Vipshop Reports Unaudited Fourth Quarter and Full Year 2020 Financial Results
Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on February 25, 2021
Guangzhou, China, February 25, 2021 – 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 fourth quarter and full year ended December 31, 2020.
Fourth Quarter and Full Year 2020 Highlights
Total net revenue for the fourth quarter of 2020 increased by 22.0% year over year to RMB35.8
billion (US$5.5 billion) from RMB29.3 billion in the prior year period. Total net revenue for thefull year of 2020 increased by 9.5% year over year to RMB101.9 billion (US$15.6 billion) from
RMB93.0 billion in the prior year.



GMV1 for the fourth quarter of 2020 increased by 25% year over year to RMB59.3 billion from
RMB47.6 billion in the prior year period. GMV for the full year of 2020 increased by 11% year
over year to RMB165.0 billion from RMB148.2 billion in the prior year.

Gross profit for the fourth quarter of 2020 increased by 12.1% year over year to RMB7.8 billion(US$1.2 billion) from RMB7.0 billion in the prior year period. Gross profit for the full year of2020 increased by 2.9% year over year to RMB21.3 billion (US$3.3 billion) from RMB20.7
billion in the prior year.



Net income attributable to Vipshop’s shareholders for the fourth quarter of 2020 increased by
67.7% year over year to RMB2.4 billion (US$374.1 million) from RMB1.5 billion in the prioryear period. Net income attributable to Vipshop’s shareholders for the full year of 2020
increased by 47.1% year over year to RMB5.9 billion (US$905.3 million) from RMB4.0 billion
in the prior year.

Non-GAAP net income attributable to Vipshop’s shareholders2 for the fourth quarter of 2020
increased by 33.4% year over year to RMB2.6 billion (US$394.8 million) from RMB1.9 billion
in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders for thefull year of 2020 increased by 25.0% year over year to RMB6.3 billion (US$960.7 million) from
RMB5.0 billion in the prior year.

1“Gross merchandise value (GMV)” is defined as the total Renminbi value of all products and services sold through theCompany’s online sales business, online marketplace platform, offline stores, and Shan Shan Outlets during the relevant period,
including through the Company’s websites and mobile apps, third-party websites and mobile apps, Vipshop offline stores andVipmaxx offline stores, as well as Shan Shan Outlets that were fulfilled by either the Company or its third-party merchants,
regardless of whether or not the goods 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 andcanceled pre-shipment and only included orders that left the Company’s or other third-party vendors’ warehouses.
2
Non-GAAP net income attributable to Vipshop's shareholders is a non-GAAP financial measure, which is defined as net income
attributable to Vipshop's shareholders excluding (i) share-based compensation expenses, (ii) tax effect of share-based
compensation expenses, (iii) impairment loss of investments, (iv) amortization of intangible assets resulting from businessacquisitions, (v) tax effect of amortization of intangible assets resulting from business acquisitions, (vi) investment gain andrevaluation of investments excluding dividends, (vii) tax effect of investment gain and revaluation of investments excluding
dividends, and (viii) share of loss in investment of limited partnerships that are accounted for as equity method investees.

1The number of active customers3 for the fourth quarter of 2020 increased by 37% year overyear to 53.0 million from 38.6 million in the prior year period. The number of active customers
for the full year of 2020 increased by 22% year over year to 83.9 million from 69.0 million in theprior year.

