Press Releases
JD.com Announces Second Quarter 2017 Results
As of
Second Quarter 2017 Highlights for Continuing Operations
- Net revenues1for the second quarter of 2017 were
RMB93.2 billion (US$213.7 billion), an increase of 43.6% from the second quarter of 2016. - Net loss from continuing operations attributable to ordinary shareholders for the second quarter of 2017 was
RMB287.0 million (US$42.3 million ), compared to net income from continuing operations attributable to ordinary shareholders ofRMB127.6 million for the same period last year. Non-GAAP net income from continuing operations attributable to ordinary shareholders3 for the second quarter of 2017 wasRMB976.5 million (US$144.1 million ), as compared toRMB612.6 million in the second quarter of 2016. - Diluted EPS and Non-GAAP Diluted EPS. Diluted net loss per ADS from continuing operations for the second quarter of 2017 was
RMB0.20 (US$0.03) , compared to diluted net income per ADS from continuing operations ofRMB0.09 for the second quarter of 2016. Non-GAAP diluted net income per ADS from continuing operations for the second quarter of 2017 wasRMB0.67 (US$0.10) , as compared toRMB0.44 in the second quarter of 2016. - Operating cash flow from continuing operations for the twelve months ended
June 30, 2017 increased toRMB26.6 billion (US$3.9 billion ) fromRMB4.1 billion for the twelve months endedJune 30, 2016 . Free cash flow4 from continuing operations, which excludes the impact from JD Baitiao included in the operating cash flow, for the twelve months endedJune 30, 2017 increased by 214% toRMB28.9 billion (US$4.3 billion ), compared toRMB9.2 billion for the twelve months endedJune 30, 2016 . - GMV for the second quarter of 2017 increased by 46% to
RMB234.8 billion (US$34.6 billion ) fromRMB160.4 billion in the second quarter of 2016. - Annual active customer accounts increased by 37% to 258.3 million in the twelve months ended
June 30, 2017 from 188.1 million in the twelve months endedJune 30, 2016 . - Fulfilled orders in the second quarter of 2017 were 591.2 million, an increase of 41% from 418.9 million in the same period in 2016. Fulfilled orders placed through mobile accounted for approximately 80% of total orders fulfilled in the second quarter of 2017, an increase of 42% compared to the same period in 2016.
“JD’s growing strength as China’s largest retailer continues to position us to capture new and expanding market opportunities,” said
“We are very pleased to see another quarter of robust top line growth and exceptional free cash flow,” said
Recent Business Developments
- During the second quarter, JD further expanded its product offerings through cooperation with multiple international brands, including Swiss luxury watch brand Zenith, Austrian brand Swarovski, leading Italian furniture designer Kartell, world-leading producer of ophthalmic lenses
Essilor , as well as Casio, MAMMUT, Juicy Couture and Armani. In June, French luxury haircare brand Rene Furterer opened its flagship store on JD. Petit Bateau, a more than one hundred year-old French clothing brand for children and Merida, aTaiwan -based brand of professional bicycles, also joined the platform in July. - In July, JD and Walmart expanded their cooperation to further integrate their platforms and customer resources in
China . Coinciding with the launch of the first Walmart-JD Omni-channel Shopping Festival onAugust 8 , the new initiatives aim to offer shoppers throughoutChina faster and more convenient access to high-quality products through multiple channels. Walmart China and Sam’s Club US also launched flagship stores onJD.com and JD Worldwide, respectively, during the quarter. - In April, JD Worldwide launched its JD (x) program to partner with leading global fashion brands such as Chiara Ferragni,
Jay Ahr , Haculla, and McQ to design clothing lines that combine premium quality and unique fashion tailored towards JD customers. JD will continue to add internationally known brands to join the JD (x) program to further expand the range of unique and exciting fashion products available to Chinese consumers. - In June, JD and Farfetch announced a strategic partnership for luxury e-commerce in
