Press Releases
JD.com Announces First Quarter 2018 Results
First Quarter 2018 Highlights
- Net revenues1for the first quarter of 2018 were
RMB100.1 billion (US$216.0 billion), an increase of 33.1% from the first quarter of 2017. Net service revenues for the first quarter of 2018 wereRMB8.6 billion (US$1.4 billion ), an increase of 60.0% from the first quarter of 2017.
- Operating margin of
JD Mall before unallocated items3 for the first quarter of 2018 was 2.1%, as compared to 2.2% for the same period last year.
- Net income from continuing operationsattributable to ordinary shareholders for the first quarter of 2018 was
RMB1,524.9 million (US$243.1 million ), compared toRMB298.8 million for the same period last year. Non-GAAP net income from continuing operationsattributable to ordinary shareholders4 for the first quarter of 2018 wasRMB1,047.4 million (US$167.0 million ), compared toRMB1,321.9 million for the same period last year.
- Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS from continuing operations for the first quarter of 2018 was
RMB1.04 (US$0.17) , compared toRMB0.21 for the first quarter of 2017. Non-GAAP diluted net income per ADS from continuing operations for the first quarter of 2018 wasRMB0.71 (US$0.11) , compared toRMB0.92 for the same quarter last year.
- Annual active customer accounts increased by 27.6% to 301.8 million in the twelve months ended
March 31, 2018 from 236.5 million in the twelve months endedMarch 31, 2017 .
“Our core e-commerce business performed very well in the first quarter, as consumers continue to migrate to our model of convenient and trusted retail,” said
“In the first quarter of 2018, JD saw strong revenue growth and maintained a healthy balance between profitability and investing for the future,” said Sidney Huang, JD.com’s Chief Financial Officer. “We are making rapid progress in boundaryless retail innovations while expanding JD’s advanced nationwide fulfillment network to bring value to a wide range of brands and industry players.”
Recent Business Developments
- In April,
JD.com announced strategic partnerships with two well-known Chinese retail brands to pursue “Boundaryless Retail Solutions” and provide customers with omni-channel shopping experiences. As part of the agreements, JD will help digitalize the brands’ physical stores inChina , including integration of online and offline sales channels, warehousing systems and membership programs, leveraging JD’s advanced big data and AI technologies. JD will also provide integrated logistics and targeted marketing solutions to help the brands improve operating efficiency and enhance customer experience.
- In April, as part of its “Retail as a Service” offering,
JD.com leveraged its retail infrastructure to help Swiss luxury watchmaker Audemars Piguet launch its first ever online pop up boutique on the WeChat Mini-Program platform.JD.com offered full technical support, as well as tailored marketing, high-end logistics solutions and other services, to help the brand tap into the Chinese market.
- In the first quarter, H.Moser&Cie., a top independent Swiss watchmaking brand, launched its first store in
China on JD’s direct sales platform. In March, world famous watch brands TAG Heuer,SEIKO and MIDO launched “real-time purchases” on JD’s platform in parallel with the Baselworld Watch and Jewelry Show, enabling consumers to purchase their latest models online during the show.
- In March, high-end Italian customized men’s wear brand CANALI and British luxury brand Mulberry joined JD.com’s independent online luxury fashion platform TOPLIFE, which brings high-end fashion and luxury items from around the globe directly to Chinese consumers and provides a curated, premium online shopping experience. Since its launch in 2017, TOPLIFE has attracted prominent international luxury brands including Saint Laurent,
Alexander McQueen andDerek Lam , as well as La Perla, Rimowa (LVMH), B&O Play, Trussardi and DYSON, among others.
- In March,
JD.com officially launched “JD Umbrella,” an evaluation and incentive system designed to help home appliance brands optimize customer service levels on the JD platform thereby enhancing overall user experience. By monitoring service levels throughout the entire shopping process, from pre-sale to after-sale, the system provides service quality rankings of home appliance brands to help customers make purchasing decisions. The system also allows JD to incentivize its internal home appliance customer service representatives based on customer ratings.
