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Vipshop Reports Unaudited Fourth Quarter and Full Year 2023 Financial Results

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3 years ago

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Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on February 28, 2024

GUANGZHOU, China, Feb. 28, 2024 /PRNewswire/ — 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, 2023.

Fourth Quarter and Full Year 2023 Highlights

Total net revenues for the fourth quarter of 2023 increased by 9.2% year over year to RMB34.7 billion (US$4.9 billion) from RMB31.8 billion in the prior year period. Total net revenues for the full year of 2023 increased by 9.4% year over year to RMB112.9 billion (US$15.9 billion) from RMB103.2 billion in the prior year.GMV[1] for the fourth quarter of 2023 increased by 21.9% year over year to RMB66.4 billion from RMB54.4 billion in the prior year period. GMV for the full year of 2023 increased by 18.7% year over year to RMB208.0 billion from RMB175.2 billion in the prior year.Gross profit for the fourth quarter of 2023 increased by 19.3% year over year to RMB8.2 billion (US$1.2 billion) from RMB6.9 billion in the prior year period. Gross profit for the full year of 2023 increased by 19.0% year over year to RMB25.7 billion (US$3.6 billion) from RMB21.6 billion in the prior year.Net income attributable to Vipshop’s shareholders for the fourth quarter of 2023 increased by 32.2% year over year to RMB3.0 billion (US$415.8 million) from RMB2.2 billion in the prior year period. Net income attributable to Vipshop’s shareholders for the full year of 2023 increased by 28.9% year over year to RMB8.1 billion (US$1.1 billion) from RMB6.3 billion in the prior year.Non-GAAP net income attributable to Vipshop’s shareholders[2] for the fourth quarter of 2023 increased by 43.4% year over year to RMB3.2 billion (US$450.5 million) from RMB2.2 billion in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders for the full year of 2023 increased by 39.1% year over year to RMB9.5 billion (US$1.3 billion) from RMB6.8 billion in the prior year.The number of active customers[3] for the fourth quarter of 2023 increased by 2.3% year over year to 48.5 million from 47.5 million in the prior year period. The number of active customers for the full year of 2023 increased by 3.9% year over year to 87.4 million from 84.1 million in the prior year.Total orders[4] for the fourth quarter of 2023 increased by 7.2% year over year to 234.3 million from 218.5 million in the prior year period. Total orders for the full year of 2023 increased by 9.8% year over year to 812.3 million from 739.5 million in the prior year.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “We rounded off 2023 with a set of results well beyond our expectations, as we successfully executed our merchandising strategy to seize opportunities in value-based spending amid strong seasonal demand. Apparel categories continued to fuel our growth and outperformed the industry average all year long, which helped us cross RMB200 billion in total annual GMV for the first time in our history. Our strategy focusing on discount retail for brands pays off. We have made great progress in merchandise expansion and value-for-money perception. This has been instrumental in increased customer loyalty and double-digit growth in active Super VIP members. Looking ahead, we are confident that our sustainable business model will lead us to longer-term growth.”

Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, “We delivered another quarter of solid financial performance, ending 2023 as the most profitable year in our history. Benefiting from a number of efficiency improvement initiatives last year, we are acting faster, pushing forward company priorities, and building greater synergies. We look forward to maintaining operating discipline while investing in areas that can better engage with brand partners and customers. Moreover, our board of directors approved an annual cash dividend policy, demonstrating our confidence in future growth and earnings as well as long-term commitment to shareholder value creation.”

Fourth Quarter 2023 Financial Results

REVENUES 

Total net revenues for the fourth quarter of 2023 increased by 9.2% year over year to RMB34.7 billion (US$4.9 billion) from RMB31.8 billion in the prior year period, primarily attributable to the growth in active customers and spending driven by the recovery in consumption of discretionary categories.

GROSS PROFIT

Gross profit for the fourth quarter of 2023 increased by 19.3% year over year to RMB8.2 billion (US$1.2 billion) from RMB6.9 billion in the prior year period. Gross margin for the fourth quarter of 2023 increased to 23.7% from 21.7% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the fourth quarter of 2023 increased by 4.8% year over year to RMB4.9 billion (US$685.8 million) from RMB4.6 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the fourth quarter of 2023 decreased to 14.0% from 14.6% in the prior year period.

Fulfillment expenses for the fourth quarter of 2023 increased by 17.0% year over year to RMB2.5 billion (US$355.7 million) from RMB2.2 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the fourth quarter of 2023 was 7.3%, as compared with 6.8% in the prior year period.Marketing expenses for the fourth quarter of 2023 decreased by 10.7% year over year to RMB843.2 million (US$118.8 million) from RMB944.1 million in the prior year period. As a percentage of total net revenues, marketing expenses for the fourth quarter of 2023 decreased to 2.4% from 3.0% in the prior year period.Technology and content expenses for the fourth quarter of 2023 increased by 21.5% year over year to RMB496.4 million (US$69.9 million) from RMB408.5 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the fourth quarter of 2023 was 1.4%, as compared with 1.3% in the prior year period.General and administrative expenses for the fourth quarter of 2023 decreased by 11.7% year over year to RMB1.0 billion (US$141.5 million) from RMB1.1 billion in the prior year period. As a percentage of total net revenues, general and administrative expenses for the fourth quarter of 2023 decreased to 2.9% from 3.6% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the fourth quarter of 2023 increased by 46.2% year over year to RMB3.7 billion (US$516.7 million) from RMB2.5 billion in the prior year period. Operating margin for the fourth quarter of 2023 increased to 10.6% from 7.9% in the prior year period.

