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Vipshop Holdings Limited Investor Presentation May 2025
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2 Disclaimer This presentation has been prepared by Vipshop Holdings Limited (the “Company”) solely for information purpose. By viewing or accessing the information contained in this material, you hereby acknowledge and agree that no representations, warranties or undertakings, express or implied, are made by the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission (the “SEC”) or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or investment decision in relation to any securities or otherwise. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this presentation shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance. You acknowledge that any assessment of the Company that may be made by you will be independent of this presentation and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect the Company’s intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” “anticipates,” “believes,” “confident” or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company’s operations and other factors, many of which are beyond the Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. The Company or any of its affiliates, advisers or representatives has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation also contains non-GAAP financial measures, the presentation of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In addition, the Company’s calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. The reconciliation of those measures to the most comparable GAAP measures is available at the Company website https://ir.vip.com.
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3 China's Leading Online Discount Retailer for Brands Branded Products at Exceptional Value
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唯品会保密信息，未经许可不得扩散 Business Overview
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5 Our Competitive Strengths 1 High Market Demand and Great Growth Potential for China’s Online Discount Retail Market 2 Strong Merchandising Expertise Making us Partner-of-Choice Discount Retail Platform for Brands 3 Superior Customer Experience Fostering Highly Engaged and Loyal Customers with Strong Purchasing Power 4 Operational Excellence Powered by Data and Technology 5 Visionary Management with a Proven Track Record and Long-term ESG Commitments
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6 High Market Demand and Great Growth Potential for China’s Online Discount Retail Market Driver 1: Strong Demand for Discounted Merchandise among Chinese Consumers Driver 3: Discount Retailers Have Gradually Become the Preferred Channel of Chinese Consumers Driver 2: Growing Needs for Brands to Monetize Inventory Effectively • More mature, rational and focusing on value-for-money, Chinese consumers are increasingly fond of discounted merchandise • Discounted merchandise has been viewed to be counter-cyclical, implying prosperous growth potential in the long-run • Sustainable supply for discount retail market, as brands continuously launch new products and look for ways to monetize inventory quickly • Brands need long-term stable and sustainable inventory solutions that target high quality consumers amid fierce competition • China’s discount retail market accounted for an increasing proportion of total consumption of discounted merchandise Source: Frost & Sullivan, China’s Discount Retail Market Study, February 2021
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7 Our Unique Business Model Great Value Differentiated Products CustomersBrands Business Intelligence Merchant Platform Optimized IT Infrastructure Cross- regional Warehousing & Logistics Highly Engaged and Loyal Customers Expanding High Value Customers S Merchandising Professionals Abundant Popular Brands Partnership Service AI-powered Technology Innovation