Total orders4 for the fourth quarter of 2020 increased by 30% year over year to 227.3 million
from 174.6 million in the prior year period. Total orders for the full year of 2020 increased by
22% year over year to 692.4 million from 566.3 million in the prior year.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “We are delighted to havefinished the year of 2020 with strong financial and operational results in the fourth quarter. The growth in
our number of active customers in the fourth quarter of 2020 continued to accelerate, reaching 37% year
over year. Our GMV in the quarter has also shown strong growth momentum, with total GMV increasing
by 25% year over year to 59.3 billion from 47.6 billion in the prior year period, driven by a strong 28%
year-over-year increase in apparel-related GMV. We are glad that our customers, old and new, arerecognizing the value of our differentiated offerings, as exemplified by a 10% year-over-year increase in
our conversion rate in the fourth quarter of 2020. Looking ahead, we will continue to be keenly focusedon our merchandising strategy, while at the same time, enhancing our big data and technologicalcapabilities to cater to the diversified needs of a broader customer base, particularly in our core
categories, aiming to further expand our market share in China’s discount retail market.”
Mr. David Cui, Chief Financial Officer of Vipshop, further commented, “We continued to deliveraccelerated topline growth in the fourth quarter of 2020, driven by the strong growth in our number ofactive customers, of which new customers grew even faster on a year-over-year basis. In addition, our net
income grew faster than our revenues, demonstrating enhanced profitability, and we generated robust free
cash inflow for the trailing twelve months ended December 31, 2020. We believe these successes result
from our focus on offering our customers desirable merchandises at deep discounts, while providing themwith superior shopping experience. We are committed to continuing to offer value to our customers while
helping our brand partners grow their business and monetize their excess inventory quickly andeffectively, ultimately generating sustainable return for our shareholders.”
Fourth Quarter 2020 Financial Results
REVENUE
Total net revenue for the fourth quarter of 2020 increased by 22.0% year over year to RMB35.8 billion(US$5.5 billion) from RMB29.3 billion in the prior year period, primarily driven by the growth in thenumber of total active customers.
GROSS PROFIT

3“Active customers” is defined as registered members who have purchased from the Company’s online sales business or theCompany’s online marketplace platforms at least once during the relevant period.
4“Total orders” is defined as the total number of orders placed during the relevant period, including the orders for products andservices 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.

2

Gross profit for the fourth quarter of 2020 increased by 12.1% year over year to RMB7.8 billion (US$1.2
billion) from RMB7.0 billion in the prior year period. Gross margin for the fourth quarter of 2020 was
21.9%, as compared with 23.9% in the prior year period.
OPERATING EXPENSES
Total operating expenses for the fourth quarter of 2020 were RMB5.4 billion (US$830.9 million), as
compared with RMB5.4 billion in the prior year period. As a percentage of total net revenue, total
operating expenses for the fourth quarter of 2020 decreased to 15.2% from 18.3% in the prior year period.

•

Fulfillment expenses for the fourth quarter of 2020 were RMB2.2 billion (US$335.6 million), as
compared with RMB2.1 billion in the prior year period. As a percentage of total net revenue,
fulfillment expenses for the fourth quarter of 2020 decreased to 6.1% from 7.0% in the prior year
period, primarily attributable to the change in fulfillment logistic arrangement.

•

Marketing expenses for the fourth quarter of 2020 were RMB1.7 billion (US$261.1 million), as
compared with RMB944.1 million in the prior year period. As a percentage of total net revenue,
marketing expenses for the fourth quarter of 2020 were 4.8%, as compared with 3.2% in theprior year period, primarily attributable to increased investment in customer acquisition.

•

Technology and content expenses for the fourth quarter of 2020 decreased to RMB272.4 million(US$41.7 million) from RMB362.2 million in the prior year period. As a percentage of total net
revenue, technology and content expenses for the fourth quarter of 2020 decreased to 0.8% from
1.2% in the prior year period.

•

General and administrative expenses for the fourth quarter of 2020 were RMB1.3 billion(US$192.5 million), as compared with RMB1.7 billion in the prior year period. As a percentage
of total net revenue, general and administrative expenses for the fourth quarter of 2020 decreased
to 3.5% from 5.9% in the prior year period.

INCOME FROM OPERATIONS
Income from operations for the fourth quarter of 2020 increased by 45.9% year over year to RMB2.6
billion (US$396.9 million) from RMB1.8 billion in the prior year period. Operating margin for the fourth
quarter of 2020 increased to 7.2% from 6.1% in the prior year period.
Non-GAAP income from operations 5 for the fourth quarter of 2020, which excluded share-based
compensation expenses and amortization of intangible assets resulting from business acquisitions,increased by 30.2% year over year to RMB2.8 billion (US$432.1 million) from RMB2.2 billion in theprior year period. Non-GAAP operating income margin6 for the fourth quarter of 2020 increased to 7.9%
from 7.4% in the prior year period.

