Press Releases
JD.com Announces First Quarter 2015 Results
First Quarter 2015 Highlights1
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GMV for the first quarter of 2015 was
RMB87.8 billion (US$14.2 billion ), an increase of 99% compared with the first quarter of 2014.
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Net revenues for the first quarter of 2015 were
RMB36.6 billion (US$5.9 billion ), an increase of 62% from the first quarter of 2014.
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Net loss for the first quarter of 2015 was
RMB710.2 million (US$114.6 million ) and net margin was negative 1.9%. Non-GAAP net loss2 for the first quarter of 2015 wasRMB205.6 million (US$33.2 million ) and non-GAAP net margin was negative 0.6%.
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Annual active customer accounts3 increased by 90% to 105.2 million in the 12 months ended
March 31, 2015 from 55.5 million in the 12 months endedMarch 31, 2014 .
- Fulfilled orders in the first quarter of 2015 were 227.2 million, an increase of 76% from 129.3 million for the same period in 2014. Fulfilled orders placed through mobile accounted for approximately 42% of total orders fulfilled in the first quarter of 2015, a 329% increase compared to the same period in 2014.
"We are pleased to begin 2015 with another strong quarter of top-line performance driven by
"We achieved solid growth while investing heavily in a number of new areas during the first quarter," said
Recent Business Developments
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During the Chinese Spring festival
JD.com distributed virtual "red envelops" – traditional Chinese gifts of money to consumers – totaling approximatelyRMB100 million via Weixin and Mobile QQ, two leading mobile social applications inChina , to promote brand awareness and enhance customer stickiness.
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In March,
JD.com launched its Equity Crowdfunding platform to finance, develop and promote the creation of start-ups inChina . Through the new platform,JD.com is able to give Chinese entrepreneurs access to a broad set of potential early-stage investors and provide a unique range of training and support options for companies throughout the start-up lifecycle.
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In April, UNIQLO, a leading global retailing brand, opened a flagship store on
JD.com's online marketplace. UNIQLO is the first international clothing brand to warehouse its merchandise inJD.com's facilities and to take advantage of JD.com's unparalleled same and next-day delivery service in eligible areas.
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In April,
JD.com launched JD Worldwide, a cross-border e-commerce platform that leveragesChina's free trade zones and the Company's industry-leading logistics and marketing capabilities to provide international brands, including those without an on-the-ground presence inChina , a fully integrated solution for reaching Chinese consumers.
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JD.com's automobile channel, operated byBitauto , was launched in April and is accessible throughJD.com's mobile apps and website, as well as through its Weixin and Mobile QQ entry points. The new channel provides consumers a comprehensive gateway toChina's automobile market and furthersJD.com's vision of creating a one-stop solution for Chinese consumers looking to buy authentic, high-quality products.
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In the first quarter,
JD.com launched "JD-Pai" to establish service centers on campuses throughoutChina providing e-commerce services, consumer credit and employment opportunities toChina's younger generation.
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In March,
JD.com launched a new homepage for its website to optimize the online shopping user experience. Leveraging big data and advanced algorithms, the new homepage provides more customized content and recommendations for users.
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During the first quarter,
JD.com extended its leadership in fulfillment capabilities among e-commerce companies inChina . As ofMarch 31, 2015 ,JD.com operated 143 warehouses and a total of 3,539 delivery stations and pickup stations and its delivery network covered 1,961 counties and districts.
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JD.com had approximately 60,000 merchants on its online marketplace and a total of 72,604 full-time employees as ofMarch 31, 2015 .
First Quarter 2015 Financial Results
GMV and Net Revenues. GMV for the first quarter of 2015 was
For the first quarter of 2015,
Cost of Revenues. Cost of revenues increased by 58% to
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery and customer service expenses, increased by 97% to
Marketing Expenses. Marketing expenses increased by 140% to
Technology and Content Expenses. Technology and content expenses increased by 147% to
General and Administrative Expenses. General and administrative expenses decreased to
Net Loss and Non-GAAP Net Loss. Net loss for the first quarter of 2015 was
Net Loss Per ADS5 and Non-GAAP Net Loss Per ADS6. Net loss per ADS for the first quarter of 2015 was
As of
For the three months ended | |||
March 31, 2014 | March 31, 2015 | March 31, 2015 | |
RMB | RMB | USD | |
(In thousands) | |||
Net cash provided by operating activities | 908,230 | 2,408,784 | 388,576 |
Add: Impact from internet financing activities8 | 803,380 | 1,161,623 | 187,389 |
Less: Capital expenditures | (633,331) | (1,249,637) | (201,587) |
Free cash inflow | 1,078,279 | 2,320,770 | 374,378 |
Accounts payable primarily include accounts payable to suppliers associated with the Company's online direct sales business and those to third-party sellers on the Company's online marketplace. From late 2013, the Company started to provide supply chain financing to the Company's suppliers of online direct sales business. As of
Net inventories increased to
Transaction with
On
Second Quarter 2015 Guidance
Net revenues for the second quarter of 2015 are expected to be between
Conference Call
Listeners may access the call by dialing the following numbers:
US Toll Free: | +1-855-298-3404 or +1-631-5142-526 |
Hong Kong | 800-905-927 or +852-5808-3202 |
Mainland China | 400-1200-539 |
International | +65-6823-2299 |
Passcode: | 7886193 |
A replay of the conference call may be accessed by phone at the following numbers until
US Toll Free: | +1-866-846-0868 |
International | +61-2-9641-7900 |
Passcode: | 7886193 |
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
Non-GAAP Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating expenses, non-GAAP net income/(loss), non-GAAP net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per weighted average 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 operating expenses and non-GAAP net income/(loss) enable management to assess operating results without considering the impact of share-based compensation and amortization of intangible assets resulting from assets and business acquisitions, which are non-cash charges. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from internet financing activities and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. Non-GAAP EBITDA enables management to assess operating results without considering the impact of share-based compensation, depreciation and amortization, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of operating performance.