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8 Enhanced Merchandising Capabilities Merchandising Professionals Business Intelligence & Merchant Platform Deep Industry Expertise Note: (1) Brand partners include primarily brand owners, and to a lesser extent, brand distributors and resellers. • Predict consumer preferences and consumption trends • Provide data analytics in customer engagement for brand partners(1) • Empower brand partners to strengthen product innovation and customization Customer Insight • Adjust product mix timely and precisely • Optimize targeted marketing and sales events • Integrate resources for brand partners to increase return-on- investment (ROI) and customer assets Operation • Carefully select a rich and diverse selection of popular brands • Secure unique, price-competitive products • Plan for opportunities in category and product life cycle • Differentiate via Made-for-Vipshop customized products Merchandise
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9 Partner-of-Choice Discount Retail Platform for Brands Specialized platform for monetizing inventory without brand dilution and pricing dilemma Reaching a unique group of high-value customers who care for brand, quality and authenticity Diversified online and offline channels for cross-sale opportunities One-stop inventory solution with proven sales efficiency and ROI
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10 Core Brands 900+ mass-market brands contribute to the majority of sales Differentiated Products Made-for-Vipshop customized products Fresh and Trendy Brands Emerging and most sought-after brands in a range of styles to attract younger customers Higher-end Brands Affordable-luxury and luxury brands to cater for unfulfilled customer needs Optimized Product Mix Non-core brands of both apparel and standardized categories that complement desired price range, product diversity and personalization New Opportunities Core Business Other Brands
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11 Superior Customer Experience Trust • Guaranteed product authenticity • Buyer-selected branded products • Superior quality control and after-sales service Value • Value-for-money • Great prices every day • Affordable within desired price ranges Ease • Treasure-hunting and gimmick- free shopping experience • Best-in-class delivery service via industry leader SF Express • Customer-friendly door-to-door collection and exchange
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12 FY 2024 746 MM % of total orders FY 2024 73 MM % of total active customers Highly Engaged and Loyal Customers with Strong Purchasing Power Repeat Customers(1) 86% Orders from Repeat Customers(1) 98% Notes: (1) A “repeat customer” for a given period refers to any customer who ( i) is an active customer during such period, and (ii) had purchased products from us at least twice during the period from our inception on August 22, 2008 to the end of such period. Orders placed by a repeat customer during a given period include all orders placed by the customer during such period even if the customer made the first purchase from us in the same period. (2) Net GMV is the total GMV net of orders returned. Active Super VIP Customers FY 2024 8.8 MM YoY growth 16% % of online net GMV(2) 49% Avg. shopping freq. v.s. Non-SVIP customers >7x ARPU v.s. Non-SVIP customers >8x Customer Profile ~75% Women 60%+ Tier 1-3 Cities 70%+ Post-80s and -90s Customer Loyalty
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13 Quality Customer Base with Growth Potential 84.1 87.4 84.7 43.1 41.3 2022 2023 2024 1Q24 1Q25 Total Active Customers (in million)(1) Notes: (1) “Active customers” is defined as registered members who have purchased from the Company’s self -operated online sales business or the Company’s online marketplace platforms, excluding those who made their purchases from the Company’s online stores operated at third -party platforms, at least once during the relevant perio d. Beginning in the fourth quarter of 2023, the Company updated its definition of “active customers” to exclude registered members who make their purchases from the Company’s online stores oper ated at third-party platforms. The active customer figures for the historical periods presented in this press release have been retrospectively adjusted accordingly. (2) Source: China Internet Network Information Center (CNNIC), January 2025. (3) “Cumulative customers” refers to all customers who had purchased products from our Vipshop Online Platform at least once during the period from our inception on August 22, 2008 to December 31, 2024. Vipshop Cumulative Customers(3) 293 MM Vipshop Total Active Customers 84.7 MM China’s Online Shoppers(2) 974 MM 3.9% -3.1% -4.1%
