Vipshop Reports Unaudited First Quarter 2020 Financial Results

GUANGZHOU,China,May 27,2020 -- 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 first quarter ended March 31,2020.

First Quarter 2020 Highlights

Total net revenue for the first quarter of 2020 was RMB18.8 billion (US$2.7 billion),as compared with RMB21.3 billion in the prior year period,primarily attributable to soft consumer demand for discretionary categories,delayed logistic services and slow response from the supply chain during the COVID-19 pandemic.

GMV[1]for the first quarter of 2020 was RMB28.9 billion,as compared with RMB33.8 billion in the prior year period.

Gross profit for the first quarter of 2020 was RMB3.6 billion (US$510.8 million),as compared with RMB4.4 billion in the prior year period.

Net income attributable to Vipshop's shareholders for the first quarter of 2020 was RMB684.8 million (US$96.7 million),as compared with RMB872.3 million in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders[2] for the first quarter of 2020 increased by 20.8% year over year to RMB986.1 million (US$139.3 million) from RMB816.3 million in the prior year period.

The number of active customers[3] for the first quarter of 2020 was 29.6 million,as compared with 29.7 million in the prior year period.

Total orders[4] for the first quarter of 2020 increased by 4% year over year to 121.7 million from 116.5 million in the prior year period.

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

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

First Quarter 2020 Financial Results

REVENUE

Total net revenue for the first quarter of 2020 was RMB18.8 billion (US$2.7 billion),delayed logistic services and slow response from the supply chain during the COVID-19 pandemic.

GROSS PROFIT

Gross profit for the first quarter of 2020 was RMB3.6 billion (US$510.8 million),as compared with RMB4.4 billion in the prior year period. Gross margin for the first quarter of 2020 was 19.2%,as compared with 20.4% in the prior year period,primarily attributable to higher revenue contribution from standardized products with lower gross margin during the COVID-19 pandemic.

OPERATING EXPENSES

Total operating expenses for the first quarter of 2020 decreased to RMB3.0 billion (US$421.4 million) from RMB3.6 billion in the prior year period. As a percentage of total net revenue,total operating expenses for the first quarter of 2020 decreased to 15.9% from 16.9% in the prior year period,primarily attributable to strict cost control.

Fulfillment expenses for the first quarter of 2020 decreased to RMB1.4 billion (US$196.8 million) from RMB1.8 billion in the prior year period. As a percentage of total net revenue,fulfillment expenses for the first quarter of 2020 decreased to 7.4% from 8.3% in the prior year period,primarily attributable to the change in fulfillment logistic arrangement.

Marketing expenses for the first quarter of 2020 decreased to RMB412.3 million (US$58.2 million) from RMB780.9 million in the prior year period. As a percentage of total net revenue,marketing expenses for the first quarter of 2020 decreased to 2.2% from 3.7% in the prior year period,primarily attributable to reduced spending during the COVID-19 pandemic.

Technology and content expenses for the first quarter of 2020 decreased to RMB338.4 million (US$47.8 million) from RMB383.0 million in the prior year period. As a percentage of total net revenue,technology and content expenses for the first quarter of 2020 remained stable at 1.8% year over year.

General and administrative expenses for the first quarter of 2020 were RMB839.2 million (US$118.5 million),as compared with RMB668.9 million in the prior year period. As a percentage of total net revenue,general and administrative expenses for the first quarter of 2020 were 4.5%,as compared with 3.1% in the prior year period,primarily attributable to operating expenses related to the Company's offline stores and share options granted to the Company's co-founders.

INCOME FROM OPERATIONS

Income from operations for the first quarter of 2020 was RMB782.2 million (US$110.5 million),as compared with RMB863.2 million in the prior year period. Operating margin for the first quarter of 2020 increased to 4.2% from 4.0% in the prior year period.

Non-GAAP income from operations[5] for the first quarter of 2020,which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions,was RMB1.0 billion (US$147.8 million),as compared with RMB1.0 billion in the prior year period. Non-GAAP operating income margin[6] for the first quarter of 2020 increased to 5.6% from 4.9% in the prior year period.

NET INCOME

Net income attributable to Vipshop's shareholders for the first quarter of 2020 was RMB684.8 million (US$96.7 million),as compared with RMB872.3 million in the prior year period. Net margin attributable to Vipshop's shareholders for the first quarter of 2020 was 3.6%,as compared with 4.1% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS[7]for the first quarter of 2020 was RMB1.00 (US$0.14),as compared with RMB1.27 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders for the first quarter of 2020,which excluded (i) share-based compensation expenses,(ii) impairment loss of investments,(iii) amortization of intangible assets resulting from business acquisitions,(iv) tax effect of amortization of intangible assets resulting from business acquisitions,(v) investment gain and revaluation of investments excluding dividends,(vi) tax effect of investment gain and revaluation of investments excluding dividends,and (vii) share of gain (loss) in investment of limited partnership that is accounted for as an equity method investee,increased by 20.8% year over year to RMB986.1 million (US$139.3 million) from RMB816.3 million in the prior year period. Non-GAAP net margin attributable to Vipshop's shareholders[8]for the first quarter of 2020 increased to 5.2% from 3.8% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9]for the first quarter of 2020 increased to RMB1.44 (US$0.20) from RMB1.19 in the prior year period.

