Press Releases
JD.com Announces Fourth Quarter and Full Year 2017 Results
Fourth Quarter and Full Year 2017 Highlights for Continuing Operations
- Net revenues1for the fourth quarter of 2017 were
RMB110.2 billion (US$216.9 billion), an increase of 38.7% from the fourth quarter of 2016. Revenues from services and others for the fourth quarter of 2017 wereRMB10.0 billion (US$1.5 billion ), an increase of 54.7% from the fourth quarter of 2016. Net revenues for the full year of 2017 wereRMB362.3 billion (US$55.7 billion ), an increase of 40.3% from the full year of 2016. Revenues from services and others increased by 49.9% in 2017.
- Gross profit3 for the fourth quarter of 2017 was
RMB14.4 billion (US$2.2 billion ), compared toRMB10.8 billion in the fourth quarter of 2016. Gross profit for the full year of 2017 wasRMB50.8 billion (US$7.8 billion ), an increase of 43.7% from the full year of 2016. Non-GAAP gross profit4 for the full year of 2017 wasRMB50.0 billion (US$7.7 billion ), an increase of 44.7% from the full year of 2016.
- Net loss from continuing operations attributable to ordinary shareholders for the fourth quarter of 2017 was
RMB909.2 million (US$139.7 million ), a decrease of 27.9% fromRMB1,261.4 million net loss for the same period last year. Non-GAAP net income from continuing operations attributable to ordinary shareholders5 for the fourth quarter of 2017 wasRMB449.3 million (US$69.1 million ), compared toRMB779.7 million for the same period last year. Net income from continuing operationsattributable to ordinary shareholders for the full year of 2017 wasRMB116.8 million (US$18.0 million ), compared to a net loss from continuing operations attributable to ordinary shareholders ofRMB2.0 billion for the full year of 2016. Non-GAAP net income from continuing operations attributable to ordinary shareholders for the full year of 2017 wasRMB5.0 billion (US$0.8 billion ), an increase of 140% from the full year of 2016.
- Diluted EPS and Non-GAAP Diluted EPS. Diluted net loss per ADS from continuing operations for the fourth quarter of 2017 was
RMB0.64 (US$0.10) , compared toRMB0.89 for the fourth quarter of 2016. Non-GAAP diluted net income per ADS from continuing operations for the fourth quarter wasRMB0.31 (US$0.05) , compared toRMB0.54 for the same quarter last year. Diluted net income per ADS from continuing operations for the full year of 2017 wasRMB0.08 (US$0.01) , compared to diluted net loss per ADS from continuing operations ofRMB1.43 for the full year of 2016. Non-GAAP diluted net income per ADS from continuing operations for the full year of 2017 wasRMB3.41 (US$0.52) , as compared toRMB1.45 in the full year of 2016.
- Operating cash flow from continuing operations for the twelve months ended
December 31, 2017 increased toRMB27.3 billion (US$4.2 billion ) fromRMB10.0 billion for the twelve months endedDecember 31, 2016 . Free cash flow6 from continuing operations, which excludes the impact from JD Finance related credit products included in the operating cash flow, for the twelve months endedDecember 31, 2017 increased toRMB15.7 billion (US$2.4 billion ) fromRMB13.5 billion for the twelve months endedDecember 31, 2016 .
- Annual active customer accounts increased by 29.1% to 292.5 million in the twelve months ended
December 31, 2017 from 226.6 million in the twelve months endedDecember 31, 2016 .
“Our unmatched online shopping experience continued to reshape Chinese e-commerce, win over consumers and drive robust growth in 2017,” said
“We are very pleased to report another quarter of strong top line growth, as well as record full year profitability in 2017,” said
Recent Business Developments
- In
December 2017 ,JD.com andTencent entered into definitive agreements withVipshop Holdings Limited , under whichJD.com andTencent agreed to invest an aggregate amount of approximatelyUS$863 million in cash inVipshop . Upon closing inDecember 2017 ,Tencent andJD.com beneficially owned, taking into account any existing holdings, approximately 7.0% and 5.5%, respectively, of Vipshop’s total issued shares. Concurrently with the share subscription agreement,Tencent andJD.com have entered into business cooperation agreements withVipshop .
- In
February 2018 ,JD.com andTencent announced a joint minority investment in Better Life, a leading multi-format regional retailer in southwestChina . Combining Tencent’s massive social media traffic, JD’s e-commerce know-how and logistics capabilities, and Better Life’s offline retail chain, the three parties have established a strategic partnership to pursue “Boundaryless Retail Solutions” and to provide customers with integrated online and offline shopping experiences.
