Vipshop Announces US$1 Billion Share Repurchase Program

Rhea-AI Summary

Vipshop Holdings Limited (NYSE: VIPS) announced a new share repurchase program, authorizing the repurchase of up to US$1 billion of its shares over the next 24 months. The buyback aims to boost shareholder value and will be conducted in compliance with SEC rules. The company plans to utilize its existing cash balance for the program, which can include open market transactions and private negotiations. This strategic move reflects confidence in its market position and is intended to enhance stock performance.

Positive

• Authorized a share repurchase program of US$1 billion, indicating confidence in the business.
• The buyback may enhance shareholder value and positively influence stock performance.

Negative

• None.

GUANGZHOU, China, March 31, 2022 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today announced that its board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$1 billion of its American depositary shares or Class A ordinary shares over the next 24-month period. The Company plans to adopt and implement such share repurchase program in accordance with applicable rules and requirements under the Securities Exchange Act of 1934, as amended, and the Company's insider trading policy.

The Company's proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its existing cash balance.

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 as well as Vipshop's strategic and operational plans also 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, 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; the potential impact of the COVID-19 to Vipshop's business operations and the economy in China and elsewhere generally; 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 U.S. Securities and Exchange Commission. All information provided in this press release 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.

Investor Relations Contact

Tel: +86 (20) 2233-0732
Email: IR@vipshop.com

 

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SOURCE Vipshop Holdings Limited

FAQ

What is the purpose of Vipshop's US$1 billion share repurchase program?

The purpose is to boost shareholder value and demonstrate confidence in the company's market position.

How long will the share repurchase program last?

The share repurchase program is authorized for a period of 24 months.

What will be the source of funding for the share repurchase program?

Vipshop plans to fund the repurchase program from its existing cash balance.

How will Vipshop conduct the share repurchases?

Repurchases may occur in the open market at prevailing prices, privately negotiated transactions, or block trades.

What stock symbol represents Vipshop?

Vipshop is traded under the stock symbol VIPS on NYSE.