Press Releases
JD.com Announces First Quarter 2016 Results
First Quarter 2016 Highlights
- GMV for the first quarter of 2016 increased by 55% to
RMB129.3 billion (US$120.1 billion) from the core GMV (excluding Paipai.com) ofRMB83.6 billion in the first quarter of 2015. - Net revenues for the first quarter of 2016 were
RMB54.0 billion (US$8.4 billion ), an increase of 47.3% from the first quarter of 2015. Revenues from services and others, mainly from the Company’s e-commerce platform business, for the first quarter of 2016 wereRMB4.0 billion (US$0.6 billion ), an increase of 91% from the first quarter of 2015. - Loss from operations for the first quarter of 2016 was
RMB864.9 million (US$134.1 million ) compared toRMB822.6 million for the same period last year. Non-GAAP loss from operations2 for the first quarter of 2016 wasRMB295.7 million (US$45.9 million ), compared toRMB318.0 million for the first quarter of 2015. Non-GAAP operating margin ofJD Mall 3 for the first quarter of 2016 was 0.5%, compared to negative 0.1% for the first quarter of 2015. - Annual active customer accounts increased by 73% to 169.1 million in the 12 months ended
March 31, 2016 from 97.8 million in the 12 months endedMarch 31, 2015 , excluding unique customers from Paipai.com. - Fulfilled orders in the first quarter of 2016 were 342.1 million, an increase of 54% from 221.5 million orders fulfilled for the core business in the same period in 2015. Fulfilled orders placed through mobile accounted for approximately 72.4% of total orders fulfilled in the first quarter of 2016, an increase of more than 160% compared to the same period in 2015.
“We had a solid first quarter of the year with healthy growth in revenues, new users and mobile traffic,” said
“Our core
Recent Business Developments
JD.com established partnerships with a number of leading international brands during the quarter to meet the fast-growing demand from Chinese consumers for high-quality, authentic imported products, and help the brands expand their presence inChina . To strengthen its kitchenware offering,JD.com partnered with six top European brands in February, including WMF, WOLL, Zwilling, Fissler, Emsa and Luminarc. Germany’s TOM TAILOR GROUP launched its first Chinese online store on JD Worldwide in March, and Japan’sKao Group also signed a strategic cooperation agreement with JD Worldwide.
- In April,
JD Mall launched a dedicated platform for home furnishings to connect leading international brands with Chinese consumers. The initiative kicked off at Milan Design Week 2016, with the Company hosting a special furniture and interiors exhibition that showcased the best of Chinese and Italian design.
- As part of JD.com's overall efforts to help partners develop brand recognition in
China , the Company launched a series of "Super Brand Days." Beginning this year, JD.com has built highly targeted and effective promotional campaigns with brands including Huggies, LeTV,Lenovo , Samsung, Supor and Wuliangye.
- In March,
JD.com became the first ecommerce company inChina to provide paperless electronic signature solutions for deliveries. The adoption of the electronic signature technology is expected to improve operating efficiency and further enhance the delivery experience for users. - In March, JD Finance joined
China Everbright Bank to launch a co-branded Visa credit card targeting young adults and Chinese travelers abroad. Leveraging its proprietary risk control system and big data capabilities, JD Finance provides back-end credit rating analysis along with seamless online registration to facilitate the issuance of the credit card. - In March, the
Shenzhen Stock Exchange approved anRMB10 billion asset-based securities program for JD Finance’s consumer financing products over the next 12 months in recognition of JD Finance’s strong risk control capabilities. JD Finance successfully completed the issuance of four tranches of asset-based securities, raising overRMB5 billion in the first four months of 2016, and it has been self-funding its growth in 2016. - In April,
JD.com completed the merger of its O2O business, JD Daojia, withDada Nexus Limited , China’s largest crowdsourcing delivery platform, to form a new company. By leveraging the extensive combined crowdsourcing networks of Dada and JD Daojia, the new company will provide low-cost delivery services to China’s retailers, service providers and O2O enterprises, with increased efficiencies, under the Dada brand. The O2O supermarket platform will continue using the JD Daojia brand, focus on the location-based mobile commerce sector and cooperate with offline supermarkets and convenience stores to provide consumers with a speedy premium shopping experience. - During the first quarter,
JD.com extended its leadership in fulfillment capabilities among China’s ecommerce companies. As ofMarch 31, 2016 ,JD.com operated 209 warehouses covering an aggregate gross floor area of approximately 4.3 million square meters and a total of 5,987 delivery stations and pickup stations across China. JD.com had approximately 100,000 merchants on its online marketplace and a total of 108,985 full-time employees as ofMarch 31, 2016 .