5

Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding
share-based compensation expenses and amortization of intangible assets resulting from business acquisitions.
6
Non-GAAP operating income margin is a non-GAAP financial measure, which is defined as non-GAAP income fromoperations as a percentage of total net revenues.

3

NET INCOME
Net income attributable to Vipshop’s shareholders for the fourth quarter of 2020 increased by 67.7% year
over year to RMB2.4 billion (US$374.1 million) from RMB1.5 billion in the prior year period. Net
margin attributable to Vipshop’s shareholders for the fourth quarter of 2020 increased to 6.8% from 5.0%
in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS 7 for the
fourth quarter of 2020 increased to RMB3.51 (US$0.54) from RMB2.14 in the prior year period.
Non-GAAP net income attributable to Vipshop’s shareholders for the fourth quarter of 2020, which
excluded (i) share-based compensation expenses, (ii) tax effect of share-based compensation expenses,(iii) impairment loss of investments, (iv) amortization of intangible assets resulting from businessacquisitions, (v) tax effect of amortization of intangible assets resulting from business acquisitions, (vi)investment gain and revaluation of investments excluding dividends, (vii) tax effect of investment gain
and revaluation of investments excluding dividends, and (viii) share of loss in investment of limited
partnerships that are accounted for as equity method investees, increased by 33.4% year over year to
RMB2.6 billion (US$394.8 million) from RMB1.9 billion in the prior year period. Non-GAAP net margin
attributable to Vipshop’s shareholders8 for the fourth quarter of 2020 increased to 7.2% from 6.6% in theprior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS9 for the
fourth quarter of 2020 increased to RMB3.70 (US$0.57) from RMB2.84 in the prior year period.
For the quarter ended December 31, 2020, the Company’s weighted average number of ADSs used incomputing diluted income per ADS was 696,098,755.
BALANCE SHEET AND CASH FLOWAs of December 31, 2020, the Company had cash and cash equivalents and restricted cash of RMB12.8
billion (US$2.0 billion) and short term investments of RMB7.3 billion (US$1.1 billion).
For the quarter ended December 31, 2020, net cash from operating activities was RMB7.2 billion (US$1.1
billion), and free cash flow10, a non-GAAP measurement of liquidity, was as follows:
For the three months ended

Net cash from operating activities
Add: Net impact from Internet financing
activities11

Dec 31, 2019

Dec 31, 2020

Dec 31, 2020

RMB’000
6,091,889

RMB’000
7,227,682

US$’000
1,107,691(1,231,955)(90,565)(13,880)

7“ADS” means American depositary share, each of which represents 0.2 Class A ordinary share.
Non-GAAP net margin attributable to Vipshop’s shareholders is a non-GAAP financial measure, which is defined as nonGAAP 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 isdefined as non-GAAP net income attributable to Vipshop's shareholders, divided by the weighted average number of diluted
ADS outstanding for computing diluted earnings per ADS.
10Free cash flow is a non-GAAP financial measure, which is defined as net cash from (used in) operating activities adding backthe impact from Internet financing activities and less capital expenditures, which include purchase and deposits of property andequipment and land use rights, and purchase of other assets.
84

Less: Capital expenditures
Free cash inflow(1,135,856)
3,724,078(499,787)
6,637,330(76,596)
1,017,215

