Press Releases
JD.com Announces Second Quarter 2014 Results
Second Quarter 2014 Highlights[1]
- GMV for the second quarter of 2014 was
RMB63.0 billion (US$10.2 billion ), an increase of 107% compared with the second quarter of 2013. - Net revenues for the second quarter of 2014 were
RMB28.6 billion (US$4.6 billion ), an increase of 64% from the second quarter of 2013. - Active customer accounts[2] increased from 19.6 million in the second quarter of 2013 to 38.1 million in the second quarter of 2014, an increase of 94%.
- Fulfilled orders in the second quarter of 2014 were 163.7 million, an increase of 126% from 72.6 million for the same period in 2013. Fulfilled orders placed through mobile accounted for approximately 24% of total orders fulfilled in the second quarter of 2014.
"
"Looking ahead," Mr. Liu continued, "we will focus on increasing
"Our solid performance for the second quarter reflects our ongoing efforts to provide the best customer experience while enhancing operational efficiency," commented
Recent Business Highlights
- JD mobile launched its mobile virtual network operator (MVNO) business on
May 15, 2014 . Subscribers to JD mobile will enjoy benefits fromJD.com , including discount shopping, financial services and other privileges. JD.com launched level-one access onTencent's Weixin platform for selected Weixin users inBeijing andShanghai onMay 27, 2014 , and subsequently rolled it out to all Weixin users inJune 2014 .JD.com also launched a level-one access point onTencent's Mobile QQ onAugust 8, 2014 . With over 520 million active monthly users as ofJune 30, 2014 , Mobile QQ bringsJD.com to an even greater range of consumers throughoutChina , including younger audiences and residents of lower-tier cities.JD.com's "Asia No.1" warehouse inShanghai commenced trial operation in June, 2014. The state-of-the-art fulfillment center, which incorporates a high degree of automation, will improve fulfillment efficiency and increase our storage capacity.JD.com launched its Smart Hardware Cloud Platform inJune 2014 . As ofJune 30, 2014 , the platform provides services to more than 100 smart hardware start-ups and traditional home appliance manufacturers, helping connectJD.com customers even more quickly with the latest smart products.JD.com pioneered and debutedChina's first reimbursable electronic invoice onJune 27, 2014 . In partnership with the tax authority, the successful roll-out of the reimbursable electronic invoice is a significant milestone in the promotion of a nation-wide drive to use electronic invoices, which will facilitate tax compliance and the realization of fair play for all e-commerce merchants and operators.- Paipai, a subsidiary of
JD.com , re-launched its site onJuly 17, 2014 , with the goal of bringingJD.com's superior shopping experience toChina's C2C space. The enhanced platform is dedicated to providing consumers with an increased selection of long-tail products. It also reduces marketing costs for sellers and prioritizes search relevance over advertising to attract more sellers, which provides customers a wider range of shopping options. JD.com launched its proprietary online marketing technology platform onMay 22, 2014 to offer services to our suppliers and sellers onJD.com and third-party websites.JD.com extended its leadership in self-operated logistics capabilities among e-commerce companies inChina . As ofJune 30, 2014 ,JD.com operated 97 warehouses with an aggregate gross floor area of approximately 1.8 million square meters, 1,808 delivery stations and 715 pickup stations. Our self-operated delivery network covered 1,780 counties and districts as ofJune 30, 2014 , growing from 1,404 counties and districts as ofMarch 31, 2014 . The Company's 211 program and next-day delivery program covered 111 and 622 counties and districts, respectively as ofJune 30, 2014 , rising from 103 and 503 counties and districts, respectively as ofMarch 31, 2014 . The majority of our new delivery capabilities were added in lower-tier cities inChina in the second quarter of 2014.JD.com had approximately 38,000 merchants on its online marketplace as ofJune 30, 2014 and a total of 62,061 full-time employees as ofJuly 31, 2014 .- According to iResearch,
JD.com's share ofChina's online direct sales market reached 54.3% in the second quarter of 2014.