First Quarter 2016 Financial Results
GMV and Net Revenues. GMV for the first quarter of 2016 was
For the first quarter of 2016,
Cost of Revenues. Cost of revenues increased by 44% to
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery and customer service expenses, increased by 68% to
Marketing Expenses. Marketing expenses increased by 48% to
Technology and Content Expenses. Technology and content expenses increased by 58% to
General and Administrative Expenses. General and administrative expenses increased by 85% to
Loss from operations and Non-GAAP Loss from operations. Loss from operations for the first quarter of 2016 was
Share of results of equity investees. Share of results of equity investees for the first quarter of 2016 was
Net Loss Attributable to Ordinary Shareholders and Non-GAAP Net Loss Attributable to Ordinary Shareholders. Net loss attributable to ordinary shareholders for the first quarter of 2016 was
Net Loss Per ADS and Non-GAAP Net Loss Per ADS7. Net loss per ADS for the first quarter of 2016 was
As of
For the three months ended | |||||||||||
March 31, 2015 | March 31, 2016 | March 31, 2016 | |||||||||
RMB | RMB | US$ | |||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities | 2,408,784 | 2,357,442 | 365,608 | ||||||||
Add: Impact from change in balances of financial products of internet financing activities9 | 1,161,623 | 1,598,936 | 247,974 | ||||||||
Less: Capital expenditures | (1,249,637 | ) | (1,042,011 | ) | (161,602 | ) | |||||
Free cash flow | 2,320,770 | 2,914,367 | 451,980 | ||||||||
Net cash provided by financing activities related to JD Finance | - | 10,590,458 | 1,642,441 |
Net cash provided by financing activities related to JD Finance for the first quarter of 2016 includes net proceeds from JD Finance’s Series A financing, short-term borrowing and nonrecourse securitization debt of
Net inventories decreased to
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 the online direct sales business. As of
Accounts receivable primarily include amounts due from customers and online payment channels. From early 2015, the Company started to provide consumer financing to its customers. As of
As of
Second Quarter 2016 Guidance
Net revenues for the second quarter of 2016 are expected to be between
Conference Call
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: 95612492
A replay of the conference call may be accessed by phone at the following numbers until
US Toll Free:+1-855-452-5696 or +1-646-254-3697
International: +61-2-8199-0299
Passcode: 95612492
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 operating income/(loss), 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 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, non-GAAP operating income/(loss) and non-GAAP net income/(loss) attributable to ordinary shareholders enable management to assess operating results without considering the impact of share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees, reconciling items on earning from equity method investments, net income attributable to mezzanine classified non-controlling interest shareholders, impairment of goodwill, intangible assets and investments. 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, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees, interest expense related to JD Finance and impairment of goodwill and intangible assets. 