Vipshop Reports Unaudited Third Quarter 2018 Financial Results

GUANGZHOU,China,Nov. 15,2018 -- 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 third quarter ended September 30,2018.

Third Quarter 2018 Highlights

Total net revenue for the third quarter of 2018 increased by 16.4% year over year to RMB17.8 billion (US$2.6 billion) from RMB15.3 billion in the prior year period.

The number of active customers[1] for the third quarter of 2018 increased by 11% year over year to 26.5 million from 23.8 million in the prior year period.

Total orders[2] for the third quarter of 2018 increased by 29% year over year to 95.7 million from 74.0 million in the prior year period.

Gross profit for the third quarter of 2018 increased by 3.8% year over year to RMB3.6 billion (US$528.7 million) from RMB3.5 billion in the prior year period.

Net income attributable to Vipshop's shareholders for the third quarter of 2018 was RMB228.7 million (US$33.3 million),as compared with RMB338.1 million in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders[3] for the third quarter of 2018 was RMB500.8 million (US$72.9 million),as compared with RMB559.8 million in the prior year period.

Mr. Eric Shen,Chairman and Chief Executive Officer of Vipshop,stated,"In the third quarter of 2018,we saw healthy growth in the number of active customers,which increased by over 11% year over year. Further,our average revenue per customer continued to improve year over year,which proves our operational strengths and execution capability. We remain focused on our merchandising strategy,aiming to further deepen our expertise in the field of discount retailing."

Mr. Donghao Yang,Chief Financial Officer of Vipshop,further commented,"During the third quarter,our average revenue per customer increased by 5% year over year,driven by the strong improvement in the number of average orders per customer. We continue to execute on our merchandising strategy,which will create sustainable shareholder value in the long term."

Recent Business Highlights

In the third quarter of 2018,Vipshop's total active customers grew by 11% year over year. The number of new customers from Tencent and JD.com accounted for approximately 22% of Vipshop's total new customers during the quarter.

In the third quarter of 2018,Vipshop's average revenue per customer increased by approximately 5% year over year. The Company's customer stickiness continued to improve. Specifically,around 85% of customers during this quarter were repeat customers,and 96% of orders were placed by repeat customers.

As of September 30,2018,approximately 2.3 million customers enrolled in Vipshop's Super VIP Paid Membership Program,representing a 21% increase quarter over quarter.

In September 2018,Vipshop's Internet finance subsidiary completed its first offering of asset-backed notes ("ABN") in an aggregate principal amount of RMB520 million. The Company will continue to seek external sources of funding to support its Internet finance business.

During the third quarter of 2018,Vipshop added approximately 40,000 square meters of warehousing space. As of September 30,the Company has approximately 2.9 million square meters of total warehousing space,of which around 1.8 million square meters is owned by Vipshop.

Third Quarter 2018 Financial Results

REVENUE

Total net revenue for the third quarter of 2018 increased by 16.4% year over year to RMB17.8 billion (US$2.6 billion) from RMB15.3 billion in the prior year period,primarily driven by the growth in the number of total active customers and the improvement in average revenue per customer.

GROSS PROFIT

Gross profit for the third quarter of 2018 increased by 3.8% to RMB3.6 billion (US$528.7 million) from RMB3.5 billion in the prior year period. Gross margin for the third quarter of 2018 was 20.4% as compared with 22.9% in the prior year period,primarily attributable to the Company's investment into promotional activities.

OPERATING EXPENSES

Total operating expenses for the third quarter of 2018 were RMB3.5 billion (US$503.3 million),as compared with RMB3.2 billion in the prior year period. As a percentage of total net revenue,total operating expenses for the third quarter of 2018 decreased to 19.4% from 20.6% in the prior year period.

Fulfillment expenses for the third quarter of 2018 were RMB1.8 billion (US$256.7 million),as compared with RMB1.7 billion in the prior year period,primarily reflecting an increase in sales volume and number of orders fulfilled. As a percentage of total net revenue,fulfillment expenses for the third quarter of 2018 decreased to 9.9% from 10.9% in the prior year period.

Marketing expenses for the third quarter of 2018 were RMB578.4 million (US$84.2 million),as compared with RMB478.4 million in the prior year period. As a percentage of total net revenue,marketing expenses for the third quarter of 2018 were 3.2%,as compared with 3.1% in the prior year period.

Technology and content expenses for the third quarter of 2018 were RMB490.8 million (US$71.5 million),as compared with RMB455.0 million in the prior year period. As a percentage of total net revenue,technology and content expenses for the third quarter of 2018 decreased to 2.8% from 3.0% in the prior year period.