Second Quarter 2014 Financial Results
GMV and Net Revenues. GMV for the second quarter of 2014 was
For the second quarter of 2014,
Cost of Revenues. Our cost of revenues increased by 60% from
Fulfillment Expenses. Our fulfillment expenses, which primarily include procurement, warehousing, delivery and customer service expenses, increased by 105% from
Marketing Expenses. Our marketing expenses increased by 149% from
Technology and Content Expenses. Our technology and content expenses increased by 92% from
General and Administrative Expenses. Our general and administrative expenses increased by 184% from
Net Loss. Net loss for the second quarter of 2014 was
Net Loss Per ADS. Net loss per ADS [4] for the second quarter of 2014 was
As of
For the three months ended |
|||||
June 30, 2013 |
June 30, 2014 |
June 30, 2014 |
|||
RMB |
RMB |
USD |
|||
(In thousands) |
|||||
Net cash provided by/(used in) operating activities |
643,702 |
(78,507) |
(12,655) |
||
Add: Impact from internet financing activities[7] |
- |
911,757 |
146,972 |
||
Less: Capital expenditures |
(277,356) |
(618,375) |
(99,680) |
||
Free cash flow |
366,346 |
214,875 |
34,637 |
||
Our accounts payable include accounts payable to suppliers associated with our online direct sales business and those to third-party sellers on our online marketplace. From late 2013, we started to provide supply chain financing to our suppliers of online direct sales business. As of
Our net inventories have increased from
Third Quarter 2014 Guidance
Net revenues for the third quarter of 2014 are expected to be between
Non-GAAP Measures
In evaluating our business, we consider and use non-GAAP measures, adjusted net income/(loss) and free cash flow, as supplemental measures to review and assess our 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
We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Adjusted net income/(loss) enables our management to assess our 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 our management to assess our liquidity and cash flow while taking into account the demands that the expansion of our fulfillment infrastructure and technology platform has placed on our financial resources. We also believe that the use of the non-GAAP measure facilitates investors' assessment of our 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 adjusted net income/(loss) is that it does not reflect all items of income and expense that affect our operations. Share-based compensation and amortization of intangible assets resulting from assets and business acquisitions have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted 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. 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.
We compensate 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 our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
Conference Call
Listeners may access the call by dialing the following numbers:
US: |
+1-855-298-3404 or +1-631-5142-526 |
Hong Kong |
+852-5808-3202 or 800-905-927 |
China |
400-1200-539 |
International |
+65-6823-2299 |
Passcode: 8373385
A replay of the conference call may be accessed by phone at the following numbers until
US: |
+1-866 846 0868 |
International |
+61-2-9641-7900 |
Passcode: 8373385
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, Inc
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
NOTES. |
[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 release is based on the noon buying rate in The City of New York for cable transfers in RMB per USD as certified for customs purposes by the Federal Reserve Bank of New York as of June 30, 2014, which was RMB6.2036 to USD1.00. The percentages stated in this press release are calculated based on the RMB amounts.
|
[2] Active customer accounts for a specified period are customer accounts that made at least one purchase during the specified period, whether through online direct sales or online marketplace- but excluding Paipai and QQ Wanggou.
|
[3] As used in this press release, non-GAAP adjusted net income/(loss) is defined to exclude share-based compensation and amortization of intangible assets resulting from assets and business acquisitions from net loss. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.
|
[4] Each ADS represents two ordinary shares. |
[5] 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.
|
[6] 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.
|
[7] Internet financing activities include financial products, "Jingbaobei" and "JD Baitiao", we provide to our suppliers and customers.
|
[8] 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 multiplied by the number of days during the period.
|
[9] 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. |
For investor and media inquiries, please contact:
Investor Relations
+86 (10) 5895-5597
IR@JD.com
Media
+86 (10) 5895-9315
Josh.Gartner@JD.com
U.S.
