Press Releases
JD.com Announces Third Quarter 2014 Results
Third Quarter 2014 Highlights[1]
- GMV for the third quarter of 2014 was
RMB67.3 billion (US$11.0 billion ), an increase of 111% compared with the third quarter of 2013. - Net revenues for the third quarter of 2014 were
RMB29.0 billion (US$4.7 billion ), an increase of 61% from the third quarter of 2013. - Net loss for the third quarter of 2014 was
RMB164.4 million (US$26.8 million ) and net margin was -0.6%. Non-GAAP net income for the third quarter of 2014 wasRMB370.8 million (US$60.4 million ) and non-GAAP net margin was 1.3%. - Active customer accounts[2] increased from 22.1 million in the third quarter of 2013 to 46.1 million in the third quarter of 2014, an increase of 109%.
- Fulfilled orders in the third quarter of 2014 were 178.2 million, an increase of 119% from 81.5 million for the same period in 2013. Fulfilled orders placed through mobile accounted for approximately 29.6% of total orders fulfilled in the third quarter of 2014, a 534% increase compared to the same period in 2013.
[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 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 September 30, 2014, which was RMB6.1380 to USD1.00. The percentages stated in this press release are calculated based on the RMB amounts. [2] Active customer accounts are customer accounts that made at least one purchase during the specified period, whether through online direct sales or online marketplaces, which include Paipai since the third quarter of 2014. |
"We maintained excellent momentum in the third quarter as we saw stronger than expected year-over-year growth in both gross merchandise volume and active customer accounts," said
"GMV generated from our marketplace tripled compared to the third quarter of 2013 as we expanded our merchant base and diversified our product offerings," continued Mr. Liu. "We also improved our mobile offerings on both the
"We are very pleased to deliver accelerated top line growth, while achieving higher than expected profitability in a seasonally slow quarter," commented
Recent Business Developments
- In July, JD Finance launched crowdfunding platform "Coufenzi" to provide funding for creative business concepts. Concurrently,
JD.com also unveiled several crowdfunding projects focused on the smart hardware and popular culture industries. - In August,
JD.com became the first e-commerce company inChina to leverage high-speed rail for shipping. Six high-speed trains travelling daily betweenBeijing ,Shanghai andGuangzhou are used to deliverJD.com's orders, which has reduced shipping time and enhancedJD.com's customer experience. - In October,
JD.com launched the initial phase of its first cutting edge, highly-automated "Asia No.1" warehouse inShanghai as part of an initiative to strengthen its nationwide fulfillment infrastructure. The initial phase of the warehouse, comprising total floor area of 100,000 square meters with capacity to sort up to 16,000 packages per hour, has expandedJD.com's fulfillment ability to support its future growth. - During the third quarter of 2014,
JD.com significantly enhanced its advertising platform's mobile capabilities through its collaboration withTencent's advertising platform. The partnership improves the ability ofJD.com vendors to target relevant audiences, particularly on Weixin and Mobile QQ, and to boost mobile traffic. JD.com extended its leadership in self-operated logistics capabilities among e-commerce companies inChina . As ofSeptember 30, 2014 ,JD.com operated 118 warehouses with an aggregate gross floor area of approximately 2.3 million square meters, 2,045 delivery stations and 1,045 pickup stations. Our delivery network covered 1,855 counties and districts as ofSeptember 30, 2014 . The Company's 211 same-day and next-day delivery program covered 130 and 815 counties and districts, respectively, as ofSeptember 30, 2014 , rising from 111 and 622 counties and districts, respectively, as ofJune 30, 2014 .JD.com had approximately 50,000 merchants on its online marketplace as ofSeptember 30, 2014 and a total of 62,051 full-time employees as ofSeptember 30, 2014 .