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, non-GAAP operating income/(loss) and non-GAAP net income/(loss) attributable to ordinary shareholders is that it does not reflect all items of income and expense that affect the Company’s operations. Share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees, reconciling items on earning from equity method investments, net income attributable to mezzanine classified non-controlling interest shareholders, impairment of goodwill, intangible assets and investments 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) attributable to ordinary shareholders. 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, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees, interest expense related to JD Finance and impairment of goodwill and intangible assets 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
JD.com, Inc. |
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Unaudited Interim Condensed Consolidated Balance Sheets | |||||||||
(In thousands) | |||||||||
As of | |||||||||
December 31, 2015 |
March 31, 2016 |
March 31, 2016 |
|||||||
RMB | RMB | US$ | |||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 17,863,868 | 31,054,994 | 4,816,221 | ||||||
Restricted cash | 2,114,913 | 3,425,025 | 531,176 | ||||||
Short-term investments | 2,780,482 | 52,157 | 8,089 | ||||||
Accounts receivable, net | 9,508,284 | 10,990,484 | 1,704,480 | ||||||
Advance to suppliers | 927,177 | 906,969 | 140,659 | ||||||
Inventories, net | 20,539,543 | 20,393,161 | 3,162,711 | ||||||
Loan receivables | 2,383,869 | 2,745,540 | 425,797 | ||||||
Prepayments and other current assets | 1,486,441 | 924,857 | 143,435 | ||||||
Amount due from related parties | 863,516 | 1,174,536 | 182,155 | ||||||
Total current assets | 58,468,093 | 71,667,723 | 11,114,723 | ||||||
Non-current assets | |||||||||
Property, equipment and software, net | 6,233,106 | 6,742,660 | 1,045,698 | ||||||
Construction in progress | 1,266,992 | 1,255,310 | 194,682 | ||||||
Intangible assets, net | 5,263,983 | 4,917,881 | 762,699 | ||||||
Land use rights, net | 1,928,192 | 2,039,942 | 316,368 | ||||||
Goodwill | 29,050 | 29,050 | 4,505 | ||||||
Investment in equity investees | 8,864,249 | 8,794,403 | 1,363,896 | ||||||
Investment securities | 1,005,831 | 743,162 | 115,255 | ||||||
Other non-current assets | 2,106,673 | 2,296,854 | 356,212 | ||||||
Total non-current assets | 26,698,076 | 26,819,262 | 4,159,315 | ||||||
Total assets | 85,166,169 | 98,486,985 | 15,274,038 | ||||||
JD.com, Inc. | |||||||||||
Unaudited Interim Condensed Consolidated Balance Sheets | |||||||||||
(In thousands) | |||||||||||
As of | |||||||||||
December 31, 2015 |
March 31, 2016 |
March 31, 2016 |
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RMB | RMB | US$ | |||||||||
LIABILITIES | |||||||||||
Current liabilities | |||||||||||
Short-term borrowing | 3,040,209 | 5,226,500 | 810,562 | ||||||||
Nonrecourse securitization debt | 579,843 | 2,247,219 | 348,514 | ||||||||
Accounts payable | 29,819,341 | 30,837,464 | 4,782,485 | ||||||||
Advances from customers | 7,173,885 | 7,862,112 | 1,219,310 | ||||||||
Deferred revenues | 1,028,350 | 1,055,858 | 163,750 | ||||||||
Taxes payable | 103,211 | 103,542 | 16,058 | ||||||||
Amount due to related parties | 104,726 | 101,863 | 15,798 | ||||||||
Accrued expenses and other current liabilities | 7,178,065 | 7,969,150 | 1,235,910 | ||||||||