- In
January 2018 ,JD.com andMeili Inc. agreed to form a joint venture to explore social-commerce opportunities. The new venture will build and operate a social e-commerce platform leveraging resources on JD’s level-1 Weixin entry point, bringing innovative and interactive social-commerce features to shoppers, and helping small businesses reach a broader consumer base at lower cost.
- In the fourth quarter of 2017,
JD.com continued to expand its fashion offering on the JD platform withBebe , an American contemporary fashion brand, and Cambridge Satchel, an iconic British handbag brand. TOPLIFE, JD.com’s independent online luxury platform which was launched during the quarter, also expanded its range of high-end brand partnerships through agreements with several well-known international luxury brands, includingYves Saint Laurent ,Alexander McQueen andDerek Lam . TOPLIFE’s customized inventory facilities, premium delivery service and abundant product selections combine the best of offline luxury shopping with the convenience and precision of online shopping.
- In
November 2017 ,JD.com announced an agreement with theStanford University Artificial Intelligence Lab (SAIL) to establish the SAIL-JD AI Research Initiative, a cooperative program to fund research areas such as machine learning, deep learning, robotics, natural language processing and computer vision. The cooperation will further JD’s strategy of developing next-generation smart e-commerce technologies to the benefit of JD, its partners, and the industry as a whole.
- In
December 2017 ,Walmart , JD,IBM , andTsinghua University announced that they will work together to form aBlockchain Food Safety Alliance . The project will kick-off with a collaboration to drive greater transparency throughout China’s food supply chain through enhanced food tracking and processing traceability to increase consumer confidence in purchasing food products inChina .
- In
December 2017 ,JD.com launched its second-hand goods business, Paipai, expanding JD.com’s ecosystem into China’s second-hand goods market. Combining advanced technologies such as blockchain-based traceability, AI-enabled automated online product verification and valuation, identity verification and credit rankings alongside JD’s anti-counterfeit controls, JD is well positioned to solve key “pain points” in the second-hand goods market, namely, quality, authenticity and security, providing a trustworthy second-hand goods platform for Chinese consumers.
- In
February 2018 ,JD.com entered into definitive agreements for the financing of its logistics subsidiary, JD Logistics, with investors includingHillhouse Capital , Sequoia China,China Merchants Group ,Tencent , China Life, China Development Bank Capital FOF,China Structural Reform Fund andICBC International . The total amount raised in the round is expected to be approximately$2.5 billion . After the completion of the transaction,JD.com will remain as a majority shareholder of JD Logistics with an 81.4% stake. The financing is expected to close in the first quarter of 2018, subject to customary closing conditions.
- In
December 2017 , JD opened its first offline fresh food market under the 7FRESH brand. Leveraging JD’s supply chain technology and scale as the country’s largest retailer, the hyper-premium market is stocked with thousands of fresh products, including fruit, flowers, imported meat and quality fresh seafood. Offering food preparation, catering service and free 30-minute delivery to customers within three kilometers, 7FRESH integrates advanced supply chain management know-how and cutting-edge store technologies to deliver a unique shopping experience.
- As of
January 31, 2018 , JD.com’s joint venture, New Dada, had partnered with 163Walmart stores and 388 Yonghui stores, among numerous other supermarkets and grocery stores, to provide a premium online fresh grocery shopping experience with one-hour home delivery service. New Dada is the largest crowdsourcing logistics provider and O2O grocery platform inChina .
- During the fourth quarter, JD expanded its leadership position in fulfillment capabilities among China’s e-commerce companies. As of
December 31, 2017 ,JD.com operated 486 warehouses covering an aggregate gross floor area of approximately 10 million square meters inChina .
JD.com had over 170,000 merchants on its online marketplace, and a total of 157,831 full-time employees as ofDecember 31, 2017 .
Fourth Quarter 2017 Financial Results
Net Revenues. For the fourth quarter of 2017,
Cost of Revenues. Cost of revenues increased by 39.7% to
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 45.7% to
Marketing Expenses. Marketing expenses increased by 35.0% to
Technology and Content Expenses. Technology and content expenses increased by 74.5% to
General and Administrative Expenses. General and administrative expenses increased by 16.9% to
Loss from operations and Non-GAAP income/(loss) from operations7. Operating loss from continuing operations for the fourth quarter of 2017 was
Non-GAAP EBITDA9 from continuing operations for the fourth quarter of 2017 totaled
Net 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 fourth quarter of 2017 was
Diluted EPS and Non-GAAP Diluted EPS. Diluted net loss per ADS from continuing operations for the fourth quarter of 2017 was
As of
For the three months ended | ||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||||||
RMB | RMB | USD | ||||||
(In thousands) | ||||||||
Net cash provided by/(used in) operating activities from continuing operations | (3,508,287 | ) | 3,883,287 | 596,850 | ||||
Add/(less): Impact from JD Finance related credit products included in the operating cash flow | 2,555,903 | (2,873,809 | ) | (441,696 | ) | |||
Less: Capital expenditures | ||||||||
Land use rights and construction in progress | (730,165 | ) | (1,377,679 | ) | (211,745 | ) | ||
Other CAPEX | (560,783 | ) | (812,257 | ) | (124,842 | ) | ||
Free cash flow | (2,243,332 | ) | (1,180,458 | ) | (181,433 | ) | ||
Net cash provided by investing activities from continuing operations was
Net cash used in financing activities from continuing operations was
For working capital turnover days, see table under “Supplemental Financial Information and Business Metrics.”