- During the first quarter,
JD.com expanded its premium “Expedited Delivery” service including two-hour delivery for small and medium sized packages and three-hour delivery for large items, with coverage of more than 50 major cities and approximately 1,000 counties and districts inChina . Additionally, JD Logistics launched a new premium logistics service withChina Railway Corporation , leveraging domestic high-speed trains for secure, long-distance transportation of high-end goods and JD’s Luxury Express, a premium delivery service for luxury products, for last mile delivery. The combination creates a seamless network allowing customers to enjoy same-day delivery for high-end goods originating from non-local warehouses.
- As of
April 30, 2018 , JD.com’s joint venture, New Dada, had partnered with 192Walmart stores and 424 Yonghui stores, among numerous other supermarkets and grocery stores, to provide a premium online fresh grocery shopping experience with one-hour home delivery service. New Dada is the largest crowdsourcing logistics provider and O2O grocery platform inChina .
- During the first quarter, JD expanded its leadership position in fulfillment capabilities among China’s e-commerce companies. As of
March 31, 2018 ,JD.com operated 515 warehouses covering an aggregate gross floor area of 10.9 million square meters inChina .
JD.com had approximately 170,000 merchants on its online marketplace as ofApril 30, 2018 , and a total of 163,543 full-time employees as ofMarch 31, 2018 .
First Quarter 2018 Financial Results
Net Revenues. For the first quarter of 2018,
Cost of Revenues. Cost of revenues increased by 33.5% to
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 39.3% to
Marketing Expenses. Marketing expenses increased by 24.7% to
Technology and Content Expenses. Technology and content expenses increased by 87.2% to
General and Administrative Expenses. General and administrative expenses increased by 16.5% to
Income from operations and Non-GAAP income from operations5. Operating income from continuing operations for the first quarter of 2018 was
Non-GAAP EBITDA6 from continuing operations for the first quarter of 2018 was
Others, net. Others, net from continuing operations for the first quarter of 2018 was an income of
Net income attributable to ordinary shareholders and Non-GAAP Net income attributable to ordinary shareholders. Net income from continuing operations attributable to ordinary shareholders for the first quarter of 2018 was
Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS from continuing operations for the first quarter of 2018 was
As of
For the three months ended | ||||||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | ||||||
RMB | RMB | USD | ||||||
(In thousands) | ||||||||
Net cash provided by/(used in) operating activities from continuing operations | 5,888,136 | (3,772,925 | ) | (601,493 | ) | |||
Add/(less): Impact from JD Finance related credit products included in the operating cash flow | 395,296 | (1,279,454 | ) | (203,975 | ) | |||
Less: Capital expenditures | ||||||||
Land use rights and construction in progress | (383,373 | ) | (1,319,319 | ) | (210,330 | ) | ||
Other CAPEX | (280,008 | ) | (2,446,739 | ) | (390,068 | ) | ||
Free cash flow | 5,620,051 | (8,818,437 | ) | (1,405,866 | ) |
Net cash used in operating activities from continuing operations was
Net cash used in investing activities from continuing operations was
Net cash provided by financing activities from continuing operations was
For working capital turnover days, see table under “Supplemental Financial Information and Business Metrics.”
JD Logistics Financing
As of
Second Quarter 2018 Guidance
Net revenues for the second quarter of 2018 are expected to be between
Conference Call
JD.com’s management will hold a conference call at
Listeners may access the call by dialing the following numbers:
US Toll Free: | +1-845-675-0437 or +1-866-519-4004 |
Hong Kong | +852-3018-6771 or 800-906-601 |
Mainland China | 400-6208-038 or 800-8190-121 |
International | +65-6713-5090 |
Passcode: 6989367
A telephone replay will be available from
US Toll Free: | +1-855-452-5696 or +1-646-254-3697 |
International | +61-2-8199-0299 |
Passcode: 6989367
Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.jd.com.
