[Abstract]CFO Yang Donghao: cross border electricity supplier in the future will become the next growth engine vip.com.
Tencent technology news February 26th, vip.com (NYSE:VIPS) today released the fourth quarter ended 2015 and the full year ended December 31st. The report shows, the company revenue for the quarter was 13 billion 900 million yuan ($2 billion 150 million), an increase of 65%; according to U.S. GAAP meter (GAAP), net profit of 506 million yuan ($78 million) for the same period last year, net profit of 349 million yuan, an increase of 45%; diluted per American Depositary Shares Certificate (ADS) profit of $0.81 for the same period last year, profit of $0.58 per ADS.
earnings release, vip.com chairman and CEO Shen Ya and CFO Yang Donghao attended the subsequent conference call, the interpretation of earnings points and answer analyst questions.
below is the main part of the Q & A Q:
Deutsche Bank analyst: I have three questions, first of all, in view of the Spring Festival and other factors, do you think the company’s fourth quarter inventory before the end of March can digest all
second, will you increase investment in supply chain finance and how will the company manage the risk of bad debts?
third, in the future, vip.com will be put in the return and coupons will be much effort?
Yang Donghao: I think your first question is asked in the macroeconomic situation, macroeconomic growth slowed clothing and other consumer goods inventory, we do not have enough information to answer this question, but we think that, in Chinese, along with the economic slowdown in retail inventory total surplus. But in fact, vip.com such discount retail electricity supplier is a very good chance.
second questions, first of all, we have a good team in the supply chain finance, many team members are from the traditional commercial banking background, has a very rich experience in dealing with suppliers; second, vip.com itself has mastered a lot of information about suppliers and their credit for manufacturing; the factory class customers, the company will use the goods as collateral for loans in arrears, and in many cases in our warehouse have their goods, it can be used as collateral. Overall, the company’s supply chain finance business is safe, bad debt rate is very low.
Shen Ya: about your third question, the future vip.com will control the coupons and fanquan efforts, because too much fanquan will affect the company’s gross margin, the company will be in control of a relatively healthy level.
JP Morgan analyst: your first quarter results are expected to show that revenue may be higher than the fourth quarter of last year, up to 15% decline, >