Full Year 2017 Financial Results
Net Revenues. For the full year of 2017,
Cost of Revenues. Cost of revenues increased by 39.7% to
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 39.4% to
Marketing Expenses. Marketing expenses increased by 46.9% to
Technology and Content Expenses. Technology and content expenses increased by 49.4% to
General and Administrative Expenses. General and administrative expenses increased by 22.7% to
Loss from operations and Non-GAAP income from operations. Operating loss from continuing operations for the full year of 2017 was
Non-GAAP EBITDA from continuing operations for the full year of 2017 totaled
Net income/(loss) attributable to ordinary shareholders and Non-GAAP Net income attributable to ordinary shareholders. Net income from continuing operations attributable to ordinary shareholders for the full year of 2017 was
Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS from continuing operations for the full year of 2017 was
For the full year of 2017, free cash flow from continuing operations of the company was as follows:
For the year ended | ||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||||||
RMB | RMB | USD | ||||||
(In thousands) | ||||||||
Net cash provided by operating activities from continuing operations | 9,993,543 | 27,307,014 | 4,197,011 | |||||
Add/(less): Impact from JD Finance related credit products included in the operating cash flow | 7,733,523 | (289,214 | ) | (44,451 | ) | |||
Less: Capital expenditures | ||||||||
Land use rights and construction in progress | (2,037,692 | ) | (8,052,815 | ) | (1,237,695 | ) | ||
Other CAPEX | (2,191,240 | ) | (3,303,060 | ) | (507,671 | ) | ||
Free cash flow | 13,498,134 | 15,661,925 | 2,407,194 | |||||
Net cash used in investing activities from continuing operations was
Net cash provided by financing activities from continuing operations was
For working capital turnover days, see table under “Supplemental Financial Information and Business Metrics.”
First Quarter 2018 Guidance
Net revenues for the first quarter of 2018 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: | 9579915 |
A telephone replay will be available from
US Toll Free: | +1-855-452-5696 or +1-646-254-3697 |
International | +61-2-8199-0299 |
Passcode: | 9579915 |
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 gross profit, 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 gross profit, 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 Finance related credit products 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 The company’s cost of revenues does not include certain costs, such as fulfillment costs related to warehousing and delivery for its direct sales business and staff costs for its marketplace business, its gross profit may not be comparable to those of other companies that may include such costs in cost of revenues and in the calculation of gross profit.
4 Non-GAAP gross profit is defined as the difference of net revenues and cost of revenue excluding revenue from business cooperation arrangements with equity investees and share-based compensation included in cost of revenues. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
5 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. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
6 Free cash flow, a non-GAAP measurement of liquidity, is defined as operating cash flow adding back the impact from JD Finance related credit products included in the operating cash flow and less capital expenditures, which include purchase of property, equipment and software, cash paid for construction in progress and purchase of intangible assets and land use rights. Due to certain pre-existing contractual arrangement, the company will remain as the legal owner of the consumer credit receivables after JD Finance reorganization, while JD Finance will continue to absorb the risks and obtain the rewards from these consumer credit receivables. As impact from such receivables included in the operating cash flow is not relevant to the company’s core business, it is excluded when calculating the free cash flow.
