The following is the Summary of 4q20 financial report teleconference: it is expected that e-commerce will still have dividends in 21 years, and actively explore the field of live broadcasting in the future From Vipshop recommended by recordtrend.com. And this article belongs to the classification: Electronic Commerce, Online shopping.
Vipshop, February 26, 2021（ VIPS.US ）The financial results of the fourth quarter and the whole year of 2020 are announced. According to the data, the total net revenue of Q4 was 35.775 billion yuan (RMB, the same below), an increase of 22% compared with 29.319 billion yuan in the same period of last year; the net profit attributable to shareholders was 2.441 billion yuan, an increase of 67.7% compared with 1.456 billion yuan in the same period of last year; the diluted income per ads was 3.51 yuan, an increase of 2.14 yuan in the same period of last year. In 2020, the company’s total net revenue was 101.9 billion yuan, 93 billion yuan in the same period of last year; the net profit attributable to shareholders was 5.9 billion yuan, an increase of 47.1% over 4 billion yuan in the same period of last year. Looking forward to the future, the company expects that the total net revenue in the first quarter of 2021 will be between 27.2 billion yuan and 28.2 billion yuan, with a year-on-year growth of about 45% to 50%.
After the financial report was released, Shen Ya, chairman and CEO of vipshop, and Cui Dawei, chief financial officer, attended the subsequent financial report conference call to interpret the key points of financial report and answer questions from analysts.
The following is the record of the financial report conference call:
Chairman and CEO Shen Ya commented: Hello everyone. Welcome and thank you for joining our fourth quarter and 2020 annual earnings conference call. We completed 2020 in the fourth quarter with strong financial position and operating results.
This quarter, the company’s total Gmv increased by 25% year-on-year, from 47.6 billion in the same period last year to 59.3 billion. In particular, our clothing related core category Gmv increased by 28% year-on-year. Driven by the strong growth in the number of active users, the number of active users increased by 37% in the fourth quarter.
This quarter, the company’s new users grew faster than the total active users, which shows that the products purchased by the company’s professional sales team are more and more attractive to customers who have not used our services in the past.
We believe that, compared with the market platform, the excellent value and convenient shopping experience provided by the company for customers has promoted the development of this strong trend.
In addition, the company is able to see sustained and strong growth momentum in the key financial and operating indicators because of our attention and expertise in the discount retail industry.
We provide value-added services to consumers seeking special offers, especially in clothing related categories. At the same time, we help brands achieve faster inventory turnover, expand their business and develop new customer base.
Looking forward to 2021 and beyond, the company will be committed to adhering to the original marketing strategy, in order to get more top brands and increase our share in the business of existing brand partners, so that we can provide more diversified and ideal products to customers and attract more new customers.
In addition, we will continue to strengthen our big data capabilities and technical knowledge to serve a wider customer base, so that users from different age groups and income levels can use and enjoy our services.
Q & a session
A: Since 2020q3, the company has increased its investment, and the strength of Q4 continues to maintain. The company has many kinds of customer acquisition channels, including precision marketing, mobile phone pre installation, embedded TV series and variety show. Both Q3 and Q4 are adopted, and Q4 has not done more special ways. The Internet is in the dividend stage, so in theory, more investment should be made to obtain customers. The company will measure the customer acquisition cost in a scientific way to ensure that the customer acquisition cost is reasonable and the customers are economic. Now there are many new ways to get customers. The company is also making bold attempts in live broadcast, short video, wechat group and other fields, hoping to increase the number of customers in these areas. In terms of goods, the company increased differentiated goods and lower prices. Technology to improve the conversion rate, so that users can find the goods they want. As a whole, it drives the company to obtain customers continuously, and this trend will continue.
Q: What about the revenue in the fourth quarter and the first quarter? There was a big boost in December. Did it slow down in January? In the first quarter of the year, the company advocates celebrating the new year in the same place. Do companies see new trends, are they different from the past, and do they stimulate consumption? How to look forward to the performance after Q1 in 2021?
A: November’s double 11 big promotion, December’s big promotion, December 8 is the company’s anniversary. In the first half of January, this trend was maintained and shopping enthusiasm was relatively strong. In late January, due to the weather, it was not very cold, and sales declined. This year’s Spring Festival is very different from previous years. In previous years, sales are expected to decline. However, due to the local Chinese new year, many users shop at home, so sales this year are much higher than previous years. Judging from the trend of 2021, e-commerce still has dividends. During the epidemic period, more and more users form the habit of online shopping. The company’s main category is clothing, which is expected to maintain a good growth.
