For the story of Chinese e-commerce, Vipshop will be regarded as a pulse.
From the announcement of the financial report, it is not easy for Vipshop to make profits for 23 consecutive quarters.
Thanks to the total number of active users and the average revenue per user, Vipshop’s total revenue in the second quarter was 20.7 billion yuan, an increase of 18.4% over the same period last year. It is worth noting that Vipshop’s revenue growth rate It has been in decline for the past six quarters. In the second quarter of this year, Vipshop’s revenue growth rate was 18.4%, down from 24.6% in the previous quarter and down from 30.3% in the same period last year.
Undoubtedly, with the strategic entry of Tencent and JD.com, Vipshop has a good drive in user growth, but the sustainability of performance is yet to be tested.
In terms of net profit, although the net profit attributable to shareholders in the second quarter ended a negative growth in net profit for the fourth consecutive quarter. However, in accordance with US GAAP, the net profit attributable to Vipshop shareholders in the second quarter was RMB 576.9 million (contracts and US$87.2 million), down 14.2% from RMB 672.60 million in the same period last year; it continued to enter a downward trend. This means that the profitability of Vipshop will be seriously questioned and it will also cause investors to have strong concerns about its prospects.
Similarly, in terms of gross profit margin, there has also been a decline compared with the same period. According to the financial report, Vipshop’s second-quarter gross profit margin was 19.5%, down from 22.0% in the same period last year. Gross profit margin is the basis for profitability of business operations. For long-term operating profit, enterprises must first obtain sufficient gross profit margin or based on a certain value. The gross profit margin continued to decline, and the market naturally questioned its profitability. The stock price is also the best verification of the first reaction.
Although the net profit rose sharply and the revenue was better than expected, it was affected by factors such as poor performance guidance and slowing growth of active users. The stock price is only one aspect, and the key depends on its strategic advantage and the sustainability of the model itself.
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