Third Quarter 2014 Financial Results
GMV and Net Revenues. GMV for the third quarter of 2014 was
For the third quarter of 2014,
Cost of Revenues. Our cost of revenues increased by 57% 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 134% from
Technology and Content Expenses. Our technology and content expenses increased by 104% from
General and Administrative Expenses. Our general and administrative expenses increased by 126% from
Net Loss. Net loss for the third quarter of 2014 was
Net Loss Per ADS[4]. Net loss per ADS for the third quarter of 2014 was
As of
For the three months ended |
|||||
September 30, |
September 30, |
September 30, |
|||
RMB |
RMB |
USD |
|||
(In thousands) |
|||||
Net cash provided by operating activities |
687,295 |
1,430,337 |
233,030 |
||
Add: Impact from internet financing activities[7] |
- |
251,858 |
41,033 |
||
Less: Capital expenditures |
(363,009) |
(870,027) |
(141,744) |
||
Free cash flow |
324,286 |
812,168 |
132,319 |
||
Our accounts payable primarily 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
Fourth Quarter 2014 Guidance
Net revenues for the fourth quarter of 2014 are expected to be between
Non-GAAP Measures
In evaluating our business, we consider and use non-GAAP measures, non-GAAP 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. Non-GAAP 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 impact from internet financing activities and 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 non-GAAP 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 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. 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.
[3] As used in this press release, non-GAAP net income/(loss) is defined to exclude share-based compensation and amortization of intangible assets resulting from assets and business acquisitions from net loss. See "Reconciliation of GAAP and non-GAAP Results" at the end of this press release. [4] Each ADS represents two class A 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, primarily "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 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. |
Conference Call
Listeners may access the call by dialing the following numbers:
US Toll Free: |
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: |
3537070 |
A replay of the conference call may be accessed by phone at the following numbers until
US Toll Free: |
866-846-0868 |
International |
+61-2-9641-7900 |
Passcode: |
3537070 |
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
For investor and media inquiries, please contact:
Investor Relations
+86 (10) 5895-5597
IR@JD.com
Media
+86 (10) 5895-9315
Josh@JD.com
JD.com, Inc. |
||||||
Unaudited Interim Condensed Consolidated Balance Sheets |
||||||
(In thousands, except per share data) |
||||||
As of |
||||||
December 31, 2013 |
September 30, 2014 |
September 30, 2014 |
||||
RMB |
RMB |
USD |
||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
10,812,339 |
20,717,889 |
3,375,348 |
|||
Restricted cash |
1,887,387 |
4,614,340 |
751,766 |
|||
Short-term investments |
1,903,224 |
10,936,316 |
1,781,740 |
|||
Accounts receivable, net |
502,089 |
1,570,291 |
255,831 |
|||
Advance to suppliers |
769,765 |
591,391 |
96,349 |
|||
Inventories, net |
6,386,155 |
11,094,891 |
1,807,574 |
|||
Prepayments and other current assets |
219,102 |
672,381 |
109,542 |
|||
Amount due from related parties |
- |
403,036 |
65,662 |
|||
Total current assets |
22,480,061 |
50,600,535 |
8,243,812 |
|||
Non-current assets: |
||||||
Property, equipment and software, net |
1,024,428 |
2,158,763 |
351,705 |
|||
Construction in progress |
1,237,644 |
1,336,921 |
217,811 |
|||
Land use rights, net |
598,853 |
926,289 |
150,911 |
|||
Intangible assets, net |
215,802 |
7,229,288 |
1,177,792 |
|||
Goodwill |
14,649 |
2,622,470 |
427,252 |
|||