General and administrative expenses for the third quarter of 2018 were RMB624.8 million (US$91.0 million),as compared with RMB546.6 million in the prior year period. As a percentage of total net revenue,general and administrative expenses for the third quarter of 2018 decreased to 3.5% from 3.6% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the third quarter of 2018 was RMB354.7 million (US$51.6 million),as compared with RMB448.2 million in the prior year period. Operating margin for the third quarter of 2018 was 2.0% as compared with 2.9% in the prior year period.

Non-GAAP income from operations[4] for the third quarter of 2018,which excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions,was RMB547.2 million (US$79.7 million),as compared with RMB703.2 million in the prior year period. Non-GAAP operating income margin[5] for the third quarter of 2018 was 3.1% as compared with 4.6% in the prior year period.

NET INCOME

Net income attributable to Vipshop's shareholders for the third quarter of 2018 was RMB228.7 million (US$33.3 million),as compared with RMB338.1 million in the prior year period. Net margin attributable to Vipshop's shareholders for the third quarter of 2018 was 1.3%,as compared with 2.2% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS[6] for the third quarter of 2018 was RMB0.34 (US$0.05),as compared with RMB0.56 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders for the third quarter of 2018,which excludes (i) share-based compensation expenses,(ii) impairment loss of investments,(iii) amortization of intangible assets resulting from business acquisitions and equity method investments,(iv) tax effect of amortization of intangible assets resulting from business acquisitions,(v) gain on disposal,revaluation and value changes of investments,and (vi) share of result in investment of limited partnership that is accounted for as an equity method investee,was RMB500.8 million (US$72.9 million),as compared with RMB559.8 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[7] for the third quarter of 2018 was 2.8%,as compared with 3.7% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[8] for the third quarter of 2018 was RMB0.75 (US$0.11),as compared with RMB0.91 in the prior year period.

For the quarter ended September 30,the Company's weighted average number of ADSs used in computing diluted income per ADS was 668,551,200.

BALANCE SHEET AND CASH FLOW

As of September 30,the Company had cash and cash equivalents and restricted cash of RMB6.5 billion (US$951.4 million) and short term investments of RMB1.9 billion (US$276.9 million).

For the quarter ended September 30,net cash from operating activities was RMB221.0 million (US$32.2 million),and free cash flow[9],a non-GAAP measurement of liquidity,was as follows:

For the three months ended

Sep 30,2017

RMB'000

Sep 30,2018

RMB'000

Sep 30,2018

US$'000

Net cash (used in)/from operating activities

(359,678)

221,037

32,184

Add: Impact from Internet financing activities[10]

503,416

(427,526)

(62,249)

Less: Capital expenditures

(719,081)

(1,009,475)

(146,982)

Free cash flow out

(575,343)

(1,215,964)

(177,047)

For the trailing twelve months ended

Sep 30,2018

US$'000

Net cash from operating activities

904,849

767,985

111,821

Add: Impact from Internet financing activities[10]

2,903,516

1,059,238

154,228

Less: Capital expenditures

(2,690,145)

(3,191,761)

(464,729)

Free cash flow in/(out)

1,118,220

(1,364,538)

(198,680)

Business Outlook

For the fourth quarter of 2018,the Company expects its total net revenue to be between RMB26.1 billion and RMB27.3 billion,representing a year-over-year growth rate of approximately 8% to 13%. 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 RMB 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 RMB6.8680 to US$1.00,the effective noon buying rate for September 28,2018 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 September 28,or at any other rate.

Conference Call Information

The Company will hold a conference call on Thursday,November 15,2018 at 8:00 am Eastern Time or 9:00 pm Beijing Time to discuss its financial results and operating performance for the third quarter of 2018.

United States:

+1-845-675-0438

International Toll Free:

+1-855-500-8701

China Domestic:

400-1200-654

Hong Kong:

+852-3018-6776

Conference ID:

#9978308

The replay will be accessible through November 23,2018 by dialing the following numbers:

United States Toll Free:

+1-855-452-5696

International:

+61-2-9003-4211

Conference ID:

#9978308

A live and archived webcast of the conference call will also 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 www.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; 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 nine-month period ended September 30,2018 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,revaluation and fair value changes of investments,and (vi) share of result in investment of limited partnership that is accounted for as an equity method investee. 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,which include purchase of property and equipment,purchase and deposits of land use rights,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,supplier financing and cooperative lending that the Company provides to customers,suppliers and individuals. 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,(d) gain on disposal,and (e) share of result in investment of limited partnership that is accounted for as an equity method investee adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning,forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of (1) non-cash share-based compensation expenses,(2) impairment loss of investments,(3) amortization of intangible assets,(4) gain on disposal,and (5) share of result in investment of limited partnership that is accounted for as an equity method investee. 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.

[1] "Active customers" is defined as registered members who have purchased from the Company or the Company's online marketplace platforms at least once during the relevant period.

[2] "Total orders" is defined as the total number of orders placed during the relevant period,including the orders for products and services sold in the Company's online sales business and on the Company's online marketplace platforms,net of orders returned.