China . The partnership leverages JD's unparalleled logistics, Internet finance and technology capabilities, and social media resources, with Farfetch’s leadership in global luxury, to offer Chinese consumers a seamless brand experience. - In August, JD and
Baidu launched a strategic partnership leveraging both companies’ powerful data resources, user bases and AI algorithm technology to give consumers and advertisers a more tailored and rewarding e-commerce experience. As part of the partnership, Mobile Baidu, Baidu’s flagship mobile search app, will provide JD with level-one access points to the hundreds of millions of mobileBaidu users inChina . - In August, JD cooperated with Wyeth Illuminate to launch a quality tracking system. Leveraging JD’s blockchain technology, Wyeth will implement end-to-end processing quality tracking to ensure the safety of products for mothers and infants. Comprehensive information regarding the origin, procurement, processing, inventory, selling and distribution of Wyeth products will be made available to consumers on
JD.com and other Wyeth channels. - In the second quarter, JD continued to make progress building out China’s leading logistics network. A new service, JD Luxury Express, launched during the quarter to provide personalized service for high-end and specialty products. JD also announced a new partnership with
China Eastern Airlines featuring a multi-faceted cooperation across logistics, branding, cross-membership promotions and cloud services. In July, JD signed a strategic MOU with Japan’sYamato Group , one of Asia’s leading logistics companies, to assist the company’s efforts in building a world-class cold chain logistics network inChina . - As of
July 31, 2017 , JD.com’s joint venture, New Dada, had partnered with 135 Walmart stores and 224 Yonghui stores, as well as tens of thousands of other offline stores, to provide consumers a premium online fresh grocery shopping experience with one-hour home delivery. New Dada is China’s largest crowdsourcing logistics provider and O2O grocery platform. - During the second quarter,
JD.com expanded its leadership position in fulfillment capabilities among China’s e-commerce companies. As ofJune 30, 2017 ,JD.com operated 335 warehouses covering an aggregate gross floor area of approximately 7.1 million square meters inChina . JD.com had approximately 130,000 merchants on its online marketplace, and a total of 125,835 full-time employees, excluding JD Finance, as ofJune 30, 2017 .
Second Quarter 2017 Financial Results
GMV and Net Revenues. GMV from the online direct sales business was
For the second quarter of 2017,
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 39% to
Marketing Expenses. Marketing expenses increased by 63% to
Technology and Content Expenses. Technology and content expenses increased by 39% to
General and Administrative Expenses. General and administrative expenses increased by 33% to
Loss from operations and Non-GAAP income from operations5. Operating loss from continuing operations for the second quarter of 2017 was
Non-GAAP EBITDA6 from continuing operations for the second quarter of 2017 totaled
Share of results of equity investees. Share of results of equity investees from continuing operations for the second quarter of 2017 was a loss of
Net income/(loss) attributable to ordinary shareholders and Non-GAAP Net income attributable to ordinary shareholders. Net loss from continuing operations attributable to ordinary shareholders for the second quarter of 2017 was
Diluted EPS and Non-GAAP Diluted EPS. Diluted net loss per ADS from continuing operations for the second quarter of 2017 was
As of
For the three months ended | ||||||||
June 30, 2016 |
June 30, 2017 |
June 30, 2017 |
||||||
RMB | RMB | USD | ||||||
(In thousands) | ||||||||
Net cash provided by operating activities from continuing operations | 5,187,366 | 17,863,075 | 2,634,944 | |||||
Add: Impact from JD Baitiao included in the operating cash flow | 4,473,323 | 3,748,681 | 552,960 | |||||
Less: Capital expenditures | (1,025,018 | ) | (1,305,148 | ) | (192,520 | ) | ||
Free cash flow | 8,635,671 | 20,306,608 | 2,995,384 |
Net cash used in investing activities from continuing operations was
As of
Net cash provided by financing activities from continuing operations was
For working capital turnover days, see table under “Supplemental Financial Information and Business Metrics.”