These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP operating expenses and non-GAAP net income/(loss) is that it does not reflect all items of income and expense that affect the Company's operations. Share-based compensation and amortization of intangible assets resulting from assets and business acquisitions have been and may continue to be incurred in the Company's business and are not reflected in the presentation of non-GAAP net income/(loss). One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures. One of the key limitations of using non-GAAP EBITDA is that it does not reflect all items of income and expense that affect operations. Share-based compensation, depreciation and amortization have been and may continue to be incurred in the Company's business and are not reflected in the presentation of non-GAAP EBITDA. 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.
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
For investor and media inquiries, please contact: |
Investor Relations |
Ruiyu Li |
+86 (10) 5895-5597 |
IR@JD.com |
Media |
Josh Gartner |
+86 (10) 5895-9315 |
Press@JD.com |
1 The U.S. dollar (USD) 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 reader. The conversion of Renminbi (RMB) into USD in this press release is based on the noon buying rate in The
2 As used in this press release, non-GAAP net income/(loss) is defined to exclude share-based compensation and amortization of intangible assets resulting from assets and business acquisitions from net loss, and non-GAAP net margin is calculated by dividing non-GAAP net income/(loss) by net revenues. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.
3 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, which include Paipai.com since the third quarter of 2014.
4 As used in this press release, non-GAAP operating expenses are defined to exclude share-based compensation and amortization of intangible assets resulting from assets and business acquisitions from operating expenses. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.
5 Each ADS represents two class A ordinary shares.
6 As used in this press release, non-GAAP net income/(loss) per weighted average shares is calculated by dividing non-GAAP net income/(loss) by the weighted average number of shares of permanent equity securities outstanding during the period. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per weighted average shares multiplied by two.
7 As used in this press release, non-GAAP free cash flow is defined as operating cash flow adding back the impact from internet financing activities and less capital expenditures, which include purchases of property, equipment and software, cash paid for construction in progress, purchase of office building, intangible assets and land use rights.
8 Internet financing activities include financial products, primarily "Jingbaobei," "Jingxiaodai" and "JD Baitiao," the Company provides to suppliers, merchants and customers.
9 As used in this press release, accounts payable turnover days for a given period are equal to average accounts payable balances at the beginning and the end of the period divided by total cost of revenues during the period and then multiplied by the number of days during the period.
10 As used in this press release, inventory turnover days for a given period are equal to average inventory balances at the beginning and the end of the period divided by total cost of revenues during the period and then multiplied by the number of days during the period.