For the quarter ended March 31,2020,the Company's weighted average number of ADSs used in computing diluted income per ADS was 684,546,211.

BALANCE SHEET AND CASH FLOW

As of March 31,the Company had cash and cash equivalents and restricted cash of RMB5.8 billion (US$819.1 million) and short term investments of RMB3.4 billion (US$483.6 million).

For the quarter ended March 31,net cash used in operating activities was RMB1.7 billion (US$239.9 million),and free cash flow[10],a non-GAAP measurement of liquidity,was as follows:

For the three months ended

Mar 31,2019

RMB'000

Mar 31,2020

RMB'000

Mar 31,2020

US$'000

Net cash from (used in)operating activities

692,005

(1,698,611)

(239,890)

Add: Net impact from Internet financing

activities[11]

(1,217,177)

(645,838)

(91,210)

Less: Capital expenditures

(1,111,025)

(692,045)

(97,735)

Free cash outflow

(1,636,197)

(3,036,494)

(428,835)

For the trailing twelve months ended

Mar 31,2020

US$'000

Net cash fromoperating activities

6,266,508

9,899,567

1,398,086

Add: Net impact from Internet financing

activities[11]

(104,832)

(4,970,744)

(702,003)

Less: Capital expenditures

(3,888,818)

(3,858,693)

(544,952)

Free cash inflow

2,272,858

1,070,130

151,131

Business Outlook

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

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 RMB7.0808 to US$1.00,the effective noon buying rate on March 31,2020 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 March 31,or at any other rate.

Conference Call Information

The Company will hold a conference call on Wednesday,2020 at 7:30 am Eastern Time or 7:30 pm Beijing Time to discuss its financial results and operating performance for the first quarter of 2020.

All participants wishing to join the conference call must pre-register online using the link provided below. Once pre-registration has been complete,participants will receive dial-in numbers,a passcode,and a unique registrant ID. To join the conference,simply dial the number in the calendar invite you receive after pre-registration,enter the passcode followed by your PIN,and you will join the conference instantly.

Conference ID

#5898143

Registration Link

http://apac.directeventreg.com/registration/event/5898143

The replay will be accessible through June 4,2020 by dialing the following numbers:

United States Toll Free:

+1-855-452-5696

International:

+61-2-8199-0299

Conference ID:

#5898143

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; 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 (vii) share of gain (loss) 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 and deposits of property and equipment and 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 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 gain (loss) 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 resulting from business acquisitions,(4) investment gain and revaluation of investments excluding dividends,and (5) share of gain (loss) 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]"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,and Shan Shan 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 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 (vii) share of gain (loss) in investment of limited partnership that is accounted for as an equity method investee.

[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,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.

Vipshop Holdings Limited

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income

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

Three Months Ended

March 31,2019

March 31,2020

March 31,2020

RMB'000

RMB'000

USD'000

Product revenues

20,459,633

17,964,195

2,537,029

Other revenues(1)

858,983

828,660

117,029

Total net revenues

21,318,616

18,792,855

2,654,058

Cost of revenues

(16,962,283)

(15,175,739)

(2,143,224)

Gross profit

4,356,333

3,617,116

510,834

Operating expenses:

Fulfillment expenses(2)

(1,761,770)

(1,393,690)

(196,827)

Marketing expenses

(780,920)

(412,305)

(58,229)

Technology and content expenses

(382,956)

(338,398)

(47,791)

General and administrative expenses

(668,920)

(839,220)

(118,521)

Total operating expenses

(3,594,566)

(2,983,613)

(421,368)

Other operating income

101,404

148,688

20,999

Income from operations

863,171

782,191

110,465

Investment gain and revaluation of investments

214,085

42,553

6,010

Impairment loss of investments

(5,046)

(713)

Interest expense

(31,983)

(35,395)

(4,999)

Interest income

70,560

81,190

11,466

Foreign exchange (loss) gain

(41,631)

48,754

6,885

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

1,074,202

914,247

129,114

Income tax expenses

(243,897)

(172,716)

(24,392)

Share of gain (loss) of equity method investees

46,659

(60,639)

(8,564)

Net income

876,964

680,892

96,158

Net (loss) gain attributable to non-controlling interests

(4,682)

3,933

555

Net income attributable to Vipshop's shareholders

872,282

684,825

96,713

Shares used in calculating earnings per share(3):

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

--Basic

133,037,380

134,326,928

134,928

--Diluted

139,290,699

136,909,242

136,242

Net earnings per Class A and Class B ordinary share

Net income attributable to Vipshop's shareholders--Basic

6.56

5.10

0.72

Net income attributable to Vipshop's shareholders--Diluted

6.33

5.00

0.71

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

Net income attributable to Vipshop's shareholders--Basic

1.31

1.02

0.14

Net income attributable to Vipshop's shareholders--Diluted

1.27

1.00

0.14

(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,and inventory and

warehouse management services to certain suppliers.