Non-GAAP income from operations[5] for the fourth quarter of 2023, which excluded share-based compensation expenses, increased by 42.5% year over year to RMB4.0 billion (US$556.8 million) from RMB2.8 billion in the prior year period. Non-GAAP operating margin[6] for the fourth quarter of 2023 increased to 11.4% from 8.7% in the prior year period.

NET INCOME

Net income attributable to Vipshop’s shareholders for the fourth quarter of 2023 increased by 32.2% year over year to RMB3.0 billion (US$415.8 million) from RMB2.2 billion in the prior year period. Net margin attributable to Vipshop’s shareholders for the fourth quarter of 2023 increased to 8.5% from 7.0% in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS[7] for the fourth quarter of 2023 increased to RMB5.35 (US$0.75) from RMB3.66 in the prior year period.

Non-GAAP net income attributable to Vipshop’s shareholders for the fourth quarter of 2023, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, increased by 43.4% year over year to RMB3.2 billion (US$450.5 million) from RMB2.2 billion in the prior year period. Non-GAAP net margin attributable to Vipshop’s shareholders[8] for the fourth quarter of 2023 increased to 9.2% from 7.0% in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS[9] for the fourth quarter of 2023 increased to RMB5.79 (US$0.82) from RMB3.65 in the prior year period.

For the quarter ended December 31, 2023, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 551,902,525.

BALANCE SHEET AND CASH FLOW

As of December 31, 2023, the Company had cash and cash equivalents and restricted cash of RMB26.3 billion (US$3.7 billion) and short term investments of RMB2.0 billion (US$279.3 million).

For the quarter ended December 31, 2023, net cash generated from operating activities was RMB8.7 billion (US$1.2 billion), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows:

For the three months ended

Dec 31, 2022

Dec 31, 2023

Dec 31, 2023

RMB’000

RMB’000

US$’000

Net cash generated from operating activities

6,525,597

8,696,378

1,224,859

Reconciling items:

   Net impact from internet financing activities[11]

243,833

53,725

7,567

   Capital expenditures

(587,100)

(1,398,506)

(196,975)

Free cash inflow

6,182,330

7,351,597

1,035,451

Full Year 2023 Financial Results

Total net revenues for the full year of 2023 increased by 9.4% year over year to RMB112.9 billion (US$15.9 billion) from RMB103.2 billion in the prior year.

Gross profit for the full year of 2023 increased by 19.0% year over year to RMB25.7 billion (US$3.6 billion) from RMB21.6 billion in the prior year. Gross margin for the full year of 2023 increased to 22.8% from 21.0% in the prior year.

Income from operations for the full year of 2023 increased by 46.9% year over year to RMB9.1 billion (US$1.3 billion) from RMB6.2 billion in the prior year. Operating margin for the full year increased to 8.1% from 6.0% in the prior year.

Non-GAAP income from operations for the full year of 2023, which excluded share-based compensation expenses, increased by 43.3% year over year to RMB10.6 billion (US$1.5 billion) from RMB7.4 billion in the prior year. Non-GAAP operating margin for the full year of 2023 increased to 9.4% from 7.2% in the prior year.

Net income attributable to Vipshop’s shareholders for the full year of 2023 increased by 28.9% year over year to RMB8.1 billion (US$1.1 billion) from RMB6.3 billion in the prior year. Net margin attributable to Vipshop’s shareholders for the full year of 2023 increased to 7.2% from 6.1% in the prior year. Net income attributable to Vipshop’s shareholders per diluted ADS for the full year of 2023 increased to RMB14.42 (US$2.03) from RMB9.83 in the prior year.

Non-GAAP net income attributable to Vipshop’s shareholders for the full year of 2023, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, increased by 39.1% year over year to RMB9.5 billion (US$1.3 billion) from RMB6.8 billion in the prior year. Non-GAAP net margin attributable to Vipshop’s shareholders for the full year of 2023 increased to 8.4% from 6.6% in the prior year. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS for the full year of 2023 increased to RMB16.90 (US$2.38) from RMB10.67 in the prior year.

For the full year of 2023, the Company’s weighted average number of ADSs used in computing diluted earnings per ADS was 562,761,990.

