Vipshop Holdings Limited (VIPS) closed the most recent trading day at $16.30, moving -1.75% from the previous trading session. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 2.2%.Shares of the company have appreciated by 8.64% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 2.9%.The upcoming earnings release of Vipshop H ...

Company Performance - Vipshop Holdings Limited (VIPS) closed at $17.27, reflecting a -1.2% change compared to the previous day, underperforming the S&P 500's 0.34% loss [1] - Over the last month, the company's shares increased by 14.55%, outperforming the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56% [1] Upcoming Earnings - Analysts expect Vipshop Holdings Limited to report earnings of $0.74 per share, indicating a year-over-year growth of 39.62% [1] - The consensus estimate for revenue is $4.67 billion, which represents a 1.34% increase from the prior-year quarter [1] Analyst Estimates and Rankings - Recent changes to analyst estimates for Vipshop Holdings Limited reflect evolving short-term business trends, with positive revisions indicating analyst optimism [2] - The Zacks Rank for Vipshop Holdings Limited is currently 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [2] Valuation Metrics - Vipshop Holdings Limited has a Forward P/E ratio of 6.79, which is significantly lower than the industry's average Forward P/E of 22.92, indicating a valuation discount [3] - The Internet - Delivery Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 96, placing it in the top 39% of all industries [3]

Core Viewpoint - Vipshop Holdings Limited (VIPS) has shown strong stock performance recently, with a +14.6% return over the past month, outperforming the Zacks S&P 500 composite's +3.4% and the Zacks Internet - Delivery Services industry's +5.2% [1] Earnings Estimates - For the current quarter, Vipshop is expected to report earnings of $0.74 per share, reflecting a +39.6% change year-over-year [3] - The consensus earnings estimate for the current fiscal year is $2.30, indicating a +48.4% increase from the previous year [3] - For the next fiscal year, the earnings estimate is $2.58, which represents a +12.2% change from the expected report a year ago [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $4.67 billion, showing a +1.3% year-over-year change [5] - For the current fiscal year, the sales estimate is $15.46 billion, indicating a +1.1% change, while the next fiscal year's estimate is $16.36 billion, reflecting a +5.8% change [5] Last Reported Results - In the last reported quarter, Vipshop generated revenues of $3.12 billion, a +2.7% increase year-over-year [6] - The EPS for the same period was $0.46, compared to $0.36 a year ago [6] - The company reported a revenue surprise of +1.28% against the Zacks Consensus Estimate of $3.08 billion and an EPS surprise of +15% [7] Valuation - Vipshop is rated A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [9] - The analysis of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining the stock's fair value [8] Overall Performance Outlook - Vipshop's Zacks Rank is 3 (Hold), suggesting it may perform in line with the broader market in the near term [10]

Core Viewpoint - Vipshop (VIPS) is a leading specialty online discount retailer in China, operating in a niche market with limited competition, and its current valuation does not reflect its growth potential over the next 2-3 years [2][14]. Company Overview - VIPS offers high-quality branded products at significant discounts, pioneering the online discount retail model in China [2]. - The company primarily sells branded and customized products, focusing on off-season and oversized excess inventory items [4][3]. - VIPS's customer base mainly consists of value-oriented middle-class young Chinese females [4]. Competitive Advantages - VIPS has over 1,200 professional buyers who understand consumer needs, enabling better product procurement [6]. - The company has established long-term relationships with brand partners, allowing for large discounts and a wide range of product selections [6]. - VIPS has a loyal customer base, with 86% of customers being repeat buyers, supported by superior after-sale services [6][7]. Financial Performance - VIPS has shown consistent growth in EBIT and net income, outpacing revenue growth, indicating high-quality growth [7]. - For Q3 2023, VIPS reported a 5.3% increase in total net revenues and a 15.5% increase in Non-GAAP net income [10]. - The number of active customers grew by 3.5%, and total orders increased by 6.9%, leading to a 13.1% growth in GMV [10]. Valuation Insights - The company has completed a $1 billion share repurchase program and authorized an additional $500 million for future repurchases [9]. - Revenue is projected to grow at 5% annually, with an estimated net income of $1.1 billion by 2025 [11][12]. - The current market cap is approximately $9.016 billion, indicating a potential upside of 47.7% based on the target valuation [12].