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

0.8 billion in the three month periods ended March 31,2019 and March 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.

Three Months Ended

March 31,2020

RMB'000

RMB'000

USD'000

Share-based compensation expenses included are as follows

Fulfillment expenses

19,466

27,215

3,844

Marketing expenses

10,843

3,939

556

Technology and content expenses

52,605

44,402

6,271

General and administrative expenses

89,813

171,455

24,214

Total

172,727

247,011

34,885

Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

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

December 31,2020

RMB'000

RMB'000

USD'000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

6,573,808

4,917,949

694,547

Restricted cash

1,145,477

882,083

124,574

Short term investments

3,052,726

3,424,104

483,576

Accounts receivable,net

1,295,766

776,386

109,647

Amounts due from related parties

47,964

169,644

23,958

Other receivables and prepayments,net

2,897,893

2,985,171

421,587

Loan receivables,net

306,115

157,750

22,279

Inventories

7,708,292

5,112,160

721,975

Total current assets

23,028,041

18,425,247

2,602,143

NON-CURRENT ASSETS

Property and equipment,net

11,256,810

11,291,491

1,663

Deposits for property and equipment

101,800

101,925

14,395

Land use rights,net

5,541,108

5,517,928

779,280

Intangible assets,net

337,310

366,498

51,759

Investment in equity method investees

3,952

2,930

409,548

Other investments

2,002,756

2,353,997

332,448

Other long-term assets

608,073

519,949

73,431

Amounts due from related party-non current

102,000

89,250

12,605

Goodwill

236,711

186,711

26,369

Deferred tax assets,net

539,561

624,088

88,138

Operating lease right-of-use assets

1,715,556

1,685,534

238,043

Total non-current assets

25,554,637

25,637,301

3,620,679

TOTAL ASSETS

48,582,678

44,062,548

6,222,822

LIABILTIES AND EQUITY

CURRENT LIABILITIES

Short term loans

1,093,645

1,860,198

262,710

Accounts payable

13,200

9,279,575

1,310,526

Advance from customers

1,233,165

1,187,978

167,775

Accrued expenses and other current liabilities

6,534,575

4,758,596

672,042

Amounts due to related parties

532,788

411,608

58,130

Deferred income

405,994

344,312

48,626

Operating lease liabilities

333,268

372,200

52,565

Total current liabilities

23,925,635

18,214,467

2,572,374

NON-CURRENT LIABILITIES

Long term loans

64,515

262,373

37,054

Deferred tax liability

165,098

154,862

21,871

Deferred income-non current

782,068

880,978

124,418

Operating lease liabilities

1,395,665

1,375,428

194,248

Other long term liabilities

22,906

3,235

Total non-current liabilities

2,407,346

2,696,547

380,826

TOTAL LIABILITIES

26,332,981

20,911,014

2,953,200

EQUITY:

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

117,584,362 and 117,973,624 shares issued and outstanding as of December 31,

2019 and March 31,respectively)

76

77

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 31,2019

and March 31,respectively)

11

11

2

Additional paid-in capital

9,959,497

10,190,489

1,439,172

Retained earnings

11,924,228

12,518,285

1,767,920

Accumulated other comprehensive loss

(56,656)

(34,901)

(4,929)

Non-controlling interests

422,541

477,573

67,446

Total shareholders' equity

22,249,697

23,151,534

3,269,622

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

48,822

Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

March 31,2020

RMB'000

RMB'000

USD'000

Income from operations

863,465

Share-based compensation expenses

172,885

Amortization of intangible assets resulting from business acquisitions

607

17,689

2,498

Non-GAAP income from operations

1,505

1,046,891

147,848

Net income

876,158

Share-based compensation expenses

172,885

Impairment loss in investments

5,046

713

Investment gain and revaluation of investments excluding dividends

(214,085)

(9,895)

(1,397)

Share of (gain) loss in investment of limited partnership that is accounted for as an

equity method investee

(44,532)

56,327

7,955

Tax effect of investment gain and revaluation of investments excluding dividends

29,437

(10,468)

(1,478)

Amortization of intangible assets resulting from business acquisitions

607

17,498

Tax effect of amortization of intangible assets resulting from business acquisitions

(152)

(4,422)

(625)

Non-GAAP net income

820,966

982,180

138,709

Net income attributable to Vipshop's shareholders

872,713

Share-based compensation expenses

172,478)

Amortization of intangible assets resulting from business acquisitions

597

17,498

Tax effect of amortization of intangible assets resulting from business acquisitions

(149)

(4,422)

(625)

Non-GAAP net income attributable to Vipshop's shareholders

816,277

986,113

139,264

Shares used in calculating earnings per share:

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

--Basic

133,242

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

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

6.14

7.34

1.04

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

5.93

7.20

1.02

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

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

1.23

1.47

0.21

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

1.19

1.44

0.20

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