Full Year 2020 Financial Results
Total net revenue for the full year of 2020 increased by 9.5% year over year to RMB101.9 billion(US$15.6 billion) from RMB93.0 billion in the prior year, primarily driven by the growth in the numberof total active customers.
Gross profit for the full year of 2020 increased by 2.9% year over year to RMB21.3 billion (US$3.3
billion) from RMB20.7 billion in the prior year. Gross margin for the full year of 2020 was 20.9%, ascompared with 22.2% in the prior year.
Income from operations for the full year of 2020 increased by 22.8% year over year to RMB5.9 billion(US$898.1 million) from RMB4.8 billion in the prior year. Operating margin for the full year of 2020
increased to 5.8% from 5.1% in the prior year.
Non-GAAP income from operations for the full year of 2020, which excluded share-based compensation
expenses and amortization of intangible assets resulting from business acquisitions, increased by 19.0%
year over year to RMB6.8 billion (US$1.0 billion) from RMB5.8 billion in the prior year. Non-GAAP
operating income margin for the full year of 2020 increased to 6.7% from 6.2% in the prior year.
Net income attributable to Vipshop’s shareholders for the full year of 2020 increased by 47.1% year overyear to RMB5.9 billion (US$905.3 million) from RMB4.0 billion in the prior year. Net margin
attributable to Vipshop’s shareholders for the full year of 2020 increased to 5.8% from 4.3% in the prioryear. Net income attributable to Vipshop’s shareholders per diluted ADS for the full year of 2020
increased to RMB8.56 (US$1.31) from RMB5.92 in the prior year.
Non-GAAP net income attributable to Vipshop’s shareholders for the full year of 2020, which excluded(i) share-based compensation expenses, (ii) tax effect of share-based compensation expenses, (iii)
impairment loss of investments, (iv) amortization of intangible assets resulting from businessacquisitions, (v) tax effect of amortization of intangible assets resulting from business acquisitions, (vi)investment gain and revaluation of investments excluding dividends, (vii) tax effect of investment gain
and revaluation of investments excluding dividends, and (viii) share of loss in investment of limited
partnership that is accounted for as an equity method investee, increased by 25.0% year over year to
RMB6.3 billion (US$960.7 million) from RMB5.0 billion in the prior year. Non-GAAP net margin
attributable to Vipshop’s shareholders for the full year of 2020 increased to 6.2% from 5.4% in the prioryear. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS for the full year of2020 increased to RMB9.08 (US$1.39) from RMB7.38 in the prior year.
For the full year of 2020, the Company’s weighted average number of ADSs used in computing diluted
earnings per ADS was 690,180,050.

11

Net impact from Internet financing activities represents net cash flow relating to the Company’s financial products, which areprimarily consumer financing and supplier financing that the Company provides to its customers and suppliers.

5For the full year of 2020, net cash from operating activities was RMB11.8 billion (US$1.8 billion), andfree cash flow, a non-GAAP measurement of liquidity, was as follows:

For the trailing twelve months ended

Net cash from operating activities
Add: Net impact from Internet financing
activities11
Less: Capital expenditures
Free cash inflow

Dec 31, 2019

Dec 31, 2020

Dec 31, 2020

RMB’000
12,290,183

RMB’000
11,820,444

US$’000
1,811,562(5,542,083)(4,277,673)
2,470,427(1,226,467)(2,271,896)
8,322,081(187,964)(348,183)
1,275,415

Business Outlook
For the first quarter of 2021, the Company expects its total net revenue to be between RMB27.2 billion
and RMB28.2 billion, representing a year-over-year growth rate of approximately 45% to 50%. 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 RMB6.5250 to US$1.00, the effective noon buying
rate on December 31, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. No
representation is made that the Renminbi amounts could have been, or could be, converted, realized or
settled into U.S. dollars at that rate on December 31, 2020, or at any other rate.
Conference Call Information
The Company will hold a conference call on Thursday, February 25, 2021 at 7:30 am Eastern Time or
8:30 pm Beijing Time to discuss its financial results and operating performance for the fourth quarter andfull year of 2020.
All participants wishing to join the conference call must pre-register online using the link provided below.
Once pre-registration has been complete, participants will receive dial-in numbers, a passcode, and aunique registrant ID. To join the conference, simply dial the number in the calendar invite you receive
after pre-registration, enter the passcode followed by your PIN, and you will join the conference instantly.
Conference ID
Registration Link

#2154516
http://apac.directeventreg.com/registration/event/2154516

The replay will be accessible through March 5, 2021 by dialing the following numbers:

6United States Toll Free:
International:
Conference ID:+1-855-452-5696+61-2-8199-0299#2154516