Deferred tax liabilities | 1,228 | 921 | 143 | ||||||||
Total current liabilities | 49,028,858 | 55,404,629 | 8,592,530 | ||||||||
Non-current liabilities | |||||||||||
Deferred revenues | 2,705,164 | 2,487,530 | 385,783 | ||||||||
Nonrecourse securitization debt | 2,753,699 | 3,991,781 | 619,073 | ||||||||
Total non-current liabilities | 5,458,863 | 6,479,311 | 1,004,856 | ||||||||
Total liabilities | 54,487,721 | 61,883,940 | 9,597,386 | ||||||||
Redeemable non-controlling interests | - | 6,655,439 | 1,032,171 | ||||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Ordinary shares (US$0.00002 par value, 100,000,000 shares authorized, 2,793,757 shares issued as of March 31, 2016, and 2,744,068 shares outstanding as of March 31, 2016) | 358 | 358 | 56 | ||||||||
Additional paid-in capital | 48,393,126 | 48,838,972 | 7,574,282 | ||||||||
Statutory reserves | 55,560 | 55,560 | 8,617 | ||||||||
Treasury stock | (3 | ) | (3 | ) | (0 | ) | |||||
Accumulated deficit | (18,690,910 | ) | (19,600,702 | ) | (3,039,811 | ) | |||||
Accumulated other comprehensive income | 782,484 | 509,342 | 78,992 | ||||||||
Total JD.com Inc. shareholders’ equity | 30,540,615 | 29,803,527 | 4,622,136 | ||||||||
Non-controlling interests | 137,833 | 144,079 | 22,345 | ||||||||
Total shareholders’ equity | 30,678,448 | 29,947,606 | 4,644,481 | ||||||||
Total liabilities, redeemable non-controlling interests and shareholders’ equity | 85,166,169 | 98,486,985 | 15,274,038 |
JD.com, Inc. | ||||||||||||
Unaudited Interim Condensed Consolidated Statements of Operations and Non-GAAP Net Loss Per ADS |
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(In thousands, except per share data) | ||||||||||||
For the three months ended | ||||||||||||
March 31, 2015 |
March 31, 2016 |
March 31, 2016 |
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RMB | RMB | US$ | ||||||||||
Net revenues | ||||||||||||
Online direct sales | 34,548,516 | 49,975,605 | 7,750,559 | |||||||||
Services and others | 2,092,059 | 3,994,058 | 619,426 | |||||||||
Total net revenues | 36,640,575 | 53,969,663 | 8,369,985 | |||||||||
Operating expenses(1)(2) | ||||||||||||
Cost of revenues | (32,174,983 | ) | (46,212,860 | ) | (7,167,007 | ) | ||||||
Fulfillment | (2,677,651 | ) | (4,504,126 | ) | (698,531 | ) | ||||||
Marketing | (1,426,290 | ) | (2,116,270 | ) | (328,206 | ) | ||||||
Technology and content | (704,387 | ) | (1,111,318 | ) | (172,351 | ) | ||||||
General and administrative | (479,871 | ) | (889,955 | ) | (138,020 | ) | ||||||
Total operating expenses | (37,463,182 | ) | (54,834,529 | ) | (8,504,115 | ) | ||||||
Loss from operations | (822,607 | ) | (864,866 | ) | (134,130 | ) | ||||||
Other income/(expenses) | ||||||||||||
Share of results of equity investees | - | (164,011 | ) | (25,436 | ) | |||||||
Interest income | 154,760 | 66,553 | 10,321 | |||||||||
Interest expense | (767 | ) | (33,467 | ) | (5,190 | ) | ||||||
Others, net | (44,573 | ) | 148,239 | 22,990 | ||||||||
Loss before tax | (713,187 | ) | (847,552 | ) | (131,445 | ) | ||||||
Income tax benefits/(expenses) | 2,977 | (19,700 | ) | (3,055 | ) | |||||||
Net loss | (710,210 | ) | (867,252 | ) | (134,500 | ) | ||||||
Net loss attributable to non-controlling interests shareholders | - | (635 | ) | (98 | ) | |||||||
Net income attributable to mezzanine classified non-controlling interests shareholders | - | 43,175 | 6,696 | |||||||||
