Technology

Vipshop Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results

Published

1 year ago

February 21, 2025

Conference Call to Be Held at 7:00 A.M. U.S. Eastern Time on February 21, 2025

GUANGZHOU, China, Feb. 21, 2025 /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, 2024.

Fourth Quarter and Full Year 2024 Highlights

Total net revenues for the fourth quarter of 2024 were RMB33.2 billion (US$4.6 billion), compared with RMB34.7 billion in the prior year period. Total net revenues for the full year of 2024 were RMB108.4 billion (US$14.9 billion), compared with RMB112.9 billion in the prior year.GMV[1] for the fourth quarter of 2024 was RMB66.2 billion, compared with RMB66.4 billion in the prior year period. GMV for the full year of 2024 increased by 0.6% year over year to RMB209.3 billion from RMB208.0 billion in the prior year.Gross profit for the fourth quarter of 2024 was RMB7.6 billion (US$1.0 billion), compared with RMB8.2 billion in the prior year period. Gross profit for the full year of 2024 was RMB25.5 billion (US$3.5 billion), compared with RMB25.7 billion in the prior year.Net income attributable to Vipshop’s shareholders for the fourth quarter of 2024 was RMB2.4 billion (US$335.2 million), compared with RMB3.0 billion in the prior year period. Net income attributable to Vipshop’s shareholders for the full year of 2024 was RMB7.7 billion (US$1.1 billion), compared with RMB8.1 billion in the prior year.Non-GAAP net income attributable to Vipshop’s shareholders[2] for the fourth quarter of 2024 was RMB3.0 billion (US$407.4 million), compared with RMB3.2 billion in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders for the full year of 2024 was RMB9.0 billion (US$1.2 billion), compared with RMB9.5 billion in the prior year.The number of active customers[3] for the fourth quarter of 2024 was 45.7 million, compared with 48.5 million in the prior year period. The number of active customers for the full year of 2024 was 84.7 million, compared with 87.4 million in the prior year.Total orders[4] for the fourth quarter of 2024 were 217.5 million, compared with 234.3 million in the prior year period. Total orders for the full year of 2024 were 757.5 million, compared with 812.3 million in the prior year.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “We delivered results well above our expectations in the fourth quarter, concluding a challenging year. Apparel categories achieved positive growth for both the quarter and full year, as we built upon our merchandising strength to introduce more unique, off-price seasonal offerings that met consumer needs. This helped our total GMV surpass RMB200 billion again in 2024. Super VIPs demonstrated strong momentum with double digit growth and more resilient spending, as they continued to respond to our differentiated value proposition. With the continuity of our strategy, and increased agility and flexibility in our business, we are better positioned going into 2025 and remain confident in our long-term growth trajectory.”

Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, “We are pleased to have achieved a better balance in our business in the fourth quarter after we reallocated resources to maximize growth while maintaining solid profitability. We believe the swift and disciplined actions taken within our organization have put us on the right track toward returning to sustainable and profitable growth in the foreseeable future. Meanwhile, reflecting our strong profitability and free cash flow, we are committed to consistently delivering value for our shareholders through both share repurchase and cash dividend in 2025.”

Fourth Quarter 2024 Financial Results

REVENUES

Total net revenues for the fourth quarter of 2024 were RMB33.2 billion (US$4.6 billion), compared with RMB34.7 billion in the prior year period.

GROSS PROFIT

Gross profit for the fourth quarter of 2024 was RMB7.6 billion (US$1.0 billion), compared with RMB8.2 billion in the prior year period. Gross margin for the fourth quarter of 2024 was 23.0%, compared with 23.7% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the fourth quarter of 2024 were RMB5.1 billion (US$694.0 million), compared with RMB4.9 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the fourth quarter of 2024 was 15.2%, compared with 14.0% in the prior year period.