Recent Developments
JD Finance Reorganization
As of
JD Logistics Cost Reclassification
In
The following unaudited selected financial data of continuing operations of prior periods are presented to reflect the results of the above stated JD Finance deconsolidation and JD Logistics cost reclassification:
For the three months ended | |||||||||||
March 31, 2016 |
June 30, 2016 |
September 30, 2016 |
December 31, 2016 |
March 31, 2017 |
|||||||
RMB | RMB | RMB | RMB | RMB | |||||||
(In thousands) | |||||||||||
Net revenues | 53,808,159 | 64,896,935 | 60,173,725 | 79,411,128 | 75,218,187 | ||||||
Operating expenses | |||||||||||
Cost of revenues | (46,774,319 | ) | (56,052,282 | ) | (51,537,518 | ) | (68,570,518 | ) | (64,393,726 | ) | |
Fulfillment | (3,949,853 | ) | (4,605,842 | ) | (4,540,077 | ) | (5,463,919 | ) | (5,150,584 | ) | |
Marketing | (2,016,454 | ) | (2,494,969 | ) | (2,132,554 | ) | (3,514,709 | ) | (2,799,531 | ) | |
Technology and content | (928,497 | ) | (1,114,115 | ) | (1,229,353 | ) | (1,180,743 | ) | (1,289,061 | ) | |
General and administrative | (660,107 | ) | (787,409 | ) | (968,645 | ) | (1,019,717 | ) | (923,962 | ) | |
Total operating expenses | (54,329,230 | ) | (65,054,617 | ) | (60,408,147 | ) | (79,749,606 | ) | (74,556,864 | ) | |
Income/(loss) from operations | (521,071 | ) | (157,682 | ) | (234,422 | ) | (338,478 | ) | 661,323 | ||
Share-based compensation recorded in operating expenses: | |||||||||||
Cost of revenues | (2,436 | ) | (4,702 | ) | (4,908 | ) | (5,439 | ) | (3,758 | ) | |
Fulfillment | (46,747 | ) | (98,398 | ) | (94,195 | ) | (93,043 | ) | (76,971 | ) | |
Marketing | (13,048 | ) | (27,210 | ) | (23,812 | ) | (23,191 | ) | (20,773 | ) | |
Technology and content | (67,647 | ) | (135,253 | ) | (134,648 | ) | (132,686 | ) | (116,384 | ) | |
General and administrative | (225,031 | ) | (268,383 | ) | (299,246 | ) | (361,409 | ) | (318,302 | ) | |
Amortization of intangible assets resulting from assets and business acquisitions recorded in operating expenses: | |||||||||||
Fulfillment | (1,614 | ) | (7,325 | ) | (41,846 | ) | (41,846 | ) | (41,544 | ) | |
Marketing | (302,932 | ) | (303,764 | ) | (307,759 | ) | (307,759 | ) | (301,101 | ) | |
Technology and content | (503 | ) | (3,822 | ) | (20,923 | ) | (20,661 | ) | (20,661 | ) | |
General and administrative | (44,951 | ) | (48,444 | ) | (77,314 | ) | (77,314 | ) | (76,326 | ) |
Third Quarter 2017 Guidance
Net revenues for the third quarter of 2017 are expected to be between
Conference Call
JD.com’s management will hold a conference call at
Listeners may access the call by dialing the following numbers:
US Toll Free: | +1-845-675-0437 or +1-866-519-4004 |
Hong Kong | +852-3018-6771 or 800-906-601 |
Mainland China | 400-6208-038 or 800-8190-121 |
International | +65-6713-5090 |
Passcode: | 64366784 |
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: | 64366784 |
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.
Non-GAAP Measures
In evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per weighted average number of shares and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in
The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP income/(loss) from operations, non-GAAP net income/(loss) attributable to ordinary shareholders and non-GAAP EBITDA reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from JD Baitiao included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The company also believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the company’s current operating performance and future prospects in the same manner as management does, if they so choose. The company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the company's core operating results and business outlook.
The non-GAAP financial measures have limitations as analytical tools. The company’s non-GAAP financial measures do not reflect all items of income and expense that affect the company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The company encourages you to review the company’s financial information in its entirety and not rely on a single financial measure.