Brunswick Group
+1 (212) 333-3810
JDIR@brunswickgroup.com
JD.com, Inc. |
||||
Unaudited Condensed Consolidated Balance Sheets |
||||
(In thousands, except per share data) |
||||
As of |
||||
December 31, 2013 |
June 30, 2014 |
June 30, 2014 |
||
RMB |
RMB |
USD |
||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
10,812,339 |
27,535,976 |
4,438,709 |
|
Restricted cash |
1,887,387 |
3,709,251 |
597,919 |
|
Short-term investments |
1,903,224 |
3,947,134 |
636,265 |
|
Accounts receivable, net |
502,089 |
1,511,809 |
243,699 |
|
Advance to suppliers |
769,765 |
709,118 |
114,307 |
|
Inventories, net |
6,386,155 |
10,781,375 |
1,737,922 |
|
Prepayments and other current assets |
219,102 |
545,687 |
87,962 |
|
Amount due from related parties |
- |
202,931 |
32,712 |
|
Total current assets |
22,480,061 |
48,943,281 |
7,889,495 |
|
Non-current assets: |
||||
Property, equipment and software, net |
1,024,428 |
1,882,252 |
303,413 |
|
Construction in progress |
1,237,644 |
1,119,530 |
180,465 |
|
Land use rights, net |
598,853 |
931,277 |
150,119 |
|
Intangible assets, net |
215,802 |
7,596,230 |
1,224,487 |
|
Goodwill |
14,649 |
2,622,470 |
422,734 |
|
Equity investments |
36,502 |
322,390 |
51,968 |
|
Other non-current assets |
401,873 |
459,016 |
73,992 |
|
Total non-current assets |
3,529,751 |
14,933,165 |
2,407,178 |
|
Total assets |
26,009,812 |
63,876,446 |
10,296,673 |
|
LIABILITIES |
||||
Current liabilities: |
||||
Short-term bank loans |
932,826 |
2,842,594 |
458,217 |
|
Accounts payable |
11,018,865 |
15,521,155 |
2,501,959 |
|
Advances from customers |
2,055,625 |
3,299,307 |
531,837 |
|
Deferred revenues |
208,527 |
306,415 |
49,393 |
|
Taxes payable |
278,256 |
419,378 |
67,602 |
|
Amount due to related parties |
- |
461,407 |
74,377 |
|
Accrued expenses and other current liabilities |
2,269,798 |
3,144,678 |
506,913 |
|
Deferred tax liabilities |
6,087 |
45,853 |
7,391 |
|
Total current liabilities |
16,769,984 |
26,040,787 |
4,197,689 |
|
Total liabilities |
16,769,984 |
26,040,787 |
4,197,689 |
|
MEZZANINE EQUITY |
||||
Series C convertible redeemable |
7,173,263 |
- |
- |
|
SHAREHOLDERS' EQUITY: |
||||
Series A and A-1 convertible preferred shares |
255,850 |
- |
- |
|
Series B convertible preferred shares |
88,241 |
- |
- |
|
Ordinary shares (US$0.00002 par value, |
199 |
354 |
57 |
|
Additional paid-in capital |
6,251,869 |
46,769,696 |
7,539,122 |
|
Statutory reserves |
2,648 |
2,648 |
427 |
|
Accumulated deficit |
(4,263,624) |
(8,641,302) |
(1,392,950) |
|
Accumulated other comprehensive loss |
(268,618) |
(295,737) |
(47,672) |
|
Total shareholder's equity |
2,066,565 |
37,835,659 |
6,098,984 |
|
Total liabilities, mezzanine equity, and shareholders' equity |
26,009,812 |
63,876,446 |
10,296,673 |
JD.com, Inc. |
||||||||||
Unaudited Condensed Consolidated Statements of Operations and Non-GAAP Net Income/(Loss) Per ADS |
||||||||||
(In thousands, except per share data) |
||||||||||
For the three months ended |
||||||||||
June 30, |
June 30, |
June 30, |
||||||||
2013 |
2014 |
2014 |
||||||||
RMB |
RMB |
USD |
||||||||
Net revenues |
||||||||||
Online direct sales |
16,895,282 |
27,018,303 |
4,355,262 |
|||||||
Services and others |
557,884 |
1,594,547 |
257,036 |
|||||||
Total net revenues |
17,453,166 |
28,612,850 |
4,612,298 |
|||||||
Operating expenses (1)(2) |
||||||||||
Cost of revenues |
(15,899,888) |
(25,457,621) |
(4,103,685) |
|||||||
Fulfillment |
(978,632) |
(2,001,753) |
(322,676) |
|||||||
Marketing |
(428,216) |
(1,066,020) |
(171,839) |
|||||||
Technology and content |
(218,182) |
(419,990) |
(67,701) |
|||||||
General and administrative |
(160,557) |
(455,411) |
(73,411) |
|||||||
Total operating expenses |
(17,685,475) |
(29,400,795) |
(4,739,312) |
|||||||
Loss from operations |
(232,309) |
(787,945) |
(127,014) |
|||||||
Other income/(expenses) |
||||||||||
Interest income |
96,504 |
154,912 |
24,971 |
|||||||
Interest expense |
(3,395) |
(8,302) |
(1,338) |
|||||||
Others, net |
112,830 |
59,169 |
9,538 |
|||||||
Loss before tax |