A live and archived webcast of the conference call will also be available at the Company’s investor
relations website at http://ir.vip.com.
About Vipshop Holdings Limited
Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers highquality and popular branded products to consumers throughout China at a significant discount to retailprices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing baseof customers and brand partners. For more information, please visit www.vip.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safeharbor” 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 andquotations 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 reportto 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 fromthose contained in any forward-looking statement, including but not limited to the following: Vipshop’s
goals and strategies; Vipshop’s future business development, results of operations and financial condition;
the expected growth of the online discount retail market in China; Vipshop’s ability to attract customers
and brand partners and further enhance its brand recognition; Vipshop’s expectations regarding demand
for and market acceptance of flash sales products and services; competition in the discount retail industry;
the potential impact of the COVID-19 to Vipshop’s business operations and the economy in China andelsewhere 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 dateof 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 requiredby 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 toVipshop’s shareholders per diluted ADS, non-GAAP income from operations, non-GAAP operating
7

income margin, non-GAAP net margin attributable to Vipshop’s shareholders, and free cash flow, each ofwhich is a non-GAAP financial measure. Non-GAAP net income attributable to Vipshop’s shareholders
is net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses,(ii) tax effect of share-based compensation expenses, (iii) impairment loss of investments, (iv)
amortization of intangible assets resulting from business acquisitions, (v) tax effect of amortization of
intangible assets resulting from business acquisitions, (vi) investment gain and revaluation of investments
excluding dividends, (vii) tax effect of investment gain and revaluation of investments excluding
dividends, and (viii) share of loss in investment of limited partnerships that are accounted for as equity
method investees. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS iscomputed 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 andamortization of intangible assets resulting from business acquisitions. Non-GAAP operating income
margin is non-GAAP income from operations as a percentage of total net revenue. Non-GAAP net margin
attributable to Vipshop’s shareholders is non-GAAP net income attributable to Vipshop's shareholders as
a percentage of total net revenue. Free cash flow is net cash from operating activities adding back the
impact from Internet financing activities and less capital expenditures, which include purchase anddeposits of property and equipment and land use rights, and purchase of other assets. Impact from Internet
financing activities added back or deducted from free cash flow contains changes in the balances offinancial products, which are primarily consumer financing and supplier financing that the Company
provides to customers and suppliers. The Company believes that separate analysis and exclusion of the
non-cash impact of (a) share-based compensation, (b) impairment loss of investments, (c) amortization of
intangible assets resulting from business acquisitions, (d) investment gain and revaluation of investments
excluding dividends, and (e) share of loss in investment of limited partnerships that are accounted for as
equity method investees 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 (1) non-cash share-based compensation expenses, (2) impairment lossof investments, (3) amortization of intangible assets resulting from business acquisitions, (4) investment
gain and revaluation of investments excluding dividends, and (5) share of loss in investment of limited
partnerships that are accounted for as equity method investees. Free cash flow enables the Company toassess liquidity and cash flow, taking into account the impact from Internet financing activities and thefinancial resources needed for the expansion of fulfillment infrastructure and technology platform. Sharebased compensation expenses and amortization of intangible assets have been and will continue to besignificant 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 isthat 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 offree 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.

8

Investor Relations Contact
Jessie Fan
Tel: +86 (20) 2233-0732
Email: IR@vipshop.com

Vipshop Holdings Limited
Unaudited Condensed Consolidated Statements of Income and Comprehensive
Income(In thousands, except for share and per share data)
Three Months Ended
DecembDecembeDecembeer
r 31,2019
r 31,2020
31,2020

December 31,2019

December 31,2020

December 31,2020

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

28,062,30
6

34,111,06
7

5,227,750

Cost of revenues

1,663,874
35,774,94
1(27,927,5
15)

Gross profit

7,000,730

7,847,426

255,000
5,482,750(4,280,079)
1,202,671

97,449,7
12
4,408,77
7
101,858,489(80,573,1
81)
21,285,3
08

14,934,8
22

1,256,798
29,319,10
4(22,318,374)

88,721,3
11
4,273,10
7
92,994,4
18(72,314,1
90)
20,680,2
28

Fulfillment expenses (2)(2,052,91
6)

Marketing expenses(944,100)(2,189,58
5)(1,703,58
2)(335,569)(261,085)

Technology and content expenses(362,160)(1,732,02
0)(272,379)(1,256,11
5)(41,744)(192,508)(7,317,70
6)(3,323,92
7)(1,568,10
7)(4,064,26
4)(6,878,99
1)(4,284,27
4)(1,221,26
4)(3,748,54
8)