CONTACTS:
Investor Relations
Senior Director of Investor Relations
+86 (10) 8912-6805
IR@JD.com
Media
VP, International Corporate Affairs
Press@JD.com
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as
1 The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.
2 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of
3 Non-GAAP net income/(loss) attributable to ordinary shareholders is defined to exclude share-based compensation, amortization of intangible assets resulting from acquisitions, and certain other non-cash gain or loss items 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.
4 Free cash flow, a non-GAAP measurement of liquidity, is defined as operating cash flow adding back the impact from JD Baitiao included in the operating cash flow 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.
5 Non-GAAP income/(loss) from operations is defined to exclude share-based compensation, amortization of intangible assets resulting from acquisitions, and certain other non-cash gain or loss items from income/(loss) from operations. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
6 Non-GAAP EBITDA is defined as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions, and non-GAAP EBITDA margin is calculated by dividing non-GAAP EBITDA by net revenues. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
JD.com, Inc. | ||||
Unaudited Interim Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
As of | ||||
December 31, 2016 |
June 30, 2017 |
June 30, 2017 |
||
RMB | RMB | US$ | ||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 15,567,036 | 27,854,975 | 4,108,828 | |
Restricted cash | 2,293,640 | 5,458,119 | 805,115 | |
Short-term investments | 6,548,001 | 12,739,796 | 1,879,220 | |
Accounts receivable, net (including JD Baitiao of RMB14.8 billion and RMB18.7 billion as of December 31, 2016 and June 30, 2017, respectively)(1) | 16,141,007 | 19,790,932 | 2,919,318 | |
Advance to suppliers | 257,117 | 613,413 | 90,483 | |
Inventories, net | 28,909,425 | 31,149,391 | 4,594,780 | |
Prepayments and other current assets | 5,987,103 | 8,124,495 | 1,198,427 | |
Amount due from related parties | 9,074,275 | 25,211,369 | 3,718,875 | |
Assets held for sale | 22,154,494 | - | - | |
Total current assets | 106,932,098 | 130,942,490 | 19,315,046 | |
Non-current assets | ||||
Property, equipment and software, net | 7,023,409 | 8,609,000 | 1,269,895 | |
Construction in progress | 1,992,123 | 2,170,190 | 320,120 | |
Intangible assets, net | 8,310,657 | 7,437,837 | 1,097,139 | |
Land use rights, net | 2,447,511 | 2,470,497 | 364,418 | |
Goodwill | 6,527,019 | 6,533,920 | 963,805 | |
Investment in equity investees | 14,628,786 | 16,798,460 | 2,477,905 | |
Investment securities | 1,059,632 | 1,073,408 | 158,336 | |
Other non-current assets (including JD Baitiao of RMB0.8 billion and RMB1.1 billion as of December 31, 2016 and June 30, 2017, respectively) (1) | 2,223,672 | 2,739,002 | 404,024 | |
Amount due from related parties | 1,896,200 | 1,896,200 | 279,704 | |
Assets held for sale | 7,332,411 | - | - | |
Total non-current assets | 53,441,420 | 49,728,514 | 7,335,346 | |
Total assets | 160,373,518 | 180,671,004 | 26,650,392 | |
JD.com, Inc. | |||||
Unaudited Interim Condensed Consolidated Balance Sheets | |||||
(In thousands) | |||||
As of | |||||
December 31, | June 30, | June 30, | |||
2016 | 2017 | 2017 | |||
RMB | RMB | US$ | |||
LIABILITIES | |||||
Current liabilities | |||||
Short-term borrowings | 1,878,286 | 1,493,718 | 220,335 | ||
Nonrecourse securitization debt(1) | 9,231,101 | 10,687,379 | 1,576,472 | ||
