Vip.Com Announced Third Quarter Earnings: Net Profit Increased By 130.3% Over The Same Period Last Year

As of September 30th, the 2014 quarter of fiscal year third quarter unaudited financial results. The report shows that vip.com's total net revenue in the third quarter was US $882 million 600 thousand, an increase of 130% over the same period last year of 383 million 700 thousand US dollars. The net profit attributable to vip.com shareholders was US $27 million 700 thousand, a 130.3% increase over the 12 million US dollars in the same period last year.

According to the data collected by YAHOO finance, 11 analysts in Wall Street expect not to be calculated according to the US general accounting standards (Non-GAAP), and the third quarter earnings per share of the US Depositary Receipts (ADS) of vip.com are 0.07 US dollars. Earnings report showed that vip.com's diluted earnings per ADS in the third quarter were US $0.08, exceeding analysts' expectations.

In addition, Wall Street's 10 analysts expected that vip.com's total revenue in the third quarter was $863 million 120 thousand. Earnings showed that vip.com's total revenue in the third quarter was US $882 million 600 thousand, exceeding analysts' expectations.

　　 Main achievements:

Vip.com's total net revenue in the third quarter was $882 million 600 thousand, an increase of 130% over the same period last year, mainly because the number of active users increased by 136.8% from the same period last year to 9 million 500 thousand, and the total number of orders increased 117.6% to 25 million 500 thousand over the same period last year.

- vip.com's gross profit margin in the third quarter was 24.9%, up from 24.2% in the same period last year.

Vip.com's operating profit in the third quarter was US $21 million 300 thousand, an increase of 76.6% over the same period last year of US $12 million.

- vip.com's operating profit in the third quarter was $42 million 100 thousand, not up to the US general accounting standards (excluding the equity awards and the amortization expense of intangible assets derived from business M & A activities), an increase of 178.9% over the same period last year of 15 million 100 thousand US dollars. In the third quarter, the operating profit margin of vip.com was 4.8%, higher than the 3.9% of the same period last year.

The net profit attributable to vip.com shareholders was 27 million 700 thousand US dollars, up 130.3% from 12 million US dollars in the same period last year.

- vip.com's net profit is $46 million 300 thousand, which is 206.8% higher than the US $15 million 100 thousand in the same period last year. Not in accordance with general accounting standards of the United States stock right Vip.com's net profit margin in the third quarter was 5.2%, higher than 3.9% in the same period last year.

　　 Financial analysis:

Vip.com's total net revenue in the third quarter was US $882 million 600 thousand, an increase of 130% over the same period last year of 383 million 700 thousand US dollars, mainly due to the increase in active users and total orders, as well as the increase in revenue contributed from mobile platforms.

The number of active users in vip.com in the third quarter was 9 million 500 thousand, an increase of 136.8% over 4 million in the same period last year. The total number of orders for vip.com in the third quarter was 25 million 500 thousand, up 117.6% from 11 million 700 thousand in the same period last year. The increase in vip.com's active subscribers and total orders is mainly due to the rise of vip.com's brand awareness. The company continues to focus on optimizing and increasing brand and product selection on PC and mobile platforms, as well as vip.com's acquisition of Le bee network.

Vip.com's gross profit in the third quarter was US $219 million 500 thousand, an increase of 136.1% over last year's US $93 million. Vip.com's gross profit margin in the third quarter was 24.9%, up from 24.2% in the same period last year. The increase in gross profit and gross profit margin of vip.com is mainly due to the increase in the scale of the company's business, thus increasing its bargaining power with its suppliers, as well as the growth of the company's market business.

Vip.com's total operating expenditure in the third quarter was US $205 million 600 thousand, an increase of 147.7% over last year's US $83 million. Vip.com's total operating expenses in the third quarter accounted for 23.3% of net revenues, up from 21.6% in the same period last year.

Vip.com's performance expenditure in the third quarter was $84 million 400 thousand, an increase of 91.5% over the 44 million 100 thousand US dollars in the same period last year. Vip.com's growth in expenditure reflects mainly the growth in sales and the number of orders that have been fulfilled. Vip.com's third quarter performance expenditure accounted for 9.6% of net revenue, down from 11.5% in the same period last year. The decline of vip.com's share in net revenue and the proportion of vip.com's share in net revenue reflects mainly the efforts made by the company to reduce storage and personnel costs and to obtain better freight through negotiation through the growth of orders.

　　 Vip.com Marketing expenditure in the third quarter was US $47 million 100 thousand, an increase of 170.8% over the 17 million 400 thousand US dollars in the same period last year. Vip.com accounted for 5.3% of its net revenue in the third quarter, up from 4.5% in the same period last year, reflecting the strategy adopted by the company. Business profit It is used for reinvesting activities, by creating a higher brand awareness, gaining more mobile users and expanding the market share of core products, such as cosmetics, household products and baby products, rather than the clothing sector, to promote long-term growth.

Vip.com's technology and content expenditures in the third quarter amounted to $31 million 300 thousand, an increase of 225.4% over the 9 million 600 thousand US dollars in the same period last year. The growth of vip.com technology and content expenditure mainly reflects that the company continues to invest in the overall IT system and expand the staff team to better support future growth. Vip.com's technology and content expenditures accounted for 3.5% of net revenue in the third quarter, up from 2.5% in the same period last year.

Vip.com's expenditure on administrative and general services in the third quarter was $42 million 800 thousand, an increase of 259.4% over the same period last year of $11 million 900 thousand. Vip.com's administrative and general expenses accounted for 4.9% of net revenue, up from 3.1% in the same period last year. The increase in the proportion of vip.com's administrative and general expenses in net revenue is mainly due to the increase in the number of administrative and general staff, the increase in the cost of office leasing related to the overall business growth of the company, the transaction of the acquisition of Lok bee net, the expense of intangible assets amortization, and the growth of online payment expenditure.