For the full year of 2023, net cash generated from operating activities was RMB14.4 billion (US$2.0 billion), and free cash flow, a non-GAAP measurement of liquidity, was as follows:

For the trailing twelve months ended

Dec 31, 2022

Dec 31, 2023

Dec 31, 2023

RMB’000

RMB’000

US$’000

Net cash generated from operating activities

10,519,692

14,414,513

2,030,242

Reconciling items:

   Net impact from internet financing activities

408,550

104,964

14,784

   Capital expenditures

(3,102,589)

(5,230,737)

(736,734)

Free cash inflow

7,825,653

9,288,740

1,308,292

Share Repurchase Program

During the quarter ended December 31, 2023, the Company repurchased US$3.4 million of its ADSs under its current US$1 billion share repurchase program, which is effective through March 2025. As of December 31, 2023, the Company had an unutilized amount of US$548.1 million under this program.

Annual Dividend Policy and Declaration of 2023 Dividend

On February 22, 2024, the board of directors of the Company adopted an annual cash dividend policy, under which the Company may choose to declare and distribute a cash dividend each year in accordance with the memorandum and articles of association of the Company and the applicable laws and regulations. Under the policy, the board of directors of the Company reserves the discretion relating to the determination to make dividend distributions and the amount of such distributions in any particular year, depending on the Company’s operations and earnings, cash flow, financial condition, and other relevant factors.

Accordingly, on the same day, for the fiscal year of 2023, the board of directors of the Company declared a dividend of US$2.15 per ordinary share, or US$0.43 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on March 15, 2024. The aggregate amount of cash dividends to be paid will be approximately US$250 million, which is expected to be paid on April 8, 2024. Holders of the Company’s ADSs will receive the cash dividends through the depositary, Deutsche Bank Trust Company Americas, subject to the terms of the deposit agreement.

Business Outlook

For the first quarter of 2024, the Company expects its total net revenues to be between RMB27.5 billion and RMB28.9 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 RMB7.0999 to US$1.00, the effective noon buying rate on December 29, 2023 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 29, 2023, or at any other rate.

Conference Call Information

The Company will hold a conference call on Wednesday, February 28, 2024 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/BIcb871fc012e045edb5fd02b7c2874334 

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/rvsmyjg9. 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 margin, non-GAAP net margin attributable to Vipshop’s shareholders, and free cash flow, each of which is a non-GAAP financial measure. For the periods presented in this press release, non-GAAP net income attributable to Vipshop’s shareholders is net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS is computed using non-GAAP net income attributable to Vipshop’s shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP income from operations is income from operations excluding share-based compensation expenses. Non-GAAP operating 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’s shareholders 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 expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) 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, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) 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, Shan Shan Outlets, 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, for the periods presented in this press release, is defined as net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments.

[3] “Active customers” is defined as registered members who have purchased from the Company’s self-operated online sales business or the Company’s online marketplace platforms, excluding those who made their purchases from the Company’s online stores operated at third-party platforms, at least once during the relevant period. Beginning in the fourth quarter of 2023, the Company has updated its definition of “active customers,” excluding the registered members who made their purchases from the Company’s online stores operated at third-party platforms. The active customer figures for the historical periods presented in this press release have been retrospectively adjusted accordingly.

[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.

[6] Non-GAAP operating 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, which is defined as non-GAAP net income attributable to Vipshop’s shareholders, divided by the weighted average number of diluted ADSs 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

December 31, 2022

December 31, 2023

December 31, 2023

December 31, 2022

December 31, 2023

December 31, 2023

RMB’000

RMB’000

USD’000

RMB’000

RMB’000

USD’000

Product revenues 

29,914,304

32,435,188

4,568,401

97,250,078

105,613,485

14,875,348

Other revenues (1)

1,843,456

2,239,288

315,397

5,902,411

7,242,535

1,020,090

Total net revenues

31,757,760

34,674,476

4,883,798

103,152,489

112,856,020

15,895,438

Cost of revenues

(24,857,565)

(26,441,622)

(3,724,225)

(81,536,409)

(87,135,128)

(12,272,726)

Gross profit

6,900,195

8,232,854

1,159,573

21,616,080

25,720,892

3,622,712

Operating expenses:

Fulfillment expenses (2)

(2,157,586)

(2,525,204)

(355,668)

(7,247,210)

(8,262,004)

(1,163,679)

Marketing expenses

(944,051)

(843,208)

(118,763)

(2,831,316)

(3,242,215)

(456,656)

Technology and content expenses

(408,543)

(496,442)

(69,922)

(1,605,422)

(1,767,530)

(248,951)

General and administrative expenses

(1,137,858)

(1,004,539)

(141,486)

(4,459,518)

(4,146,568)

(584,032)

Total operating expenses

(4,648,038)

(4,869,393)

(685,839)

(16,143,466)

(17,418,317)

(2,453,318)

Other operating income

257,062

304,818

42,933

724,832

801,560

112,897

Income from operations

2,509,219

3,668,279

516,667

6,197,446

9,104,135

1,282,291

Investment gain (loss) and revaluation of investments

257,064

(4,449)

(627)

546,031

(18,054)

(2,543)

Impairment loss of investments

(34,347)

0

0

(93,904)

(19,105)

(2,691)

Interest expense

(4,311)