Total operating expenses(278,263)(5,369,45
9)0(5,421,66
1)0(830,906)(278,263)(16,552,2
67)

0(16,133,077)

0(2,472,50
2)Other operating income

144,162

164,011

25,136

2,589,776

396,901

707,855
5,860,08
6

108,483

1,775,433

645,413
4,773,37
4

Product revenues
Other revenues (1)Total net revenues

Twelve Months Ended

675,675
15,610,4
97(12,348,380)
3,262,117

Operating expenses:

General and administrative expenses
Goodwill impairment loss

Income from operations
Investment gain and revaluation of
investments(1,054,25
1)(656,594)(187,167)(574,490)

898,098(30,529)200,276

30,694

166,932

980,868

150,325

Impairment loss of investments(43,973)(38,114)(5,841)(127,589)(43,160)(6,614)

Interest expense(14,740)(6,269)(961)(86,004)(67,357)(10,323)

Interest income

70,287

155,255

23,794217,027

449,017

68,815

Foreign exchange loss
Income before income tax expense and shareof gain of equity method investees(35,162)(98,021)(15,022)

1,721,316

2,802,903

429,565(935)
4,942,80
5(24,536)
1,075,76
5

Income tax expenses(313,802)(384,660)(58,952)(983,554)(160,097)
7,019,35
7(1,130,01
6)

2,488

29,4684,516

1,410,002

2,447,711

375,129

27,182
3,986,43
330,0155,919,35
6

Share of gain of equity method investees
Net income(173,183)
4,600
907,1829

Net loss(income) attributable to noncontrolling interests
Net income attributable to Vipshop's
shareholders

45,556(6,898)(1,057)374,072

30,3994,016,83
2(12,399)
5,906,95
7

1,455,558

2,440,813

133,954,3
20
135,976,4
08(1,900)905,282

135,646,2
47
139,219,7
51

135,646,247
139,219,751

133,524,129
136,081,415

135,077,790
138,036,010

135,077,790
138,036,
010

10.87

17.99

2.76

30.08

43.73

6.70

10.70

17.53

2.69

29.58

42.79

6.56

2.17

3.60

0.55

6.02

8.75

1.34

2.14

3.51

0.54

5.92

8.56

1.31

Shares used in calculating earnings per share(3):
Weighted average number of Class A andClass B ordinary shares:—Basic—Diluted
Net earnings per Class A and Class B
ordinary share
Net income attributable to Vipshop's
shareholders——Basic
Net income attributable to Vipshop's
shareholders——Diluted
Net earnings per ADS (1 ordinary shareequals to 5 ADSs)
Net income attributable to Vipshop's
shareholders——Basic
Net income attributable to Vipshop's
shareholders——Diluted(1) Other revenues primarily consist of revenues from third-party logistics
services, product promotion and online advertising, fees charged to thirdparty
merchants which the Company provides platform access for sales of theirproducts, interest income from microcredit and consumer financing
services,
inventory and warehouse management services to certain suppliers, loan
facilitation service income, and lease income earned from the Shan Shan
Outlets.

(2) Fulfillment expenses include shipping and handling expenses, whichamounted RMB 1.36 billion and RMB 1.5 billion in the three month
periods
ended December 31,2019 and December 31,2020, 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.

(1) Other revenues primarily consist ofrevenues from third-party logistics
services, product promotion andonline advertising, fees charged tothirdparty merchants which the Company
provides platform access for sales of
their products, interest income frommicrocredit and consumer financing
services, inventory and warehousemanagement services to certain
suppliers, loan facilitation service
income, and lease income earned
fromthe Shan Shan Outlets.
(2) Fulfillment expenses include
shipping and handling expenses,
whichamounted RMB 4.63 billion and RMB
4.5 billion in the twelve month
periods ended December 31,2019
and 2020, respectively.
(3) Authorized share capital is reclassified and re-designated into
Class A
ordinary shares and Class B ordinary
shares, with each Class A ordinary
share being entitled to one vote andeach Class B ordinary share being e
ntitled to ten votes on all matters thatare subject to shareholder vote.