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14 Operational Excellence Powered by Data and Technology Merchant Platform for Efficiency Gain Best-in-Class Fulfillment Capabilities Technology-enabled Business Synergy • A full set of processes and tools to help brand partners manage inventory, customer assets and promotions • Enabling merchandising professionals to work effectively with brand partners • Digitalized systems that enhance orders, logistics and warehouse management • Innovative solutions such as JITX and JIT • Best match products to customer needs, including personalized initiatives • Innovative AI applications • Optimized IT infrastructure for business upgrade
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15 Visionary and Experienced Management Team with Proven Track Record Arthur Xiaobo Hong Co-Founder, Vice Chairman, COO • Innovative entrepreneur in China’s consumer goods and e-commerce industry • Previously Chairman of Societe Europe Pacifique Distribution Eric Ya Shen Co-Founder, Chairman, CEO • Innovative entrepreneur in China’s consumer goods and e-commerce industry • Previously Chairman of Guangzhou NEM Import and Export Co., Ltd. • EMBA from Cheung Kong Graduate School of Business Mark Wang Chief Financial Officer • Seasoned expert in finance and accounting • Previously CFO of Benlai Group, an online fresh grocery player in China, and VP in the finance department of Xiaomi Corporation (HKEX: 1810) • Bachelor’s degree in finance from Beijing International Studies University Mike Li Chief Technology Officer • Extensive experience in China’s internet industry • Previously with leading Internet and software companies such as Alibaba Group Holding Limited (NYSE: BABA; HKEX: 9988) and Asiainfo (China) Software Co., Ltd. where he served at various technology leadership roles • Bachelor’s degree in computer science and technology from Zhejiang University
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16 Our ESG Commitment • Ensure good governance as compliant, disciplined corporate citizen • Full compliance in information security and privacy protection, intellectual property rights, anti- corruption and fair competition • Continuous efforts in female empowerment, rural vitalization, community integration and volunteer service • Build a platform for inclusive development at workplace • Pledge to achieve carbon neutrality in its own operations and a 50% reduction in Scope 3 carbon emission intensity, no later than 2030 • Foster sustainable consumption and innovate new choices for responsible supply chain Environmental Social Governance Vipshop’s MSCI ESG Rating maintained at “AA”, a leader among over 300 companies in the consumer discretionary industry.(1) Notes: (1) MSCI ESG Ratings, November 2024. (2) Forbes China and Russell Consulting Company, “2022 China’s Best Employers of the Year” selection and “2024 China’s Best Employers of the Year” selection. (3) More information is available in Vipshop ESG Report 2023 at https://ir.vip.com/sustainability. Forbes China’s Best Employer and Most Sustainable Employer in 2022, and Most Popular Employer Among Employees in 2024.(2) Jun-20 Jul-21 Nov-22 Oct-23 Nov-24 MSCI ESG Ratings for Vipshop AA BBB AA AA
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17 Our Future • Strengthen, expand and differentiate merchandise portfolio by fully leveraging our merchandising expertise to reinforce value proposition to brand partners • Integrate customer growth initiatives from acquisition, retention to personalization • Drive continuous growth in high-value customers to increase user stickiness and ARPU Solidify Market Leadership by Enhancing Merchandising Capabilities Grow Customer Base and Increase Customer Engagement Progressively Expand Physical Footprint & Integrate Offline with Online Platform Drive Solid, Quality and Sustainable Growth • Continue to drive quality growth in customer and revenue, while maintaining healthy profitability through disciplined operations • Continue to build an offline presence with outlets and other stores to supplement our online platform, and act as an effective vehicle to increase overall Vipshop exposure