7 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. Non-GAAP operating margin is calculated by dividing non-GAAP income/(loss) from operations by net revenues. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
8 Non-GAAP operating margin of
9 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 Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
As of | ||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||
RMB | RMB | US$ | ||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 15,567,036 | 25,688,327 | 3,948,224 | |
Restricted cash | 2,293,640 | 4,110,210 | 631,728 | |
Short-term investments | 6,548,001 | 8,587,852 | 1,319,929 | |
Accounts receivable, net (including JD Baitiao of RMB14.8 billion and RMB14.3 billion as of December 31, 2016 and 2017, respectively)(1) | 16,141,007 | 16,359,147 | 2,514,355 | |
Advance to suppliers | 257,117 | 394,574 | 60,645 | |
Inventories, net | 28,909,425 | 41,700,379 | 6,409,231 | |
Prepayments and other current assets | 5,987,103 | 7,391,602 | 1,136,066 | |
Amount due from related parties | 9,074,275 | 10,796,561 | 1,659,401 | |
Assets held for sale | 22,154,494 | - | - | |
Total current assets | 106,932,098 | 115,028,652 | 17,679,579 | |
Non-current assets | ||||
Property, equipment and software, net | 7,023,409 | 12,574,178 | 1,932,616 | |
Construction in progress | 1,992,123 | 3,196,516 | 491,296 | |
Intangible assets, net | 8,310,657 | 6,692,717 | 1,028,652 | |
Land use rights, net | 2,447,511 | 7,050,809 | 1,083,690 | |
Goodwill | 6,527,019 | 6,650,570 | 1,022,174 | |
Investment in equity investees | 14,628,786 | 18,551,319 | 2,851,286 | |
Investment securities | 1,059,632 | 10,027,813 | 1,541,247 | |
Deferred tax assets | - | 158,250 | 24,323 | |
Other non-current assets (including JD Baitiao of RMB0.8 billion and RMB0.9 billion as of December 31, 2016 and 2017, respectively)(1) | 2,223,672 | 2,227,942 | 342,428 | |
Amount due from related parties | 1,896,200 | 1,896,200 | 291,441 | |
Assets held for sale | 7,332,411 | - | - | |
Total non-current assets | 53,441,420 | 69,026,314 | 10,609,153 | |
Total assets | 160,373,518 | 184,054,966 | 28,288,732 | |
JD.com, Inc. | ||||
Unaudited Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
As of | ||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||
RMB | RMB | US$ | ||
LIABILITIES | ||||
Current liabilities | ||||
Short-term borrowings | 1,878,286 | 200,000 | 30,739 | |
Nonrecourse securitization debt(1) | 9,231,101 | 12,684,881 | 1,949,631 | |
Accounts payable | 46,035,884 | 74,337,708 | 11,425,497 | |
Advances from customers | 11,466,334 | 13,605,298 | 2,091,096 | |
Deferred revenues | 1,138,426 | 1,592,332 | 244,737 | |
Taxes payable | 565,288 | 658,220 | 101,167 | |
Amount due to related parties | 154,924 | 54,342 | 8,352 | |
Accrued expenses and other current liabilities | 10,512,590 | 15,117,840 | 2,323,570 | |
Liabilities held for sale | 23,757,402 | - | - | |
Total current liabilities | 104,740,235 | 118,250,621 | 18,174,789 | |
Non-current liabilities | ||||
Deferred revenues | 2,104,461 | 1,273,545 | 195,740 | |
Nonrecourse securitization debt(1) | 2,318,389 | 4,475,238 | 687,831 | |
Unsecured senior notes | 6,831,012 | 6,447,357 | 990,941 | |
Deferred tax liabilities | 907,356 | 882,248 | 135,599 | |
Other non-current liabilities | 440,670 | 337,254 | 51,835 | |
Liabilities held for sale | 1,811,612 | - | - | |
Total non-current liabilities | 14,413,500 | 13,415,642 | 2,061,946 | |
Total liabilities | 119,153,735 | 131,666,263 | 20,236,735 | |
JD.com, Inc. | ||||
Unaudited Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
As of | ||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||
RMB | RMB | US$ | ||
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 2,852,663 shares outstanding as of December 31, 2017) | 33,892,900 | 52,040,814 | 7,998,527 | |
Non-controlling interests | 269,962 | 347,889 | 53,470 | |
Total shareholders’ equity | 34,162,862 | 52,388,703 | 8,051,997 | |
Total liabilities, redeemable non-controlling interests and shareholders’ equity | 160,373,518 | 184,054,966 | 28,288,732 | |