Fulfillment expenses for the fourth quarter of 2024 decreased by 2.5% year over year to RMB2.46 billion (US$337.2 million) from RMB2.53 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the fourth quarter of 2024 was 7.4%, compared with 7.3% in the prior year period.Marketing expenses for the fourth quarter of 2024 increased by 10.3% year over year to RMB930.3 million (US$127.5 million) from RMB843.2 million in the prior year period. As a percentage of total net revenues, marketing expenses for the fourth quarter of 2024 was 2.8%, compared with 2.4% in the prior year period.Technology and content expenses for the fourth quarter of 2024 decreased by 5.5% year over year to RMB469.2 million (US$64.3 million) from RMB496.4 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the fourth quarter of 2024 was 1.4%, which stayed flat as compared with that in the prior year period.General and administrative expenses for the fourth quarter of 2024 increased by 20.0% year over year to RMB1.2 billion (US$165.1 million) from RMB1.0 billion in the prior year period. As a percentage of total net revenues, general and administrative expenses for the fourth quarter of 2024 was 3.6%, compared with 2.9% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the fourth quarter of 2024 was RMB2.9 billion (US$390.6 million), compared with RMB3.7 billion in the prior year period. Operating margin for the fourth quarter of 2024 was 8.6%, compared with 10.6% in the prior year period.

Non-GAAP income from operations[5] for the fourth quarter of 2024, which excluded share-based compensation expenses, was RMB3.4 billion (US$464.5 million), compared with RMB4.0 billion in the prior year period. Non-GAAP operating margin[6] for the fourth quarter of 2024 was 10.2%, compared with 11.4% in the prior year period.

NET INCOME

Net income attributable to Vipshop’s shareholders for the fourth quarter of 2024 was RMB2.4 billion (US$335.2 million), compared with RMB3.0 billion in the prior year period. Net margin attributable to Vipshop’s shareholders for the fourth quarter of 2024 was 7.4%, compared with 8.5% in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS[7] for the fourth quarter of 2024 was RMB4.69 (US$0.64), compared with RMB5.35 in the prior year period.

Non-GAAP net income attributable to Vipshop’s shareholders for the fourth quarter of 2024, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment loss (gain) and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, was RMB3.0 billion (US$407.4 million), compared with RMB3.2 billion in the prior year period. Non-GAAP net margin attributable to Vipshop’s shareholders[8] for the fourth quarter of 2024 was 9.0%, compared with 9.2% in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS[9] for the fourth quarter of 2024 was RMB5.70 (US$0.78), compared with RMB5.79 in the prior year period.

For the quarter ended December 31, 2024, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 521,501,399.

BALANCE SHEET AND CASH FLOW

As of December 31, 2024, the Company had cash and cash equivalents and restricted cash of RMB27.0 billion (US$3.7 billion) and short term investments of RMB1.9 billion (US$256.6 million).

For the quarter ended December 31, 2024, net cash generated from operating activities was RMB8.9 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, 2023

RMB’000

Dec 31, 2024

RMB’000

Dec 31, 2024

US$’000

Net cash generated from operating activities

8,696,378

8,893,726

1,218,435

Reconciling items:

Net impact from internet financing activities[11]

53,725

107,166

14,682

Capital expenditures

(1,398,506)

(588,841)

(80,671)

Free cash inflow

7,351,597

8,412,051

1,152,446

Full Year 2024 Financial Results

Total net revenues for the full year of 2024 were RMB108.4 billion (US$14.9 billion), compared with RMB112.9 billion in the prior year.

Gross profit for the full year of 2024 was RMB25.5 billion (US$3.5 billion), compared with RMB25.7 billion in the prior year. Gross margin for the full year of 2024 increased to 23.5% from 22.8% in the prior year.

Income from operations for the full year of 2024 increased by 0.8% year over year to RMB9.2 billion (US$1.3 billion) from RMB9.1 billion in the prior year. Operating margin for the full year increased to 8.5% from 8.1% in the prior year.

Non-GAAP income from operations for the full year of 2024, which excluded share-based compensation expenses, increased by 0.9% year over year to RMB10.7 billion (US$1.5 billion) from RMB10.6 billion in the prior year. Non-GAAP operating margin for the full year of 2024 increased to 9.9% from 9.4% in the prior year.

Net income attributable to Vipshop’s shareholders for the full year of 2024 was RMB7.7 billion (US$1.1 billion), compared with RMB8.1 billion in the prior year. Net margin attributable to Vipshop’s shareholders for the full year of 2024 was 7.1%, compared with 7.2% in the prior year. Net income attributable to Vipshop’s shareholders per diluted ADS for the full year of 2024 was RMB14.35 (US$1.97), compared with RMB14.42 in the prior year.

