Shares of China online discount retailer Vipshop Holdings (VIPS) lost a fifth of their value Tuesday, following its first-quarter earnings report that missed views as a partnership with two internet giants had yet to help it gain momentum.

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Shares plummeted 20% to close at 12.08 on the stock market today.

Vipshop reported first-quarter earnings after the market close Monday. It reported revenue of $3.2 billion, up 24.6% in local currency from the year-ago period. That beat analyst estimates for $3.08 billion.

But lower gross margins offset the revenue hike, as Vipshop reported adjusted earnings of 17 cents per share. That missed predictions of 18 cents and fell 20% from the year-ago period, in local currency.

Second-quarter guidance provided by Vipshop implied its partnership with JD.com (JD) and Tencent Holdings (TCEHY) was not generating the volume of traffic that analysts anticipated.

The company projected second-quarter revenue in the range of $3.2 billion to $3.36 billion. The midpoint of $3.27 billion was below the consensus estimate of $3.3 billion.

$863 Million Investment

Vipshop recently established partnerships with JD and Tencent, two of China’s largest internet companies. Tencent and JD.com in December invested a combined $863 million in Vipshop. The partnerships are expected to give Vipshop a boost in revenue and users throughout the rest of this year and beyond.

“We believe the guidance implies little contribution from Tencent and JD, which was not our expectation given good traffic growth in the mini-program on WeChat and strong commitment from JD with co-promotions in June,” KeyBanc Capital Markets analyst Hans Chung said in a note to clients.

JD.com in March granted Vipshop a prominent position on its main page and within its mobile application and will assist Vipshop in achieving gross merchandising volume targets. In April, Tencent granted Vipshop a spot on the Chinese version of the popular WeChat communication platform.

“Looking ahead, we will continue to work closely with Tencent and JD.com in order to improve the traffic flow and conversion rates, which will contribute meaningfully to our long-term customer and revenue growth,” said Eric Shen, Vipshop chairman and chief executive, in prepared remarks with the earnings release.

Vipshop ended the quarter with 156.6 million active customers, an increase of 1.1 million from the year-ago period. Total orders in the first quarter rose 25% year over year to 90.2 million.

Tencent is set to report first-quarter earnings before the market open Wednesday.

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