Investment in equity investees |
36,502 |
508,844 |
82,901 |
|||
Other non-current assets |
401,873 |
565,747 |
92,171 |
|||
Total non-current assets |
3,529,751 |
15,348,322 |
2,500,543 |
|||
Total assets |
26,009,812 |
65,948,857 |
10,744,355 |
|||
JD.com, Inc. |
|||||
Unaudited Interim Condensed Consolidated Balance Sheets |
|||||
(In thousands, except per share data) |
|||||
As of |
|||||
December 31, 2013 |
September 30, 2014 |
September 30, 2014 |
|||
RMB |
RMB |
USD |
|||
LIABILITIES |
|||||
Current liabilities: |
|||||
Short-term bank loans |
932,826 |
2,842,455 |
463,091 |
||
Accounts payable |
11,018,865 |
17,036,144 |
2,775,520 |
||
Advances from customers |
2,055,625 |
3,754,118 |
611,619 |
||
Deferred revenues |
208,527 |
368,566 |
60,047 |
||
Taxes payable |
278,256 |
311,485 |
50,747 |
||
Amount due to related parties |
- |
282,092 |
45,958 |
||
Accrued expenses and other current liabilities |
2,269,798 |
3,454,333 |
562,778 |
||
Deferred tax liabilities |
6,087 |
43,180 |
7,035 |
||
Total current liabilities |
16,769,984 |
28,092,373 |
4,576,795 |
||
Total liabilities |
16,769,984 |
28,092,373 |
4,576,795 |
||
MEZZANINE EQUITY |
|||||
Series C convertible redeemable preferred shares |
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, 100,000,000,000 shares authorized, |
199 |
354 |
58 |
||
Additional paid-in capital |
6,251,869 |
46,938,632 |
7,647,219 |
||
Statutory reserves |
2,648 |
2,648 |
431 |
||
Accumulated deficit |
(4,263,624) |
(8,805,660) |
(1,434,614) |
||
Accumulated other comprehensive loss |
(268,618) |
(279,490) |
(45,534) |
||
Total shareholder's equity |
2,066,565 |
37,856,484 |
6,167,560 |
||
Total liabilities, mezzanine equity, |
26,009,812 |
65,948,857 |
10,744,355 |
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 |
|||||
September 30, 2013 |
September 30, 2014 |
September 30, 2014 |
|||
RMB |
RMB |
USD |
|||
Net revenues |
|||||
Online direct sales |
17,460,641 |
27,368,870 |
4,458,924 |
||
Services and others |
577,877 |
1,643,133 |
267,698 |
||
Total net revenues |
18,038,518 |
29,012,003 |
4,726,622 |
||
Operating expenses (1)(2) |
|||||
Cost of revenues |
(16,263,353) |
(25,467,986) |
(4,149,232) |
||
Fulfillment |
(1,034,679) |
(2,119,297) |
(345,275) |
||
Marketing |
(376,584) |
(879,974) |
(143,365) |
||
Technology and content |
(251,126) |
(511,973) |
(83,410) |
||
General and administrative |
(194,751) |
(439,413) |
(71,589) |
||
Total operating expenses |
(18,120,493) |
(29,418,643) |
(4,792,871) |
||
Loss from operations |
(81,975) |
(406,640) |
(66,249) |
||
Other income/(expenses) |
|||||
Interest income |
85,641 |
197,908 |
32,243 |
||
Interest expense |
- |
(8,350) |
(1,360) |
||
Others, net |
71,809 |
58,928 |
9,601 |
||
Loss before tax |
75,475 |
(158,154) |
(25,765) |
||
Income tax expenses |
(453) |
(6,204) |
(1,011) |
||
Net income/(loss) |
75,022 |
(164,358) |
(26,776) |
||
Preferred shares redemption value accretion |
(739,604) |
- |
- |
||
Net loss attributable to holders of permanent |
(664,582) |
(164,358) |
(26,776) |
||
Non-GAAP net income |
141,203 |
370,782 |
60,409 |
||
Net loss per share: |
|||||
Basic |
(0.39) |
(0.06) |
(0.01) |
||
Diluted |
(0.39) |
(0.06) |
(0.01) |
||
Net loss per ADS: |
|||||
Basic |
(0.78) |
(0.12) |
(0.02) |
||
Diluted |
(0.78) |
(0.12) |
(0.02) |
||
Non-GAAP net income per ADS: |
|||||
Basic |
0.17 |
0.27 |
0.04 |
||
Diluted |
0.17 |
0.27 |
0.04 |
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 |
||||||
September 30, 2013 |
September 30, 2014 |
September 30, 2014 |
||||
RMB |
RMB |
USD |
||||
Weighted average shares of permanent equity |
||||||
Basic |
1,706,448 |
2,724,478 |
2,724,478 |
|||
Diluted |
1,706,448 |
2,724,478 |
2,724,478 |
|||
------------------------------------------ |
||||||
-- Includes share-based compensation expenses as follows: |
||||||
Fulfillment |
(20,069) |
(37,080) |
(6,041) |