(14,770)

(2,080)

(24,258)

(22,932)

(3,230)

Interest income

198,255

208,913

29,425

764,018

780,292

109,902

Exchange gain (loss)

160,542

(78,151)

(11,007)

687,871

162,666

22,911

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

3,086,422

3,779,822

532,378

8,077,204

9,987,002

1,406,640

Income tax expenses 

(903,839)

(771,969)

(108,730)

(1,758,810)

(1,866,004)

(262,821)

Share of income (loss) of equity method investees

59,176

(25,236)

(3,554)

(6,559)

80,301

11,310

Net income

2,241,759

2,982,617

420,094

6,311,835

8,201,299

1,155,129

Net income attributable to non-controlling interests

(7,998)

(30,470)

(4,292)

(13,019)

(84,675)

(11,926)

Net income attributable to Vipshop’s shareholders

2,233,761

2,952,147

415,802

6,298,816

8,116,624

1,143,203

Shares used in calculating earnings per share (3):

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

—Basic

121,010,371

108,441,659

108,441,659

127,235,048

110,695,778

110,695,778

—Diluted

122,089,636

110,380,505

110,380,505

128,157,304

112,552,398

112,552,398

Net earnings per Class A and Class B ordinary share

Net income attributable to Vipshop’s shareholders——Basic

18.46

27.22

3.83

49.51

73.32

10.33

Net income attributable to Vipshop’s shareholders——Diluted

18.30

26.75

3.77

49.15

72.11

10.16

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

Net income attributable to Vipshop’s shareholders——Basic

3.69

5.44

0.77

9.90

14.66

2.07

Net income attributable to Vipshop’s shareholders——Diluted

3.66

5.35

0.75

9.83

14.42

2.03

(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 RMB1.8 billion  in the
three month periods ended December 31, 2022 and December 31, 2023, respectively.

(2) Fulfillment expenses include shipping and handling
expenses, which amounted RMB5.1 billion and RMB5.8 billion 
in the twelve month periods ended December 31, 2022 and
December 31, 2023, 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

December 31, 2022

December 31, 2023

December 31, 2023

December 31, 2022

December 31, 2023

December 31, 2023

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

16,913

18,586

2,618

74,063

77,926

10,976

Marketing expenses

4,489

7,683

1,082

14,630

33,379

4,701

Technology and content expenses

52,588

86,591

12,196

242,714

330,197

46,507

General and administrative expenses

191,191

171,805

24,198

876,174

1,068,304

150,467

Total

265,181

284,665

40,094

1,207,581

1,509,806

212,651

 

 

 

Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

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

December 31, 2022

December 31, 2023

December 31, 2023

RMB’000

RMB’000

USD’000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

21,938,653

25,414,729

3,579,590

Restricted cash 

1,164,748

882,637

124,317

Short term investments

1,595,904

1,983,201

279,328

Accounts receivable, net

567,730

778,767

109,687

Amounts due from related parties, net

670,187

553,502

77,959

Other receivables and prepayments, net

2,280,449

2,298,612

323,753

Loan receivables, net

882

4,437

625

Inventories

5,515,880

5,644,713

795,041

Total current assets

33,734,433

37,560,598

5,290,300

NON-CURRENT ASSETS

Property and equipment, net

16,225,589

16,882,100

2,377,794

Deposits for property and equipment

296,717

200,739

28,273

Land use rights, net

7,638,506

10,132,626

1,427,151

Intangible assets, net

336,599

332,821

46,877

Investment in equity method investees

2,162,872

2,155,561

303,604

Other investments

2,660,305

2,916,189

410,737

Other long-term assets

91,762

147,669

20,799

Goodwill

755,213

755,213

106,370

Deferred tax assets, net

681,770

685,017

96,483

Operating lease right-of-use assets

891,744

554,061

78,038

Total non-current assets

31,741,077

34,761,996

4,896,126

TOTAL ASSETS

65,475,510

72,322,594

10,186,426

LIABILITIES AND  EQUITY 

CURRENT LIABILITIES

Short term loans

2,687,438

1,425,576

200,788

Accounts payable

15,018,138

17,259,395

2,430,935

Advance from customers 

1,737,424

1,689,881

238,015

Accrued expenses and other current liabilities 

8,394,742

9,560,449

1,346,562

Amounts due to related parties 

151,736

150,373

21,180

Deferred income 

400,207

457,594

64,451

Operating lease liabilities

136,435

80,868

11,390

Total current liabilities

28,526,120

30,624,136

4,313,321

NON-CURRENT LIABILITIES

Deferred tax liability 

573,734

692,492

97,535

Deferred income-non current 

1,469,685

1,756,949

247,461

Operating lease liabilities

832,928

689,259

97,080

Total non-current liabilities

2,876,347

3,138,700

442,076

TOTAL LIABILITIES

31,402,467

33,762,836

4,755,397

EQUITY:

Class A ordinary shares (US$0.0001 par value, 483,489,642
shares authorized,124,060,090 and 98,877,929 shares
issued, of which 101,621,330 and 92,900,247 shares were 
outstanding as of December 31, 2022 and December
31, 2023, respectively) 

