Press Releases
JD.com Announces Second Quarter 2015 Results
Second Quarter 2015 Highlights1
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Net revenues for the second quarter of 2015 were
RMB45.9 billion (US$7.4 billion ), an increase of 61% from the second quarter of 2014. Net revenues from services and others for the second quarter of 2015 wereRMB3.3 billion (US$0.5 billion ), an increase of 108% from the second quarter of 2014.
-
Net loss for the second quarter of 2015 was
RMB510.4 million (US$82.3 million ) and net margin was negative 1.1%. Non-GAAP net loss2 for the second quarter of 2015 wasRMB15.7 million (US$2.5 million ) and non-GAAP net margin was negative 0.03%.
-
GMV for the second quarter of 2015 was
RMB114.5 billion (US$18.5 billion ), an increase of 82% compared with the second quarter of 2014. JD Mall GMV for the second quarter of 2015 increased by 92% year-over-year.
-
Annual active customer accounts3 increased by 72% to 118.0 million in the 12 months ended
June 30, 2015 from 68.5 million in the 12 months endedJune 30, 2014 .
- Fulfilled orders in the second quarter of 2015 were 305.6 million, an increase of 87% from 163.7 million for the same period in 2014. Fulfilled orders placed through mobile accounted for approximately 47% of total orders fulfilled in the second quarter of 2015, an approximately 290% increase compared to the same period in 2014.
"We are pleased to report a strong performance for the second quarter, as
"We are encouraged by another quarter of strong top-line growth, led by our
Announcement on Yonghui Investment
On
Recent Business Developments
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In June and July,
JD.com launchedJapanese Mall ,Australian Mall andU.S. Mall , three new channels on JD Worldwide dedicated to offering authentic imported products to customers inChina . They joinKorean Mall andFrench Mall , both of which launched in the first quarter of 2015.
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In early May, as part of
JD.com's O2O strategy, JD Daojia officially launched its crowdsourced delivery platform, which leverages part-time delivery people to provide two-hour grocery delivery service in partnership with offline stores in selected urban areas.
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Leveraging its cold chain delivery capability, for a limited time in June JD.com offered delivery of unpasteurized "original beer" to customers in six cities including
Beijing ,Shanghai ,Tianjin , Langfang, Suzhou and Jiaxing, featuring brands including Tsingtao andSuntory .
-
As of
June 30 , over 90% of JD Crowdfunding projects have been successfully financed, including over one hundred projects above theone million RMB level.
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In May,
JD.com led aUS$70 million Series C round of investment in FruitDay, a leading fresh produce e-retailer inChina .
-
During the second quarter,
JD.com extended its leadership in fulfillment capabilities among e-commerce companies inChina . As ofJune 30, 2015 ,JD.com operated 166 warehouses in 44 cities and a total of 4,142 delivery stations and pickup stations and its delivery network covered 2,043 counties and districts.JD.com's 211 same-day and next-day delivery program covered 135 and 951 counties and districts, respectively, as ofJuly 31, 2015 .
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JD.com had approximately 76,000 merchants on its online marketplace and a total of 84,322 full-time employees as ofJune 30, 2015 .
