A RMB 5.79 billion one-off investment gain from the June 18 listing of Vipshop Holdings' (VIPS) commercial REIT on the Shanghai Stock Exchange pushed Q2 2026 GAAP net income attributable to shareholders 189.1% higher year-over-year to RMB 4.3 billion. A concurrent RMB 1.56 billion withholding tax accrual on historical dividend distributions pressed reported non-GAAP net income to RMB 392.2 million from RMB 2.1 billion in Q2 2025; add back the withholding item and the underlying figure recovers to RMB 2.0 billion at a 7.9% net margin. CFO Mark Wang said that RMB 2.0 billion figure reflects core cash generation remaining fully intact, even as net revenues of RMB 24.7 billion came in at the lower end of the company's guided range.
Revenue and expense ratios
Down from RMB 25.8 billion a year earlier, the RMB 24.7 billion top line carried a gross margin of 23.3%, a 20-basis-point YoY contraction. Non-GAAP operating income fell to RMB 2.0 billion from RMB 2.4 billion, compressing non-GAAP operating margin 120 basis points to 8.1%.
| Metric | Q2 2026 | Q2 2025 |
|---|---|---|
| Net revenues | RMB 24.7B | RMB 25.8B |
| Gross margin | 23.3% | 23.5% |
| Non-GAAP operating margin | 8.1% | 9.3% |
| Reported non-GAAP net margin | 1.6% | 8.0% |
| Underlying non-GAAP net margin | 7.9% | n/a |
Fulfillment costs rose to 8.7% of revenue from 8.2% as return rates continued to climb. Marketing reached 3.1% from 2.8%. Technology and content moved to 2.0% from 1.7%. G&A was the only line to improve, falling 17.5% to RMB 1.1 billion (4.3% of revenue vs. 5.0% a year earlier), because the prior year's elevated share-based compensation for Shan Outlets did not recur.
Active SVIP members grew 8% year-over-year and drove 54% of total online spending in the quarter. Co-founder, chairman and CEO Eric Shen said SVIP membership has since crossed 10 million.
REIT program and capital return
The commercial REIT raised RMB 7.7 billion at listing, the largest fundraising among the first batch of commercial REITs on China's capital markets, per Wang. Its two underlying assets are Shan Outlets in Zhengzhou and Harbin, both operating for around 10 years. Vipshop holds 18 additional outlet projects outside the REIT structure.
Shan Outlets posted over 20% GMV growth in the first half. Management expects comparable same-store sales to grow at least double digits in the second half, per Shen on the call.
On capital return, Vipshop distributed approximately USD 400 million in the first half through dividends and buybacks, then the board approved a new USD 1 billion share repurchase program. The company reaffirmed a target payout ratio of no less than 75% of full-year 2025 non-GAAP net income; combined shareholder returns from 2021 through 2025 totaled USD 3.7 billion, per Wang.
Q3 2026 guidance
Third-quarter 2026 net revenue guidance, per Vipshop management, is RMB 20.3 billion to RMB 21.4 billion, a year-over-year decline of approximately 5% to 0%. Shen said consumer sentiment through July and August remained under pressure, with sales momentum only slightly better than Q2, and projected full-year 2026 revenue will finish slightly below 2025.