(1) Due to certain pre-existing contractual arrangement, the company remains as the legal owner of the consumer credit (known as JD Baitiao) receivables until they are repaid or sold through the new asset-backed securitization (“ABS”) plan as described below. JD Finance continues to perform the credit risk assessment services for the JD Baitiao business 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 also assisted JD Finance in various ABS to raise fund to support the JD Baitiao business. JD Finance acts as the servicer of the ABS and also subscribes to the subordinate tranche. Due to the company’s continuing involvement right in ABS under the historical arrangement prior to October 2017, the company was not able to derecognize the related Baitiao receivables through the legacy ABS under U.S. GAAP. Beginning October 2017, the company revised certain structural arrangements for the issuance of ABS to relinquish its continuing involvement right, and has been able to derecognize certain Baitiao receivables through the new ABS plan. As a result, the balances of Baitiao receivables are expected to decrease gradually in the future with the adoption of the new ABS plan, and nonrecourse securitization debt balance will gradually decrease upon the settlement of the legacy ABS plan. | ||||
JD.com, Inc. | |||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
For the three months ended | For the year ended | ||||||||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Net revenues | |||||||||||||||
Online direct sales | 72,934,304 | 100,146,682 | 15,392,264 | 237,943,632 | 331,824,410 | 51,000,478 | |||||||||
Services and others | 6,476,824 | 10,018,652 | 1,539,839 | 20,346,315 | 30,507,344 | 4,688,893 | |||||||||
Total net revenues | 79,411,128 | 110,165,334 | 16,932,103 | 258,289,947 | 362,331,754 | 55,689,371 | |||||||||
Operating expenses(4)(5) | |||||||||||||||
Cost of revenues | (68,570,518 | ) | (95,805,441 | ) | (14,725,027 | ) | (222,934,637 | ) | (311,516,831 | ) | (47,879,260 | ) | |||
Fulfillment | (5,463,919 | ) | (7,960,097 | ) | (1,223,445 | ) | (18,559,691 | ) | (25,865,128 | ) | (3,975,397 | ) | |||
Marketing | (3,514,709 | ) | (4,743,326 | ) | (729,036 | ) | (10,158,686 | ) | (14,918,107 | ) | (2,292,871 | ) | |||
Technology and content | (1,180,743 | ) | (2,060,873 | ) | (316,750 | ) | (4,452,708 | ) | (6,652,374 | ) | (1,022,451 | ) | |||
General and administrative | (1,019,717 | ) | (1,191,798 | ) | (183,176 | ) | (3,435,878 | ) | (4,214,790 | ) | (647,801 | ) | |||
Total operating expenses | (79,749,606 | ) | (111,761,535 | ) | (17,177,434 | ) | (259,541,600 | ) | (363,167,230 | ) | (55,817,780 | ) | |||
Loss from operations | (338,478 | ) | (1,596,201 | ) | (245,331 | ) | (1,251,653 | ) | (835,476 | ) | (128,409 | ) | |||
Other income/(expenses) | |||||||||||||||
Share of results of equity investees | (1,069,049 | ) | (556,954 | ) | (85,602 | ) | (2,781,909 | ) | (1,926,720 | ) | (296,131 | ) | |||
Interest income(2) | 434,751 | 811,839 | 124,777 | 1,226,852 | 2,530,490 | 388,929 | |||||||||
Interest expense(3) | (188,106 | ) | (282,475 | ) | (43,416 | ) | (618,567 | ) | (963,742 | ) | (148,124 | ) | |||
Others, net | (18,311 | ) | 672,540 | 103,368 | 1,543,376 | 1,316,408 | 202,328 | ||||||||
Income/(loss) before tax | (1,179,193 | ) | (951,251 | ) | (146,204 | ) | (1,881,901 | ) | 120,960 | 18,593 | |||||
(2) Interest income charged to JD Finance in relation to nonrecourse securitization debt were RMB124.9 million and RMB221.3 million for the three months ended December 31, 2016 and 2017, and RMB371.6 million and RMB702.1 million for the years ended December 31, 2016 and 2017, respectively, same as the interest expense below. | |||||||||||||||
(3) Interest expense in relation to nonrecourse securitization debt were the same RMB124.9 million and RMB221.3 million for the three months ended December 31, 2016 and 2017, and RMB371.6 million and RMB702.1 million for the years ended December 31, 2016 and 2017, respectively. | |||||||||||||||
JD.com, Inc. | |||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
For the three months ended | For the year ended | ||||||||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Income/(loss) before tax | (1,179,193 | ) | (951,251 | ) | (146,204 | ) | (1,881,901 | ) | 120,960 | 18,593 | |||||