80

62

9

Class B ordinary shares (US$0.0001 par value, 16,510,358
shares authorized, and 15,560,358 and 15,560,358 shares
issued and outstanding as of December 31, 2022 and
December 31, 2023, respectively) 

11

11

2

Treasury shares,at cost(22,438,760 and 5,977,682 Class A
shares as of December 31, 2022 and December 31, 2023,
respectively )

(8,352,511)

(3,624,763)

(510,537)

Additional paid-in capital

13,091,781

4,444,755

626,031

Retained earnings

28,720,304

36,836,928

5,188,373

Accumulated other comprehensive loss

(707,628)

(695,589)

(97,972)

Non-controlling interests

1,321,006

1,598,354

225,123

Total shareholders’ equity

34,073,043

38,559,758

5,431,029

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 

65,475,510

72,322,594

10,186,426

 

 

 

Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

Twelve Months Ended

December 31, 2022

December 31, 2023

December 31, 2023

December 31, 2022

December 31, 2023

December 31, 2023

RMB’000

RMB’000

USD’000

RMB’000

RMB’000

USD’000

Income from operations

2,509,219

3,668,279

516,667

6,197,446

9,104,135

1,282,291

Share-based compensation expenses

265,181

284,665

40,094

1,207,581

1,509,806

212,651

Non-GAAP income from operations

2,774,400

3,952,944

556,761

7,405,027

10,613,941

1,494,942

Net income attributable to Vipshop’s shareholders

2,233,761

2,952,147

415,802

6,298,816

8,116,624

1,143,203

Share-based compensation expenses

265,181

284,665

40,094

1,207,581

1,509,806

212,651

Impairment loss of investments

34,347

0

0

93,904

19,105

2,691

Investment (gain) loss and revaluation of investments
excluding dividends

(257,064)

4,449

627

(533,826)

18,309

2,579

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

(46,430)

27,502

3,874

2,965

7,606

1,071

Tax effects on non-GAAP adjustments

1,270

(70,495)

(9,929)

(232,532)

(161,580)

(22,758)

Non-GAAP net income attributable to Vipshop’s shareholders

2,231,065

3,198,268

450,468

6,836,908

9,509,870

1,339,437

(4) To exclude the GAAP to non-GAAP reconciling items relating to investment (gain) loss 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

121,010,371

108,441,659

108,441,659

127,235,048

110,695,778

110,695,778

—Diluted

122,089,636

110,380,505

110,380,505

128,157,304

112,552,398

112,552,398

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

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

18.44

29.49

4.15

53.73

85.91

12.10

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

18.27

28.97

4.08

53.35

84.49

11.90

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

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

3.69

5.90

0.83

10.75

17.18

2.42

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

3.65

5.79

0.82

10.67

16.90

2.38

 

 

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SOURCE Vipshop Holdings Limited

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Pudu Robotics Makes Its IFA Debut, Bringing Its Full Robotics Portfolio to Europe

Published

36 minutes ago

on

September 5, 2026

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PUDU D7 Makes Its European Debut as Visitors Experience Live Demonstrations Across Service Delivery, Commercial Cleaning, Industrial Delivery and General Embodied AI

BERLIN, Sept. 5, 2026 /PRNewswire/ — Pudu Robotics, a global leader in commercial service robotics, is making its debut at IFA 2026 in Berlin, bringing its full robotics portfolio to one of the world’s leading technology showcases. From commercial service and cleaning robots already deployed at scale to its latest embodied AI solutions, Pudu is demonstrating how intelligent robots are moving beyond controlled environments and into real-world applications across industries.

The exhibition marks the first European appearance of the PUDU D7, Pudu Robotics’ next-generation semi-humanoid intelligent robot. At the booth, visitors can see PUDU D7 in action alongside the PUDU D5, BellaBot Pro, PUDU CC1 Pro, PUDU MT1 Max and PUDU T600, with live demonstrations showcasing capabilities ranging from human-robot interaction and autonomous mobility to service delivery, commercial cleaning and industrial delivery.

PUDU D7 Makes Its European Debut

Designed for real-world physical tasks, PUDU D7 demonstrates how an intelligent robot can perceive its surroundings, interact with people and manipulate objects.

At the Pudu booth, visitors can interact directly with PUDU D7 through a series of live demonstrations. The robot can take photos with visitors, take selfies from its own perspective, respond with a heart-hand gesture and pick up objects on request, turning embodied intelligence into an experience visitors can see and engage with firsthand.

PUDU D7’s European debut also follows its recognition as an IFA Innovation Award Honoree in the IFA NEXT & Emerging Tech category, marking an early highlight of Pudu Robotics’ first appearance at the show.

PUDU D5 Series Demonstrates Mobility Across Challenging Terrain

The PUDU D5 series offers a different demonstration of embodied intelligence, focusing on mobility across challenging physical environments. At the Pudu booth, D5-W navigates stairs, gravel and sandy surfaces, demonstrating autonomous movement across uneven and changing terrain.