Financial Data and Key Metrics Changes - Total net revenues for Q3 2023 increased by 5.3% year-over-year to RMB22.8 billion from RMB21.6 billion, driven by growth in active customers and spending in discretionary categories [12] - Gross profit increased by 14.9% year-over-year to RMB5.4 billion, with gross margin rising to 23.6% from 21.7% [12][10] - Non-GAAP operating margin reached an all-time high of 9.1%, while non-GAAP net margin attributable to shareholders maintained at 8.1% [10][15] - Net income attributable to shareholders was RMB1.2 billion, down from RMB1.7 billion in the prior year period, with net margin decreasing to 5.3% from 7.8% [14][15] Business Line Data and Key Metrics Changes - The apparel category outperformed with over 16% growth in GMV year-over-year, contributing significantly to overall sales [4][5] - Active Super VIP members grew by 17% year-over-year, accounting for 45% of online spending in Q3 [5][9] Market Data and Key Metrics Changes - Overall GMV growth during the Double 11 event reached double-digit growth, outperforming the industry average [18] - The company noted a muted performance in October due to abnormal weather conditions, but apparel categories have shown improvement recently [18] Company Strategy and Development Direction - The company aims to be the first online shopping destination for apparel, focusing on merchandise expansion and providing value for money [6][9] - Strategic improvements include enhancing customer shopping experience and quality assurance through collaborations with brand partners [8][9] - The company is committed to long-term growth, emphasizing the importance of customer retention and expanding the Super VIP member base [19][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stable and healthy growth despite a challenging consumption environment [19] - The company anticipates a higher net profit margin in Q4, typically a peak season, and sees potential for further expansion in NP margin due to economies of scale [24][15] Other Important Information - The company has returned approximately US$2 billion to shareholders since April 2021 and remains committed to its share repurchase program [11][25] - As of September 30, 2023, cash and cash equivalents totaled RMB19.6 billion, with short-term investments of RMB451.9 million [15] Q&A Session Summary Question: Latest GMV trend and 2024 outlook - Management noted that GMV performance was muted in early Q4 due to weather but improved during Double 11, with expectations for better performance if winter conditions are favorable [18][19] Question: Gross margin outlook for 2024 - Management indicated that while Q3 gross margin reached a new high, there is limited room for further expansion, but NP margin may still see growth due to operating leverage [23][24] Question: Share buyback program details - The company has utilized around US$448 million of its US$1 billion buyback program and plans to continue executing buybacks based on market conditions [25][33] Question: Strategies to enhance growth and user purchasing frequency - Management emphasized the importance of expanding the merchandising portfolio and improving customer retention, particularly among Super VIP members [28][29][30]

Financial Data and Key Metrics Changes - Total net revenue increased by 13.6% year-over-year to RMB27.9 billion from RMB24.5 billion [12][14] - Non-GAAP net income attributable to Vipshop shareholders increased by 15.8% [12] - Gross profit increased by 23.4% year-over-year to RMB6.2 billion [15] - Gross margin expanded to over 22% for the first time in three years [12][13] - Non-GAAP net margin attributable to Vipshop's shareholders hit a record high at 8.6% [18] Business Line Data and Key Metrics Changes - The apparel category delivered over 30% GMV growth, reflecting broad-based strength [5] - Active Super VIP members increased by 23%, contributing to about 44% of online spending [6][44] Market Data and Key Metrics Changes - The company expects total net revenue for Q3 2023 to be between RMB21.6 billion and RMB22.7 billion, representing a year-over-year increase of approximately 0% to 5% [18] Company Strategy and Development Direction - The company aims to enhance its core competence in offering a rich and diverse selection of greater value [6] - Focus on deepening customer engagement and