Vipshop Holdings Ltd, operator of vip.com, an online shopping platform dedicated to special sale offers, reported on Tuesday 147.2 percent year-on-year net profit growth for the second quarter.
The company, which is based in Beijing and listed on the NYSE, said that revenue in the second quarter grew 77.6 percent year-on-year to 9 billion yuan ($1.5 billion) and net profit totaled the equivalent of $64.4 million.
Vipshop attributed its revenue growth to the number of active customers and total orders. The number of customers increased from 9.7 million to 14.2 million in this period, 47.2 percent more than a year earlier, with total orders rising 55.2 percent to 44.9 million from 28.9 million in 2014, the report said.
Vipshop also issued a forecast for its third-quarter operations, saying revenue would reach 9.1 billion to 9.3 billion yuan, meaning year-on-year growth of 71 percent to 74 percent.
To attract high-quality and long-term customers, Vipshop has been narrowing the scope of its group-buying business since the third quarter of 2014. As a result, group-buying revenue in the second quarter dropped to 0.2 percent from 5.5 percent of total revenue a year earlier, news portal caixin.com reported on Tuesday.
"We also continue to expand our local delivery and service network, which we are currently utilizing to deliver over 70 percent of our total orders across almost all provinces in the Chinese mainland," CEO Yang Donghao said in the earnings report.
Earnings per share (EPS) came in at 14 cents, based on the earnings report.
Revenue and EPS exceeded the consensus estimates of Wall Street analysts, who forecast $1.45 billion revenue and EPS of 12 cents, caixin.com reported.