Q: Ask questions about the source of goods. The company’s Gmv growth in the fourth quarter is much faster than the clothing market? Is it the increase of inventory in the market or the increase of customers who like to buy discount goods? At the present stage, the company benefits from the epidemic situation. In the long run, how do we look at the development of the source of goods? Will it expand the source of suppliers or increase the number of white brand products?
A: The inventory of the clothing industry will continue to generate, whether it is during the epidemic or not, because of the special production mode of clothing, including the order system and so on. Therefore, the supply of goods in the future is stable and we don’t worry about it. The company has a double-digit proportion of goods are customized, which can better predict the needs of users. For different users to provide different goods, and this kind of goods can be continuously supplied. The company has no worries about the supply of goods, and hopes to provide more differentiated products to meet the needs of consumers.
Q: What’s the outlook for profit and selling expenses in 2021?
A: The company’s users are growing rapidly, so the market cost will be relatively large. Theoretically, the company’s track has 300 million users, so there is still a lot of room for the company’s users, and growth is the main topic. But at the same time of growth, the company is sure of the net interest rate, the overall profit will be more controllable. Growth and profit companies will pay more attention to growth. Grasp the opportunity when the industry development opportunity is good.
Q: Ask a big picture question. In 2019, vipshop will spend most of its time optimizing product structure and improving efficiency; in 2020, vipshop will grasp the epidemic situation and accelerate growth. Is there a new development direction, strategic focus and new growth point in 2021?
A: The company pursues healthy and high-speed growth. Hope to obtain long-term and profitable users. Growth is the main theme, on the other hand, the company for the pursuit of stable net interest rate, with the emergence of scale effect, there is room for cost optimization.
Q: What is the offline contribution of the fourth quarter to Gmv? What is the expectation for the medium and long term in the future?
A: Cunninghamia lanceolata is about 5% more profitable than Gmv. The company has two types of self operated offline businesses, each with hundreds of stores. One has a slight loss, and the other has achieved profit and loss balance. The two types of businesses account for slightly more than 1% of Gmv. We believe that offline stores have development opportunities in China, and the company will continue to explore, hoping to provide users with more value in this way. At this stage, members of offline stores account for more than 1 / 3 of the group’s purchases, so there is a great opportunity for development.
Q: In terms of live broadcast and short video, is it mainly to get customers to the company’s own app or to develop on other platforms, because it has been operated on wechat before? Do you see new opportunities now?
A: Live and short videos are becoming more and more popular, and users will spend a lot of time. But at present, the company is not doing very well in this aspect, the effect is general, and it is continuing to explore, hoping to find the mode that users like, increase the use time of users, and improve the conversion efficiency. Tiktok live in the company will remain in the tiktok shop, 50% will flow into the company’s APP, will not all flow to the company’s APP. In the future, live broadcasting is a new ecology, and the company will actively embrace it.
Q: What is the difference between special goods and ordinary goods? Better profit, better drainage? What is the impact on the company’s brand image and financial level?
A: The gross profit rate of special goods is the same, but the company will require differentiation, the price will be lower and the cost performance will be higher. The company is focusing on cultivating this kind of product, and will give support to the flow. These special products are not available on other platforms. They can achieve more transformation and attract consumers to buy these products on the platform for a long time.
Q: The company has mentioned that the ARPU of new users is lower than that of mature users. Since Q2, the company has added many new users. Has the ARPU of these new users improved? Does the company have any expectations for the future trend?
A: ARPU of new customers will be relatively low in the first year, but it will generally double in the second year, and the cost of each quarter will continue to grow. ARPU of the company will be lower in 2020 due to the reduction of parcel fee and the introduction of a large number of new and old customers. These users pull down ARPU in the short term, but the company is confident that these users will buy more products in the future, and ARPU will continue to improve.
Q: What are the reasons for the company’s other revenue growth?
A: Other revenue mainly includes offline revenue and advertising revenue. Q4 third party revenue contributed 14%, slightly lower than last year. Shanshan’s contribution to revenue increased to 13% from 7% in Q4 last year.
Vipshop: 4q20 net revenue 35.8 billion yuan, active users increased by 37% year on year The valuation of vipshop is on the high side. Comparative analysis of jd.com, amazon.com, vipshop.com and dangdang.com fgrt: insight into vipshop financial report: in 2014, the revenue of Q2 vipshop was 829.4 million US dollars, with a year-on-year growth of 136.1%. Greenwich research group: vipshop is suspected of financial fraud to mislead investors Ministry of Commerce: China’s online shopping market is expected to reach 4.2 trillion yuan in 2020 Seven methods of real-time e-commerce marketing beyond the sum of the United States, Britain, France, Germany and Japan Jingdong: 80% of new users come from low tier cities
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