Vipshop Announces US$500 Million Share Repurchase Program

Rhea-AI Summary

Vipshop Holdings Limited (NYSE: VIPS) has announced a new share repurchase program authorized by its board of directors, allowing the company to buy back up to US$500 million of its American depositary shares or Class A ordinary shares by March 31, 2025. The repurchases will be conducted in compliance with applicable regulations and may occur in various market formats, adjusting based on market conditions. This initiative aims to enhance shareholder value, funded by the company's existing cash balance. The company has a significant customer base and continues to offer branded products at competitive prices.

Positive

• Share repurchase program of up to US$500 million to enhance shareholder value.
• Repurchase funded from existing cash reserves, indicating strong liquidity.

Negative

• None.

GUANGZHOU, China, March 31, 2023 /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$500 million of its American depositary shares or Class A ordinary shares until the close of business on March 31, 2025, U.S. Eastern Time. The Company plans to adopt and implement this 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 https://ir.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 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 needs 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 SEC. 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

View original content:https://www.prnewswire.com/news-releases/vipshop-announces-us500-million-share-repurchase-program-301786730.html

SOURCE Vipshop Holdings Limited

FAQ

What is the purpose of Vipshop's US$500 million share repurchase program?

The program aims to enhance shareholder value by repurchasing shares, potentially increasing earnings per share.

How long will Vipshop's share repurchase program last?

The share repurchase program will remain effective until March 31, 2025.

How will Vipshop execute the share repurchase program?

The company will repurchase shares through open market purchases and other legally permissible methods, subject to market conditions.

What is the expected impact of the repurchase program on Vipshop's stock price?

The repurchase program may support the stock price by reducing the number of shares available in the market.