,776

5,902,411

855,769

Total net revenues

34,131,673

31,757,760

4,604,442

117,059,678

103,152,489

14,955,705

Cost of revenues

(27,418,277)

(24,857,565)

(3,008)

(93,953,121)

(81,536,409)

(11,821,668)

Gross profit

6,713,396

6,900,195

1,000,434

23,106,557

21,616,080

3,037

Operating expenses:

Fulfillment expenses (2)

(2,183,570)

(2,157,586)

(312,821)

(7,652,504)

(7,247,210)

(1,050,747)

Marketing expenses

(1,145,834)

(944,051)

(136,875)

(5,089,213)

(2,831,316)

(410,502)

Technology and content expenses

(443,011)

(408,543)

(59,233)

(1,517,307)

(1,605,422)

(232,764)

General and administrative expenses

(1,200,449)

(1,137,858)

(164,974)

(4,189,690)

(4,459,518)

(646,569)

Total operating expenses

(4,972,864)

(4,648,038)

(673,903)

(18,714)

(16,143,466)

(2,340,582)

Other operating income

89,183

257,062

37,270

924,579

724,832

105,091

Income from operations

1,829,715

2,509,219

363,801

5,582,422

6,197,446

898,546

Investment gain and revaluation of investments

92,232

257,064

37,271

85,685

546,031

79,167

Impairment loss of investments

(217,046)

(34,347)

(4,980)

(414,780)

(93,904)

(13,615)

Interest expense

(4,899)

(4,311)

(625)

(14,461)

(24,258)

(3,517)

Interest income

194,870

198,255

28,744

671,461

764,018

110,772

Exchange (loss) gain

(34,451)

160,542

23,276

(37,052)

687,871

99,732

Income before income tax expense and share of (loss) income of equity method investees

1,860,421

3,086,422

447,487

5,275

8,077,204

1,171,085

Income tax expenses

(390,691)

(903,839)

(131,044)

(1,222,704)

(1,758,810)

(255,003)

Share of (loss) income of equity method investees

(47,023)

59,176

8,580

42,303

(6,559)

(951)

Net income

1,422,707

2,241,759

325,023

4,692,874

6,311,835

915,131

Net income attributable to non-controlling interests

(7,938)

(7,998)

(1,160)

(11,801)

(13,019)

(1,888)

Net income attributable to Vipshop's shareholders

1,414,769

2,233,761

323,863

4,681,073

6,298,816

913,243

-

Shares used in calculating earnings per share (3):

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

—Basic

135,695,489

121,010,371

121,371

136,175,112

127,235,048

127,048

—Diluted

136,631,560

122,636

122,636

138,745,022

128,304

128,304

Net earnings per Class A and Class B ordinary share

Net income attributable to Vipshop's shareholders——Basic

10.43

18.46

2.68

34.38

49.51

7.18

Net income attributable to Vipshop's shareholders——Diluted

10.35

18.30

2.65

33.74

49.15

7.13

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

Net income attributable to Vipshop's shareholders——Basic

2.09

3.69

0.54

6.88

9.90

1.44

Net income attributable to Vipshop's shareholders——Diluted

2.07

3.66

0.53

6.75

9.83

1.43

(1) Other revenues primarily consist of product promotion and online advertising revenues,lease income mainly earned from the Shan

Shan Outlets,fees charged to third-party merchants which the Company provides platform access for sales of their products,revenue from

third-party logistics services,loan facilitation service income and membership fee income.

(1) Other revenues primarily consist of product promotion

and online advertising revenues,lease income mainly

earned from the Shan Shan Outlets,fees charged to third-

party merchants which the Company provides platform

access for sales of their products,revenue from third-party

logistics services,loan facilitation service income and

membership fee income.

(2) Fulfillment expenses include shipping and handling expenses,which amounted RMB1.5 billion and RMB 1.5 billion in the three month

periods ended December 31,2021 and December 31,respectively.

(2) Fulfillment expenses include shipping and handling

expenses,which amounted RMB5.2 billion and RMB 5.1

billion in the twelve month periods ended December

31,respectively.

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

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

shareholder vote.

(3) Authorized share capital is re-classified and re-

designated into Class A ordinary shares and Class B

ordinary shares,with each Class A ordinary share being

entitled to one vote and each Class B ordinary share being

entitled to ten votes on all matters that are subject to

shareholder vote.