Second Quarter 2015 Financial Results
GMV and Net Revenues. GMV for the second quarter of 2015 was
For the second quarter of 2015,
Cost of Revenues. Cost of revenues increased by 57% to
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery and customer service expenses, increased by 62% to
Marketing Expenses. Marketing expenses increased by 86% to
Technology and Content Expenses. Technology and content expenses increased by 87% to
General and Administrative Expenses. General and administrative expenses increased by 35% to
Net Loss and Non-GAAP Net Loss. Net loss for the second quarter of 2015 was
Net Loss Per ADS5 and Non-GAAP Net Loss Per ADS6. Net loss per ADS for the second quarter of 2015 was
As of
For the three months ended | |||
June 30, 2014 | June 30, 2015 | June 30, 2015 | |
RMB | RMB | USD | |
(In thousands) | |||
Net cash provided by/(used in) operating activities | (78,507) | 737,448 | 118,943 |
Add: Impact from internet financing activities7 | 911,757 | 5,082,783 | 819,804 |
Less: Capital expenditures | (618,375) | (1,094,611) | (176,550) |
Free cash inflow | 214,875 | 4,725,620 | 762,197 |
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
Net inventories increased to
Transaction with
On
CEO Compensation
In
Appointment of Chief Public Affairs Officer
As part of an organizational restructuring implemented to efficiently manage the continued rapid growth of the Company,
In his previous position, Mr. Lan served as
Third Quarter 2015 Guidance
Net revenues for the third 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: | 6862870 |
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: | 6862870 |
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 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. Non-GAAP net income/(loss) enable management to assess operating results without considering the impact of these non-cash charges and recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees and the reconciling items on the share of equity method 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, 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, amortization of intangible assets resulting from assets and business acquisitions, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees and the reconciling items on the share of equity method 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). 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 and recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees 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
CONTACTS: |
Investor Relations |
Ruiyu Li |
Director of Investor Relations |
+86 (10) 5895-5597 |
IR@JD.com |
Media |
Josh Gartner |
Senior Director of International Communications |
+86 (10) 5895-9315 (China) |
+1 (914) 439-5315 (US) |
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, amortization of intangible assets resulting from assets and business acquisitions, recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees and the reconciling items on the share of equity method investments 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 Internet financing activities include financial products, primarily "Jingbaobei," "Jingxiaodai" and "JD Baitiao," the Company provides to suppliers, merchants 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 then 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.
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Balance Sheets | |||
(In thousands) | |||
As of | |||
December 31, 2014 |
June 30, 2015 |
June 30, 2015 |
|
RMB | RMB | USD | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 16,914,651 | 17,536,783 | 2,828,513 |
Restricted cash | 3,038,286 | 1,376,508 | 222,017 |
Short-term investments | 12,161,643 | 6,272,108 | 1,011,630 |
Accounts receivable, net | 2,436,256 | 5,405,337 | 871,829 |
Advance to suppliers | 930,026 | 1,366,695 | 220,435 |
Inventories, net | 12,190,843 | 17,701,651 | 2,855,105 |
Loan receivables | 123,344 | 796,839 | 128,522 |
Prepayments and other current assets | 1,734,334 | 1,142,069 | 184,204 |
Amount due from related parties | 412,314 | 829,995 | 133,870 |
Total current assets | 49,941,697 | 52,427,985 | 8,456,125 |
Non-current assets: | |||