Non-GAAP net income attributable to Vipshop’s shareholders for the full year of 2024, 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, was RMB9.0 billion (US$1.2 billion), compared with RMB9.5 billion in the prior year. Non-GAAP net margin attributable to Vipshop’s shareholders for the full year of 2024 was 8.3%, compared with 8.4% in the prior year. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS for the full year of 2024 was RMB16.75 (US$2.29), compared with RMB16.90 in the prior year.

For the full year of 2024, the Company’s weighted average number of ADSs used in computing diluted earnings per ADS was 539,279,030.

For the full year of 2024, net cash generated from operating activities was RMB9.1 billion (US$1.3 billion), and free cash flow, a non-GAAP measurement of liquidity, was as follows:

For the trailing twelve months ended

Dec 31, 2023

RMB’000

Dec 31, 2024

RMB’000

Dec 31, 2024

US$’000

Net cash generated from operating activities

14,414,513

9,128,983

1,250,666

Reconciling items:

Net impact from internet financing activities

104,964

55,593

7,616

Capital expenditures

(5,230,737)

(3,562,586)

(488,072)

Free cash inflow

9,288,740

5,621,990

770,210

Share Repurchase Program

During the quarter ended December 31, 2024, the Company repurchased US$43.3 million of its ADSs under its US$1.0 billion share repurchase program adopted in March 2023. As of the date of this earnings release, the Company has fully utilized the remaining authorized amount of this program. The Company plans to continue share repurchases under its US$1.0 billion share repurchase program announced in August 2024, which will be effective until February 2027.

Declaration of 2024 Dividend

The Company’s board of directors has approved and declared an annual cash dividend for fiscal year 2024 in the amount of US$2.40 per ordinary share, or US$0.48 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on April 11, 2025. The payment date is expected to be on April 25, 2025. 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 2025, the Company expects its total net revenues to be between RMB26.3 billion and RMB27.6 billion, representing a year-over-year decrease of approximately 5% to 0%. 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 translations 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 RMB7.2993 to US$1.00, the effective noon buying rate on December 31, 2024 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 31, or at any other rate.

Conference Call Information

The Company will hold a conference call on Friday, February 21, 2025 at 7:00 am U.S. Eastern Time, 8:00 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/BI94d605c9b9f44cd984fd6a1dd0f5a6b3

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/4brks6io. 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; 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 the 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 loss (gain) 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 loss (gain) 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 loss (gain) 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 given period, including 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 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 loss (gain) 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 updated its definition of “active customers” to exclude registered members who make their purchases from the Company’s online stores operated at third-party platforms.

[4] “Total orders” is defined as the total number of orders placed during the given period, including the orders for products and services sold through the Company’s online sales business and on 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 31,2023

December 31,2024

December 31,2023

December 31,2024

RMB’000

USD’000

RMB’000

USD’000

Product revenues

32,435,188

30,889,540

4,231,850

105,613,485

100,734,550

13,800,577

Other revenues (1)

2,239,288

2,334,302

319,798

7,242,535

7,686,282

1,053,016

Total net revenues

34,674,476

33,223,842

4,551,648

112,856,020

108,420,832

14,853,593

Cost of revenues

(26,441,622)

(25,596,304)

(3,506,679)

(87,135,128)

(82,951,178)

(11,364,265)

Gross profit

8,232,854

7,627,538

1,044,969

25,720,892

25,469,654

3,489,328

Operating expenses:

Fulfillment expenses (2)

(2,525,204)

(2,460,984)

(337,153)

(8,262,004)

(8,346,864)

(1,143,516)

Marketing expenses

(843,208)

(930,293)

(127,450)

(3,242,215)

(2,979,654)

(408,211)

Technology and content expenses

(496,442)

(469,223)

(64,283)

(1,767,530)

(1,892,434)

(259,262)

General and administrative expenses

(1,004,539)

(1,205,101)

(165,098)

(4,146,568)

(3,992,657)

(546,992)

Total operating expenses

(4,869,393)

(5,065,601)

(693,984)

(17,418,317)

(17,211,609)

(2,357,981)