Accounts payable | 46,035,884 | 67,477,573 | 9,953,472 | ||
Advances from customers | 11,466,334 | 14,826,076 | 2,186,963 | ||
Deferred revenues | 1,138,426 | 1,373,388 | 202,586 | ||
Taxes payable | 565,288 | 1,224,081 | 180,562 | ||
Amount due to related parties | 154,924 | 151,011 | 22,275 | ||
Accrued expenses and other current liabilities | 10,512,590 | 12,296,829 | 1,813,879 | ||
Liabilities held for sale | 23,757,403 | - | - | ||
Total current liabilities | 104,740,236 | 109,530,055 | 16,156,544 | ||
Non-current liabilities | |||||
Deferred revenues | 2,104,461 | 1,687,375 | 248,901 | ||
Nonrecourse securitization debt(1) | 2,318,389 | 10,855,286 | 1,601,240 | ||
Unsecured senior notes | 6,831,012 | 6,677,568 | 984,994 | ||
Deferred tax liabilities | 907,356 | 876,290 | 129,260 | ||
Other non-current liabilities | 440,670 | 389,996 | 57,527 | ||
Liabilities held for sale | 1,811,611 | - | - | ||
Total non-current liabilities | 14,413,499 | 20,486,515 | 3,021,922 | ||
Total liabilities | 119,153,735 | 130,016,570 | 19,178,466 | ||
Redeemable non-controlling interestsheld for sale | 7,056,921 | - | - | ||
SHAREHOLDERS’ EQUITY | |||||
Total JD.com Inc. shareholders’ equity (US$0.00002 par value, 100,000,000 shares authorized, 2,938,709 shares issued and 2,846,569 shares outstanding as of June 30, 2017) | 33,892,900 | 50,354,660 | 7,427,707 | ||
Non-controlling interests | 269,962 | 299,774 | 44,219 | ||
Total shareholders’ equity | 34,162,862 | 50,654,434 | 7,471,926 | ||
Total liabilities, redeemable non-controlling interests and shareholders’ equity | 160,373,518 | 180,671,004 | 26,650,392 | ||
(1) Due to certain existing contractual arrangement, the company will remain as the legal owner of the existing consumer credit (known as JD Baitiao) receivables, while JD Finance will continue to perform the credit risk assessment services for the individuals and purchase the over-due receivables from the company at carrying value to absorb the risks and obtain the rewards from JD Baitiao business. The company will also facilitate JD Finance in various asset-backed securitization (“ABS”) to raise fund to support the JD Baitiao business. JD Finance will act as the servicer of the ABS and will also subscribe to the subordinate tranche. Due to the company’s continuing involvement right in ABS under the current arrangement and the transfer restriction imposed on JD Finance for the subordinate tranche in ABS, the company cannot derecognize the Baitiao receivables through ABS under U.S. GAAP. As a result, the Baitiao receivables and related nonrecourse securitization debt will remain on the company’s consolidated financial statements until alternative arrangements are established. | |||||
JD.com, Inc. | |||||||||
Unaudited Interim Condensed Consolidated Statements of Operations | |||||||||
(In thousands, except per share data) | |||||||||
For the three months ended | |||||||||
June 30, | June 30, | June 30, | |||||||
2016 | 2017 | 2017 | |||||||
RMB | RMB | US$ | |||||||
Net revenues | |||||||||
Online direct sales | 59,752,504 | 85,386,013 | 12,595,108 | ||||||
Services and others | 5,144,431 | 7,815,962 | 1,152,916 | ||||||
Total net revenues | 64,896,935 | 93,201,975 | 13,748,024 | ||||||
Operating expenses(2)(3) | |||||||||
Cost of revenues | (56,052,282 | ) | (80,554,156 | ) | (11,882,371 | ) | |||
Fulfillment | (4,605,842 | ) | (6,380,658 | ) | (941,197 | ) | |||
Marketing | (2,494,969 | ) | (4,075,143 | ) | (601,116 | ) | |||