(26,370) |
(582,166) |
(93,843) |
|||||||
Income tax expenses |
(1,949) |
(364) |
(59) |
|||||||
Net loss |
(28,319) |
(582,530) |
(93,902) |
|||||||
Preferred shares redemption value accretion |
(455,894) |
(6,463,766) |
(1,041,938) |
|||||||
Net loss attributable to holders of permanent |
(484,213) |
(7,046,296) |
(1,135,840) |
|||||||
equity securities |
||||||||||
Net loss per share: |
||||||||||
Basic |
(0.28) |
(2.93) |
(0.47) |
|||||||
Diluted |
(0.28) |
(2.93) |
(0.47) |
|||||||
Net loss per ADS: |
||||||||||
Basic |
(0.57) |
(5.86) |
(0.94) |
|||||||
Diluted |
(0.57) |
(5.86) |
(0.94) |
|||||||
Non-GAAP net income/(loss) per ADS: |
||||||||||
Basic |
0.04 |
(0.01) |
(0.00) |
|||||||
Diluted |
0.04 |
(0.01) |
(0.00) |
|||||||
Weighted average shares of permanent equity |
||||||||||
securities used in computation of earnings |
||||||||||
per share: |
||||||||||
Basic |
1,706,448 |
2,405,564 |
2,405,564 |
|||||||
Diluted |
1,706,448 |
2,405,564 |
2,405,564 |
|||||||
------------------------------------------- |
||||||||||
(1) Includes share-based compensation expenses as follows: |
||||||||||
Fulfillment |
(19,938) |
(33,695) |
(5,432) |
|||||||
Marketing |
(2,145) |
(4,671) |
(753) |
|||||||
Technology and content |
(8,189) |
(17,122) |
(2,760) |
|||||||
General and administrative |
(32,348) |
(153,442) |
(24,734) |
|||||||
(2) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: |
||||||||||
Fulfillment |
(3,150) |
(5,589) |
(901) |
|||||||
Marketing |
- |
(305,796) |
(49,293) |
|||||||
Technology and content |
- |
(5,425) |
(875) |
|||||||
General and administrative |
- |
(44,951) |
(7,246) |
JD.com, Inc. |
|||||
Unaudited Condensed Consolidated Statements of Comprehensive Loss |
|||||
(In thousands, except per share data) |
|||||
For the three months ended |
|||||
June 30, 2013 |
June 30, 2014 |
June 30, 2014 |
|||
RMB |
RMB |
USD |
|||
Net loss |
(28,319) |
(582,530) |
(93,902) |
||
Other comprehensive loss: |
|||||
Foreign currency translation adjustments |
(70,968) |
(51,400) |
(8,286) |
||
Net change in unrealized gains on |
|||||
Unrealized gains, nil of tax |
25,569 |
7,284 |
1,174 |
||
Reclassification adjustment for gains |
(22,912) |
(12,199) |
(1,966) |
||
Net unrealized gains/(loss) on |
2,657 |
(4,915) |
(792) |
||
Total other comprehensive loss |
(68,311) |
(56,315) |
(9,078) |
||
Comprehensive loss |
(96,630) |
(638,845) |
(102,980) |
||
JD.com, Inc. |
||||
Selected Operating Data |
||||
For the three months ended |
||||
June 30, 2013 |
June 30, 2014 |
|||
Active customer accounts(1) (in millions) |
19.6 |
38.1 |
||
Orders fulfilled(2) (in millions) |
72.6 |
163.7 |
||
GMV(3) (in RMB billions) |
30.5 |
63.0 |
--------------------------------------------------------------
(1) Active customer accounts for a specified period are customer accounts that made at least one purchase during the specified period, whether through online direct sales or online marketplaces but excluding Paipai and QQ Wanggou.
(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 placed on our website and mobile applications, including 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. Our calculation of GMV includes shipping charges paid by buyers to sellers and excludes any transactions in our B2C business with order value exceeding
JD.com, Inc. |
|||||
Reconciliation of GAAP and Non-GAAP Results |
|||||
(In thousands) |
|||||
For the three months ended |
|||||
June 30, 2013 |
June 30, 2014 |
June 30, 2014 |
|||
RMB |
RMB |
USD |
|||
Net loss |
(28,319) |
(582,530) |
(93,902) |
||
Add: Share-based compensation |
62,620 |
208,930 |
33,679 |
||
Add: Amortization of intangible assets resulting from assets and business acquisitions |
3,150 |
361,761 |
58,315 |
||
Adjusted net income/(loss) |
37,451 |
(11,839) |
(1,908) |
||
Adjusted net income/(loss) per weighted average shares: |
|||||
Basic |
0.02 |
(0.00) |
(0.00) |
||
Diluted |
0.02 |
(0.00) |
(0.00) |
||
Adjusted net income/(loss) per ADS: |
|||||
Basic |
0.04 |
(0.01) |
(0.00) |
||
Diluted |
0.04 |
(0.01) |
(0.00) |
||
SOURCE