Food
Chinese online discount retailer Vip shop Holdings says it doubled its net revenue in the first quarter.
The cmpany says a 75 per cent year-on-year increase in customers helped it achieve net revenue of RMB8.6 billion (US$1.4 billion).
Some 12.9 million people shopped on VIPshop over the last year, amassing 38.5 million individual orders.
Gross profit increased by 99.6 per cent to RMB2.1 billion (US$345.4 million).
Eric Shen, chairman and CEO of the NYSE-listed company, described the first quarter of 2015 as “robust”, thanks to improved brand recognition and new mobile initiatives.
“Specifically, the mobile contribution of our platform as a percentage of gross merchandise volume climbed to approximately 72 per cent in the first quarter, which is more than double the average figure across the broader Chinese online shopping industry. Going forward, we will continue to scale our business with a greater focus on further enhancing the shopping experience for customers across multiple devices, attracting new customers and expanding our product offering.”
Donghao Yang, CFO of Vip shop, added: “We are very proud of our first quarter 2015 financial results, which saw our revenue grow by 100 per cent year over year and the expansion of our operating and net margins. Additionally, our warehouse capacity, both leased and built, reached approximately 1.1 million sqm as of March 31, 2015, up from approximately 350,000 sqm a year ago.
“Looking ahead, we are confident that by emphasizsng operating discipline, strategically investing in fulfillment and technology, and continuing to offer great shopping experiences to our growing customer base, we will be able to capitalise on the growth opportunities ahead and continue to deliver sustainable value for our shareholders.”
For the second quarter of 2015, the company says it expects its total net revenue to be between RMB8.7 billion and RMB8.9 billion, representing a year-over-year growth rate of between 71 per cent and 75 per cent.