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18 Financial Highlights
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19 103,152 112,856 108,421 27,646 26,269 2022 2023 2024 1Q24 1Q25 Solid Profitability Despite Macro Uncertainties Total Net Revenues (RMB in millions) (RMB in millions) Net Income and Net Margin Attributable to Vipshop’s Shareholders (Non-GAAP)(1) Note: (1) For details of the non-GAAP measures, please refer to the Company's press release titled "Vipshop Reports Unaudited First Quarter 2025 Financial Results" issued on May 20, 2025. Historical earnings releases are available at the Company’s website. 6,837 9,510 9,033 2,583 2,308 6.6% 8.4% 8.3% 9.3% 8.8% 2022 2023 2024 1Q24 1Q25 Net Income (Non-GAAP) Net Margin (Non-GAAP) 9.4% -5.0% -3.9%
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20 Healthy Gross Margin 21,616 25,721 25,470 5,008 5,024 4,683 6,900 5,905 6,202 5,382 8,233 6,546 6,341 4,955 7,628 6,082 21.0% 22.8% 23.5% 19.8% 20.5% 21.7% 21.7% 21.4% 22.2% 23.6% 23.7% 23.7% 23.6% 24.0% 23.0% 23.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2022 2023 2024 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Gross profit Gross margin (RMB in millions) Gross Profit and Gross Margin
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21 Well-managed Operating Expenses (RMB in millions) (RMB in millions) Marketing ExpensesFulfillment Expenses 7,247 8,262 8,347 1,986 1,890 7.0% 7.3% 7.7% 7.2% 7.2% -5.0% -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% - 2,000 4,000 6,000 8,000 10,000 12,000 2022 2023 2024 1Q24 1Q25 Technology & Content Expenses General & Administrative Expenses (RMB in millions) (RMB in millions) 1,605 1,768 1,892 482 449 1.6% 1.6% 1.7% 1.7% 1.7% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2022 2023 2024 1Q24 1Q25 4,460 4,147 3,993 929 951 4.3% 3.7% 3.7% 3.4% 3.6% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2022 2023 2024 1Q24 1Q25 as % of total net revenues as % of total net revenues as % of total net revenues as % of total net revenues 2,831 3,242 2,980 691 732 2.7% 2.9% 2.7% 2.5% 2.8% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2022 2023 2024 1Q24 1Q25
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22 Sustainable and Profitable Business Model 50 Quarters of Consecutive Profitability since 4Q2012 6,837 9,510 9,033 1,419 1,592 1,595 2,231 2,069 2,401 1,841 3,198 2,583 2,165 1,311 2,974 2,308 6.6% 8.4% 8.3% 5.6% 6.5% 7.4% 7.0% 7.5% 8.6% 8.1% 9.2% 9.3% 8.1% 6.3% 9.0% 8.8% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 0224466881101321541761982202422642863083303523743964184404624845065285505725946166386606827047267487707928148368588809029249469689901,0121,0341,0561,0781,1001,1221,1441,1661,1881,2101,2321,2541,2761,2981,3201,3421,3641,3861,4081,4301,4521,4741,4961,5181,5401,5621,5841,6061,6281,6501,6721,6941,7161,7381,7601,7821,8041,8261,8481,8701,8921,9141,9361,9581,9802,0022,0242,0462,0682,0902,1122,1342,1562,1782,2002,2222,2442,2662,2882,3102,3322,3542,3762,3982,4202,4422,4642,4862,5082,5302,5522,5742,5962,6182,6402,6622,6842,7062,7282,7502,7722,7942,8162,8382,8602,8822,9042,9262,9482,9702,9923,0143,0363,0583,0803,1023,1243,1463,1683,1903,2123,2343,2563,2783,3003,3223,3443,3663,3883,4103,4323,4543,4763,4983,5203,5423,5643,5863,6083,6303,6523,6743,6963,7183,7403,7623,7843,8063,8283,8503,8723,8943,9163,9383,9603,9824,0044,0264,0484,0704,0924,1144,1364,1584,1804,2024,2244,2464,2684,2904,3124,3344,3564,3784,4004,4224,4444,4664,4884,5104,5324,5544,5764,5984,6204,6424,6644,6864,7084,7304,7524,7744,7964,8184,8404,8624,8844,9064,9284,9504,9724,9945,0165,0385,0605,0825,1045,1265,1485,1705,1925,2145,2365,2585,2805,3025,3245,3465,3685,3905,4125,4345,4565,4785,5005,5225,5445,5665,5885,6105,6325,6545,6765,6985,7205,7425,7645,7865,8085,8305,8525,8745