personalized experiences [10] - Commitment to maintaining quality and healthy growth in both top and bottom lines [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable GMV growth due to improved merchandising capabilities and recovery in discretionary spending [22] - The retail environment is characterized by consumers placing value at the top of their list, presenting opportunities for customer mind share [14][22] Other Important Information - The company repurchased $348.5 million of its ADS during the quarter as part of a $1 billion buyback program [13][39] - Cash and cash equivalents and restricted cash amounted to RMB18.3 billion as of June 30, 2023 [18] Q&A Session Summary Question: Consumer sentiment and GMV trend - Management noted that GMV is tracking in line with guidance of 0% to 5% revenue growth, with expectations for stronger growth in Q4 due to higher ticket sizes for winter apparel [21][22] Question: Improved gross margin sustainability - Management attributed improved gross margin to effective cost control and does not expect significant swings in margins going forward [24][25] Question: Future growth guidance and factors affecting it - The 0% to 5% revenue growth guidance is primarily due to slow momentum in the apparel category during Q3, with expectations for stronger growth in Q4 [30][31] Question: Return rate trends - Management indicated that return rates have been trending up, with Q3 expected to maintain similar levels as Q2, but initiatives are in place to normalize this [32][33] Question: Share buyback strategy - The company does not have a specific philosophy for buybacks but will repurchase shares when they are undervalued [38][39] Question: Super VIP member contribution - As of June 30, there were 6.7 million Super VIP members, contributing to 44% of online spending [44]

[Report Overview](index=1&type=section&id=1.%20Report%20Overview) [Introduction](index=1&type=section&id=1.1.%20Introduction) Vipshop Holdings Limited reported unaudited Q2 2023 financial results, affirming its leading position as a China-based online discount retailer - Company: Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China[1](index=1&type=chunk) - Report Type: Unaudited financial results for the quarter ended June 30, 2023[1](index=1&type=chunk) - Announcement Date: August 18, 2023[1](index=1&type=chunk) [Second Quarter 2023 Highlights](index=1&type=section&id=1.2.%20Second%20Quarter%202023%20Highlights) Vipshop achieved strong Q2 2023 growth in revenues, GMV, gross profit, net income, active customers, and total orders | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | | :-------------------------------- | :------------ | :------------ | :--------- | | Total Net Revenues | 27.9 billion | 24.5 billion | +13.6% | | GMV | 50.6 billion | 40.6 billion | +24.5% | | Gross Profit | 6.2 billion | 5.0 billion | +23.4% | | Net Income (attributable to shareholders) | 2.1 billion | 1.3 billion | +63.5% | | Non-GAAP Net Income (attributable to shareholders) | 2.4 billion | 1.6 billion | +50.8% | | Active Customers | 45.7 million | 41.7 million | +9.6% | | Total Orders | 213.8 million | 186.3 million | +14.7% | [Management Remarks](index=2&type=section&id=1.3.%20Management%20Remarks) CEO Eric Shen attributed strong Q2 performance to merchandising strategy and customer value, while CFO Mark Wang highlighted robust growth, profitability, and shareholder returns - CEO Eric Shen emphasized the success of the merchandising strategy, increased quality supply from core brands, and strong customer preference for value, particularly from Super VIP members, positioning Vipshop as a go-to platform for apparel[4](index=4&type=chunk) - CFO Mark Wang noted strong top-line growth and profitability exceeding expectations, driven by disciplined execution and efficiency, leading to margin expansion. The company also repurchased **US$348.5 million** of ADSs under its **US$1 billion** program[4](index=4&type=chunk)[17](index=17&type=chunk) [Second Quarter 2023 Detailed Financial Performance](index=2&type=section&id=2.%20Second%20Quarter%202023%20Detailed%20Financial%20Performance) [Revenues](index=2&type=section&id=2.1.