Property, equipment and software, net | 2,408,438 | 3,184,132 | 513,570 |
Construction in progress | 1,928,899 | 2,377,133 | 383,409 |
Land use rights, net | 1,067,253 | 1,803,761 | 290,929 |
Intangible assets, net | 6,877,947 | 6,151,768 | 992,221 |
Goodwill | 2,622,470 | 2,622,470 | 422,979 |
Investment in equity investees | 586,959 | 10,765,158 | 1,736,316 |
Investment securities | 434,118 | 1,141,815 | 184,164 |
Other non-current assets | 625,391 | 769,901 | 124,178 |
Total non-current assets | 16,551,475 | 28,816,138 | 4,647,766 |
Total assets | 66,493,172 | 81,244,123 | 13,103,891 |
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Balance Sheets | |||
(In thousands) | |||
As of | |||
December 31, 2014 |
June 30, 2015 |
June 30, 2015 |
|
RMB | RMB | USD | |
LIABILITIES | |||
Current liabilities: | |||
Short-term bank loans | 1,890,771 | 1,330,973 | 214,673 |
Accounts payable | 16,363,671 | 25,525,156 | 4,116,961 |
Advances from customers | 4,666,660 | 6,985,887 | 1,126,756 |
Deferred revenues | 157,080 | 882,070 | 142,269 |
Taxes payable | 236,160 | 799,564 | 128,962 |
Amount due to related parties | 325,119 | 356,450 | 57,492 |
Accrued expenses and other current liabilities | 5,311,832 | 5,696,854 | 918,847 |
Deferred tax liabilities | 43,812 | 35,416 | 5,712 |
Total current liabilities | 28,995,105 | 41,612,370 | 6,711,672 |
Non-current liabilities: | |||
Deferred revenues | -- | 2,919,475 | 470,883 |
Total non-current liabilities | -- | 2,919,475 | 470,883 |
Total liabilities | 28,995,105 | 44,531,845 | 7,182,555 |
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 June 30, 2015, and 2,731,718 and 2,735,392 shares outstanding as of December 31, 2014 and June 30, 2015, respectively.) | 358 | 358 | 58 |
Additional paid-in capital | 47,131,172 | 47,592,598 | 7,676,225 |
Statutory reserves | 15,009 | 15,009 | 2,421 |
Treasury stock | (4) | (3) | (0) |
Accumulated deficit | (9,272,343) | (10,492,975) | (1,692,415) |
Accumulated other comprehensive loss | (376,125) | (402,709) | (64,953) |
Total shareholder's equity | 37,498,067 | 36,712,278 | 5,921,336 |
Total liabilities and shareholders' equity | 66,493,172 | 81,244,123 | 13,103,891 |
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Statements of Operations and Non-GAAP Net Loss Per ADS | |||
(In thousands, except per share data) | |||
For the three months ended |
|||
June 30, 2014 |
June 30, 2015 |
June 30, 2015 |
|
RMB | RMB | USD | |
Net revenues | |||
Online direct sales | 27,018,303 | 42,616,447 | 6,873,621 |
Services and others | 1,594,547 | 3,312,240 | 534,232 |
Total net revenues | 28,612,850 | 45,928,687 | 7,407,853 |
Operating expenses (1)(2) | |||
Cost of revenues | (25,457,621) | (40,019,182) | (6,454,707) |
Fulfillment | (2,001,753) | (3,252,010) | (524,518) |
Marketing | (1,066,020) | (1,981,922) | (319,665) |
Technology and content | (419,990) | (784,621) | (126,552) |
General and administrative | (455,411) | (614,092) | (99,047) |
Total operating expenses | (29,400,795) | (46,651,827) | (7,524,489) |
Loss from operations | (787,945) | (723,140) | (116,636) |
Other income/(expenses) | |||
Interest income | 154,912 | 98,261 | 15,849 |
Interest expense | (8,302) | (3,273) | (528) |
Others, net | 59,169 | 115,661 | 18,655 |
Loss before tax | (582,166) | (512,491) | (82,660) |
Income tax expenses | (364) | 2,069 | 334 |
Net loss | (582,530) | (510,422) | (82,326) |
Preferred shares redemption value accretion | (6,463,766) | -- | -- |
Net loss attributable to holders of permanent equity securities | (7,046,296) | (510,422) | (82,326) |
Non-GAAP net loss | (11,839) | (15,714) | (2,535) |
Net loss per share: | |||
Basic | (2.93) | (0.19) | (0.03) |
Diluted | (2.93) | (0.19) | (0.03) |
Net loss per ADS: | |||
Basic | (5.86) | (0.37) | (0.06) |
Diluted | (5.86) | (0.37) | (0.06) |
Non-GAAP net loss per ADS: | |||
Basic | (0.01) | (0.01) | (0.00) |
Diluted | (0.01) | (0.01) | (0.00) |
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 | |||
June 30, 2014 |
June 30, 2015 |
June 30, 2015 |
|
RMB | RMB | USD | |
Weighted average shares of permanent equity securities used in computation of earnings per share: | |||
Basic | 2,405,564 | 2,735,186 | 2,735,186 |
Diluted | 2,405,564 | 2,735,186 | 2,735,186 |