10Three Months Ended
DecembDecembeDecembeer
r 31,2019
r 31,2020
31,2020

Twelve Months Ended
December 31,2019

December 31,2020

December 31,2020

RMB'000

RMB'000

USD'000

RMB'000

RMB'000

USD'000

Fulfillment expenses

24,04423,025

3,529

112,683

100,486

15,400Marketing expenses

1,725

3,529

541

35,038

16,534

2,534

Technology and content expenses

8,098

20,5983,157

180,493

152,234

23,331

General and administrative expenses

65,315

176,701

27,081

359,869

681,794

104,490

Total

99,182

223,853

34,308688,083

951,048

145,755

Share-based compensation expenses areincluded in the operating expenses as follows:

Vipshop Holdings Limited
Unaudited Condensed Consolidated Balance Sheets(In thousands, except for share and per share data)
December
31,2019

December
31,2020

December
31,2020

RMB'000

RMB'000

USD'000

CURRENT ASSETS
Cash and cash equivalents
Restricted cash
Short term investments
Accounts receivable, net
Amounts due from related parties
Other receivables and prepayments,net
Loan receivables,net
Inventories
Assets held for sale
Total current assets

6,573,808
1,145,477
3,052,726
1,295,766
47,964
2,897,893
306,115
7,708,292
0
23,028,041

11,995,415
815,906
7,328,719
334,529
333,539
2,286,359
27,258
7,642,509
408,748
31,172,982

1,838,378
125,043
1,123,175
51,26951,117350,400
4,177
1,171,266
62,643
4,777,468

NON-CURRENT ASSETS
Property and equipment, net
Deposits for property and equipment
Land use rights, net
Intangible assets, net
Investment in equity method investees
Other investments
Other long-term assets
Amounts due from related party-non current
Goodwill
Deferred tax assets, net
Operating lease right-of-use assets
Total non-current assets
TOTAL ASSETS

11,256,810
101,800
5,541,108
337,310
3,112,952
2,002,756
608,073
102,000
236,711539,561
1,715,556
25,554,637
48,582,678

13,584,459
73,7186,062,792
333,022
1,949,787
2,861,034
100,3280593,662
628,267
1,580,763
27,767,832
58,940,814

2,081,909
11,298929,164
51,038298,818
438,472
15,376
090,98396,286242,263
4,255,607
9,033,075

1,093,645
13,792,200
1,233,165
6,534,575
532,788

1,043,426
15,191,313
1,558,891
7,696,996
444,100

159,9122,328,171
238,911
1,179,616
68,061ASSETSLIABILTIES AND EQUITYCURRENT LIABILITIESShort term loans
Accounts payable
Advance from customers
Accrued expenses and other current liabilities
Amounts due to related parties

11Deferred income
Operating lease liabilities
Total current liabilities

405,994
333,268
23,925,635

334,431299,791
26,568,948

51,25445,945
4,071,870

NON-CURRENT LIABILITIESLong term loans
Deferred tax liability
Deferred income-non current
Operating lease liabilities
Other long term liabilities
Total non-current liabilities
TOTAL LIABILITIES

64,515
165,098
782,068
1,395,665
02,407,346
26,332,981

0
432,995
1,070,891
1,360,946
121,245
2,986,077
29,555,025

066,359164,121208,574
18,582457,636
4,529,506

76

77

12

11
9,959,497
11,924,228(56,656)
422,541
22,249,697
48,582,678

11
10,816,185
17,740,415(58,954)
888,055
29,385,789
58,940,814

2
1,657,653
2,718,838(9,036)
136,100
4,503,569
9,033,075

EQUITY:Class A ordinary shares (US$0.0001 par value, 483,489,642 sharesauthorized, and 117,584,362
and 119,223,484 shares issued and outstanding as of December 31, 2019and December
31,2020, respectively)
Class B ordinary shares (US$0.0001 par value, 16,510,358 sharesauthorized, and 16,510,358
and 16,510,358 shares issued and outstanding as of December 31, 2019and December
31,2020, respectively)
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Non-controlling interests
Total shareholders' equity
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

Vipshop Holdings Limited
Reconciliations of GAAP and Non-GAAP Results
Three Months Ended
DecembeDecembeDecember 31,2019
r 31,2020
r 31,2020