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Balance Sheets | |||
(In thousands) | |||
As of | |||
December 31, 2014 |
March 31, 2015 |
March 31, 2015 |
|
RMB | RMB | USD | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 16,914,651 | 14,680,367 | 2,368,183 |
Restricted cash | 3,038,286 | 392,699 | 63,349 |
Short-term investments | 12,161,643 | 11,679,556 | 1,884,103 |
Accounts receivable, net | 2,436,256 | 3,028,142 | 488,489 |
Advance to suppliers | 930,026 | 976,674 | 157,553 |
Inventories, net | 12,190,843 | 12,960,750 | 2,090,781 |
Loan receivables | 123,344 | 291,269 | 46,986 |
Prepayments and other current assets | 1,734,334 | 1,943,353 | 313,495 |
Amount due from related parties | 412,314 | 447,401 | 72,173 |
Total current assets | 49,941,697 | 46,400,211 | 7,485,112 |
Non-current assets: | |||
Property, equipment and software, net | 2,408,438 | 2,507,086 | 404,434 |
Construction in progress | 1,928,899 | 2,419,594 | 390,320 |
Land use rights, net | 1,067,253 | 1,346,253 | 217,173 |
Intangible assets, net | 6,877,947 | 6,518,650 | 1,051,565 |
Goodwill | 2,622,470 | 2,622,470 | 423,047 |
Investment in equity investees | 586,959 | 7,647,005 | 1,233,587 |
Investment securities | 434,118 | 423,866 | 68,377 |
Other non-current assets | 625,391 | 650,693 | 104,967 |
Total non-current assets | 16,551,475 | 24,135,617 | 3,893,470 |
Total assets | 66,493,172 | 70,535,828 | 11,378,582 |
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Balance Sheets | |||
(In thousands, except per share data) | |||
As of | |||
December 31, 2014 |
March 31, 2015 |
March 31, 2015 |
|
RMB | RMB | USD | |
LIABILITIES | |||
Current liabilities: | |||
Short-term bank loan | 1,890,771 | -- | -- |
Accounts payable | 16,363,671 | 19,074,818 | 3,077,080 |
Advances from customers | 4,666,660 | 5,286,404 | 852,783 |
Deferred revenues | 157,080 | 768,285 | 123,937 |
Taxes payable | 236,160 | 45,114 | 7,278 |
Amount due to related parties | 325,119 | 340,252 | 54,888 |
Accrued expenses and other current liabilities | 5,311,832 | 5,488,740 | 885,423 |
Deferred tax liabilities | 43,812 | 40,113 | 6,471 |
Total current liabilities | 28,995,105 | 31,043,726 | 5,007,860 |
Non-current liabilities: | |||
Deferred revenues | -- | 2,455,938 | 396,183 |
Total non-current liabilities | -- | 2,455,938 | 396,183 |
Total liabilities | 28,995,105 | 33,499,664 | 5,404,043 |
SHAREHOLDERS' EQUITY: | |||
Ordinary shares (US$0.00002 par value, 100,000,000 shares authorized, 2,793,757 shares issued as of December 31, 2014 and March 31, 2015, and 2,731,718 and 2,734,960 shares outstanding as of December 31, 2014 and March 31, 2015, respectively.) | 358 | 358 | 58 |
Additional paid-in capital | 47,131,172 | 47,320,804 | 7,633,619 |
Statutory reserves | 15,009 | 15,009 | 2,421 |
Treasury stock | (4) | (3) | (0) |
Accumulated deficit | (9,272,343) | (9,982,553) | (1,610,349) |
Accumulated other comprehensive loss | (376,125) | (317,451) | (51,210) |
Total shareholder's equity | 37,498,067 | 37,036,164 | 5,974,539 |
Total liabilities and shareholders' equity | 66,493,172 | 70,535,828 | 11,378,582 |
JD.com, Inc. | ||||
Unaudited Interim Condensed Consolidated Statements of Operations and Non-GAAP Net Income Per ADS | ||||
(In thousands, except per share data) | ||||
For the three months ended | ||||
March 31, 2014 |
March 31, 2015 |
March 31, 2015 |
||
RMB | RMB | USD | ||
Net revenues | ||||
Online direct sales | 21,781,457 | 34,548,516 | 5,573,240 | |
Services and others | 875,959 | 2,092,059 | 337,483 | |
Total net revenues | 22,657,416 | 36,640,575 | 5,910,723 | |
Operating expenses (1)(2) | ||||
Cost of revenues | (20,396,018) | (32,174,983) | (5,190,351) | |
Fulfillment | (1,360,568) | (2,677,651) | (431,949) | |
Marketing | (593,636) | (1,426,290) | (230,084) | |
Technology and content | (285,010) | (704,387) | (113,629) | |
General and administrative | (3,873,906) | (479,871) | (77,411) | |
Total operating expenses | (26,509,138) | (37,463,182) | (6,043,424) | |
Loss from operations | (3,851,722) | (822,607) | (132,701) | |
Other income/(expenses) | ||||
Interest income | 97,661 | 154,760 | 24,965 | |
Interest expense | (5,015) | (767) | (124) | |
Others, net | (38,562) | (44,573) | (7,190) | |
Loss before tax | (3,797,638) | (713,187) | (115,050) | |
Income tax expenses | 2,490 | 2,977 | 480 | |
Net loss | (3,795,148) | (710,210) | (114,570) | |
Preferred shares redemption value accretion | (1,493,874) | -- | -- | |
Net loss attributable to holders of permanent equity securities | (5,289,022) | (710,210) | (114,570) | |
Non-GAAP net loss | (80,103) | (205,633) | (33,174) | |
Net loss per share: | ||||
Basic | (2.90) | (0.26) | (0.04) | |
Diluted | (2.90) | (0.26) | (0.04) | |