,8965,9185,9405,9625,9846,0066,0286,0506,0726,0946,1166,1386,1606,1826,2046,2266,2486,2706,2926,3146,3366,3586,3806,4026,4246,4466,4686,4906,5126,5346,5566,5786,6006,6226,6446,6666,6886,7106,7326,7546,7766,7986,8206,8426,8646,8866,9086,9306,9526,9746,9967,0187,0407,0627,0847,1067,1287,1507,1727,1947,2167,2387,2607,2827,3047,3267,3487,3707,3927,4147,4367,4587,4807,5027,5247,5467,5687,5907,6127,6347,6567,6787,7007,7227,7447,7667,7887,8107,8327,8547,8767,8987,9207,9427,9647,9868,0088,0308,0528,0748,0968,1188,1408,1628,1848,2068,2288,2508,2728,2948,3168,3388,3608,3828,4048,4268,4488,4708,4928,5148,5368,5588,5808,6028,6248,6468,6688,6908,7128,7348,7568,7788,8008,8228,8448,8668,8888,9108,9328,9548,9768,9989,0209,0429,0649,0869,1089,1309,1529,1749,1969,2189,2409,2629,2849,3069,3289,3509,3729,3949,4169,4389,4609,4829,5049,5269,5489,5709,5929,6149,6369,6589,6809,7029,7249,7469,7689,7909,8129,8349,8569,8789,9009,9229,9449,9669,98810,01010,03210,05410,07610,09810,12010,14210,16410,18610,20810,23010,25210,27410,29610,31810,34010,36210,38410,40610,42810,45010,47210,49410,51610,53810,56010,58210,60410,62610,64810,67010,69210,71410,73610,75810,78010,80210,82410,84610,86810,89010,91210,93410,95610,97811,000 2022 2023 2024 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Net income attributable to shareholders (non-GAAP) Net margin attributable to shareholders (non-GAAP) (RMB in millions) Net Income and Net Margin Attributable to Vipshop’s Shareholders (Non-GAAP)(1) Note: (1) For details of the non-GAAP measures, please refer to the Company's press release titled "Vipshop Reports Unaudited First Quarter 2025 Financial Results" issued on May 20, 2025. Historical earnings releases are available at the Company’s website.
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23 Strong Cash Position Notes: (1) TTM free cash flow refers to free cash flow for the trailing twelve months ended on the applicable quarter end. Free cash flo w is a non-GAAP financial measure, which is defined as net cash from (used in) operating activities adding back the impact from internet financing activities and less capital expenditures, which include purchase and deposits of property and equipment and land use rights, and purchase of other assets. (2) As of each quarter end. (RMB in millions) 2,601 4,524 7,307 7,826 8,841 8,174 8,119 9,289 8,640 5,182 4,562 5,622 5,173 19,325 21,469 19,592 24,699 20,410 19,738 20,101 28,281 27,559 23,539 24,014 28,827 29,054 -30,000 -20,000 -10,000 0 10,000 20,000 30,000 (1,500) 500 2,500 4,500 6,500 8,500 10,500 12,500 14,500 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 TTM free cash inflow (Non-GAAP) Cash & cash equivalents, restricted cash & short-term investments(1) (2)
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24 CapEx Summary 20 Shan Shan Outlets 7 Bonded Warehouses 7 Distribution Centers Shan Shan Outlets and other Offline Stores 2,071,930 m2 (Owned) 270,501 m2 (Leased) Headquarter and Other Office Spaces 201,858 m2 (Owned) 11,998 m2 (Leased) Logistic Centers 3,675,183 m2 (Owned) 31,975 m2 (Leased) Primary Usage: • Shan Shan Outlets; • Land use rights; • Office buildings; • Office and other operating equipment and IT software. Key Assets Highlights(1) (RMB in millions) Company Headquarters Harbin Shenyang Tianjin Qingdao Huzhou Ningbo Taiyuan Zhengzhou E’zhou Nanchang Ganzhou Guangzhou Hengyang Zhaoqing Xi’an Chongqing Guiyang Lanzhou Urumqi Shenzhen Nanning Jianyang Locations of Key Assets (as of March 31, 2025) Xuzhou Note: (1) Data as of December 31, 2024. Jinzhong Wenzhou Suzhou Chengdu Dalian Hefei 3,103 5,231 3,563 FY2022 FY2023 FY2024
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25 Consistent Shareholder Return FY2025 Shareholder Return US$ in mn Share Repurchase Dividend Total FY2021 300.9 - 300.9 FY2022 952.3 - 952.3 FY2023 713.3 - 713.3 FY2024 536.1 233.3 769.4 Total 2,735.9 • Paid an annual cash dividend for fiscal 2024 in the amount of US$247.4 million. • Continue share repurchase under the current US$1.0 billion share repurchase program, which is effective for a 24-month period through February 2027.
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THANKS