About JD.com
Non-GAAP Measures
In evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per weighted average number of shares and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in
The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP income/(loss) from operations, non-GAAP net income/(loss) attributable to ordinary shareholders and non-GAAP EBITDA reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from JD Finance related credit products included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The company also believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the company’s current operating performance and future prospects in the same manner as management does, if they so choose. The company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the company's core operating results and business outlook.
The non-GAAP financial measures have limitations as analytical tools. The company’s non-GAAP financial measures do not reflect all items of income and expense that affect the company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The company encourages you to review the company’s financial information in its entirety and not rely on a single financial measure.
CONTACTS:
Investor Relations
Senior Director of Investor Relations
+86 (10) 8912-6805
IR@JD.com
Media
VP, International Corporate Affairs
Press@JD.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," "confident" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as
JD.com, Inc. |
||||
Unaudited Interim Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
As of | ||||
December 31, 2017 | March 31, 2018 | March 31, 2018 | ||
RMB | RMB | US$ | ||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 25,688,327 | 35,203,966 | 5,612,340 | |
Restricted cash | 4,110,210 | 2,733,080 | 435,717 | |
Short-term investments | 8,587,852 | 11,944,140 | 1,904,177 | |
Accounts receivable, net (including JD Baitiao of RMB12.9 billion and RMB14.3 billion as of March 31, 2018 and December 31, 2017, respectively)(1) | 16,359,147 | 16,053,145 | 2,559,249 | |
Advance to suppliers | 394,574 | 524,649 | 83,641 | |
Inventories, net | 41,700,379 | 36,164,002 | 5,765,393 | |
Prepayments and other current assets | 7,391,602 | 6,776,082 | 1,080,267 | |
Amount due from related parties | 10,796,561 | 3,596,631 | 573,388 | |
Total current assets | 115,028,652 | 112,995,695 | 18,014,172 | |
Non-current assets | ||||
Property, equipment and software, net | 12,574,178 | 13,656,542 | 2,177,174 | |
Construction in progress | 3,196,516 | 3,460,934 | 551,754 | |
Intangible assets, net | 6,692,717 | 6,288,540 | 1,002,541 | |
Land use rights, net | 7,050,809 | 7,014,268 | 1,118,239 | |
Goodwill | 6,650,570 | 6,650,570 | 1,060,257 | |
Investment in equity investees | 18,551,319 | 19,420,394 | 3,096,068 | |
Investment securities | 10,027,813 | 11,514,276 | 1,835,646 | |
Deferred tax assets | 158,250 | 137,368 | 21,900 | |
Other non-current assets (including JD Baitiao of RMB0.6 billion and RMB0.9 billion as of March 31, 2018 and December 31, 2017, respectively)(1) | 2,227,942 | 2,279,474 | 363,402 | |
Amount due from related parties | 1,896,200 | 1,896,200 | 302,299 | |
Total non-current assets | 69,026,314 | 72,318,566 | 11,529,280 | |
Total assets | 184,054,966 | 185,314,261 | 29,543,452 |
JD.com, Inc. |
||||
Unaudited Interim Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
As of | ||||
December 31, 2017 | March 31, 2018 | March 31, 2018 | ||
RMB | RMB | US$ | ||
LIABILITIES | ||||
Current liabilities | ||||
Short-term borrowings | 200,000 | - | - | |
Nonrecourse securitization debt(1) | 12,684,881 | 13,514,256 | 2,154,490 | |
Accounts payable | 74,337,708 | 62,217,990 | 9,919,011 | |
Advances from customers | 13,605,298 | 11,468,405 | 1,828,334 | |
Deferred revenues | 1,592,332 | 1,848,329 | 294,667 | |
Taxes payable | 658,220 | 360,474 | 57,468 | |
Amount due to related parties | 54,342 | 78,700 | 12,547 | |