Net loss per ADS: | ||||
Basic | (5.80) | (0.52) | (0.08) | |
Diluted | (5.80) | (0.52) | (0.08) | |
Non-GAAP net loss per ADS: | ||||
Basic | (0.09) | (0.15) | (0.02) | |
Diluted | (0.09) | (0.15) | (0.02) |
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Statements of Operations and Non-GAAP Net Income Per ADS | |||
(In thousands, except per share data) | |||
For the three months ended | |||
March 31, 2014 |
March 31, 2015 |
March 31, 2015 |
|
RMB | RMB | USD | |
Weighted average shares of permanent equity securities used in computation of earnings per share: | |||
Basic | 1,823,748 | 2,732,699 | 2,732,699 |
Diluted | 1,823,748 | 2,732,699 | 2,732,699 |
(1) Includes share-based compensation expenses as follows: | |||
Fulfillment | (19,285) | (28,735) | (4,635) |
Marketing | (1,893) | (9,321) | (1,504) |
Technology and content | (8,497) | (26,320) | (4,246) |
General and administrative | (3,670,060) | (81,878) | (13,208) |
(2) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: | |||
Fulfillment | (3,687) | (5,563) | (896) |
Marketing | (627) | (302,435) | (48,788) |
Technology and content | (1,193) | (5,868) | (947) |
General and administrative | (9,803) | (44,457) | (7,172) |
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Statements of Cash Flows | |||
(In thousands) | |||
For the three months ended | |||
March 31, 2014 |
March 31, 2015 |
March 31, 2015 |
|
RMB | RMB | USD | |
Net cash provided by operating activities | 908,230 | 2,408,784 | 388,576 |
Net cash used in investing activities | (272,024) | (2,710,638) | (437,270) |
Net cash provided by/(used in) financing activities | 1,890,771 | (1,874,782) | (302,433) |
Effect of exchange rate changes on cash and cash equivalents | (1,481) | (57,648) | (9,300) |
Net increase/( decrease) in cash and cash equivalents | 2,525,496 | (2,234,284) | (360,427) |
Cash and cash equivalents at beginning of period | 10,812,339 | 16,914,651 | 2,728,610 |
Cash and cash equivalents at end of period | 13,337,835 | 14,680,367 | 2,368,183 |
JD.com, Inc. | ||
Selected Operating Data | ||
For the three months ended | ||
March 31, 2014 |
March 31, 2015 |
|
Annual active customer accounts(1) (in millions) | 55.5 | 105.2 |
Orders fulfilled(2) (in millions) | 129.3 | 227.2 |
GMV(3) (in RMB billions) | 44.1 | 87.8 |
(1) 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, which include Paipai.com since the third quarter of 2014. | ||
(2) Orders fulfilled are defined as the total number of orders delivered, including the orders for products and services sold in our online direct sales business and on our online marketplace, net of orders returned. | ||
(3) GMV is defined as the total value of all orders for products and services placed in our online direct sales business and on our online marketplaces, regardless of whether the goods are sold or delivered or whether the goods are returned. GMV includes the value from orders placed on our website and mobile applications as well as orders placed on third-party mobile applications that are fulfilled by us or third-party merchants who are enabled by our marketplaces. Our calculation of GMV includes shipping charges paid by buyers to sellers and excludes any transactions in our B2C business with order value exceeding RMB2,000 that are not ultimately sold or delivered and products or services on our C2C marketplace, Paipai.com, with list prices above RMB100,000 as well as transactions conducted by buyers on Paipai who make purchases exceeding RMB1,000,000 in the aggregate in a single day. |
JD.com, Inc. | |||
Reconciliation of GAAP and Non-GAAP Results | |||
(In thousands) | |||
For the three months ended | |||
March 31, 2014 |
March 31, 2015 |
March 31, 2015 |
|
RMB | RMB | USD | |
Marketing expenses | (593,636) | (1,426,290) | (230,084) |
Add: Share-based compensation | 1,893 | 9,321 | 1,504 |
Add: Amortization of intangible assets resulting from assets and business acquisitions | 627 | 302,435 | 48,788 |
Non-GAAP marketing expenses | (591,116) | (1,114,534) | (179,792) |
General and administrative expenses | (3,873,906) | (479,871) | (77,411) |
Add: Share-based compensation | 3,670,060 | 81,878 | 13,208 |
Add: Amortization of intangible assets resulting from assets and business acquisitions | 9,803 | 44,457 | 7,172 |
Non-GAAP general and administrative expenses | (194,043) | (353,536) | (57,031) |
Loss from operations | (3,851,722) | (822,607) | (132,701) |
Add: Depreciation and amortization | 113,252 | 586,646 | 94,636 |
Add: Share-based compensation | 3,699,735 | 146,254 | 23,593 |
Non-GAAP EBITDA loss | (38,735) | (89,707) | (14,472) |
Total net revenues | 22,657,416 | 36,640,575 | 5,910,723 |
Non-GAAP EBITDA margin | -0.2% | -0.2% | -0.2% |