Other operating income

304,818

289,291

39,633

801,560

915,208

125,383

Income from operations

3,668,279

2,851,228

390,618

9,104,135

9,173,253

1,256,730

Investment (loss) gain and revaluation of investments

(4,449)

72,649

9,953

(18,054)

148,170

20,299

Impairment loss of investments

(3,000)

(411)

(19,105)

(61,246)

(8,391)

Interest expense

(14,770)

(17,560)

(2,406)

(22,932)

(57,676)

(7,902)

Interest income

208,913

227,427

31,157

780,292

809,792

110,941

Exchange gain (loss)

(78,151)

138,633

18,993

162,666

(24,813)

(3,399)

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

3,779,822

3,269,377

447,904

9,987,002

9,987,480

1,368,278

Income tax expenses

(771,969)

(816,363)

(111,841)

(1,866,004)

(2,315,515)

(317,224)

Share of income (loss) of equity method investees

(25,236)

32,799

4,493

80,301

166,980

22,876

Net income

2,982,617

2,485,813

340,556

8,201,299

7,838,945

1,073,930

Net income attributable to non-controlling interests

(30,470)

(39,134)

(5,361)

(84,675)

(99,010)

(13,564)

Net income attributable to Vipshop’s shareholders

2,952,147

2,446,679

335,195

8,116,624

7,739,935

1,060,366

Shares used in calculating earnings per share (3):

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

—Basic

108,441,659

102,688,899

110,695,778

106,074,914

—Diluted

110,380,505

104,300,280

112,552,398

107,855,806

Net earnings per Class A and Class B ordinary share

Net income attributable to Vipshop’s shareholders——Basic

27.22

23.83

3.26

73.32

72.97

10.00

Net income attributable to Vipshop’s shareholders——Diluted

26.75

23.46

3.21

72.11

71.76

9.83

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

Net income attributable to Vipshop’s shareholders——Basic

5.44

4.77

0.65

14.66

14.59

2.00

Net income attributable to Vipshop’s shareholders——Diluted

5.35

4.69

0.64

14.42

14.35

1.97

(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 RMB 1.8 billion and RMB 1.8 billionin the three
month periods ended December 31,2023 and December 31,2024, respectively.

(2) Fulfillment expenses include shipping and handling expenses,
which amounted RMB 5.8 billion and RMB 5.9 billion in the twelve month
periods ended December 31,2023 and December 31,2024, 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 31,2023

December 31,2024

December 31,2023

December 31,2024

RMB’000

USD’000

RMB’000

USD’000

Share-based compensation expenses are included in the
operating expenses as follows:

Fulfillment expenses

18,586

22,747

3,116

77,926

84,079

11,519

Marketing expenses

7,683

8,295

1,136

33,379

31,215

4,276

Technology and content expenses

86,591

97,919

13,415

330,197

382,308

52,376

General and administrative expenses

171,805

410,126

56,187

1,068,304

1,040,138

142,498

Total

284,665

539,087

73,855

1,509,806

1,537,740

210,669

Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

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

December 31,2023

December 31,2024

RMB’000

USD’000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

25,414,729

26,352,161

3,610,231

Restricted cash

882,637

602,342

82,521

Short term investments

1,983,201

1,872,756

256,567

Accounts receivable, net

778,767

915,158

125,376

Amounts due from related parties,net

553,502

548,145

75,096

Other receivables and prepayments,net

2,298,612

2,473,050

338,806

Loan receivables,net

4,437

6,878

942

Inventories

5,644,713

5,032,069

689,391

Total current assets

37,560,598

37,802,559

5,178,930

NON-CURRENT ASSETS

Property and equipment, net

16,882,100

18,292,771

2,506,099

Deposits for property and equipment

200,739

164,955

22,599

Land use rights, net

10,132,626

10,686,400

1,464,031

Intangible assets, net

332,821

327,844

44,914

Investment in equity method investees

2,155,561

2,002,043

274,279

Other investments

2,916,189

3,355,489

459,700

Other long-term assets

147,669

434,206

59,486

Goodwill

755,213

103,464

Deferred tax assets, net

685,017

681,029

93,301

Operating lease right-of-use assets

554,061

433,617

59,405

Total non-current assets

34,761,996

37,133,567

5,087,278

TOTAL ASSETS

72,322,594

74,936,126

10,266,208

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Short term loans

1,425,576

2,399,629

328,748

Accounts payable

17,259,395

15,190,560

2,081,098

Advance from customers

1,689,881

2,035,184

278,819

Accrued expenses and other current liabilities

9,560,449

9,663,421

1,323,882

Amounts due to related parties

150,373

104,187

14,274

Deferred income

457,594

476,796

65,321

Operating lease liabilities

80,868

57,224

7,840

Total current liabilities

30,624,136

29,927,001

4,099,982

NON-CURRENT LIABILITIES

Deferred tax liability

692,492

783,863

107,389

Deferred income-non current

1,756,949

2,084,038

285,512

Operating lease liabilities

689,259

591,995

81,103

Total non-current liabilities

3,138,700

3,459,896

474,004

TOTAL LIABILITIES

33,762,836

33,386,897

4,573,986

EQUITY:

Class A ordinary shares (US$0.0001 par value, 483,489,642
shares authorized,98,877,929 and 100,640,510 shares issued,of
which 92,900,247 and 86,982,144 shares were outstanding as of
December 31,2023 and December 31,2024, respectively)

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, 2023 and December 31,2024,
respectively)

Treasury shares,at cost(5,977,682 and 13,028,013 Class A shares
as of December 31,2023 and December 31,2024, respectively )

(3,624,763)

(7,042,759)

(964,854)

Additional paid-in capital

4,444,755

4,912,703

673,038

Retained earnings

36,836,928

42,906,188

5,878,124

Accumulated other comprehensive loss

(695,589)

(807,394)

(110,613)

Non-controlling interests

1,598,354

1,580,416

216,516

Total shareholders’ equity

38,559,758

41,549,229

5,692,222

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

72,322,594

74,936,126

10,266,208

Vipshop Holdings Limited

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

Twelve Months Ended

December 31,2023

December 31,2024

December 31,2023

December 31,2024

RMB’000

USD’000

RMB’000

USD’000

Income from operations

3,668,279

2,851,228

390,618

9,104,135

9,173,253

1,256,730

Share-based compensation expenses

284,665

539,087

73,855

1,509,806

1,537,740

210,669

Non-GAAP income from operations

3,952,944

3,390,315

464,473

10,613,941

10,710,993

1,467,399

Net income attributable to Vipshop’s shareholders

2,952,147

2,446,679

335,195

8,116,624

7,739,935

1,060,366

Share-based compensation expenses

284,665

539,087

73,855

1,509,806

1,537,740

210,669

Impairment loss of investments

3,000

411

19,105

61,246

8,391

Investment loss (gain) and revaluation of investments excluding
dividends

4,449

(72,130)

(9,882)

18,309

(147,651)

(20,228)

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

27,502

101,478

13,902

7,606

31,753

4,350

Tax effects on non-GAAP adjustments

(70,495)

(44,446)

(6,089)

(161,580)

(190,476)

(26,095)

Non-GAAP net income attributable to Vipshop’s shareholders

3,198,268

2,973,668

407,392

9,509,870

9,032,547

1,237,453

(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

108,441,659

102,688,899

110,695,778

106,074,914

—Diluted

110,380,505

104,300,280

112,552,398

107,855,806

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

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

29.49

28.96

3.97

85.91

85.15

11.67

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

28.97

28.51

3.91

84.49

83.75

11.47

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

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

5.90

5.79

0.79

17.18

17.03

2.33

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

5.79

5.70

0.78

16.90

16.75

2.29

View original content:https://www.prnewswire.com/news-releases/vipshop-reports-unaudited-fourth-quarter-and-full-year-2024-financial-results-302382198.html

SOURCE Vipshop Holdings Limited

Technology

Sixty-One Percent of CEOs Say Their Boards Are Rushing AI Transformation

Published

1 hour ago

May 4, 2026

New Research from Boston Consulting Group Reveals Disconnect at the Top on AI Strategy and ExecutionThree-Quarters of Board Members Believe They Understand AI, but 35% of CEOs Say Boards Overestimate the Human Capabilities AI Can ReplaceMore Than Half of CEOs Say AI Hype Is Distorting Boardroom Judgment

BOSTON, May 4, 2026 /PRNewswire/ — Sixty-one percent of CEOs say their boards are rushing AI transformation, exposing a divide at the top just as companies enter a critical phase of scaling AI. While both groups agree on AI’s importance, they differ on how quickly it should be implemented and how ready organizations are to deliver results.