Twelve Months Ended
DecembeDecembeDecember 31,2019
r 31,2020
r 31,2020

RMB'000
1,775,43
3

RMB'000
2,589,77
6

USD'000

RMB'000
5,860,08
6

USD'000

396,901

RMB'000
4,773,37
4

Share-based compensation expenses

99,182

223,853

34,308688,083

951,048

145,755

Goodwill impairment loss
Amortization of intangible assets resulting frombusiness acquisitions

278,263--

278,263

-

-

5,896
2,819,52
5

904

Non-GAAP income from operations

13,0322,165,91
0432,113

14,4685,754,18
8

35,377
6,846,51
1

5,422
1,049,27
5

Net income

1,410,00
2

2,447,71
1

375,129

3,986,43
3

5,919,35
6

907,182

Share-based compensation expenses

99,182

223,853

34,308688,083

951,048

145,755

Goodwill impairment loss

278,263--

278,263--

Impairment loss of investments
Investment gain and revaluation of investments
excluding dividends

43,973

38,114

5,841

127,589

43,1606,614

39,998(22,269)(3,413)(155,390)(668,568)(102,462)

Share of loss in investment of limited

28,4594,085

626

41,707

83,404

12,782

Income from operations

898,09812

partnerships that are accounted for as anequity method
investeeTax effect of investment gain and revaluationof investments excluding dividends
Tax effect of share-based compensation
expenses
Amortization of intangible assets resulting frombusiness acquisitions
Tax effect of amortization of intangible assets
resulting from business acquisitions(6,483)(9,253)(1,418)22,58829,5134,523

0(103,438)(15,853)

0(103,438)(15,853)

13,032

5,896

904

14,46835,377

5,422(1,474)
2,583,225(226)395,898(3,617)5,000,12
4(8,844)
6,281,00
8(1,355)

Non-GAAP net income(3,258)
1,903,16
8

962,608

Net income attributable to Vipshop's
shareholders

1,455,5582,440,81
3

374,072

4,016,832

5,906,95
7905,282

Share-based compensation expenses

99,182

223,853

34,308688,083

951,048

145,755

Goodwill impairment loss

261,259--

261,259--

Impairment loss of investments
Investment gain and revaluation of investments
excluding dividends
Share of loss in investment of limited
partnerships that are accounted for as anequity method
investeeTax effect of investment gain and revaluationof investments excluding dividends
Tax effect of share-based compensation
expenses
Amortization of intangible assets resulting frombusiness acquisitions
Tax effect of amortization of intangible assets
resulting from business acquisitions
Non-GAAP net income attributable toVipshop's shareholders

43,973

38,114

5,841

127,589

43,1606,614

39,998(22,269)(3,413)(155,390)(668,568)(102,462)

28,4594,085

626

41,707

83,404

12,782(6,483)(9,253)(1,418)22,58829,5134,523

0(103,438)(15,853)

0(103,438)(15,853)

12,6395,896

904

14,04535,377

5,422(3,160)1,931,42
5(1,474)
2,576,327(226)(8,844)
6,268,60
9(1,355)394,841(3,511)
5,013,20
2

960,708

133,954,320
135,976,408

135,646,247
139,219,751

135,646,247
139,219,751

133,524,129
136,081,415

135,077,790
138,036,010

135,077,790
138,036,
010

14.42

18.99

2.91

37.55

46.41

7.11

14.20

18.51

2.84

36.91

45.41

6.96

2.88

3.80

0.58

7.51

9.28

1.42

2.84

3.70

0.57

7.38

9.08

1.39

Shares used in calculating earnings per share:
Weighted average number of Class A andClass B ordinary shares:—Basic—Diluted
Non-GAAP net income per Class A and Class
B ordinary share
Non-GAAP net income attributable toVipshop's shareholders——Basic
Non-GAAP net income attributable toVipshop's shareholders——Diluted
Non-GAAP net income per ADS (1 ordinary
share equal to 5 ADSs)
Non-GAAP net income attributable toVipshop's shareholders——Basic
Non-GAAP net income attributable toVipshop's shareholders——Diluted

13