Technology and content | (1,114,115 | ) | (1,546,390 | ) | (228,105 | ) | |||
General and administrative | (787,409 | ) | (1,048,612 | ) | (154,679 | ) | |||
Total operating expenses | (65,054,617 | ) | (93,604,959 | ) | (13,807,468 | ) | |||
Loss from operations | (157,682 | ) | (402,984 | ) | (59,444 | ) | |||
Other income/(expenses) | |||||||||
Share of results of equity investees | (1,080,820 | ) | (372,648 | ) | (54,969 | ) | |||
Interest and others, net | 1,401,058 | 448,241 | 66,119 | ||||||
Income/(loss) before tax | 162,556 | (327,391 | ) | (48,294 | ) | ||||
Income tax (expenses)/benefits | (43,628 | ) | 16,267 | 2,400 | |||||
Net income/(loss) from continuing operations | 118,928 | (311,124 | ) | (45,894 | ) | ||||
Net loss from discontinued operations, net of tax | (251,014 | ) | (70,199 | ) | (10,355 | ) | |||
Net loss | (132,086 | ) | (381,323 | ) | (56,249 | ) | |||
Net loss from continuing operations attributable to non-controlling interests shareholders | (8,631 | ) | (24,112 | ) | (3,557 | ) | |||
Net loss from discontinued operations attributable to non-controlling interests shareholders | (2,369 | ) | (2,717 | ) | (401 | ) | |||
Net income from discontinued operations attributable to mezzanine classified non-controlling interests shareholders | 131,223 | 141,882 | 20,929 | ||||||
Net income/(loss) from continuing operations attributable to ordinary shareholders | 127,559 | (287,012 | ) | (42,337 | ) | ||||
Net loss from discontinued operations attributable to ordinary shareholders | (379,868 | ) | (209,364 | ) | (30,883 | ) | |||
Net loss attributable to ordinary shareholders | (252,309 | ) | (496,376 | ) | (73,220 | ) | |||
JD.com, Inc. | |||||||
Unaudited Interim Condensed Consolidated Statements of Operations | |||||||
(In thousands, except per share data) | |||||||
For the three months ended | |||||||
June 30, 2016 |
June 30, 2017 |
June 30, 2017 |
|||||
RMB | RMB | US$ | |||||
(2) Includes share-based compensation expenses as follows: | |||||||
Cost of revenues | (4,702 | ) | (5,558 | ) | (820 | ) | |
Fulfillment | (98,398 | ) | (119,567 | ) | (17,637 | ) | |
Marketing | (27,210 | ) | (38,689 | ) | (5,707 | ) | |
Technology and content | (135,253 | ) | (176,344 | ) | (26,012 | ) | |
General and administrative | (268,383 | ) | (407,070 | ) | (60,046 | ) | |
(3) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: | |||||||
Fulfillment | (7,325 | ) | (40,673 | ) | (6,000 | ) | |
Marketing | (303,764 | ) | (304,430 | ) | (44,906 | ) | |
Technology and content | (3,822 | ) | (20,661 | ) | (3,048 | ) | |
General and administrative | (48,444 | ) | (76,820 | ) | (11,332 | ) | |
Net income/(loss) per share: | |||||||
Basic | |||||||
Continuing operations | 0.05 | (0.10 | ) | (0.01 | ) | ||
Discontinued operations | (0.14 | ) | (0.07 | ) | (0.01 | ) | |
Net loss per share | (0.09 | ) | (0.17 | ) | (0.03 | ) | |
Diluted | |||||||
Continuing operations | 0.05 | (0.10 | ) | (0.01 | ) | ||
Discontinued operations | (0.14 | ) | (0.07 | ) | (0.01 | ) | |
Net loss per share | (0.09 | ) | (0.17 | ) | (0.03 | ) | |
Net income/(loss) per ADS: | |||||||
Basic | |||||||
Continuing operations | 0.09 | (0.20 | ) | (0.03 | ) | ||
Discontinued operations | (0.27 | ) | (0.15 | ) | (0.02 | ) | |
Net loss per ADS | (0.18 | ) | (0.35 | ) | (0.05 | ) | |
Diluted | |||||||
Continuing operations | 0.09 | (0.20 | ) | (0.03 | ) | ||
Discontinued operations | (0.27 | ) | (0.15 | ) | (0.02 | ) | |
Net loss per ADS | (0.18 | ) | (0.35 | ) | (0.05 | ) | |
JD.com, Inc. | ||||
Non-GAAP Net Income Per ADS from Continuing Operations | ||||