Income tax expenses | (100,608 | ) | (13,000 | ) | (1,998 | ) | (166,391 | ) | (139,593 | ) | (21,455 | ) | |||
Net loss from continuing operations | (1,279,801 | ) | (964,251 | ) | (148,202 | ) | (2,048,292 | ) | (18,633 | ) | (2,862 | ) | |||
Net income/(loss) from discontinued operations, net of tax | (326,644 | ) | - | - | (1,365,432 | ) | 6,915 | 1,063 | |||||||
Net loss | (1,606,445 | ) | (964,251 | ) | (148,202 | ) | (3,413,724 | ) | (11,718 | ) | (1,799 | ) | |||
Net loss from continuing operations attributable to non-controlling interests shareholders | (18,421 | ) | (55,018 | ) | (8,456 | ) | (47,848 | ) | (135,452 | ) | (20,819 | ) | |||
Net loss from discontinued operations attributable to non-controlling interests shareholders | (1,374 | ) | - | - | (3,743 | ) | (5,030 | ) | (773 | ) | |||||
Net income from discontinued operations attributable to mezzanine classified non-controlling interests shareholders | 136,449 | - | - | 444,657 | 281,021 | 43,192 | |||||||||
Net loss attributable to ordinary shareholders | (1,723,099 | ) | (909,233 | ) | (139,746 | ) | (3,806,790 | ) | (152,257 | ) | (23,399 | ) | |||
Including: Net loss from discontinued operations attributable to ordinary shareholders | (461,719 | ) | - | - | (1,806,346 | ) | (269,076 | ) | (41,356 | ) | |||||
Net income/(loss) from continuing operations attributable to ordinary shareholders | (1,261,380 | ) | (909,233 | ) | (139,746 | ) | (2,000,444 | ) | 116,819 | 17,957 | |||||
JD.com, Inc. | |||||||||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||||||||
(In thousands, except per share data) | |||||||||||||
For the three months ended | For the year ended | ||||||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
(4) Includes share-based compensation expenses as follows: | |||||||||||||
Cost of revenues | (5,439 | ) | (10,962 | ) | (1,685 | ) | (17,485 | ) | (27,513 | ) | (4,229 | ) | |
Fulfillment | (93,043 | ) | (113,536 | ) | (17,450 | ) | (332,383 | ) | (425,706 | ) | (65,430 | ) | |
Marketing | (23,191 | ) | (38,208 | ) | (5,872 | ) | (87,261 | ) | (135,749 | ) | (20,864 | ) | |
Technology and content | (132,686 | ) | (192,746 | ) | (29,625 | ) | (470,234 | ) | (670,612 | ) | (103,071 | ) | |
General and administrative | (361,409 | ) | (406,950 | ) | (62,547 | ) | (1,154,069 | ) | (1,520,482 | ) | (233,694 | ) | |
(5) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: | |||||||||||||
Fulfillment | (41,846 | ) | (41,084 | ) | (6,314 | ) | (92,631 | ) | 163,979 | ) | 25,203 | ) | |
Marketing | (307,759 | ) | (308,662 | ) | (47,440 | ) | (1,222,214 | ) | 1,221,952 | ) | (187,811 | ) | |
Technology and content | (20,661 | ) | (21,861 | ) | (3,360 | ) | (45,909 | ) | (83,844 | ) | (12,887 | ) | |
General and administrative | (77,314 | ) | (77,314 | ) | (11,883 | ) | (248,023 | ) | (307,774 | ) | (47,304 | ) | |
Net income/(loss) per share: | |||||||||||||
Basic | |||||||||||||
Continuing operations | (0.45 | ) | (0.32 | ) | (0.05 | ) | (0.71 | ) | 0.04 | 0.01 | |||
Discontinued operations | (0.16 | ) | - | - | (0.64 | ) | (0.09 | ) | (0.01 | ) | |||
Net loss per share | (0.61 | ) | (0.32 | ) | (0.05 | ) | (1.36 | ) | (0.05 | ) | (0.01 | ) | |
Diluted | |||||||||||||
Continuing operations | (0.45 | ) | (0.32 | ) | (0.05 | ) | (0.71 | ) | 0.04 | 0.01 | |||
Discontinued operations | (0.16 | ) | - | - | (0.64 | ) | (0.09 | ) | (0.01 | ) | |||
Net loss per share | (0.61 | ) | (0.32 | ) | (0.05 | ) | (1.36 | ) | (0.05 | ) | (0.01 | ) | |
Net income/(loss) per ADS: | |||||||||||||
Basic | |||||||||||||
Continuing operations | (0.89 | ) | (0.64 | ) | (0.10 | ) | (1.43 | ) | 0.08 | 0.01 | |||
Discontinued operations | (0.33 | ) | - | - | (1.29 | ) | (0.19 | ) | (0.03 | ) | |||
Net loss per ADS | (1.22 | ) | (0.64 | ) | (0.10 | ) | (2.71 | ) | (0.11 | ) | (0.02 | ) | |
Diluted | |||||||||||||
Continuing operations | (0.89 | ) | (0.64 | ) | (0.10 | ) | (1.43 | ) | 0.08 | 0.01 | |||
Discontinued operations | (0.33 | ) | - | - | (1.29 | ) | (0.18 | ) | (0.03 | ) | |||
Net loss per ADS | (1.22 | ) | (0.64 | ) | (0.10 | ) | (2.71 | ) | (0.10 | ) | (0.02 | ) | |