Accrued expenses and other current liabilities | 15,117,840 | 17,380,499 | 2,770,859 | |
Total current liabilities | 118,250,621 | 106,868,653 | 17,037,376 | |
Non-current liabilities | ||||
Deferred revenues | 1,273,545 | 1,094,055 | 174,418 | |
Nonrecourse securitization debt(1) | 4,475,238 | 1,019,290 | 162,499 | |
Unsecured senior notes | 6,447,357 | 6,207,721 | 989,657 | |
Deferred tax liabilities | 882,248 | 874,274 | 139,380 | |
Other non-current liabilities | 337,254 | 305,828 | 48,756 | |
Total non-current liabilities | 13,415,642 | 9,501,168 | 1,514,710 | |
Total liabilities | 131,666,263 | 116,369,821 | 18,552,086 |
JD.com, Inc. |
||||||
Unaudited Interim Condensed Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
As of | ||||||
December 31, 2017 | March 31, 2018 | March 31, 2018 | ||||
RMB | RMB | US$ | ||||
Redeemable non-controlling interests(2) | - | 14,293,378 | 2,278,701 | |||
SHAREHOLDERS’ EQUITY | ||||||
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value, 100,000,000 shares authorized, 2,938,709 shares issued and 2,854,454 shares outstanding as of March 31, 2018) | 52,040,814 | 54,199,693 | 8,640,706 | |||
Non-controlling interests | 347,889 | 451,369 | 71,959 | |||
Total shareholders’ equity | 52,388,703 | 54,651,062 | 8,712,665 | |||
Total liabilities, redeemable non-controlling interests and shareholders’ equity | 184,054,966 | 185,314,261 | 29,543,452 | |||
(1) Due to certain pre-existing contractual arrangement, the company remains as the legal owner of the consumer credit (known as JD Baitiao) receivables until they are repaid or sold through the new asset-backed securitization (“ABS”) plan as described below. JD Finance continues to perform the credit risk assessment services for the JD Baitiao business and purchase the over-due receivables from the company at carrying value to absorb the risks and obtain the rewards from JD Baitiao business. The company also assisted JD Finance in various ABS to raise funds to support the JD Baitiao business. JD Finance acts as the servicer of the ABS and also subscribes to the subordinate tranche. Due to the company’s continuing involvement right in ABS under the historical arrangement prior to October 2017, the company was not able to derecognize the related Baitiao receivables through the legacy ABS under U.S. GAAP. Beginning October 2017, the company revised certain structural arrangements for the issuance of ABS to relinquish its continuing involvement right, and has been able to derecognize certain Baitiao receivables through the new ABS plan. As a result, the balances of Baitiao receivables are expected to decrease gradually in the future with the adoption of the new ABS plan, and nonrecourse securitization debt balance will gradually decrease upon the settlement of the legacy ABS plan. | ||||||
(2) Redeemable non-controlling interests were recognized in the first quarter of 2018 as a result of JD Logistics’ preferred shares financing. See “Recent Development” for further details. |
JD.com, Inc. | ||||||
Unaudited Interim Condensed Consolidated Statements of Operations | ||||||
(In thousands, except per share data) | ||||||
For the three months ended | ||||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | ||||
RMB | RMB | US$ | ||||
Net revenues(5) | ||||||
Net product revenues | 69,825,449 | 91,498,076 | 14,586,945 | |||
Net service revenues | 5,392,738 | 8,629,825 | 1,375,797 | |||
Total net revenues | 75,218,187 | 100,127,901 | 15,962,742 | |||
Operating expenses(7)(8) | ||||||
Cost of revenues | (64,393,726 | ) | (85,969,599 | ) | (13,705,576 | ) |
Fulfillment | (5,150,584 | ) | (7,173,399 | ) | (1,143,609 | ) |
Marketing | (2,799,531 | ) | (3,491,419 | ) | (556,614 | ) |
Technology and content | (1,289,061 | ) | (2,413,034 | ) | (384,694 | ) |
General and administrative | (923,962 | ) | (1,076,019 | ) | (171,543 | ) |