%20Revenues) Total net revenues for Q2 2023 increased by 13.6% year-over-year to RMB27.9 billion, driven by active customer growth and discretionary spending | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | | :----------------- | :------------ | :------------ | :--------- | | Total Net Revenues | 27.9 billion | 24.5 billion | +13.6% | - Revenue growth was primarily attributable to the growth in active customers and spending driven by the recovery in consumption of discretionary categories[5](index=5&type=chunk) [Gross Profit](index=2&type=section&id=2.2.%20Gross%20Profit) Gross profit for Q2 2023 rose by 23.4% year-over-year to RMB6.2 billion, with gross margin expanding to 22.2% from 20.5% | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | Margin (Q2 2023) | Margin (Q2 2022) | | :----------- | :------------ | :------------ | :--------- | :--------------- | :--------------- | | Gross Profit | 6.2 billion | 5.0 billion | +23.4% | 22.2% | 20.5% | [Operating Expenses](index=2&type=section&id=2.3.%20Operating%20Expenses) Total operating expenses increased by 13.7% year-over-year to RMB4.5 billion, remaining flat at 16.1% of total net revenues, influenced by varied category changes | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | % of Revenue (Q2 2023) | % of Revenue (Q2 2022) | | :--------------------- | :------------ | :------------ | :--------- | :--------------------- | :--------------------- | | Total Operating Expenses | 4.5 billion | 3.9 billion | +13.7% | 16.1% | 16.1% | [Fulfillment Expenses](index=2&type=section&id=2.3.1.%20Fulfillment%20Expenses) Fulfillment expenses increased to RMB2.2 billion, representing 7.8% of total net revenues in Q2 2023 | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | % of Revenue (Q2 2023) | % of Revenue (Q2 2022) | | :----------------- | :------------ | :------------ | :--------- | :--------------------- | :--------------------- | | Fulfillment Expenses | 2.2 billion | 1.8 billion | +22.8% | 7.8% | 7.2% | [Marketing Expenses](index=2&type=section&id=2.3.2.%20Marketing%20Expenses) Marketing expenses rose to RMB892.5 million, accounting for 3.2% of total net revenues in Q2 2023 | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | % of Revenue (Q2 2023) | % of Revenue (Q2 2022) | | :--------------- | :------------ | :------------ | :--------- | :--------------------- | :--------------------- | | Marketing Expenses | 892.5 million | 555.6 million | +60.6% | 3.2% | 2.3% | [Technology and Content Expenses](index=2&type=section&id=2.3.3.%20Technology%20and%20Content%20Expenses) Technology and content expenses increased to RMB443.0 million, representing 1.6% of total net revenues in Q2 2023 | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | % of Revenue (Q2 2023) | % of Revenue (Q2 2022) | | :-------------------------- | :------------ | :------------ | :--------- | :--------------------- | :--------------------- | | Technology & Content Expenses | 443.0 million | 411.8 million | +7.6% | 1.6% | 1.7% | [General and Administrative Expenses](index=3&type=section&id=2.3.4.%20General%20and%20Administrative%20Expenses) General and administrative expenses decreased to RMB963.1 million, representing 3.5% of total net revenues in Q2 2023 | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | % of Revenue (Q2 2023) | % of Revenue (Q2 2022) | | :-------------------------------- | :------------ | :------------ | :--------- | :--------------------- | :--------------------- | | General & Administrative Expenses | 963.1 million | 1.2 billion | -19.4% | 3.5% | 4.9% | [Income from Operations](index=3&type=section&id=2.4.%20Income%20from%20Operations) Income from operations increased by 51.1% to RMB1.9 billion (6.9% margin), and non-GAAP income rose 48.2% to RMB2.3 billion (8.2% margin) | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | Margin (Q2 2023) | Margin (Q2 2022) | | :-------------------------- | :------------ | :------------ | :--------- | :--------------- | :--------------- | | Income from Operations | 1.9 billion | 1.3 billion | +51.1% | 6.9% | 5.2% | | Non-GAAP Income from Operations | 2.3 billion | 1.6 billion | +48.2% | 8.2% | 6.3% | [Net Income](index=3&type=section&id=2.5.