Vipshop Responds to Additional Allegations

May 15, 2015, 08:39 ET from Vipshop Holdings Limited

GUANGZHOU, China, May 15, 2015 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today issued the following statement in response to the allegations made by a short seller on May 13, 2015:

Vipshop has been and will always endeavor to be in compliance with applicable U.S. and PRC laws and regulations. Vipshop believes the allegations are based upon unsupported speculation and contain numerous errors, representing a general misunderstanding of the Company's business model and are entirely groundless. In particular, these allegations attempt to cite publicly available filings with local bureaus of the PRC State Administration For Industry & Commerce ("SAIC") made by the Company's subsidiaries in China. However, the alleged low SAIC financial numbers used to support these allegations deviate substantially from the Company's actual SAIC filings in all of the cited regions. For example, one of the allegations is that the Company's revenue in 2014 is US$354,077,936 according to the "Consolidated SAIC Financials," but even the revenue of Vipshop (China) Co., Ltd., one of the wholly-owned subsidiaries of the Company, is approximately RMB 11.1 billion (US$1.79 billion) for 2014 as reported in its publicly available SAIC filing. The Company wishes to inform investors that SAIC filings in China are publicly accessible and encourage people to conduct their own check through legitimate means.  

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Vipshop's strategic and operational plans, contain forward-looking statements. Vipshop may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Vipshop's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Vipshop's goals and strategies; Vipshop's future business development, results of operations and financial condition; the expected growth of the online discount retail market in China; Vipshop's ability to attract customers and brand partners and further enhance its brand recognition; Vipshop's expectations regarding demand for and market acceptance of flash sales products and services; competition in the discount retail industry; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshop's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

SOURCE Vipshop Holdings Limited



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