Total operating expenses | (74,556,864 | ) | (100,123,470 | ) | (15,962,036 | ) |
Income from operations | 661,323 | 4,431 | 706 | |||
Other income/(expenses) | ||||||
Share of results of equity investees | (520,041 | ) | (496,597 | ) | (79,169 | ) |
Interest income(3) | 372,325 | 545,725 | 87,001 | |||
Interest expense(4) | (190,106 | ) | (228,664 | ) | (36,454 | ) |
Others, net(6) | 44,764 | 1,803,369 | 287,499 | |||
Income before tax | 368,265 | 1,628,264 | 259,583 | |||
(3) Interest income charged to JD Finance in relation to nonrecourse securitization debt were RMB123.8 million and RMB170.9 million for the three months ended March 31, 2017 and 2018, respectively, same as the interest expense below. | ||||||
(4) Interest expense in relation to nonrecourse securitization debt were the same RMB123.8 million and RMB170.9 million for the three months ended March 31, 2017 and 2018, respectively. |
JD.com, Inc. | |||||||
Unaudited Interim Condensed Consolidated Statements of Operations | |||||||
(In thousands, except per share data) | |||||||
For the three months ended | |||||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | |||||
RMB | RMB | US$ | |||||
Income before tax | 368,265 | 1,628,264 | 259,583 | ||||
Income tax expenses | (89,683 | ) | (151,018 | ) | (24,076 | ) | |
Net income from continuing operations | 278,582 | 1,477,246 | 235,507 | ||||
Net income from discontinued operations, net of tax | 77,114 | - | - | ||||
Net income | 355,696 | 1,477,246 | 235,507 | ||||
Net loss from continuing operations attributable to non-controlling interests shareholders | (20,192 | ) | (47,872 | ) | (7,632 | ) | |
Net loss from discontinued operations attributable to non-controlling interests shareholders | (2,313 | ) | - | - | |||
Net income from continuing operations attributable to mezzanine classified non-controlling interests shareholders | - | 178 | 28 | ||||
Net income from discontinued operations attributable to mezzanine classified non-controlling interests shareholders | 139,139 | - | - | ||||
Net income attributable to ordinary shareholders | 239,062 | 1,524,940 | 243,111 | ||||
Including: Net loss from discontinued operations attributable to ordinary shareholders | (59,712 | ) | - | - | |||
Net income from continuing operations attributable to ordinary shareholders | 298,774 | 1,524,940 | 243,111 | ||||
(5) The company adopted the new revenue standard on January 1, 2018 using the modified retrospective transition method with an increase to retained earnings by approximately RMB0.3 billion. The adjustments primarily related to unredeemed portion of prepaid cards, from which the company began to recognize revenue from estimated unredeemed prepaid cards over the expected customer redemption period, rather than waiting until prepaid cards expire or when the likelihood of redemption becomes remote. The impact of applying the new revenue standard for the three months ended March 31, 2018 resulted in an increase in net product revenues of approximately RMB32 million. | |||||||
(6) The company adopted the new financial instruments accounting standard on January 1, 2018 and approximately RMB1.2 billion of accumulated other comprehensive income for the available-for-sale equity securities that existed as of December 31, 2017 was reclassified into retained earnings upon the initial adoption. After the adoption of this new accounting standard, the company will measure its long-term investments other than equity method investments at fair value with gains or losses recorded through the income statements, which could vary significantly from quarter to quarter. The impact of applying this new standard for the three months ended March 31, 2018 resulted in an increase of approximately RMB1.6 billion in Others, net. |
JD.com, Inc. | |||||||
Unaudited Interim Condensed Consolidated Statements of Operations | |||||||
(In thousands, except per share data) | |||||||
