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Jumei Reports Unaudited Third Quarter 2015 Financial Results

The following excerpt is from the company's SEC filing.

Total net revenues up 99.9%

BEIJING, Nov. 20, 2015 /PRNewswire/ -- Jumei International Holding Limited (NYSE: JMEI) ("Jumei" or the "Company"), China's leading online retailer of beauty products, today reported its unaudited financial results for the third quarter ended September 30, 2015. The Company will host a conference call to discuss the results at 8:00 AM U.S. Eastern Standard Time on November 20, 2015 (9:00 PM China time on the same day).

Third Quarter 2015 Highlights

Net revenues increased by 99.9% year-over-year to RMB1.9 billion (US

$305.5 million).

Total net GMV

increased by 35.6% year-over-year to RMB2.3 billion (US$358.7 million), driven primarily by a 30.8% year-over-year increase in the number of active customers

and a significant 89.5% year-over-year increase in total orders

Gross profit as a percentage of net revenues decreased to 26.2% from 38.0% in the same period of 2014. Gross profit as a percentage of total net GMV increased slightly to 22.3% from 21.9% in the same period of 2014. The increase was primarily due to the Company's shift in strategy from beauty product marketplace sales to merchandise sales that started in September 2014, and inventory optimization activities for Jumei Global.

Net loss attributable to Jumei's ordinary shareholders was RMB86.9 million (US$13.7 million), compared with net income attributable to Jumei's ordinary shareholders of RMB120.0 million in the same period of 2014. Net margin attributable to Jumei's ordinary shareholders was negative 4.5%, compared with positive 12.4% in the same period of 2014.

Non-GAAP net loss attributable to Jumei's ordinary shareholders

was RMB77.4 million (US$12.2 million), compared with non-GAAP net income attributable to Jumei's ordinary shareholders

of RMB129.3 million in the same period of 2014. Non-GAAP net margin attributable to Jumei's ordinary shareholders

was negative 4.0%, compared with positive 13.3% in the same period of 2014.

The U.S. dollar (USD) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into USD in this press release is based on Federal Reserve exchange rate as of September 30, 2015, which was RMB6.3556 to USD1.00. The percentages stated in this press release are calculated based on the RMB amounts;

"Net GMV" means the sum of (i) net revenues generated from merchandise sales, and (ii) net revenues generated from marketplace services plus corresponding payables to third-party merchants;

"Active customer" means a customer that made at least one purchase during a specified period;

"Total orders" means the total number of orders placed during a period, excluding rejected or returned orders;

"Non-GAAP net loss attributable to Jumei's ordinary shareholders" is a non-GAAP financial measure defined as net loss attributable to Jumei's ordinary shareholders excluding share-based compensation expenses;

"Non-GAAP net income attributable to Jumei's ordinary shareholders" is a non-GAAP financial measure defined as net income attributable to Jumei's ordinary shareholders excluding share-based compensation expenses. "Non-GAAP net margin attributable to Jumei's ordinary shareholders" is a non-GAAP financial measure defined as Non-GAAP net income or loss attributable to Jumei's ordinary shareholders as a percentage of total net revenues. See "Use of Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results".

Mr. Leo Chen, founder and CEO of Jumei, commented, "Our third quarter net revenue growth continues to be strong, increasing almost 100% year-over-year. This very strong growth was driven by Jumei Global and rapidly shifting consumption patterns in China as consumers upgrade their tastes, preferences and expectations for products. We continue to strengthen our position as a leading import cross-border ecommerce platform in China and are pleased to see both active customers and number of orders grow rapidly while maintaining a high repeat purchase rate. Our customer purchase frequency continue to grow significantly, increasing 45% from the same period last year, due primarily to our diverse global product offerings and expansion into other women's categories such as baby and maternity and health and wellness."

"We continue to add world renowned brands such as Shiseido and KOSÉ to our Jumei Global platform. This is the first time these Japanese beauty groups have directly authorized a cross border e-commerce company in China to carry their merchandise. This means that going forward, new products by both brands will be launched simultaneously in Japan and on Jumei Global in addition to those already on offer in Jumei's domestic platform. Chinese consumers will now be able to access international beauty trends at the same time they take place in the brand's home markets."

"Our operating cash flow improved significantly in the third quarter to RMB345.6 million (US$54.4 million) as we optimized Jumei Global inventories. We saw margin pressure in the third quarter as a result, but expect to return to profitability in the fourth quarter."

Unaudited Third Quarter 2015 Financial Results

were RMB1.9 billion (US$305.5 million), an increase of 99.9% from RMB971.2 million in the third quarter of 2014. The increase was primarily attributable to increases in the number of active customers and total orders, which in turn resulted primarily from the high volumes generated by Jumei Global as well as the shift from beauty product marketplace sales to merchandise sales. The number of active customers increased by 30.8% to approximately 6.8 million from approximately 5.2 million in the same period of 2014. The number of total orders increased by 89.5% to approximately 19.9 million from 10.5 million in the same period of 2014.

was RMB508.2 million (US$80.0 million), an increase of 37.8% from RMB368.9 million in the third quarter of 2014. Gross profit as a percentage of net revenues decreased to 26.2% from 38.0% in the same period of 2014. The decrease was primarily due to the shift from beauty product marketplace sales to merchandise sales. Gross profit as a percentage of net GMV increased slightly to 22.3% from 21.9% in the same period of 2014. Gross profit from merchandise sales as a percentage of net GMV of merchandise sales decreased to 24.1% from 29.4% in the same period of 2014. The decrease was primarily due to inventory optimization activities for Jumei Global.

Total...


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