Net loss attributable to ordinary shareholders | (710,210 | ) | (909,792 | ) | (141,098 | ) | ||||||
Non-GAAP net loss | (205,633 | ) | (206,029 | ) | (31,953 | ) | ||||||
Non-GAAP net loss attributable to ordinary shareholders | (205,633 | ) | (205,394 | ) | (31,855 | ) | ||||||
JD.com, Inc. | ||||||||||||
Unaudited Interim Condensed Consolidated Statements of Operations and Non-GAAP Net Loss Per ADS |
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(In thousands, except per share data) | ||||||||||||
For the three months ended | ||||||||||||
March 31, 2015 |
March 31, 2016 |
March 31, 2016 |
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RMB | RMB | US$ | ||||||||||
Net loss per share: | ||||||||||||
Basic | (0.26 | ) | (0.33 | ) | (0.05 | ) | ||||||
Diluted | (0.26 | ) | (0.33 | ) | (0.05 | ) | ||||||
Net loss per ADS: | ||||||||||||
Basic | (0.52 | ) | (0.66 | ) | (0.10 | ) | ||||||
Diluted | (0.52 | ) | (0.66 | ) | (0.10 | ) | ||||||
Non-GAAP net loss per ADS: | ||||||||||||
Basic | (0.15 | ) | (0.15 | ) | (0.02 | ) | ||||||
Diluted | (0.15 | ) | (0.15 | ) | (0.02 | ) | ||||||
Weighted average number of shares: | ||||||||||||
Basic | 2,732,699 | 2,742,495 | 2,742,495 | |||||||||
Diluted | 2,732,699 | 2,742,495 | 2,742,495 | |||||||||
(1) Includes share-based compensation expenses as follows: | ||||||||||||
Fulfillment | (28,735 | ) | (57,567 | ) | (8,928 | ) | ||||||
Marketing | (9,321 | ) | (15,523 | ) | (2,407 | ) | ||||||
Technology and content | (26,320 | ) | (88,106 | ) | (13,664 | ) | ||||||
General and administrative | (81,878 | ) | (265,284 | ) | (41,142 | ) | ||||||
(2) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: | ||||||||||||
Fulfillment | (5,563 | ) | (4,764 | ) | (739 | ) | ||||||
Marketing | (302,435 | ) | (302,932 | ) | (46,981 | ) | ||||||
Technology and content | (5,868 | ) | (503 | ) | (78 | ) | ||||||
General and administrative | (44,457 | ) | (44,951 | ) | (6,971 | ) |
JD.com, Inc. | ||||||||||
Unaudited Interim Condensed Consolidated Statements of Cash Flows | ||||||||||
(In thousands) | ||||||||||
For the three months ended | ||||||||||
March 31, 2015 |
March 31, 2016 |
March 31, 2016 |
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RMB | RMB | US$ | ||||||||
Net cash provided by operating activities | 2,408,784 | 2,357,442 | 365,608 | |||||||
Net cash used in investing activities | (2,710,638 | ) | (872,274 | ) | (135,278 | ) | ||||
Net cash provided by/(used in) financing activities | (1,874,782 | ) | 11,761,705 | 1,824,086 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (57,648 | ) | (55,747 | ) | (8,646 | ) | ||||
Net increase/(decrease) in cash and cash equivalents | (2,234,284 | ) | 13,191,126 | 2,045,770 | ||||||
Cash and cash equivalents at beginning of period | 16,914,651 | 17,863,868 | 2,770,451 | |||||||
Cash and cash equivalents at end of period | 14,680,367 | 31,054,994 | 4,816,221 |
JD.com, Inc. | ||||
Selected Operating Data(3) | ||||
For the three months ended | ||||
March 31, 2015 |
March 31, 2016 |
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GMV(4) (in RMB billions) | 83.6 | 129.3 | ||
Orders fulfilled(5) (in millions) | 221.5 | 342.1 | ||
Annual active customer accounts(6) (in millions) | 97.8 | 169.1 |
(3) Selected operating data for all presented periods excludes the impact of Paipai.com.