For the three months ended | |||||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | |||||
RMB | RMB | US$ | |||||
(7) Includes share-based compensation expenses as follows: | |||||||
Cost of revenues | (3,758 | ) | (13,421 | ) | (2,140 | ) | |
Fulfillment | (76,971 | ) | (83,292 | ) | (13,279 | ) | |
Marketing | (20,773 | ) | (34,503 | ) | (5,501 | ) | |
Technology and content | (116,384 | ) | (175,902 | ) | (28,043 | ) | |
General and administrative | (318,302 | ) | (326,990 | ) | (52,130 | ) | |
(8) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: | |||||||
Fulfillment | (41,544 | ) | (41,887 | ) | (6,678 | ) | |
Marketing | (301,101 | ) | (303,811 | ) | (48,435 | ) | |
Technology and content | (20,661 | ) | (24,261 | ) | (3,868 | ) | |
General and administrative | (76,326 | ) | (76,326 | ) | (12,168 | ) | |
Net income/(loss) per share: | |||||||
Basic | |||||||
Continuing operations | 0.11 | 0.53 | 0.09 | ||||
Discontinued operations | (0.02 | ) | - | - | |||
Net income per share | 0.08 | 0.53 | 0.09 | ||||
Diluted | |||||||
Continuing operations | 0.10 | 0.52 | 0.08 | ||||
Discontinued operations | (0.02 | ) | - | - | |||
Net income per share | 0.08 | 0.52 | 0.08 | ||||
Net income/(loss) per ADS: | |||||||
Basic | |||||||
Continuing operations | 0.21 | 1.07 | 0.17 | ||||
Discontinued operations | (0.04 | ) | - | - | |||
Net income per ADS | 0.17 | 1.07 | 0.17 | ||||
Diluted | |||||||
Continuing operations | 0.21 | 1.04 | 0.17 | ||||
Discontinued operations | (0.04 | ) | - | - | |||
Net income per ADS | 0.17 | 1.04 | 0.17 |
JD.com, Inc. | ||||
Unaudited Non-GAAP Net Income Per ADS from Continuing Operations | ||||
(In thousands, except per share data) | ||||
For the three months ended | ||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | ||
RMB | RMB | US$ | ||
Non-GAAP net income from continuing operations attributable to ordinary shareholders | 1,321,935 | 1,047,415 | 166,985 | |
Weighted average number of shares: | ||||
Basic | 2,837,203 | 2,854,368 | 2,854,368 | |
Diluted | 2,887,938 | 2,939,178 | 2,939,178 | |
Non-GAAP net income per ADS from continuing operations(9): | ||||
Basic | 0.93 | 0.73 | 0.12 | |
Diluted | 0.92 | 0.71 | 0.11 | |
(9) Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per share multiplied by two. |
JD.com, Inc. | |||||||
Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free Cash Flow | |||||||
(In thousands) | |||||||
For the three months ended | |||||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | |||||
RMB | RMB | US$ | |||||
Net cash provided by/(used in) continuing operating activities | 5,888,136 | (3,772,925 | ) | (601,493 | ) | ||
Net cash used in discontinued operating activities | (1,416,762 | ) | - | - | |||
Net cash provided by/(used in) operating activities(10) | 4,471,374 | (3,772,925 | ) | (601,493 | ) | ||
Net cash used in continuing investing activities | (4,237,557 | ) | (941,140 | ) | (150,040 | ) | |
Net cash used in discontinued investing activities | (2,507,235 | ) | - | - | |||
Net cash used in investing activities(10) | (6,744,792 | ) | (941,140 | ) | (150,040 | ) | |
Net cash provided by continuing financing activities | 2,316,649 | 13,307,073 | 2,121,460 | ||||
Net cash provided by discontinued financing activities | 5,672,710 | - | - | ||||
Net cash provided by financing activities | 7,989,359 | 13,307,073 | 2,121,460 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (36,621 | ) | (454,499 | ) | (72,458 | ) | |
Net increase in cash, cash equivalents and restricted cash | 5,679,320 | 8,138,509 | 1,297,469 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 24,163,650 | 29,798,537 | 4,750,588 | ||||
Cash, cash equivalents and restricted cash at end of period | 29,842,970 | 37,937,046 | 6,048,057 | ||||
Less: Cash, cash equivalents and restricted cash of discontinued operations | 8,051,519 | - | - | ||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | 21,791,451 |