Beyond the show floor, this mobility platform is designed to support tasks in environments where conventional wheeled robots can face greater mobility challenges, including industrial warehouses, tunnels and mining sites. Potential applications include autonomous transport and site patrol, extending quadruped robotics beyond structured indoor environments and into more demanding industrial settings.

Together, D7 and D5 offer visitors two distinct demonstrations of embodied intelligence in action — from physical interaction and object manipulation to autonomous mobility across complex terrain.

A Full Robotics Portfolio in Action

While embodied AI represents the next frontier of Pudu Robotics’ technology development, the company’s IFA showcase also highlights the robotics portfolio that has already accumulated extensive real-world deployment experience.

BellaBot Pro represents Pudu’s service delivery portfolio, demonstrating autonomous delivery and interactive capabilities for environments such as restaurants, hotels and retail. The robot combines navigation, delivery and human interaction to support a range of service workflows.

In commercial cleaning, PUDU CC1 Pro and PUDU MT1 Max showcase intelligent cleaning solutions for different environments. CC1 Pro combines sweeping, scrubbing, vacuuming and mopping in one platform, while intelligent perception helps the robot identify cleaning needs and optimize its operations. The CC1 series has already surpassed 20,000 units shipped worldwide.

Designed for larger and more complex environments, PUDU MT1 Max uses 3D perception and autonomous navigation to operate across spaces such as parking facilities, warehouses and industrial areas. Its intelligent cleaning capabilities enable it to respond to different types of debris and floor conditions.

For industrial applications, PUDU T600 demonstrates autonomous material transport with a payload capacity of up to 600 kilograms. Designed for demanding logistics environments, T600 extends autonomous robotic transport into factories, warehouses and other industrial settings.

From 130,000+ Shipments to the Next Generation of Robotics

Pudu Robotics’ IFA showcase builds on substantial real-world deployment experience. The company has shipped more than 130,000 robots across 85+ countries and regions and more than 1,000 cities, with its robots deployed across hospitality, retail, healthcare, manufacturing, logistics, property management and other commercial and industrial environments.

That experience is reflected in the range of robots on display in Berlin. Some are designed for highly specialized tasks such as cleaning or material transport, while newer platforms such as D7 and D5-W are extending robotic capabilities into more dynamic forms of physical interaction and mobility.

By bringing the full portfolio together at IFA, Pudu Robotics is giving European audiences a direct view of how commercial robotics is evolving — from robots already working at scale in real-world environments to a new generation of intelligent robots capable of interacting with people, objects and increasingly complex physical surroundings.

“IFA gives us an opportunity to show robotics not simply as technology, but through what robots can actually do in the real world,” said Shawn Wu, Vice President and General Manager of Embodied Intelligence Business, Pudu Robotics. “From PUDU D7 interacting with visitors to PUDU D5 navigating challenging terrain and our other specialized robots performing service, cleaning and transport tasks, the experience at our booth reflects the breadth of where robotics is heading and the practical value it can already deliver.”

Pudu Robotics is exhibiting at IFA 2026 from Sept. 4 to 8 at Messe Berlin, Hall 25, Stand H25-354. Visitors can experience live demonstrations and interact with Pudu’s latest robotic solutions throughout the exhibition.

About Pudu Robotics

Pudu Robotics is a global leader in commercial service robotics and the industry’s first company to offer a full portfolio spanning specialized, semi-humanoid, and humanoid robots. According to Frost & Sullivan’s latest market report, Pudu Robotics ranks No. 1 globally in commercial service robotics by both revenue and shipment volume. Built on its One Brain, Multiple Embodiments architecture, Pudu offers robots for service delivery, commercial cleaning, industrial delivery, and general embodied AI applications across hospitality, retail, healthcare, manufacturing, education, public services, and more. To date, Pudu Robotics has shipped over 130,000 robots to customers across 85+ countries and regions.

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XCOTTON Joins the Conversation at IFA 2026: Why the Future of Commerce Goes Beyond Checkout

Published

3 hours ago

on

September 5, 2026

By

LOS ANGELES and NEW YORK and LAS VEGAS, Sept. 4, 2026 /PRNewswire/ — As the global consumer technology industry gathers in Berlin for IFA 2026, thousands of brands are showcasing what comes next: smarter devices, connected experiences, artificial intelligence, robotics, and technologies designed to change how people live and shop. But behind every new product is another part of the consumer journey that deserves just as much attention: What happens after the customer buys?

The Xcotton team is in Berlin during the event to connect with consumer brands, retailers, technology companies, and potential business partners. The conversations are focused on a broader question for modern commerce: how can brands create a better experience after checkout while reducing the risks that come with delivering products to customers around the world?

The Customer Journey Doesn’t End at Checkout

For years, e-commerce innovation has focused heavily on the path to purchase. Brands optimize advertising to attract shoppers, product pages to increase conversion, checkout flows to reduce abandonment, and promotions to encourage customers to buy.

