Vipshop’s net profit in the third quarter was US $97.5 million, down 21.6% year-on-year

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Tencent technology news on November 18, vipshop (NYSE securities code: VIPs) released its unaudited financial report for the third quarter ended September 30, 2021 before Thursday. According to the financial report, the total net revenue of vipshop in the third quarter was 24.9 billion yuan (about US $3.9 billion), a year-on-year increase of 7.5%; The net profit attributable to vipshop shareholders was 628.4 million yuan (about US $97.5 million), a year-on-year decrease of 21.6%.
Summary of third quarter results:
–Vipshop’s total net revenue in the third quarter reached 24.9 billion yuan (about US $3.9 billion), an increase of 7.5% over 23.2 billion yuan in the same period last year.
–Vipshop had 43.9 million active users in the third quarter, compared with 43.4 million in the same period last year.
–Vipshop’s total orders in the third quarter were 172.9 million, compared with 172.8 million in the same period last year.
–Vipshop’s total commodity transactions in the third quarter were 40.2 billion yuan, an increase of 5% over 38.3 billion yuan in the same period last year.
–Vipshop’s gross profit in the third quarter was 4.8 billion yuan (about US $751.4 million), compared with 4.9 billion yuan in the same period last year.
–In the third quarter, the net profit attributable to vipshop shareholders was 628.4 million yuan (contract and US $97.5 million), down 21.6% from 1.244 billion yuan in the same period last year.
–Not in accordance with U.S. GAAP, the net profit attributable to vipshop shareholders in the third quarter was RMB 1 billion (contract US $159.6 million), compared with RMB 1.4 billion in the same period last year.
Executive comments
Shen Ya, chairman and CEO of vipshop, said, “In the third quarter of 2021, our business showed resilience in a challenging macro and retail environment. Our main operating indicators continued to improve year by year, the total number of active customers increased to 43.9 million, and the total amount of commodity transactions reached 40.2 billion yuan. We were deeply encouraged by the development achieved through the implementation of our marketing strategy, which enabled our core brand partners to improve High sales efficiency while expanding our high-value customer base. We will continue to strengthen our position as a leading brand discount retailer and our value proposition to partners and customers to drive solid, high-quality and sustainable business growth. ”
Cui Dawei, chief financial officer of vipshop, said: “We achieved revenue growth in line with expectations, which was mainly driven by the solid contributions of high-value customers, who helped to improve the overall average revenue of each user. Our profitability remained stable because we were more self disciplined in spending and focused on improving operational efficiency. Looking ahead, we will continue to promote business collaboration at the commercial and operational ends to Achieve stable financial performance. ”
financial analysis
revenue
Vipshop’s total net revenue in the third quarter reached 24.9 billion yuan (about US $3.9 billion), an increase of 7.5% compared with 23.2 billion yuan in the same period last year. The year-on-year growth of vipshop’s total net revenue in the third quarter was mainly due to the increase of average revenue per user.
Gross profit
Vipshop’s gross profit in the third quarter was 4.8 billion yuan (about US $751.4 million), compared with 4.9 billion yuan in the same period last year, an increase of 4.8%. Vipshop’s gross profit margin in the third quarter was 19.4%, lower than 21.1% in the same period last year.
Operating profit and expenses
Vipshop’s total operating expenditure in the third quarter was RMB 4.2 billion (about US $659.2 million), higher than RMB 3.9 billion in the same period of the previous year. The total operating expenditure rate of vipshop in the third quarter increased to 17.0% from 16.9% in the same period of the previous year.
Vipshop’s performance expenditure in the third quarter was 1.6 billion yuan (about US $251.2 million), the same as that in the same period last year. The proportion of performance expenditure in total net revenue increased to 5.0% from 4.9% in the same period last year.
Vipshop’s marketing expenditure in the third quarter was RMB 1.2 billion (about US $192.7 million), higher than RMB 1.1 billion in the same period last year. The proportion of vipshop’s marketing expenses in total net revenue in the third quarter increased to 5.0% from 4.9% in the same period last year.
Vipshop’s technology and content expenses in the third quarter were 366.8 million yuan (about US $56.9 million), higher than 305.1 million yuan in the same period last year. The proportion of vipshop’s technology and content expenses in total net revenue in the third quarter increased to 1.5% from 1.3% in the same period last year.
Vipshop’s general and administrative expenses in the third quarter were RMB 1 billion (about US $158.4 million), higher than 848.6 million in the same period last year. The proportion of general and administrative expenses in the total net revenue of vipshop in the third quarter increased to 4.1% from 3.7% in the same period last year.
Vipshop’s operating profit in the third quarter was 770.8 million yuan (about $119.6 million), compared with 1.2 billion yuan in the same period last year. Vipshop’s operating profit margin in the third quarter fell to 3.1% from 5.4% in the same period last year.
Vipshop’s operating profit not measured in accordance with U.S. GAAP in the third quarter was RMB 1.1 billion (about US $163.9 million), compared with RMB 1.5 billion in the same period last year. Vipshop’s operating profit margin in the third quarter fell to 4.2% from 6.4% in the same period last year.
Net profit
In the third quarter, the net profit attributable to vipshop shareholders was 628.4 million yuan (contract and US $97.5 million), down 21.6% from 1.244 billion yuan in the same period last year.
Vipshop’s due net profit in the third quarter excluding stock compensation expenses, amortization of intangible assets related to acquisition, and equity investment (not measured in accordance with U.S. GAAP) was RMB 1 billion (contract US $159.6 million), compared with RMB 1.4 billion in the same period last year.
As of September 30, 2021, the total number of weighted average ADR shares used by vipshop to calculate diluted profit per share was 684019890.
Balance sheet

As of September 30, 2021, vipshop’s cash, cash equivalents and restricted cash totaled 13.2 billion yuan (about US $2 billion), and its short-term investment was 3.7 billion yuan (about US $569.3 million).
Performance outlook
Vipshop expects that the company’s total net revenue in the fourth quarter of 2021 will be between 35.8 billion yuan and 37.6 billion yuan, equivalent to a year-on-year increase of 0% to 5%. This outlook reflects vipshop’s current preliminary view and may be adjusted in the future. (compiled by Tencent technology / Wuji)