Vipshop(VIPS) - 2024 Q4 - Annual Report

Financial Performance - Total net revenues for Q4 2024 were RMB33.2 billion (US $4.6 billion), a decrease of 4.3% from RMB34.7 billion in the prior year[3]. - Gross profit for Q4 2024 was RMB7.6 billion (US$ 1.0 billion), down from RMB8.2 billion in the prior year, with a gross margin of 23.0%[6]. - Net income attributable to shareholders for Q4 2024 was RMB2.4 billion (US $335.2 million), a decline of 20% from RMB3.0 billion in the prior year[11]. - Total net revenues for the three months ended December 31, 2024, were RMB 33,223,842, a decrease of 4.2% compared to RMB 34,674,476 for the same period in 2023[40]. - Product revenues for the twelve months ended December 31, 2024, were RMB 100,734,550, down from RMB 105,613,485 in 2023, representing a decline of 4.1%[40]. - Non-GAAP net income attributable to Vipshop's shareholders for the twelve months ended December 31, 2024, was RMB 9.03 billion, a decrease of 5% from RMB 9.51 billion in 2023[46]. - The company reported a net income of RMB 2.45 billion for the three months ended December 31, 2024, down from RMB 2.95 billion in the same period of 2023, a decline of 16.9%[46]. Customer and Order Metrics - The number of active customers for Q4 2024 was 45.7 million, down from 48.5 million in the prior year[3]. - Total orders for Q4 2024 were 217.5 million, compared to 234.3 million in the prior year, reflecting a decrease of 7.1%[4]. Cash Flow and Shareholder Returns - The company generated net cash from operating activities of RMB8.9 billion (US$ 1.2 billion) for Q4 2024[16]. - For the full year of 2024, net cash generated from operating activities was RMB9.1 billion (US $1.3 billion), with free cash inflow of RMB5.6 billion (US$ 770.2 million)[23]. - The Company repurchased US $43.3 million of its ADSs during the quarter ended December 31, 2024, under its US$ 1.0 billion share repurchase program[24]. - The board of directors declared an annual cash dividend of US $2.40 per ordinary share, or US$ 0.48 per ADS, for fiscal year 2024[25]. - The Company has fully utilized the remaining authorized amount of its initial share repurchase program and plans to continue repurchases under a new US $1.0 billion program effective until February 2027[24]. Operating Expenses - Operating expenses for the twelve months ended December 31, 2024, totaled RMB 17,211,609, a slight decrease from RMB 17,418,317 in 2023[40]. - Fulfillment expenses for the three months ended December 31, 2024, were RMB 2,460,984, compared to RMB 2,525,204 in the same period of 2023, reflecting a decrease of 2.6%[41]. - Marketing expenses for the twelve months ended December 31, 2024, were RMB 2,979,654, down from RMB 3,242,215 in 2023, indicating a decline of 8.1%[40]. Shareholder Equity and Assets - Total assets increased from RMB 72.32 billion in 2023 to RMB 74.94 billion in 2024, representing a growth of 3.6%[44]. - Total shareholders' equity grew from RMB 38.56 billion in 2023 to RMB 41.55 billion in 2024, an increase of 7.8%[44]. - Total current liabilities decreased from RMB 30.62 billion in 2023 to RMB 29.93 billion in 2024, a reduction of 2.3%[44]. Earnings Per Share - Net earnings per Class A and Class B ordinary share (diluted) for the three months ended December 31, 2024, were RMB 23.46, down from RMB 26.75 in 2023[40]. - Non-GAAP net income per Class A and Class B ordinary share (diluted) was RMB 28.51 for the twelve months ended December 31, 2024, compared to RMB 28.97 in 2023, a decrease of 1.6%[47]. Future Outlook - For Q1 2025, the Company expects total net revenues to be between RMB26.3 billion and RMB27.6 billion, representing a year-over-year decrease of approximately 5% to 0%[27]. - The Company will hold a conference call on February 21, 2025, to discuss the financial results[29]. Other Financial Metrics - Free cash flow for the trailing twelve months ended December 31, 2024, was RMB5.6 billion (US$ 770.2 million) after accounting for capital expenditures of RMB3.6 billion (US$488.1 million)[23]. - The weighted average number of ADSs used in computing diluted earnings per ADS for the full year of 2024 was 539,279,030[23]. - The weighted average number of diluted shares decreased from 110.38 million in 2023 to 104.30 million in 2024, a decline of 5.5%[47]. - Share-based compensation expenses increased from RMB 284.67 million in Q4 2023 to RMB 539.09 million in Q4 2024, a rise of 89.5%[46]. - The Company emphasizes the use of non-GAAP financial measures to provide clarity on its operating performance[35].