Vipshop(VIPS) - 2024 Q1 - Quarterly Results

Financial Performance - Total net revenues for Q1 2024 increased by 0.4% year over year to RMB27.6 billion (US$3.8 billion) from RMB27.5 billion in the prior year period[2] - Gross profit for Q1 2024 increased by 10.9% year over year to RMB6.5 billion (US$906.5 million), with a gross margin of 23.7% compared to 21.4% in the prior year period[6] - Net income attributable to shareholders for Q1 2024 increased by 24.6% year over year to RMB2.3 billion (US$320.9 million), resulting in a net margin of 8.4%[11] - Operating income for Q1 2024 increased by 39.0% year over year to RMB2.8 billion (US$382.2 million), with an operating margin of 10.0%[10] - Non-GAAP net income attributable to Vipshop's shareholders for the three months ended March 31, 2024, was RMB 2,759,701, compared to RMB 1,985,692 in the same period of 2023, showing a growth of approximately 38.9%[27] - The company reported a diluted net income per ADS of 4.18 for the three months ended March 31, 2024, compared to 3.16 for the same period in 2023, representing an increase of about 32.5%[29] - Non-GAAP net income attributable to shareholders rose to RMB 2,582,716, a 24.7% increase compared to RMB 2,069,222 from the previous year[35] - Net income attributable to shareholders for the period was RMB 2,316,709, an increase of 24.7% from RMB 1,858,731[35] Customer and Order Metrics - The number of active customers for Q1 2024 was 43.1 million, a slight decrease from 43.7 million in the prior year period[3] - Total orders for Q1 2024 were 178.5 million, down from 184.4 million in the prior year period[3] Cash Flow and Investments - Free cash outflow for Q1 2024 was RMB1.34 billion (US$185.0 million), compared to an outflow of RMB687.1 million in the prior year period[14] - Free cash flow for the period was positively impacted by net cash from operating activities, which is crucial for assessing liquidity and funding future expansions[24] - The company continues to invest in technology and fulfillment infrastructure, with significant allocations to enhance its operational capabilities[24] - The company repurchased US$11.9 million of its ADSs during the quarter as part of its US$1 billion share repurchase program[17] Future Outlook - For Q2 2024, the company expects total net revenues to be between RMB26.5 billion and RMB27.9 billion, representing a year-over-year decrease of approximately 5% to 0%[18] - The company anticipates continued growth in the online discount retail market in China, driven by its strategic initiatives and customer engagement efforts[24] Balance Sheet Highlights - Cash and cash equivalents as of March 31, 2024, were RMB24.6 billion (US$3.4 billion) with short-term investments of RMB2.9 billion (US$402.9 million)[13] - Total assets increased to RMB 72,322,594, up from RMB 70,420,213, representing a growth of 2.7% year-over-year[33] - Total current liabilities increased to RMB 30,624,136, up 7.4% from RMB 28,473,688[33] - Total liabilities increased to RMB 33,762,836, up 10.4% from RMB 31,547,598[33] - Total non-current assets decreased slightly to RMB 34,761,996 from RMB 34,882,874, a decline of 0.3%[33] - Class A and Class B ordinary shares outstanding were 92,900,247 and 92,914,213 as of March 31, 2024, respectively[33] Operating Expenses - Total operating expenses for the three months ended March 31, 2024, were RMB 4,087,399, slightly higher than RMB 4,061,160 in the same period of 2023[27] - Share-based compensation expenses decreased slightly to RMB 295,464 from RMB 304,144, a reduction of 2.3%[35]