JD.com, Inc. | ||||||||
Unaudited Non-GAAP Net Income Per ADS from Continuing Operations | ||||||||
(In thousands, except per share data) | ||||||||
For the three months ended | For the year ended | |||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
|||
RMB | RMB | US$ | RMB | RMB | US$ | |||
Non-GAAP net income from continuing operations attributable to ordinary shareholders | 779,689 | 449,298 | 69,056 | 2,068,404 | 4,968,380 | 763,628 | ||
Weighted average number of shares: | ||||||||
Basic | 2,834,273 | 2,849,216 | 2,849,216 | 2,804,768 | 2,844,826 | 2,844,826 | ||
Diluted | 2,834,273 | 2,849,216 | 2,849,216 | 2,804,768 | 2,911,462 | 2,911,462 | ||
Diluted (Non-GAAP) | 2,874,831 | 2,924,235 | 2,924,235 | 2,852,454 | 2,911,462 | 2,911,462 | ||
Non-GAAP net income per ADS from continuing operations(6): | ||||||||
Basic | 0.55 | 0.32 | 0.05 | 1.47 | 3.49 | 0.54 | ||
Diluted | 0.54 | 0.31 | 0.05 | 1.45 | 3.41 | 0.52 | ||
(6) 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 Condensed Consolidated Statements of Cash Flows and Free Cash Flow | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
For the three months ended | For the year ended | ||||||||||||||||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||
Net cash provided by/(used in) continuing operating activities | (3,508,287 | ) | 3,883,287 | 596,850 | 9,993,543 | 27,307,014 | 4,197,011 | ||||||||||||||||
Net cash provided by/(used in) discontinued operating activities | 524,886 | - | - | (1,226,526 | ) | (2,485,741 | ) | (382,051 | ) | ||||||||||||||
Net cash provided by/(used in) operating activities | (2,983,401 | ) | 3,883,287 | 596,850 | 8,767,017 | 24,821,273 | 3,814,960 | ||||||||||||||||
Net cash provided by/(used in) continuing investing activities | (5,387,767 | ) | 4,208,642 | 646,856 | (17,758,242 | ) | (21,725,236 | ) | (3,339,108 | ) | |||||||||||||
Net cash used in discontinued investing activities | (9,170,070 | ) | - | - | (30,510,335 | ) | (15,772,856 | ) | (2,424,243 | ) | |||||||||||||
Net cash provided by/(used in) investing activities | (14,557,837 | ) | 4,208,642 | 646,856 | (48,268,577 | ) | (37,498,092 | ) | (5,763,351 | ) | |||||||||||||
Net cash provided by/(used in) continuing financing activities | 2,134,926 | (3,801,146 | ) | (584,225 | ) | 8,649,325 | 5,180,365 | 796,207 | |||||||||||||||
Net cash provided by discontinued financing activities | 10,051,551 | - | - | 32,050,146 | 14,054,620 | 2,160,156 | |||||||||||||||||
Net cash provided by/(used in) financing activities | 12,186,477 | (3,801,146 | ) | (584,225 | ) | 40,699,471 | 19,234,985 | 2,956,363 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 291,861 | (213,077 | ) | (32,749 | ) | 709,916 | (641,534 | ) | (98,602 | ) | |||||||||||||
Net increase/(decrease) in cash and cash equivalents | (5,062,900 | ) | 4,077,706 | 626,732 | 1,907,827 | 5,916,632 | 909,370 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 24,834,595 | 21,610,621 | 3,321,492 | 17,863,868 | 19,771,695 | 3,038,854 | |||||||||||||||||
Cash and cash equivalents at end of period | 19,771,695 | 25,688,327 | 3,948,224 | 19,771,695 | 25,688,327 | 3,948,224 | |||||||||||||||||
Less: Cash and cash equivalents of held for sale | 4,204,659 | - | - | 4,204,659 | - | - | |||||||||||||||||
Cash and cash equivalents of continuing operations at end of period | 15,567,036 | 25,688,327 | 3,948,224 | 15,567,036 | 25,688,327 | 3,948,224 | |||||||||||||||||
Net cash provided by/(used in) operating activities from continuing operations | (3,508,287 | ) | 3,883,287 | 596,850 | 9,993,543 | 27,307,014 | 4,197,011 | ||||||||||||||||
Add/(less): Impact from JD Finance related credit products included in the operating cash flow | 2,555,903 | (2,873,809 | ) | (441,696 | ) | 7,733,523 | (289,214 | ) | (44,451 | ) | |||||||||||||
Less: Capital expenditures | |||||||||||||||||||||||
Land use rights and construction in progress | (730,165 | ) | (1,377,679 | ) | (211,745 | ) | (2,037,692 | ) | (8,052,815 | ) | (1,237,695 | ) | |||||||||||
Other CAPEX | (560,783 | ) | (812,257 | ) | (124,842 | ) | (2,191,240 | ) | (3,303,060 | ) | (507,671 | ) | |||||||||||