%20Net%20Income) Net income attributable to shareholders surged 63.5% to RMB2.1 billion (7.5% margin), and non-GAAP net income rose 50.8% to RMB2.4 billion (8.6% margin) | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | YoY Change | Margin (Q2 2023) | Margin (Q2 2022) | Diluted EPS (Q2 2023) | Diluted EPS (Q2 2022) | | :---------------------------------------- | :------------ | :------------ | :--------- | :--------------- | :--------------- | :-------------------- | :-------------------- | | Net Income (attributable to shareholders) | 2.1 billion | 1.3 billion | +63.5% | 7.5% | 5.2% | 3.75 | 1.97 | | Non-GAAP Net Income (attributable to shareholders) | 2.4 billion | 1.6 billion | +50.8% | 8.6% | 6.5% | 4.30 | 2.45 | [Financial Position and Shareholder Returns](index=4&type=section&id=3.%20Financial%20Position%20and%20Shareholder%20Returns) [Balance Sheet and Cash Flow](index=4&type=section&id=3.1.%20Balance%20Sheet%20and%20Cash%20Flow) As of June 30, 2023, Vipshop maintained strong liquidity with RMB18.3 billion in cash, generating RMB4.1 billion operating cash and RMB2.6 billion free cash flow | Metric | As of June 30, 2023 (RMB) | As of Dec 31, 2022 (RMB) | | :---------------------------------------- | :----------------------- | :----------------------- | | Cash and Cash Equivalents & Restricted Cash | 18.3 billion | 23.1 billion | | Short Term Investments | 1.5 billion | 1.6 billion | | Metric | Q2 2023 (RMB billion) | Q2 2022 (RMB billion) | | :-------------------------------- | :-------------------- | :-------------------- | | Net cash generated from operating activities | 4.05 | 4.47 | | Capital expenditures | -1.66 | -1.31 | | Free cash inflow | 2.59 | 3.26 | [Share Repurchase Program](index=4&type=section&id=3.2.%20Share%20Repurchase%20Program) During Q2 2023, Vipshop repurchased US$348.5 million of ADSs under its US$1 billion program, with US$564.9 million remaining - The company repurchased **US$348.5 million** of its ADSs during the quarter ended June 30, 2023[17](index=17&type=chunk) - As of June 30, 2023, **US$564.9 million** remains unutilized under the current **US$1 billion** share repurchase program, which is effective through March 2025[17](index=17&type=chunk) [Business Outlook and Corporate Information](index=4&type=section&id=4.%20Business%20Outlook%20and%20Corporate%20Information) [Third Quarter 2023 Business Outlook](index=4&type=section&id=4.1.%20Third%20Quarter%202023%20Business%20Outlook) Vipshop forecasts Q3 2023 total net revenues between RMB21.6 billion and RMB22.7 billion, representing 0% to 5% year-over-year growth | Metric | Q3 2023 Forecast (RMB) | YoY Growth | | :----------------- | :--------------------- | :--------- | | Total Net Revenues | 21.6 billion - 22.7 billion | 0% - 5% | - These forecasts reflect the Company's current and preliminary view on market and operational conditions, which is subject to change[18](index=18&type=chunk) [Conference Call Details](index=5&type=section&id=4.2.%20Conference%20Call%20Details) Vipshop held a conference call on August 18, 2023, at 7:30 A.M. U.S. Eastern Time to discuss financial results, with pre-registration and webcast options - A conference call was held on Friday, August 18, 2023, at 7:30 am U.S. Eastern Time to discuss the financial results[21](index=21&type=chunk) - Participants were required to pre-register online to receive dial-in numbers and a unique access PIN. A live webcast and archived webcast were also available[21](index=21&type=chunk) [About Vipshop Holdings Limited](index=5&type=section&id=4.3.%20About%20Vipshop%20Holdings%20Limited) Vipshop is a leading online discount retailer in China, offering discounted branded products and building a growing customer and brand partner base since August 2008 - Vipshop is a leading online discount retailer for brands in China[22](index=22&type=chunk) - The company offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices[22](index=22&type=chunk) - Since its founding in August 2008, Vipshop has rapidly built a sizeable and growing base of customers and brand partners[22](index=22&type=chunk) [Safe Harbor Statement](index=5&type=section&id=4.4.%20Safe%20Harbor%20Statement) This report contains forward-looking statements subject to risks and uncertainties under the U.S. Private Securities Litigation Reform Act of 1995, with no legal obligation to update - This announcement contains forward-looking statements, identifiable by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' and 'estimates'[23](index=23&type=chunk) - These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995 and involve inherent risks and uncertainties[23](index=23&type=chunk) - Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law[23](index=23&type=chunk) [Use of Non-GAAP Financial Measures](index=6&type=section&id=4.5.