(4) 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 the value from orders placed on the Company’s website and mobile applications as well as orders placed on third-party mobile applications that are fulfilled by the Company or third-party merchants who are enabled by the Company’s marketplaces. The Company’s calculation of GMV includes shipping charges paid by buyers to sellers and excludes any transactions in the Company’s B2C business with order value exceeding
(5) Orders fulfilled are defined as the total number of orders delivered, including the orders for products and services sold in the Company’s online direct sales business and on the Company’s online marketplaces, net of orders returned.
(6) 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. | ||||||||||
Reconciliation of GAAP and Non-GAAP Results | ||||||||||
(In thousands, except percentage data) | ||||||||||
For the three months ended | ||||||||||
March 31, 2015 |
March 31, 2016 |
March 31, 2016 |
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RMB | RMB | US$ | ||||||||
Marketing expenses | (1,426,290 | ) | (2,116,270 | ) | (328,206 | ) | ||||
Add: Share-based compensation | 9,321 | 15,523 | 2,407 | |||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 302,435 | 302,932 | 46,981 | |||||||
Non-GAAP marketing expenses | (1,114,534 | ) | (1,797,815 | ) | (278,818 | ) | ||||
Technology and content expenses | (704,387 | ) | (1,111,318 | ) | (172,351 | ) | ||||
Add: Share-based compensation | 26,320 | 88,106 | 13,664 | |||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 5,868 | 503 | 78 | |||||||
Non-GAAP technology and content expenses | (672,199 | ) | (1,022,709 | ) | (158,609 | ) | ||||
General and administrative expenses | (479,871 | ) | (889,955 | ) | (138,020 | ) | ||||
Add: Share-based compensation | 81,878 | 265,284 | 41,142 | |||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 44,457 | 44,951 | 6,971 | |||||||
Non-GAAP general and administrative expenses | (353,536 | ) | (579,720 | ) | (89,907 | ) | ||||
Loss from operations | (822,607 | ) | (864,866 | ) | (134,130 | ) | ||||
Add: Share-based compensation | 146,254 | 426,480 | 66,141 | |||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 358,323 | 353,150 | 54,769 | |||||||
Less: Recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees | - | (210,462 | ) | (32,640 | ) | |||||
Non-GAAP loss from operations | (318,030 | ) | (295,698 | ) | (45,860 | ) | ||||
Total net revenues | 36,640,575 | 53,969,663 | 8,369,985 | |||||||
Non-GAAP operating margin | -0.9 | % | -0.5 | % | -0.5 | % |
JD.com, Inc. | ||||||||||
Reconciliation of GAAP and Non-GAAP Results | ||||||||||
(In thousands, except percentage data) | ||||||||||
For the three months ended | ||||||||||
March 31, 2015 |
March 31, 2016 |
March 31, 2016 |
||||||||
RMB | RMB | US$ | ||||||||
Loss from operations | (822,607 | ) | (864,866 | ) | (134,130 | ) | ||||
Add: Depreciation and amortization | 586,646 | 773,483 | 119,957 | |||||||
Add: Share-based compensation | 146,254 | 426,480 | 66,141 | |||||||
Add: Interest expense related to JD Finance | - | 74,382 | 11,536 | |||||||
Less: Recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees | - | (210,462 | ) | (32,640 | ) | |||||
Non-GAAP EBITDA | (89,707 | ) | 199,017 | 30,864 | ||||||
Total net revenues | 36,640,575 | 53,969,663 | 8,369,985 | |||||||
Non-GAAP EBITDA margin | -0.2 | % | 0.4 | % | 0.4 | % |
JD.com, Inc. | ||||||||||
Reconciliation of GAAP and Non-GAAP Results | ||||||||||
(In thousands, except percentage data) | ||||||||||
For the three months ended | ||||||||||
March 31, 2015 |
March 31, 2016 |
March 31, 2016 |
||||||||
RMB | RMB | US$ | ||||||||
Net loss | (710,210 | ) | (867,252 | ) | (134,500 | ) | ||||
Add: Share-based compensation | 146,254 | 426,480 | 66,141 | |||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 358,323 | 353,150 | 54,769 | |||||||
Less: Recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees | - | (210,462 | ) | (32,640 | ) | |||||
Add: Reconciling items on the share of equity method investments* | - | 92,055 | 14,277 | |||||||
Non-GAAP net loss | (205,633 | ) | (206,029 | ) | (31,953 | ) | ||||