|||
Marketing |
(2,159) |
(7,688) |
(1,253) |
|||
Technology and content |
(8,243) |
(25,967) |
(4,230) |
|||
General and administrative |
(32,560) |
(98,201) |
(15,999) |
|||
-- Includes amortization of intangible assets resulting from assets and business acquisitions as follows: |
||||||
Fulfillment |
(3,150) |
(5,616) |
(915) |
|||
Marketing |
- |
(309,156) |
(50,368) |
|||
Technology and content |
- |
(5,987) |
(975) |
|||
General and administrative |
- |
(45,445) |
(7,404) |
|||
|
|||||
Unaudited Interim Condensed Consolidated Statements of Cash Flows |
|||||
(In thousands) |
|||||
For the three months ended |
|||||
September 30, |
September 30, |
September 30, |
|||
RMB |
RMB |
USD |
|||
Net cash provided by operating activities |
687,295 |
1,430,337 |
233,030 |
||
Net cash used in investing activities |
(1,225,560) |
(8,216,361) |
(1,338,606) |
||
Net cash used in financing activities |
- |
(39,118) |
(6,373) |
||
Effect of exchange rate changes on cash and cash |
(652) |
7,055 |
1,149 |
||
Net decrease in cash and cash equivalents |
(538,917) |
(6,818,087) |
(1,110,800) |
||
Cash and cash equivalents at beginning of period |
9,350,830 |
27,535,976 |
4,486,148 |
||
Cash and cash equivalents at end of period |
8,811,913 |
20,717,889 |
3,375,348 |
JD.com, Inc. |
||||
Selected Operating Data |
||||
For the three months ended |
||||
September 30, 2013 |
September 30, 2014 |
|||
Active customer accounts(1) (in millions) |
22.1 |
46.1 |
||
Orders fulfilled(2) (in millions) |
81.5 |
178.2 |
||
GMV(3) (in RMB billions) |
31.9 |
67.3 |
||
-------------------------------------------------------------- (1) Active customer accounts are customer accounts that made at least one purchase during the specified period, whether through online direct sales or online marketplaces, which include Paipai.com since the third quarter of 2014. (2) Orders fulfilled are defined as the total number of orders delivered, including the orders for products and services sold in our online direct sales business and on our online marketplace, net of orders returned. (3) GMV is defined as the total value of all orders for products and services placed in our online direct sales business and on our online marketplaces, regardless of whether the goods are sold or delivered or whether the goods are returned. GMV includes the value from orders placed on our website and mobile applications as well as orders placed on third-party mobile applications that are fulfilled by us or third-party merchants who are enabled by our marketplaces. Our calculation of GMV includes shipping charges paid by buyers to sellers and excludes any transactions in our B2C business with order value exceeding RMB2,000 that are not ultimately sold or delivered and products or services on our C2C marketplace, Paipai.com, with list prices above RMB100,000 as well as transactions conducted by buyers on Paipai who make purchases exceeding RMB1,000,000 in the aggregate in a single day. |
JD.com, Inc. |
|||||
Reconciliation of GAAP and Non-GAAP Results |
|||||
(In thousands, except percentage and per share data) |
|||||
For the three months ended |
|||||
September 30, 2013 |
September 30, 2014 |
September 30, 2014 |
|||
RMB |
RMB |
USD |
|||
Net income/(loss) |
75,022 |
(164,358) |
(26,776) |
||
Add: Share-based compensation |
63,031 |
168,936 |
27,523 |
||
Add: Amortization of intangible assets resulting |
3,150 |
366,204 |
59,662 |
||
Non-GAAP net income |
141,203 |
370,782 |
60,409 |
||
Total net revenues |
18,038,518 |
29,012,003 |
4,726,622 |
||
Non-GAAP net margin |
0.8% |
1.3% |
1.3% |
||
Non-GAAP net income per weighted average shares: |
|||||
Basic |
0.08 |
0.14 |
0.02 |
||
Diluted |
0.08 |
0.14 |
0.02 |
||
Non-GAAP net income per ADS: |
|||||
Basic |
0.17 |
0.27 |
0.04 |
||
Diluted |
0.17 |
0.27 |
0.04 |
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