But the transaction is only one moment in the customer relationship. After payment, the order still needs to be fulfilled, shipped, delivered, and supported. A package can be delayed, lost, stolen, or damaged. A customer may need a replacement or refund. A support team may suddenly have to spend time resolving a problem that had nothing to do with the product itself.

For global e-commerce brands, these challenges become even more important as order volumes increase and businesses expand into new markets. A single delivery problem may affect more than the cost of replacing a product. It can also create customer-service workload, additional shipping costs, refunds, negative reviews, and lost opportunities for repeat purchases.

For the customer, however, the distinction does not always matter. The customer bought from the brand. The delivery experience becomes part of the brand experience. That is why post-purchase experience is becoming an increasingly important part of modern commerce. The opportunity is to think beyond the transaction and manage the entire customer journey:

Purchase → Delivery → Protection → Support → Resolution → Retention

When brands approach these stages as part of one connected experience, post-purchase operations become more than a back-office function. They can become a competitive advantage. A great product can win the first purchase. How a brand handles an unexpected problem can influence whether it earns the next one.

XCOTTON: Turning Post-Purchase Protection Into Business Value

This is where Xcotton comes in. Xcotton helps modern e-commerce brands protect every order after checkout. As a U.S.-based post-purchase protection platform, Xcotton enables merchants to offer shipping protection, product protection, and insurance-backed coverage solutions designed to reduce delivery risk, improve customer experience, and create new revenue opportunities.

Xcotton’s reach extends beyond the U.S. Through its licensed insurance intermediary in France, Xcotton is authorized to provide compliant insurance solutions to merchants and consumers across the European Union. This international capability supports brands as they expand into new markets while helping them offer protection solutions aligned with local regulatory requirements.

The company’s approach is built around a straightforward idea: post-purchase protection should not be viewed only as a way to manage losses. It can also be part of the customer experience. When something goes wrong with an order, customers want to know three things: What happened? What can I do? And how quickly can it be resolved?

A clear protection experience can help answer those questions while giving merchants a structured way to manage unexpected delivery issues. For Xcotton, the goal is simple: Help brands turn post-purchase protection into a better customer experience and a smarter business advantage.

Why Protection Matters for Global E-Commerce

For brands selling across borders, post-purchase protection becomes particularly important as order values, shipping distances, and fulfillment complexity increase.

International shipments can move through multiple carriers, fulfillment centers, customs processes, and last-mile networks before reaching the customer. For higher-value or larger products, a delivery issue can create significant costs for both merchants and shoppers.

Xcotton helps brands address these risks with protection solutions designed around different stages of the customer journey—from shipping protection to product protection and extended warranty coverage.

This gives merchants a more structured way to protect purchases while giving customers greater confidence in the products they are investing in.

Modern Brands Are Selling More Than Products

The same trend can be seen across categories far beyond consumer electronics. Brands increasingly build their businesses around distinctive products, direct relationships, personalization, and customer experience.

LINTICO is a women’s natural-fabric clothing brand known for its linen womenswear. With linen at the heart of its collections, LINTICO focuses on thoughtfully chosen fibers and versatile pieces designed for everyday life, work, travel, and special occasions. Its philosophy, “Linen That Loves You Back,” reflects a focus on comfort, natural materials, and lasting appeal.

Lordhair is a men’s hair system brand serving customers in more than 120 countries. The company designs and manufactures its hair systems in-house, from ready-to-wear pieces to fully customized bases. Localized websites, native-language support, and one-to-one consultations help customers navigate fitting and aftercare while creating a more personalized buying experience.

MICAS represents the growing market for elevated modern womenswear, where product design, brand identity, digital commerce, and customer experience are increasingly interconnected.

Popilush is a global shapewear fashion brand combining fashion and functionality through its signature built-in shapewear designs. Founded by Eve DeMartine, the company creates one-piece dresses and confidence-enhancing apparel for women worldwide, with a strong focus on functional design, inclusive fashion, and body confidence.

These brands illustrate a common reality of modern commerce: Customers are not simply buying a product. They are buying confidence in the brand behind it. That confidence can be influenced by what happens before the purchase—and just as importantly, what happens afterward.

From Cost Center to Business Opportunity

Post-purchase protection has traditionally been associated with risk management.

A shipment is lost. A merchant replaces it.

A package arrives damaged. A refund is issued.

A customer reports a problem. The support team resolves it.

But this reactive model can overlook the larger opportunity. What if protection could be designed as part of the customer journey from the beginning? What if customers knew before they completed their purchase that there was a clear solution if something went wrong?

And what if merchants could use protection not only to reduce the financial impact of delivery problems, but also to improve customer confidence and create additional business value?

This represents a broader shift in how brands can think about post-purchase protection. It is not simply about covering a loss. It is about creating confidence around the purchase. For e-commerce brands competing for repeat customers, that confidence can matter.

XCOTTON Connects With Brands at IFA 2026

IFA 2026 provides an ideal environment for these conversations. The event brings together companies across consumer technology, retail, home appliances, smart home, AI, robotics, and emerging categories. For businesses developing the next generation of consumer products, reaching the customer is only one part of the challenge. Delivering that product successfully—and creating a positive experience afterward—is equally important.