(1) Includes share-based compensation expenses as follows: | |||
Fulfillment | (33,695) | (49,708) | (8,017) |
Marketing | (4,671) | (12,572) | (2,028) |
Technology and content | (17,122) | (59,182) | (9,545) |
General and administrative | (153,442) | (139,895) | (22,564) |
(2) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: | |||
Fulfillment | (5,589) | (5,579) | (900) |
Marketing | (305,796) | (304,571) | (49,124) |
Technology and content | (5,425) | (5,906) | (953) |
General and administrative | (44,951) | (44,771) | (7,221) |
JD.com, Inc. | |||
Unaudited Interim Condensed Consolidated Statements of Cash Flows | |||
(In thousands) | |||
For the three months ended | |||
June 30, 2014 |
June 30, 2015 |
June 30, 2015 |
|
RMB | RMB | USD | |
Net cash provided by/(used in) operating activities | (78,507) | 737,448 | 118,943 |
Net cash provided by/(used in) investing activities | (3,158,370) | 770,978 | 124,351 |
Net cash provided by financing activities | 17,486,771 | 1,341,410 | 216,356 |
Effect of exchange rate changes on cash and cash equivalents | (51,753) | 6,580 | 1,062 |
Net increase in cash and cash equivalents | 14,198,141 | 2,856,416 | 460,712 |
Cash and cash equivalents at beginning of period | 13,337,835 | 14,680,367 | 2,367,801 |
Cash and cash equivalents at end of period | 27,535,976 | 17,536,783 | 2,828,513 |
JD.com, Inc. | ||
Selected Operating Data | ||
For the three months ended | ||
June 30, 2014 |
June 30, 2015 |
|
Annual active customer accounts(1) (in millions) | 68.5 | 118.0 |
Orders fulfilled(2) (in millions) | 163.7 | 305.6 |
GMV(3) (in RMB billions) | 63.0 | 114.5 |
(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
JD.com, Inc. | |||
Reconciliation of GAAP and Non-GAAP Results | |||
(In thousands, except percentage data) | |||
For the three months ended | |||
June 30, 2014 |
June 30, 2015 |
June 30, 2015 |
|
RMB | RMB | USD | |
General and administrative expenses | (455,411) | (614,092) | (99,047) |
Add: Share-based compensation | 153,442 | 139,895 | 22,564 |
Add: Amortization of intangible assets resulting from assets and business acquisitions | 44,951 | 44,771 | 7,221 |
Non-GAAP general and administrative expenses | (257,018) | (429,426) | (69,262) |
Loss from operations | (787,945) | (723,140) | (116,636) |
Add: Depreciation and amortization | 474,580 | 643,832 | 103,844 |
Add: Share-based compensation | 208,930 | 261,357 | 42,154 |
Less: Recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees | -- | (145,724) | (23,504) |
Non-GAAP EBITDA/(EBITDA loss) | (104,435) | 36,325 | 5,858 |
Total net revenues | 28,612,850 | 45,928,687 | 7,407,853 |
Non-GAAP EBITDA margin | -0.4% | 0.1% | 0.1% |
JD.com, Inc. | |||
Reconciliation of GAAP and Non-GAAP Results | |||
(In thousands, except percentage data) | |||
For the three months ended | |||
June 30, | June 30, | June 30, | |
2014 | 2015 | 2015 | |
RMB | RMB | USD | |
Net loss | (582,530) | (510,422) | (82,326) |
Add: Share-based compensation | 208,930 | 261,357 | 42,154 |
Add: Amortization of intangible assets resulting from assets and business acquisitions | 361,761 | 360,827 | 58,198 |
Less: Recognition of deferred revenue resulting from the business cooperation arrangements with the equity investees | -- | (145,724) | (23,504) |
Add: Reconciling items on the share of equity method investments* | -- | 18,248 | 2,943 |
Non-GAAP net loss | (11,839) | (15,714) | (2,535) |
Total net revenues | 28,612,850 | 45,928,687 | 7,407,853 |
Non-GAAP net margin | -0.04% | -0.03% | -0.03% |
*Reconciliation of JD'S Share of Equity Investments' GAAP to Non-GAAP Results | |||
(In thousands) | |||
For the three months ended | |||
June 30, | June 30, | June 30, | |
2014 | 2015 | 2015 | |
RMB | RMB | USD | |
Earning from equity method investments, net** | -- | (27,718) | (4,471) |
Add: Share of amortization of equity investments' intangibles not on their books | -- | 12,121 | 1,955 |
Add: Share-based compensation | -- | 5,441 | 878 |
Add: Amortization of intangible assets resulting from assets and business acquisitions | -- | 686 | 110 |
Non-GAAP earning from equity method investments | -- | (9,470) | (1,528) |
** Earning from equity method investments is recorded one quarter in arrears. |