Jumei Reports Unaudited First Half 2016 Financial

BEIJING, Dec. 23, 2016 (GLOBE NEWSWIRE) -- Jumei International Holding Limited (NYSE: JMEI ) ("Jumei" or the "Company"), China's leading online retailer of beauty products, today reported its unaudited financial results for the six months ended June 30, 2016.

First Half 2016 Highlights

• Net revenues increased by 1.7% year-over-year to RMB3.5 billion (US ^[1] $523.8 million), driven primarily by a 2.1% year-over-year increase in the number of active customers ^[3] and a 15.2% year-over-year increase in total orders ^[4] . The increase is off set by the strengthened sales promotion activities.
• Total net GMV ^[2] decreased by 7.6% year-over-year to RMB4.0 billion (US$598.8 million), due primarily to a decrease in sales from marketplace services.
• Gross profit as a percentage of net revenues decreased to 27.9% from 30.6% in the same period of 2015. The decrease was primarily due to an increase in the size and reach of promotional campaigns. Gross profit as a percentage of total net GMV increased slightly to 24.4% from 24.3% in the same period of 2015.
• Net income attributable to Jumei's ordinary shareholders was RMB141.2 million (US$21.3 million), compared with net income attributable to Jumei's ordinary shareholders of RMB201.2 million in the same period of 2015. Net margin attributable to Jumei's ordinary shareholders was 4.1%, compared with 5.9% in the same period of 2015.
• Non-GAAP net income attributable to Jumei's ordinary shareholders ^[5] was RMB163.6 million (US$24.6 million), compared with non-GAAP net income attributable to Jumei's ordinary shareholders ^[6] of RMB228.4 million in the same period of 2015. Non-GAAP net margin attributable to Jumei's ordinary shareholders  ^[6] was 4.7%, compared with 6.7% in the same period of 2015.

Unaudited First Half 2016 Financial Results

Total net revenues were RMB3.5 billion (US$523.8 million), an increase of 1.7% from RMB3.4 billion during the same period last year. The increase was primarily attributable to increases in the number of active customers and total orders. The number of total orders increased by 15.2% to approximately 35.7 million from 31.0 million in the same period of 2015, primarily a result of an increase in order volumes generated by Jumei Global. The number of active customers increased by 2.1% to approximately 9.8 million from approximately 9.6 million in the same period of 2015.

Gross profit was RMB971.4 million (US$146.2 million), compared with RMB1.0 billion in the first half year of 2015. Gross profit as a percentage of net revenues decreased to 27.9% from 30.6% in the same period of 2015. The decrease was primarily due an increase in the size and reach of promotional campaigns. Gross profit as a percentage of net GMV increased slightly to 24.4% from 24.3% in the same period of 2015. Gross profit from merchandise sales as a percentage of net GMV of merchandise sales decreased to 28.4% from 31.7% in the same period of 2015.

Total operating expenses were RMB852.2 million (US$128.2 million), a decrease of 2.7% from RMB876.2 million in the first half year of 2015. Operating expenses as a percentage of total net GMV increased to 21.4% from 20.3% in the same period of 2015.

• Fulfillment expenses were RMB439.8 million (US$66.2 million), an increase of 8.7% from RMB404.6 million in the same period of 2015. The increase was primarily due to an increase in the number of orders. Fulfillment expenses as a percentage of total net GMV increased to 11.1% from 9.4% in the same period of 2015.
• Marketing expenses were RMB220.5 million (US$33.2 million), a decrease of 31.5% from RMB321.8 million in the same period of 2015. The decrease was primarily due to an increase in use of live streaming promotional videos and a decrease in traditional advertising. Marketing expenses as a percentage of total net GMV was 5.5%, compared with 7.5% in the same period of 2015.
• Technology and content expenses were RMB95.1 million (US$14.3 million), an increase of 15.4% from RMB82.4 million in the same period of 2015. Technology and content expenses as a percentage of total net GMV increased to 2.4% from 1.9% in the same period of 2015. The increase was mainly due to additional server rental and bandwidth fees as well as costs associated with retaining talent.
• General and administrative expenses were RMB96.9 million (US$14.6 million), an increase of 43.8% from RMB67.4 million in the same period of 2015. General and administrative expenses as a percentage of total net GMV increased to 2.4% from 1.6% in the same period of 2015. The increase was attributed to an increase in general and administrative staff headcount to support business expansion and professional consulting fees.