These findings are from the first edition of Split Decisions: The BCG CEOs and Boards Survey. The research is based on a global survey of 625 leaders, including 351 CEOs and 274 board members, from companies with at least $100 million in annual revenue, spanning both private and public sectors.

Boards tend to favor faster AI implementation, according to the survey, while CEOs take a more measured approach. Gaps in AI understanding and FOMO (fear of missing out) may be contributing to this dynamic. Board members with lower confidence in their AI knowledge are more likely to believe their organizations are moving too slowly, suggesting that uncertainty is translating into increased urgency.

Boards’ AI Confidence Faces CEO Skepticism

While 75% of board members believe their AI knowledge is on par with or ahead of that of their peers, CEOs are less convinced. Nearly 40% say boards lack an informed view of how AI is reshaping growth strategy, and one-third say boards overestimate the human capabilities that AI can replace. (See the exhibit.)

“I feel this tension so acutely between CEOs and boards,” said Julie Bedard, a BCG managing director and partner. “A powerful way for CEOs to bridge the gap between their AI knowledge and their boards’—especially if they feel there is a deficit there—is for the CEO to personally lead an AI upskilling session for their board to show them the latest AI tools and what they can do. CEOs can also bridge the gap by talking about AI in a much more differentiated way to clearly illustrate where AI can be a substitute for humans and where it can complement human work.”

AI Hype and Misaligned Expectations Shape Boardroom Dynamics

More than half of CEOs say boards need to better understand the gap between AI hype and reality, while boards want CEOs to do a better job of selling them on their AI strategy.

CEOs report feeling greater pressure to deliver AI results than boards may fully recognize. Chief executives estimate that 35% of their performance evaluation depends on achieving AI ROI, compared with boards’ estimate of 27%, suggesting a mismatch between perceived expectations and formal accountability.

AI Literacy Emerges as a Shared Priority

Despite some misalignment, CEOs and boards broadly agree on the need to raise AI fluency at the highest levels of leadership. Approximately 80% of both groups say that prospective board members should be required to demonstrate a measurable understanding of how AI can reshape their industry.

“CEOs need to be very intentional about supporting their boards on the same learning journey they’ve taken,” said Judith Wallenstein, a BCG managing director and senior partner and the global head of the firm’s CEO Advisory. “But at a much faster pace, with more focus, and in a way that builds real understanding rather than just surface-level awareness of how AI can create true competitive advantage for the company.”

Download the publication here:
https://www.bcg.com/publications/2026/ai-governance-gaps-where-ceos-and-boards-disagree

Media Contact:
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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SOURCE Boston Consulting Group (BCG)

Technology

IBM Study: CEOs are Reshaping C-suite Roles for the AI Era

Published

1 hour ago

May 4, 2026

76% of surveyed organizations now have a Chief AI Officer, up from 26% a year ago59% of CEO respondents say the CHRO’s influence will increase over the next few yearsNearly two-thirds of surveyed CEOs are comfortable using AI to help inform major strategic decisions

ARMONK, N.Y., May 4, 2026 /CNW/ — A new global study from the IBM (NYSE: IBM) Institute for Business Value finds that the accelerating pace of AI is pushing CEOs to redesign how C-suite roles are structured to drive greater business impact across the enterprise.

In the foreword of the study, IBM Vice Chairman Gary Cohn writes, “The CEO’s role has always been to lead through disruption. What AI changes is the velocity and consequences of leadership. Enterprises that succeed will operate AI-first – not as a layer of technology, but as a new operating model. Decision cycles will compress. Boundaries between functions will dissolve. Advantage will accrue to those who can learn, adapt, and execute faster than their competitors.”

The annual IBM CEO study,* which surveyed 2,000 CEOs globally, shows that as AI becomes more pervasive in the enterprise, CEOs are under growing pressure to rethink how leadership teams operate, how decisions get made and how organizations are structured.