Net loss attributable to ordinary shareholders | (710,210 | ) | (909,792 | ) | (141,098 | ) | ||||
Add: Non-GAAP adjustments to net loss (7) | 504,577 | 661,223 | 102,547 | |||||||
Add: Net income attributable to mezzanine classified non-controlling interest shareholders | - | 43,175 | 6,696 | |||||||
Non-GAAP net loss attributable to ordinary shareholders | (205,633 | ) | (205,394 | ) | (31,855 | ) | ||||
Total net revenues | 36,640,575 | 53,969,663 | 8,369,985 | |||||||
Non-GAAP net margin | -0.6 | % | -0.4 | % | -0.4 | % | ||||
(7) See the table above about the reconciliation of net loss to non-GAAP net loss for more information of these non-GAAP adjustments. |
*Reconciliation of JD’S Share of Equity Investments' GAAP to Non-GAAP Results | |||||||
(In thousands) | |||||||
For the three months ended | |||||||
March 31, 2015 |
March 31, 2016 |
March 31, 2016 |
|||||
RMB | RMB | US$ | |||||
Earning from equity method investments, net(8)(9) | - | (164,011 | ) | (25,436 | ) | ||
Add: Share-based compensation | - | 12,952 | 2,009 | ||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | - | 50,366 | 7,811 | ||||
Add: Share of amortization of equity investments’ intangibles not on their books | - | 28,737 | 4,457 | ||||
Non-GAAP earning from equity method investments | - | (71,956 | ) | (11,159 | ) | ||
(8) Earning from equity method investments in publicly listed companies is recorded one quarter in arrears. | |||||||
(9) Earning from equity method investments is defined as share of results of equity investees less impairment of investments. |
1 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into US$ in this press release is based on the noon buying rate in The
2 Non-GAAP loss from operations is defined to exclude share-based compensation, amortization of intangible assets resulting from assets and business acquisitions and recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees from loss from operations. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
3 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. Non-GAAP operating margin of
4 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 Non-GAAP EBITDA is defined to exclude share-based compensation, depreciation and amortization, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees, interest expense related to JD Finance and impairment of goodwill and intangible assets from loss from operations, 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.
6 Non-GAAP net income/(loss) attributable to ordinary shareholders is defined to exclude share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees, reconciling items on the share of equity method investments, net income attributable to mezzanine classified non-controlling interest shareholders, impairment of goodwill, intangible assets and investments from net income/(loss) attributable to ordinary shareholders, and non-GAAP net margin is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by net revenues. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
7 Non-GAAP net income/(loss) per weighted average shares is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of shares. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per weighted average shares multiplied by two.
8 Free cash flow, a non-GAAP measurement of liquidity, is defined as operating cash flow adding back the impact from internet financing activities and less capital expenditures, which include purchase of property, equipment and software, cash paid for construction in progress, purchase of office building, intangible assets and land use rights.
9 Impact from internet financing activities added back to free cash flow contains the changes in the balances of financial products, primarily “Jingbaobei,” “Jingxiaodai” and “JD Baitiao”, that the Company provides to suppliers, merchants and customers, respectively.
10 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.
11 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.
12 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.
CONTACTS: Investor RelationsRuiyu Li Director of Investor Relations +86 (10) 8912-6805 IR@JD.com MediaJosh Gartner Senior Director ofInternational Communications +86 (10) 8911-6155 (China ) +1 (914) 439-5315 (US) Press@JD.com