(In thousands, except per share data) | ||||
For the three months ended | ||||
June 30, 2016 |
June 30, 2017 |
June 30, 2017 |
||
RMB | RMB | US$ | ||
Non-GAAP net income from continuing operations attributable to ordinary shareholders | 612,589 | 976,545 | 144,050 | |
Weighted average number of shares: | ||||
Basic | 2,763,103 | 2,845,374 | 2,845,374 | |
Diluted | 2,793,940 | 2,845,374 | 2,845,374 | |
Diluted (Non-GAAP) | 2,793,940 | 2,908,746 | 2,908,746 | |
Non-GAAP net income from continuing operations per ADS(4): | ||||
Basic | 0.44 | 0.69 | 0.10 | |
Diluted | 0.44 | 0.67 | 0.10 | |
(4) Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per share multiplied by two. | ||||
JD.com, Inc. | ||||||
Unaudited Interim Condensed Consolidated Statements of Cash Flows | ||||||
(In thousands) | ||||||
For the three months ended | ||||||
June 30, 2016 |
June 30, 2017 |
June 30, 2017 |
||||
RMB | RMB | US$ | ||||
Net cash provided by continuing operating activities | 5,187,366 | 17,863,075 | 2,634,944 | |||
Net cash used in discontinued operating activities | (3,000,088 | ) | (1,068,979 | ) | (157,683 | ) |
Net cash provided by operating activities | 2,187,278 | 16,794,096 | 2,477,261 | |||
Net cash used in continuing investing activities | (9,465,143 | ) | (16,414,109 | ) | (2,421,210 | ) |
Net cash used in discontinued investing activities | (1,732,403 | ) | (12,625,248 | ) | (1,862,323 | ) |
Net cash used in investing activities | (11,197,546 | ) | (29,039,357 | ) | (4,283,533 | ) |
Net cash provided by continuing financing activities | 8,763,125 | 8,210,989 | 1,211,185 | |||
Net cash provided by discontinued financing activities | 5,128,313 | 8,381,910 | 1,236,398 | |||
Net cash provided by financing activities | 13,891,438 | 16,592,899 | 2,447,583 | |||
Effect of exchange rate changes on cash and cash equivalents | 445,473 | (116,855 | ) | (17,237 | ) | |
Net increase in cash and cash equivalents | 5,326,643 | 4,230,783 | 624,074 | |||
Cash and cash equivalents at beginning of period | 31,054,994 | 23,624,192 | 3,484,754 | |||
Cash and cash equivalents at end of period | 36,381,637 | 27,854,975 | 4,108,828 | |||
Less: Cash and cash equivalents of held for sale | (4,241,956 | ) | - | - | ||
Cash and cash equivalents of continuing operations at end of period | 32,139,681 | 27,854,975 | 4,108,828 | |||
Net cash provided by operating activities from continuing operations | 5,187,366 | 17,863,075 | 2,634,944 | |||
Add: Impact from JD Baitiao included in the operating cash flow | 4,473,323 | 3,748,681 | 552,960 | |||
Less: Capital expenditures | (1,025,018 | ) | (1,305,148 | ) | (192,520 | ) |
Free cash flow | 8,635,671 | 20,306,608 | 2,995,384 | |||
JD.com, Inc. | ||||||||
Supplemental Financial Information and Business Metrics | ||||||||
Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | |||
Free cash flow - trailing twelve months (“TTM”) (in RMB billions) | 4.4 | 9.2 | 15.0 | 13.5 | 17.3 | 28.9 | ||
Inventory turnover(5) – TTM | 36.8 | 38.0 | 37.3 | 37.6 | 36.7 | 36.3 | ||
Accounts payable turnover(6) – TTM | 45.7 | 49.2 | 51.5 | 52.0 | 52.3 | 56.2 | ||
Accounts receivable turnover(7) – TTM | 1.3 | 1.3 | 1.2 | 1.3 | 1.2 | 1.2 | ||
GMV(8) (in RMB billions) | 129.3 | 160.4 | 158.8 | 209.7 | 184.1 | 234.8 | ||
Orders fulfilled(9) (in millions) | 342.1 | 418.9 | 456.2 | 558.2 | 477.1 | 591.2 | ||
Annual active customer accounts(10) (in millions) | 169.1 | 188.1 | 198.7 | 226.6 | 236.5 | 258.3 | ||
(5) 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.