Among the key findings:

76% of surveyed organizations have a Chief AI Officer (CAIO) in 2026, up from just 26% in 2025.Analysis shows that organizations with an AI-first approach to C-suite design have scaled 10% more AI initiatives enterprise-wide than their peers.64% of surveyed CEOs say they are comfortable making major strategic decisions based on AI-generated input. 83% of respondents agree that AI sovereignty is essential to business strategy, underscoring the importance of having the right controls as AI plays a larger enterprise-wide role. Surveyed CEOs say only 25% of the workforce is using AI regularly as part of their job, despite 86% believing their employees have the skills to collaborate with AI.

“AI is changing how work gets done, bringing people and software together in new ways, and it’s changing how people come together in the workplace,” said Mohamad Ali, Senior Vice President, IBM Consulting. “The CEOs delivering real results from AI transformation aren’t just deploying AI faster, they’re redesigning their organizations to bring together the best people with the best technology.”

New challenges demand different kinds of leadership

85% of respondents say all functional leaders must become technology experts in their domain, signaling that AI accountability is expanding beyond specialized roles. Among organizations with a CAIO, all surveyed CEOs expect the influence of the role to increase by 2030, alongside rising influence across every member of the C-suite. 59% of surveyed CEOs say the CHRO’s influence will increase over the next few years.

As CEOs turn to AI-driven decisions, governance and controls become more critical

By 2030, surveyed CEOs expect 48% of operational decisions where consistency and guardrails can be codified will be made by AI without human intervention, compared to 25% today. 79% of executives surveyed confirm they are decentralizing decision-making, distributing accountability as AI plays a more significant role enterprise wide.

Organizations are betting on people to drive AI success

83% of CEOs surveyed say AI success depends more on people’s adoption than technology.Between 2026 and 2028, respondents expect 29% of employees to require reskilling for a different role and 53% to need upskilling to perform their current role more effectively. Surveyed organizations that redesigned five core business areas — technology, finance, HR, operations and cross-functional collaboration — are four times more likely to have delivered on business objectives. 77% of respondents say talent and technology leadership roles are converging, suggesting tighter integration between talent, technology and enterprise strategy.

To view the full study, visit: https://www.ibm.com/thought-leadership/institute-business-value/en-us/c-suite-study/ceo

The study also features industry perspectives from senior executives on how business leaders are responding to AI-driven change. A selection of these firsthand views are available in the addendum below.

*Study Methodology
The IBM Institute for Business Value, in cooperation with Oxford Economics, conducted a survey of 2,000 CEOs and equivalent senior leaders across 33 geographies and 21 industries from February to April 2026. The survey explored how leaders are redesigning business models, operating structures and execution capabilities in an AI-driven economy, with additional analysis examining how organizations translate AI ambition into enterprise-wide execution and business value.

The IBM Institute for Business Value, IBM’s thought leadership think tank, combines
global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv. To receive more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch.

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity, and service. Visit www.ibm.com for more information.

Media Contact
Marisa Conway
IBM Corporate Communications
conwaym@us.ibm.com

Executive Perspectives:

“It’s not laying AI on top of your existing tools and services. It’s reimagining the entire process.” — Pablo T. Rivero, CEO, Resy and SVP, Global Dining, American Express

“You can’t forecast every disruption, but you can prepare by building organizations that are resilient, adaptable, and ready to operate through change.” — Andrew Anagnost, President and CEO, Autodesk

“AI has moved from the infrastructure layer, largely invisible, to the surface layer of how we work and how we serve customers.” — David Risher, CEO, Lyft

“The introduction of AI is more transformative than the introduction of the internet was at the time – not because of the technology itself, but because of its impact on how people work, decide and collaborate.” — Jan Polkerman, CEO, Dutch Tax and Customs Authority IT

“AI needs to be embedded into how we operate. That means integrating it into workflows across design, merchandising, marketing, stores, and operations–not as a separate initiative, but as part of how the business runs.” – Patrice Louvet, President and CEO, Ralph Lauren Corporation

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SOURCE IBM

Technology

Eddid Financial Honored with “Professional Services Award in RWA” by HKCT Highlighting its Leading Edge in Web3 and Digital Assets

Published

2 hours ago

May 4, 2026

HONG KONG, May 4, 2026 /PRNewswire/ — Eddid Financial (the “Group”) has won the “Professional Services Award in RWA” at the HKCT Business Awards, hosted by the Hong Kong Commercial Times. The award recognizes the Group’s exceptional professional service capabilities and innovative achievements in the Real-World Assets Tokenisation (“RWA”) sector. This prestigious honor serves as a strong industry endorsement of the Group’s dedicated efforts in the RWA space, affirming its leadership in bridging traditional and digital finance while injecting significant momentum into Hong Kong’s digital asset market.