[3] 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) share of result in investment of limited partnership that is accounted for as an equity method investee.

[4] 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.

[5] 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.

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

[7] 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.

[8] 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.

[9] 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,and purchase of other assets.

[10] Impact from Internet financing activities represents net cash flow relating to the Company's financial products,suppliers and individuals.

Vipshop Holdings Limited

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income

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

Three Months Ended

September 30,2017

September 30,2018

September 30,2018

RMB'000

RMB'000

USD'000

Product revenues

14,900,789

17,028,266

2,479,363

Other revenues (1)

412,368

803,318

116,965

Total net revenues

15,313,157

17,831,584

2,596,328

Cost of revenues

(11,813,674)

(14,200,146)

(2,067,581)

Gross profit

3,499,483

3,631,438

528,747

Operating expenses:

Fulfillment expenses (2)

(1,674,261)

(1,762,849)

(256,676)

Marketing expenses

(478,424)

(578,446)

(84,223)

Technology and content expenses

(455,039)

(490,775)

(71,458)

General and administrative expenses (3)

(546,575)

(624,759)

(90,967)

Total operating expenses

(3,154,299)

(3,456,829)

(503,324)

Other operating income

103,017

180,097

26,223

Income from operations

448,201

354,706

51,646

Gain on disposal or revaluation of investments

(89,341)

(13,008)

Interest expense

(18,675)

(53,784)

(7,831)

Interest income

18,549

49,660

7,231

Foreign exchange (loss) gain

(26,950)

57,175

8,325

Income before income taxes and share of result of equity method investees

421,125

318,416

46,363

Income tax expenses (4)

(101,676)

(102,800)

(14,968)

Share of result of equity method investees

(993)

10,491

1,528

Net income

318,456

226,107

32,923

Net loss attributable to noncontrolling interests

19,599

2,641

385

Net income attributable to Vipshop's shareholders

338,055

228,748

33,308

Shares used in calculating earnings per share (5):

Class A and Class B ordinary shares:

—Basic

117,641,548

132,508,059

132,059

—Diluted

125,535,694

133,710,240

133,240

Net earnings per Class A and Class B share

Net income attributable to Vipshop's shareholders——Basic

2.87

1.73

0.25

Net income attributable to Vipshop's shareholders——Diluted

2.79

1.71

0.25

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

Net income attributable to Vipshop's shareholders——Basic

0.57

0.35

0.05

Net income attributable to Vipshop's shareholders——Diluted

0.56

0.34

0.05

(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,and inventory and warehouse management

services to certain suppliers.

(2) Fulfillment expenses include shipping and handling expenses,which amounted RMB 948

million and RMB 1.06 billion in the three month periods ended September 30,2017 and

September 30,respectively.

(3) General and administrative expenses include amortization of intangible assets resulting

from business acquisitions,which amounted to RMB 84 million and RMB 0.6 million in the

three months period ended September 30,2017 andSeptember 30,respectively.

(4) Income tax expenses include income tax benefits of RMB 21 million and RMB 0.2 million

related to the reversal of deferred tax liabilities,which was recognized on business acquisitions

for the three months period ended September 30,respectively.

(5) 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.

Net income

318,923

Other comprehensive income,net of tax:

Foreign currency translation adjustments

92,229

19,291

2,809

Unrealized gain from available-for-sale investments

(1,993)

Comprehensive income

408,692

245,398

35,732

Less: Comprehensive loss attributable to noncontrolling interests

(19,599)

(9,770)

(1,423)

Comprehensive income attributable to Vipshop's shareholders

428,291

255,168

37,155

Three Months Ended

September 30,2018

RMB'000

RMB'000

USD'000

Share-based compensation expenses included are as follows

Fulfillment expenses

17,842

21,085

3,070

Marketing expenses

9,415

11,839

1,724

Technology and content expenses

51,420

61,447

8,947

General and administrative expenses

92,148

97,542

14,202

Total

170,825

191,913

27,943

Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

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

December 31,2018

RMB'000

RMB'000

USD'000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

9,973,891

6,179,874

899,807

Restricted cash

248,101

354,045

51,550

Short term investments

245,981

1,901,968

276,932

Accounts receivable,net

4,803,527

4,327,326

630,071

Amounts due from related parties

10,191

13,897

2,023

Other receivables and prepayments,net

3,196

3,730,176

543,124

Loan Receivables,net

309,248

45,027

Inventories

6,960,251

4,283,470

623,685

Total current assets

25,916,138

21,100,004

3,072,219

NON-CURRENT ASSETS

Property and equipment,net

6,660,825

7,665,441

1,116,110

Deposits for property and equipment

307,859

347,188

50,552

Land use rights,077,770

3,760,913

547,599

Intangible assets,net

400,994

354,044

51,550

Investment in equity method investees

66,334

443,340

64,551

Other investments

387,640

1,025,824

149,363

Available-for-sale investments

146,282

414,687

60,380

Other long-term assets

366,760

299,876

43,663

Goodwill

367,106

367,106

53,452

Deferred tax assets

285,112

381,159

55,498

Total non-current assets

12,066,682

15,578

2,192,718

TOTAL ASSETS

37,982,820

36,159,582

5,264,937

LIABILTIES ANDEQUITY

CURRENT LIABILITIES

Short term loans (Including short term loans of the VIE without recourse to

the Company of nil and nil as of December 31,

2018,respectively)