37,937,046 |
6,048,057 |
||||
Net cash provided by/(used in) operating activities from continuing operations | 5,888,136 | (3,772,925 | ) | (601,493 | ) | ||
Add/(less): Impact from JD Finance related credit products included in the operating cash flow | 395,296 | (1,279,454 | ) | (203,975 | ) | ||
Less: Capital expenditures | |||||||
Land use rights and construction in progress | (383,373 | ) | (1,319,319 | ) | (210,330 | ) | |
Other CAPEX | (280,008 | ) | (2,446,739 | ) | (390,068 | ) | |
Free cash flow | 5,620,051 | (8,818,437 | ) | (1,405,866 | ) |
(10) As a result of new accounting guidance adopted on
JD.com, Inc. | ||||||
Supplemental Financial Information and Business Metrics | ||||||
Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | ||
Free cash flow(11) - trailing twelve months (“TTM”) (in RMB billions) | 17.8 | 31.0 | 17.1 | 17.7 | 3.3 | |
Inventory turnover days(12) – TTM | 36.7 | 36.3 | 36.9 | 38.1 | 37.2 | |
Accounts payable turnover days(13) – TTM | 52.3 | 56.2 | 58.4 | 59.1 | 58.2 | |
Accounts receivable turnover days(14) – TTM | 1.2 | 1.2 | 1.3 | 1.4 | 1.6 | |
GMV(15) (in RMB billions) | 253.2 | 335.3 | 302.5 | 403.4 | 330.2 | |
Annual active customer accounts(16) (in millions) | 236.5 | 258.3 | 266.3 | 292.5 | 301.8 | |
(11) As a result of new accounting standard adopted on January 1, 2018, the consolidated statements of cash flows were retrospectively adjusted to include restricted cash in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The impact of the retrospective reclassification on free cash flows for TTM Q1 2017, TTM Q2 2017, TTM Q3 2017,TTM Q4 2017 and TTM Q1 2018 was an increase of RMB0.5 billion, RMB2.1 billion, RMB2.5 billion, RMB2.0 billion and RMB0.4 billion, respectively. For free cash flow movement in the first quarter of 2018, see discussions under section "Cash Flow and Working Capital". (12) Inventory turnover days are the quotient of average inventory over five quarter ends to total cost of revenues for the last twelve months and then multiplied by 360 days. (13) Accounts payable turnover days are the quotient of average accounts payable over five quarter ends to total cost of revenues for the last twelve months and then multiplied by 360 days. Presented are the accounts payable turnover days for the direct sales business. (14) Accounts receivable turnover days are the quotient of average accounts receivable over five quarter ends to total net revenues of the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days excluding the impact from JD Baitiao. (15) GMV is defined as the total value of all orders for products and services placed in the company’s online direct sales business and on the company’s online marketplaces, regardless of whether the goods are sold or delivered or whether the goods are returned. GMV includes orders placed on our websites and mobile apps as well as orders placed on third-party websites and mobile apps that are fulfilled by us or by our third-party merchants. GMV includes shipping charges paid by buyers to sellers and excludes certain transactions over certain amounts that are comparable to the disclosed parameters in GMV definition by our major industry peer. (16) Annual active customer accounts are customer accounts that made at least one purchase during the twelve months ended on the respective dates, whether through online direct sales or online marketplaces. |
JD.com, Inc. | ||||||
Unaudited Reconciliation of GAAP and Non-GAAP Results | ||||||
(In thousands, except percentage data) | ||||||
For the three months ended | ||||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | ||||
RMB | RMB | US$ | ||||
Income from operations from continuing operations | 661,323 | 4,431 | 706 | |||
Reversal of: Revenue from business cooperation arrangements with equity investees | (209,631 | ) | (236,737 | ) | (37,741 | ) |