Income from operations was RMB119.2 million (US$17.9 million), compared with income from operations of RMB172.2 million in the same period of 2015.

Non-GAAP income from operations , which excludes RMB22.4 million (US$3.4 million) in share-based compensation expenses, was RMB141.6 million (US$21.3 million), compared with non-GAAP income from operations of RMB199.3 million in the same period of 2015.

Net income attributable to Jumei's ordinary shareholders was RMB141.2 million (US$21.3 million), compared with net income attributable to Jumei's ordinary shareholders of RMB201.2 million in the same period of 2015. Net margin attributable to Jumei's ordinary shareholders decreased to 4.1% from 5.9% in the same period of 2015. Net income per basic and diluted ADS were RMB0.95 (US$0.14) and RMB0.94 (US$0.14), respectively, compared with net income per basic and diluted ADS RMB1.38 and RMB1.34, respectively, for the same period of 2015.

Non-GAAP net income attributable to Jumei's ordinary shareholders , which excludes share-based compensation expenses, was RMB163.6 million (US$24.6 million), compared with non-GAAP net income attributable to Jumei's ordinary shareholders RMB228.4 million in the same period of 2015. Non-GAAP net margin attributable to Jumei's ordinary shareholders decreased to 4.7% from 6.7% in the same period of 2015. Non-GAAP net income per basic and diluted ADS were RMB1.10 (US$0.16) and RMB1.09 (US$0.16), respectively, compared with non-GAAP net income per basic and diluted ADS of RMB1.57 and RMB1.52, respectively, in the same period of 2015.

Balance Sheet

As of June 30, 2016, the Company had cash and cash equivalents of RMB2.8 billion (US$414.9 million), and short-term investments of RMB190.0 million (US$28.6 million).

Use of Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with the United States Generally Accepted Accounting Principles ("GAAP"), Jumei uses non-GAAP income from operations, non-GAAP net income attributable to Jumei's ordinary shareholders, non-GAAP net margin attributable to Jumei's ordinary shareholders and non-GAAP net income per ADS attributable to Jumei's ordinary shareholders, by excluding share-based compensation expenses from operating profit and net income attributable to the Company's shareholders, respectively. The Company believes these non-GAAP financial measures are important to help investors understand Jumei's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess Jumei's core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of Jumei's results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating Jumei's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

About Jumei International Holding Limited Jumei (NYSE: JMEI ) is China's leading online retailer of beauty products. Jumei's internet platform is a trusted destination for consumers to discover and purchase branded beauty products, baby, children and maternity products, light luxury products, health supplements and other products through the Company's jumei.com and jumeiglobal.com websites and mobile application. Leveraging its deep understanding of customer needs and preferences, as well as its strong merchandizing capabilities, Jumei has adopted multiple effective sales formats to encourage product purchases on its platform, including curated sales, online shopping mall and flash sales. More information about Jumei can be found at http://ir.jumei.com .

Safe Harbor Statement

Any forward-looking statements contained in this announcement are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Jumei may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, 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 Jumei'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. Further information regarding such risks and uncertainties is included in Jumei's filings with the SEC, including its annual report on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Jumei does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Jumei International Holding Limited Mr. Sterling Song Investor Relations Director Phone: +86-10-5676-6983 Email: kans@jumei.com

Christensen In China Mr. Christian Arnell Phone: +86-10-5900-1548 E-mail: carnell@christensenir.com

In United States Ms. Linda Bergkamp Phone: +1-480-614-3004 Email: lbergkamp@christensenir.com