907,310

1,722,925

250,863

Accounts payable (Including accounts payable of the VIE without recourse

to the Company of RMB 87,926and RMB 59,342 as of December 31,

2017 and September 30,respectively)

11,445,109

6,930,109

1,043

Advance from customers (Includingadvance from customers of the VIE

without recourse to the Company of RMB 965,275 and RMB 862,403 as

of December 31,2017 and September 30,respectively)

2,339,914

1,317,271

191,798

Accrued expenses and other current liabilities (Including accrued

expenses and other current liabilities of the VIE without recourse to the

Company of RMB 1,618,716and RMB 1,642,652 as of December 31,respectively)

3,537,151

3,240,951

471,892

Amounts due to related parties (Including amounts due to related parties

of the VIE without recourse to the Company of RMB 616 and nil as of

December 31,respectively)

65,022

82,953

12,078

Deferred income (Including deferred income of the VIE without recourse to

the Company of RMB 54,543and RMB 93,148 as of December 31,2017

and September 30,respectively)

203,179

280,265

40,807

Securitization debt (Including securitization debt of the VIE without

recourse to the Company of nil and nilas of December 31,respectively)

760,000

950,000

138,322

Convertible senior notes

4,322,548

629,375

Total current liabilities

19,257,685

18,847,022

2,744,178

NON-CURRENT LIABILITIES

Deferred tax liability (Including deferred tax of the VIE without recourse to

the Company of RMB 4,224 and 3,769 as of December 31,respectively)

17,007

5,111

744

Deferred income-non current (Including deferred income-non current of

the VIE without recourse to the Company of RMB 838and RMB 371 as of

December 31,respectively)

362,649

379,725

55,289

Securitization debt (Including securitization debt of the VIE without

recourse to the Company of nil and nilas of December 31,respectively)

494,000

71,928

Convertible senior notes

4,094,903

Total non-current liabilities

4,474,559

878,836

127,961

TOTAL LIABILITIES

23,732,244

19,725,858

2,872,139

EQUITY:

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

authorized,and 114,716,587 and 116,082,330 shares issued and

outstanding as of December 31,

respectively)

74

75

11

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

authorized,and 16,358 and 16,358 shares issued and

outstanding as of December 31,

respectively)

11

11

2

Additional paid-in capital

8,715,995

9,276,339

1,350,661

Retained earnings

5,602,681

7,219,523

1,051,183

Accumulated other comprehensive loss

(24,242)

(11,344)

(1,651)

Noncontrolling interests

(43,943)

(50,880)

(7,408)

Total shareholders' equity

14,250,576

16,433,724

2,392,798

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

37,937

Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

September 30,2018

RMB'000

RMB'000

USD'000

Income from operations

448,646

Share-based compensation expenses

170,943

Amortization of intangible assets resulting from business acquisitions

84,161

607

88

Non-GAAP income from operations

703,187

547,226

79,677

Net income

318,923

Share-based compensation expenses

170,943

Gain on disposal,revaluationand value changes of investments

89,341

13,008

Share of result in investment of limited partnership that is accounted for

as an equity method investee

(9,684)

(1,410)

Amortization of intangible assets resulting from business acquisitions

and equity method investments

84,161

607

88

Tax effect of amortization of intangible assets resulting from business

acquisitions

(21,040)

(152)

(22)

Non-GAAP net income

552,402

498,132

72,530

Net income attributable to Vipshop's shareholders

338,308

Share-based compensation expenses

170,410)

Amortization of intangible assets resulting from business acquisitions

and equity method investments

67,857

597

87

Tax effect of amortization of intangible assets resulting from business

acquisitions

(16,965)

(149)

(22)

Non-GAAP net income attributable to Vipshop's shareholders

559,772

500,766

72,914

Shares used in calculating earnings per share:

Basic ordinary shares:

Class A and Class B ordinary shares:

—Basic

117,240

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

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

4.76

3.78

0.55

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

4.56

3.75

0.55

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

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

0.95

0.76

0.11

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

0.91

0.75

0.11

View original content:/news-releases/vipshop-reports-unaudited-third-quarter-2018-financial-results-300750182.html