%20Use%20of%20Non-GAAP%20Financial%20Measures) Vipshop uses non-GAAP financial measures for clearer operating performance insights by excluding non-cash items, acknowledging their analytical limitations - Vipshop uses non-GAAP financial measures (e.g., non-GAAP net income, non-GAAP income from operations, free cash flow) to provide clarity on performance by excluding specific non-cash and non-recurring items[25](index=25&type=chunk) - Non-GAAP adjustments include share-based compensation expenses, impairment loss of investments, investment loss (gain) and revaluation of investments, reconciling items on equity method investments, and tax effects on non-GAAP adjustments[25](index=25&type=chunk) - The company acknowledges that non-GAAP measures have material limitations as analytical tools and are not intended to be considered in isolation from, or as a substitute for, GAAP financial information[25](index=25&type=chunk)[26](index=26&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=5.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Statements of Income and Comprehensive Income](index=7&type=section&id=5.1.%20Statements%20of%20Income%20and%20Comprehensive%20Income) This section presents unaudited condensed consolidated statements of income and comprehensive income for Q2 and H1 2023 and 2022, detailing revenues, costs, and net income | Metric | Q2 2022 (RMB billion) | Q2 2023 (RMB billion) | 6M 2022 (RMB billion) | 6M 2023 (RMB billion) | | :---------------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Total net revenues | 24.54 | 27.88 | 49.78 | 55.42 | | Cost of revenues | -19.51 | -21.68 | -39.75 | -43.31 | | Gross profit | 5.02 | 6.20 | 10.03 | 12.11 | | Total operating expenses | -3.94 | -4.48 | -7.84 | -8.54 | | Income from operations | 1.27 | 1.92 | 2.55 | 3.90 | | Net income attributable to Vipshop's shareholders | 1.28 | 2.10 | 2.38 | 3.96 | | Net earnings per ADS—Diluted | 1.97 | 3.75 | 3.58 | 6.90 | - Other revenues primarily consist of product promotion and online advertising, lease income, fees from third-party merchants, logistics services, loan facilitation, and membership fees[28](index=28&type=chunk)[29](index=29&type=chunk) | Share-based compensation expenses | Q2 2022 (RMB million) | Q2 2023 (RMB million) | 6M 2022 (RMB million) | 6M 2023 (RMB million) | | :------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Fulfillment expenses | 19.36 | 23.17 | 37.63 | 38.54 | | Marketing expenses | 3.84 | 8.38 | 6.20 | 17.71 | | Technology and content expenses | 68.93 | 92.91 | 124.14 | 154.27 | | General and administrative expenses | 190.67 | 257.00 | 352.50 | 475.08 | | Total | 282.80 | 381.46 | 520.47 | 685.60 | [Balance Sheets](index=9&type=section&id=5.2.%20Balance%20Sheets) This section provides unaudited condensed consolidated balance sheets as of December 31, 2022, and June 30, 2023, detailing assets, liabilities, and equity | Metric | Dec 31, 2022 (RMB billion) | June 30, 2023 (RMB billion) | | :---------------------------------------- | :------------------------- | :-------------------------- | | TOTAL ASSETS | 65.48 | 60.49 | | Total current assets | 33.73 | 27.25 | | Total non-current assets | 31.74 | 33.24 | | TOTAL LIABILITIES | 31.40 | 26.77 | | Total current liabilities | 28.53 | 23.80 | | Total non-current liabilities | 2.88 | 2.97 | | Total shareholders' equity | 34.07 | 33.71 | [Reconciliations of GAAP and Non-GAAP Results](index=10&type=section&id=5.3.%20Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) This section details reconciliations between GAAP and Non-GAAP financial measures for income from operations and net income for Q2 and H1 2023 and 2022 | Metric | Q2 2022 (RMB billion) | Q2 2023 (RMB billion) | 6M 2022 (RMB billion) | 6M 2023 (RMB billion) | | :---------------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Income from operations (GAAP) | 1.27 | 1.92 | 2.55 | 3.90 | | Share-based compensation expenses | 0.28 | 0.38 | 0.52 | 0.69 | | Non-GAAP income from operations | 1.55 | 2.30 | 3.07 | 4.59 | | Net income attributable to Vipshop's shareholders (GAAP) | 1.28 | 2.10 | 2.38 | 3.96 | | Non-GAAP net income attributable to Vipshop's shareholders | 1.59 | 2.40 | 3.01 | 4.47 | | Non-GAAP net income per ADS—Diluted | 2.45 | 4.30 | 4.53 | 7.80 | - Reconciling items for Non-GAAP net income include share-based compensation, impairment loss of investments, investment loss (gain) and revaluation of investments excluding dividends, reconciling items on the share of equity method investments, and tax effects on non-GAAP adjustments[33](index=33&type=chunk)