Three Months Ended

Twelve Months Ended

Dec 31,2022

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Share-based compensation expenses are included in the operating

expenses as follows:

Fulfillment expenses

18,867

16,913

2,452

88,985

74,063

10,738

Marketing expenses

2,571

4,489

651

26,834

14,630

2,121

Technology and content expenses

59,809

52,588

7,625

252,730

242,714

35,190

General and administrative expenses

165,469

191,191

27,720

641,464

876,174

127,033

Total

246,716

265,181

38,448

1,013

1,207,581

175,082

Vipshop Holdings Limited

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

Dec 31,2022

RMB'000

RMB'000

USD'000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

16,297,410

21,938,653

3,180,806

Restricted cash

873,859

1,164,748

168,873

Short term investments

5,381,618

1,595,904

231,384

Accounts receivable,net

459,128

567,730

82,313

Amounts due from related parties,net

637,825

670,187

97,168

Other receivables and prepayments,net

2,326,866

2,280,449

330,634

Loan receivables,net

131

882

128

Inventories

6,865,108

5,515,880

799,727

Total current assets

32,841,945

33,734,433

4,891,033

NON-CURRENT ASSETS

Property and equipment,net

14,376,712

16,225,589

2,352,489

Deposits for property and equipment

382,121

296,717

43,020

Land use rights,net

6,612,165

7,638,506

1,107,479

Intangible assets,net

320,943

336,599

48,802

Investment in equity method investees

2,476,868

2,162,872

313,587

Other investments

2,482,911

2,660,305

385,709

Other long-term assets

296,366

91,762

13,304

Goodwill

589,165

755,213

109,496

Deferred tax assets,net

760,023

681,770

98,847

Operating lease right-of-use assets

1,148,322

891,744

129,291

Total non-current assets

29,445,596

31,741,077

4,602,024

TOTAL ASSETS

62,287,541

65,475,510

9,493,057

LIABILTIES AND EQUITY

CURRENT LIABILITIES

Short term loans

1,975,184

2,687,438

389,642

Accounts payable

13,144,935

15,018,138

2,177,425

Advance from customers

1,828,781

1,737,424

251,903

Accrued expenses and other current liabilities

7,658,677

8,394,742

1,217,121

Amounts due to related parties

429,088

151,736

22,000

Deferred income

449,693

400,207

58,025

Operating lease liabilities

284,659

136,435

19,781

Total current liabilities

25,771,017

28,526,120

4,135,897

NON-CURRENT LIABILITIES

Deferred tax liability

437,202

573,734

83,184

Deferred income-non current

1,026,155

1,469,685

213,084

Operating lease liabilities

952,813

832,928

120,763

Other long term liabilities

272,038

-

-

Total non-current liabilities

2,688,208

2,876,347

417,031

TOTAL LIABILITIES

28,225

31,402,467

4,552,928

EQUITY:

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

authorized,122,885 and 124,060,090 shares issued,of which

120,232,895 and 101,621,330 shares were outstanding as of December

31,respectively)

80

80

12

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

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

as of December 31,respectively)

11

11

2

Treasury shares,at cost(2,742,990 and 22,438,760 Class A shares as of

December 31,respectively )

(1,927,719)

(8,511)

(1,211,000)

Additional paid-in capital

12,227,637

13,091,898,130

Retained earnings

22,421,488

28,720,053

Accumulated other comprehensive loss

(88,599)

(707,628)

(102,596)

Non-controlling interests

1,195,418

1,321,006

191,528

Total shareholders' equity

33,316

34,073,043

4,940,129

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

62,057

Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

Twelve Months Ended

Dec 31,2022

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Income from operations

1,545

Share-based compensation expenses

246,082

Amortization of intangible assets resulting from business acquisitions

-

-

-

11,792.00

-

-

Non-GAAP income from operations

2,431

2,774,400

402,249

6,227

7,405,027

1,627

Net income attributable to Vipshop's shareholders

1,243

Share-based compensation expenses

246,082

Impairment loss of investments

217,046

34,347

4,980

414,780

93,904

13,615

Investment loss (gain) and revaluation of investments excluding dividends

984

(257,064)

(37,271)

116,567

(533,826)

(77,397)

Reconciling items on the share of equity method investments(4)

(77,608)

(46,430)

(6,732)

(120,621)

2,965

430

Amortization of intangible assets resulting from business acquisitions

-

-

-

11,792

-

Tax effects on non-GAAP adjustments

(1,029)

1,270

184

(101,925)

(232,532)

(33,714)

Non-GAAP net income attributable to Vipshop's shareholders

1,800,878

2,231,065

323,472

6,011,679

6,836,908

991,259

(4) To exclude the GAAP to non-GAAP reconciling items relating to investment loss (gain) and revaluation of investments on the share of

equity method investments.

Shares used in calculating earnings per share:

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

—Basic

135,304

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

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

13.27

18.44

2.67

44.15

53.73

7.79

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

13.18

18.27

2.65

43.33

53.35

7.74

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

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

2.65

3.69

0.53

8.83

10.75

1.56

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

2.64

3.65

0.53

8.67

10.67

1.55

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