The HKCT Business Awards evaluates candidates based on four core criteria: corporate achievements, market competitiveness, brand philosophy, and professional standing. As one of the most credible and influential business awards in Hong Kong, it aims to recognize outstanding enterprises across various sectors for their performance over the past year, encouraging companies to continuously enhance their core competitiveness and pioneer innovative economic directions. During this year’s selection process, the judging panel conducted a comprehensive assessment of Eddid Financial’s compliance infrastructure, innovative services, and industry contributions within the RWA sector, highly commending the Group’s professional strength and forward-looking vision in asset tokenisation.

Compliance-Driven: Building a Full-Chain Service Ecosystem

As a licensed pioneer in Hong Kong’s RWA landscape, Eddid Financial has consistently relied on compliance as its foundation and innovation as its driving force. Having deeply cultivated the digital asset space for years, the Group has established a full-chain professional service ecosystem that encompasses asset screening, product design, compliance auditing, and distribution operations. Eddid Securities and Futures, a subsidiary of the Group, became one of the first brokerages in Hong Kong to upgrade its licenses in September 2023. It subsequently secured further upgrades for its Type 1 and Type 9 regulated activity licenses, making it one of the few institutions authorized to distribute tokenised securities and RWA products. This regulatory milestone has laid a solid, compliant foundation for the Group’s RWA business operations.

Successful Launch of Landmark Precious Metal RWA Projects

In terms of practical application, Eddid Financial has actively spearheaded the launch of several landmark RWA projects, setting a new benchmark for the industry. Notably, the Group partnered with Timeless Resources Holdings Limited (8028.HK) and HashKey Chain to introduce Hong Kong’s first silver RWA project. By leveraging blockchain technology to tokenise physical silver assets, each digital coin is backed 1:1 by one ounce of physical silver, strictly held by an independent trustee. This initiative not only lowers the barrier to entry for precious metal investments but also enhances asset liquidity. The project’s product design and issuance framework received a “no further comment” reply from the Hong Kong Securities and Futures Commission (SFC), demonstrating the highest standard of compliance.

Concurrently, the Group has collaborated with CAC Fintech to advance China’s first agricultural RWA project. By converting agricultural products, land management rights, and future agricultural revenue rights into on-chain digital certificates, this project addresses critical pain points such as poor liquidity and low financing efficiency in agricultural assets. Furthermore, it supports the national rural revitalization strategy and explores novel pathways for the innovative integration of agricultural assets with financial markets.

Leading the Upgrade of the Regional RWA Industry

Beyond launching landmark projects, Eddid Financial continues to drive the ecosystem construction and market development of the RWA sector. The Group’s research department published the “Core Guide to RWA: From Basic Theory to Global Practice,” sharing its leading experience in asset tokenisation to help establish industry standards. Simultaneously, the Group has built a tripartite development model encompassing “Technology + Compliance + Ecosystem”. Internally, it has assembled a dedicated fintech team to advance underlying technologies; externally, it connects core stakeholders, including asset holders, investors, and licensed exchanges, to form a comprehensive RWA service ecosystem that provides clients with all-encompassing, one-stop professional services.

Looking ahead, Eddid Financial will continue to leverage its comprehensive licensing advantages, expert service teams, and robust technical support to drive the digital transformation of a diverse range of real-world assets. The Group is committed to delivering highly flexible, efficient, and compliant RWA services to its clients while actively supporting the standardized and international development of Hong Kong’s digital asset market, thereby cementing Hong Kong’s status as a premier global digital finance hub.

View original content:https://www.prnewswire.com/apac/news-releases/eddid-financial-honored-with-professional-services-award-in-rwa-by-hkct-highlighting-its-leading-edge-in-web3-and-digital-assets-302760892.html

SOURCE Eddid Financial