Financial Data and Key Metrics Changes - Total net revenues for Q1 2023 increased by 9.1% year-over-year to RMB27.5 billion from RMB25.2 billion, driven by growth in active customers and spending [13] - Gross profit rose by 17.9% year-over-year to RMB5.9 billion, with gross margin increasing to 21.4% from 19.8% [13] - Non-GAAP net income increased by 46% year-over-year, with net margin reaching a record high of 7.5% [12][16] - Net income attributable to shareholders increased by 69.6% year-over-year to RMB1.9 billion, with net margin increasing to 6.8% from 4.3% [16] Business Line Data and Key Metrics Changes - Apparel-related categories experienced double-digit GMV growth year-over-year, contributing significantly to overall revenue growth [6][11] - The number of active Super VIP members grew by 15% year-over-year, representing about 42% of online spending [6][30] Market Data and Key Metrics Changes - Strong recovery in consumer sentiment observed post-pandemic, particularly in apparel-related categories as social activities rebound [22] - Growth in active customers and average spending noted, with paid membership growth showing strong momentum [6] Company Strategy and Development Direction - The company focuses on enhancing merchandising capabilities, customer engagement, and service excellence to differentiate itself in the market [7][8] - Plans to invest in merchandising talent and optimize product offerings to meet customer demands and preferences [8] - Emphasis on maintaining a high-quality growth strategy while being disciplined in cost management [12][25] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects for the full year, benefiting from the current environment in branded discount retail [24] - Confidence in sustaining profitability despite potential fluctuations, with a focus on high-quality growth rather than just revenue growth [25] - Acknowledgment of increased competition in the e-commerce sector, with a commitment to maintaining a strong value proposition [35] Other Important Information - David Cui announced his departure as CFO, with Mark Wang succeeding him [9][19] - The company fully utilized its $1 billion share repurchase program and announced an increase in the existing buyback program from $500 million to $1 billion [12] Q&A Session Summary Question: Consumer sentiment and GMV trends - Management observed a strong recovery in consumer sentiment post-pandemic, with good momentum in apparel-related categories [22] Question: Long-term growth expectations - Management remains optimistic about growth for the year, benefiting from the current environment and consumer behavior [24] Question: Super VIP member statistics - In Q1 2023, there were 6.3 million active Super VIP members, contributing about 42% of total revenue [30] Question: Competition and marketing expenses - Management plans to focus on core strengths and maintain manageable marketing expenses, with a slight increase expected [35] Question: Growth drivers and GMV vs revenue - Apparel categories showed better performance, with GMV growth outpacing revenue growth due to higher returns in these categories [39] Question: Consumer behavior and consumption downgrade - No clear signs of consumption downgrade were observed; customers continue to spend on apparel and related categories [42] Question: Customer acquisition channels - The company utilizes various marketing channels, including targeted marketing and social media, to enhance customer acquisition [45]

Exhibit 99.1 LOGO Vipshop Reports Unaudited Second Quarter 2023 Financial Results Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 18, 2023 Guangzhou, China, August 18, 2023 — Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China (“Vipshop” or the “Company”), today announced its unaudited financial results for the quarter ended June 30, 2023. Second Quarter 2023 Highlights • Total net revenues for the second quarter of 2023 increased by 13.6% year o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) ...