Add: Share-based compensation | 536,188 | 634,108 | 101,093 | |||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 439,632 | 446,285 | 71,149 | |||
Non-GAAP incomefrom operations from continuing operations | 1,427,512 | 848,087 | 135,207 | |||
Add: Depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions | 512,556 | 748,260 | 119,290 | |||
Non-GAAP EBITDA from continuing operations | 1,940,068 | 1,596,347 | 254,497 | |||
Total net revenues | 75,218,187 | 100,127,901 | 15,962,742 | |||
Non-GAAP operating margin from continuing operations | 1.9 | % | 0.8 | % | 0.8 | % |
Non-GAAP EBITDA margin from continuing operations | 2.6 | % | 1.6 | % | 1.6 | % |
JD.com, Inc. | |||||||
Unaudited Reconciliation of GAAP and Non-GAAP Results | |||||||
(In thousands, except percentage data) | |||||||
For the three months ended | |||||||
March 31, 2017 | March 31, 2018 | March 31, 2018 | |||||
RMB | RMB | US$ | |||||
Net income from continuing operations attributable to ordinary shareholders | 298,774 | 1,524,940 | 243,111 | ||||
Add: Share-based compensation | 536,188 | 634,108 | 101,093 | ||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 439,632 | 446,285 | 71,149 | ||||
Add: Reconciling items on the share of equity method investments(17) | 222,283 | 301,421 | 48,054 | ||||
Add: Impairment of goodwill, intangible assets, and investments | 55,194 | 6,088 | 971 | ||||
Add: Net income attributable to mezzanine classified non-controlling interests shareholders | - | 178 | 28 | ||||
Reversal of: Gain from fair value change of long-term investments, net of tax | - | (1,609,920 | ) | (256,659 | ) | ||
Reversal of: Revenue from business cooperation arrangements with equity investees | (209,631 | ) | (236,737 | ) | (37,741 | ) | |
Reversal of: Income from non-compete agreement | (20,505 | ) | (18,948 | ) | (3,021 | ) | |
Non-GAAP net income from continuing operations attributable to ordinary shareholders | 1,321,935 | 1,047,415 | 166,985 | ||||
Total net revenues | 75,218,187 | 100,127,901 | 15,962,742 | ||||
Non-GAAP net margin from continuing operations | 1.8 | % | 1.0 | % | 1.0 | % | |
(17) The reconciling items on the share of equity method investments consist of the impact of share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, share of amortization of equity investments’ intangibles not on their books, and net income attributable to mezzanine equity holder. Earning from equity method investments in publicly listed companies and certain privately held companies is recorded one quarter in arrears. |
1 The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.
2 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of
3 Unallocated items include revenue from business cooperation arrangements with equity investees, share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, and impairment of goodwill and intangible assets, which are not allocated to segments.
4 Non-GAAP net income/(loss) attributable to ordinary shareholders is defined to exclude share-based compensation, amortization of intangible assets resulting from acquisitions, fair value changes of long-term investments, and certain other non-cash gain or loss items from net income/(loss) attributable to ordinary shareholders. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
5 Non-GAAP income/(loss) from operations is defined to exclude share-based compensation, amortization of intangible assets resulting from acquisitions, and certain other non-cash gain or loss items from income/(loss) from operations. Non-GAAP operating margin is calculated by dividing non-GAAP income/(loss) from operations by net revenues. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
6 Non-GAAP EBITDA is defined as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions, and non-GAAP EBITDA margin is calculated by dividing non-GAAP EBITDA by net revenues. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
Source: JD.com