(6) Accounts payable turnover days are the quotient of average accounts payable over five quarter ends to total cost of revenues for the last twelve months and then multiplied by 360 days. Presented are the accounts payable turnover days for the online direct sales business.
(7) Accounts receivable turnover days are the quotient of average accounts receivable over five quarter ends to total net revenues of the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days excluding the impact from JD Baitiao.
(8) 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 websites and mobile applications as well as orders placed on third-party mobile applications that are fulfilled by the company or third-party merchants. 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
(9) 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.
(10) 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 | ||||||
June 30, 2016 |
June 30, 2017 |
June 30, 2017 |
||||
RMB | RMB | US$ | ||||
Loss from operations from continuing operations | (157,682 | ) | (402,984 | ) | (59,444 | ) |
Reversal of: Revenue from business cooperation arrangements with equity investees | (216,021 | ) | (204,968 | ) | (30,234 | ) |
Add: Share-based compensation | 533,946 | 747,228 | 110,222 | |||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 363,355 | 442,584 | 65,286 | |||
Non-GAAP income from operations from continuing operations | 523,598 | 581,860 | 85,830 | |||
Add: Depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions | 443,752 | 527,588 | 77,822 | |||
Non-GAAP EBITDAfrom continuing operations | 967,350 | 1,109,448 | 163,652 | |||
Total net revenues from continuing operations | 64,896,935 | 93,201,975 | 13,748,024 | |||
Non-GAAP operating margin from continuing operations | 0.8 | % | 0.6 | % | 0.6 | % |
Non-GAAP EBITDA marginfrom continuing operations | 1.5 | % | 1.2 | % | 1.2 | % |
JD.com, Inc. | |||||||
Reconciliation of GAAP and Non-GAAP Results | |||||||
(In thousands, except percentage data) | |||||||
For the three months ended | |||||||
June 30, 2016 |
June 30, 2017 |
June 30, 2017 |
|||||
RMB | RMB | US$ | |||||
Net income/(loss) from continuing operations attributable to ordinary shareholders | 127,559 | (287,012 | ) | (42,337 | ) | ||
Add: Share-based compensation | 533,946 | 747,228 | 110,222 | ||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 363,355 | 442,584 | 65,286 | ||||
Add: Reconciling items on the share of equity method investments(11) | 83,248 | 231,158 | 34,098 | ||||
Add: Impairment of goodwill, intangible assets, and investments | 961,228 | 67,963 | 10,025 | ||||
Reversal of: Gain on disposal of JD Daojia | (1,227,760 | ) | - | - | |||
Reversal of: Revenue from business cooperation arrangements with equity investees | (216,021 | ) | (204,968 | ) | (30,234 | ) | |
Reversal of: Income from non-compete agreement | (12,966 | ) | (20,408 | ) | (3,010 | ) | |
Non-GAAP net income from continuing operations attributable to ordinary shareholders | 612,589 | 976,545 | 144,050 | ||||
Total net revenues from continuing operations | 64,896,935 | 93,201,975 | 13,748,024 | ||||
Non-GAAP net margin from continuing operations | 0.9 | % | 1.0 | % | 1.0 | % | |
(11) For the second quarter of 2017, the reconciling items on the share of equity method investments included the impact of share-based compensation of RMB24.6 million, amortization of intangible assets resulting from assets and business acquisitions of RMB89.2 million, share of amortization of equity investments’ intangibles not on their books of RMB23.1 million, and net income attributable to mezzanine equity holder of RMB94.3 million. Earning from equity method investments in publicly listed companies and certain privately held companies is recorded one quarter in arrears. |