In Berlin, Xcotton connects with:

E-commerce and direct-to-consumer brandsConsumer technology companiesRetailers and distributorsSmart home and connected-device businessesFashion and lifestyle brandsTechnology and logistics partnersCompanies expanding into international markets

The goal is to understand the challenges these businesses face after checkout and explore opportunities to build stronger post-purchase experiences together. The complete journey: Discover. Purchase. Deliver. Protect. Support. Retain.

The Future of Commerce Goes Beyond Checkout

IFA 2026 is showcasing technologies designed to make consumer lives smarter, more connected, and more convenient.

For commerce brands, however, the next evolution may not be limited to smarter products. It may also be about creating smarter experiences around those products. The customer journey does not end when the payment is processed. It continues through fulfillment, delivery, support, returns, protection, and resolution. And when something goes wrong, the response can become one of the most important moments in the relationship between a customer and a brand.

Post-purchase protection is not simply about protecting a package. It is about protecting customer trust. During IFA 2026 in Berlin, Xcotton connects with brands that are looking to explore how better post-purchase experiences can help modern e-commerce businesses reduce delivery risk, strengthen customer relationships, and create lasting value. The future of commerce doesn’t end at checkout. It begins there.

Contact: merchantsupport@xcotton.ai

 

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ToolDance Unveils X1 Smart Desktop CNC Mill at IFA 2026

Published

5 hours ago

on

September 5, 2026

By

BERLIN, Sept. 4, 2026 /PRNewswire/ — ToolDance, a technology company focused on intelligent desktop CNC solutions, officially unveiled its flagship product ToolDance X1 Smart Desktop CNC Mill at IFA 2026 in Berlin, Germany.

On the first day of the exhibition, ToolDance attracted significant attention from professional users, makers, and industry audiences with live demonstrations showcasing the complete workflow from preparation to finished parts. Learn more about the X1 Smart Desktop CNC Mill.

“What has been especially encouraging at IFA is seeing people watch the X1 turn raw material into a finished part and immediately start thinking about how they could use it in their own work,” said Will Wang, Founder and CEO of ToolDance. “Our goal is to bring professional CNC capabilities to makers, engineers, and small businesses in a more accessible desktop format, while retaining the performance required for real manufacturing tasks.”

ToolDance’s participation in IFA 2026 reflects the company’s commitment to making industrial-grade manufacturing capabilities more accessible in personal workspaces.

The X1 features a 1,500W permanent magnet synchronous motor (PMSM) spindle that maintains strong torque at lower spindle speeds for demanding roughing operations and reaches speeds of up to 24,000rpm for precise finishing. It delivers positioning repeatability of ±0.01mm.

Its three-axis work envelope measures 400 × 265 × 180mm, providing room for functional parts such as fixtures, molds, machine plates, and housings, as well as multi-part production in a single setup. Support for tool shanks up to 10mm expands the range of cutters available for heavier material removal and larger tools.

The X1 supports both dry machining and flood-coolant machining across a range of metals, wood, and engineering plastics. Continuous coolant flow helps control heat, clear chips, and support stable cutting in demanding metal applications. Its cast aluminum-alloy frame is reinforced along critical load paths to increase rigidity and reduce vibration, supporting stable machining, consistent accuracy, and clean surface finishes.

On the software side, ToolDance Studio, developed in-house by ToolDance, is designed to lower the barrier to CNC machining through a streamlined three-step workflow from model to finished part.

Its Design for Manufacturability (DFM) analysis checks geometry, tool access, stock, and machining constraints to help users identify potential issues before cutting begins. The Workholding Guidance System recommends workholding setups for each operation based on part geometry and machining parameters, with step-by-step visual guidance. Its image-to-model feature can also generate editable geometry from photographs or reference images.

A nine-tool automatic tool changer (ATC) automates tool changes across operations ranging from roughing and drilling to finishing, chamfering, threading, and engraving, reducing the need for manual tool changes during multi-operation jobs.

The X1 is also designed as an expandable platform. With the optional simultaneous four or five-axis module, it can machine complex parts, curved surfaces, and fine details in a single setup, reducing re-clamping while maintaining alignment and accuracy.

The ToolDance X1 will remain on display at Hall 17, Booth H17-205 at Messe Berlin from Sept. 4–8, 2026, with live machining demonstrations taking place throughout the event. The product is scheduled to launch on Kickstarter in October 2026.

For more information, visit: https://www.tooldance.ai

About ToolDance

ToolDance is a technology company focused on  smart desktop CNC solutions. With the vision of “Your Personal Factory,” ToolDance integrates hardware, software, and automation to make industrial-grade manufacturing capabilities more accessible, helping makers, engineers, professionals, and small businesses turn ideas into physical products more efficiently.

Note: Please translate the content first and provide a preview. The photos will be provided on Sept. 4.

Media Contact: info@tooldance.ai

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