Free cash flow | (2,243,332 | ) | (1,180,458 | ) | (181,433 | ) | 13,498,134 | 15,661,925 | 2,407,194 | ||||||||||||||
JD.com, Inc. | ||||||
Supplemental Financial Information and Business Metrics | ||||||
Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | ||
Free cash flow - trailing twelve months (“TTM”) (in RMB billions) | 13.5 | 17.3 | 28.9 | 14.6 | 15.7 | |
Inventory turnover days(7) – TTM | 37.6 | 36.7 | 36.3 | 36.9 | 38.1 | |
Accounts payable turnover days(8) – TTM | 52.0 | 52.3 | 56.2 | 58.4 | 59.1 | |
Accounts receivable turnover days(9) – TTM | 1.3 | 1.2 | 1.2 | 1.3 | 1.4 | |
GMV(10) (in RMB billions) | 303.0 | 253.2 | 335.3 | 302.5 | 403.4 | |
Annual active customer accounts(11) (in millions) | 226.6 | 236.5 | 258.3 | 266.3 | 292.5 | |
(7) 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. (8) 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. (9) 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. (10) 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 orders placed on our websites and mobile apps as well as orders placed on third-party websites and mobile apps that are fulfilled by us or by our third-party merchants. GMV includes shipping charges paid by buyers to sellers and excludes certain transactions over certain amounts that are comparable to the disclosed parameters in GMV definition by our major industry peer. (11) 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. | ||||||||||||||
Unaudited Reconciliation of GAAP and Non-GAAP Results | ||||||||||||||
(In thousands, except percentage data) | ||||||||||||||
For the three months ended | For the year ended | |||||||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
|||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Total net revenues | 79,411,128 | 110,165,334 | 16,932,103 | 258,289,947 | 362,331,754 | 55,689,371 | ||||||||
Less: Cost of revenues | (68,570,518 | ) | (95,805,441 | ) | (14,725,027 | ) | (222,934,637 | ) | (311,516,831 | ) | (47,879,260 | ) | ||
Gross profit | 10,840,610 | 14,359,893 | 2,207,076 | 35,355,310 | 50,814,923 | 7,810,111 | ||||||||
Reversal of : Revenue from business cooperation arrangements with equity investees | (169,838 | ) | (210,970 | ) | (32,425 | ) | (819,486 | ) | (836,539 | ) | (128,574 | ) | ||
Add: Share-based compensation included in cost of revenues | 5,439 | 10,962 | 1,685 | 17,485 | 27,513 | 4,229 | ||||||||
Non-GAAP gross profit | 10,676,211 | 14,159,885 | 2,176,336 | 34,553,309 | 50,005,897 | 7,685,766 | ||||||||
Loss from operations from continuing operations | (338,478 | ) | (1,596,201 | ) | (245,331 | ) | (1,251,653 | ) | (835,476 | ) | (128,409 | ) | ||
Reversal of: Revenue from business cooperation arrangements with equity investees | (169,838 | ) | (210,970 | ) | (32,425 | ) | (819,486 | ) | (836,539 | ) | (128,574 | ) | ||
Add: Share-based compensation | 615,768 | 762,402 | 117,179 | 2,061,432 | 2,780,062 | 427,288 | ||||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 447,580 | 448,921 | 68,997 | 1,608,777 | 1,777,549 | 273,205 | ||||||||
Non-GAAP income/(loss) from operations from continuing operations | 555,032 | (595,848 | ) | (91,580 | ) | 1,599,070 | 2,885,596 | 443,510 | ||||||
Add: Depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions | 508,600 | 733,880 | 112,796 | 1,811,512 | 2,415,167 | 371,204 | ||||||||
Non-GAAP EBITDA from continuing operations | 1,063,632 | 138,032 | 21,216 | 3,410,582 | 5,300,763 | 814,714 | ||||||||
Total net revenues | 79,411,128 | 110,165,334 | 16,932,103 | 258,289,947 | 362,331,754 | 55,689,371 | ||||||||
Non-GAAP operating margin from continuing operations | 0.7 | % | -0.5 | % | -0.5 | % | 0.6 | % | 0.8 | % | 0.8 | % | ||
Non-GAAP EBITDA margin from continuing operations | 1.3 | % | 0.1 | % | 0.1 | % | 1.3 | % | 1.5 | % | 1.5 | % | ||
JD.com, Inc. | ||||||||||||||
Unaudited Reconciliation of GAAP and Non-GAAP Results | ||||||||||||||
(In thousands, except percentage data) | ||||||||||||||
For the three months ended | For the year ended | |||||||||||||
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
December 31, 2016 |
December 31, 2017 |
December 31, 2017 |
|||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Net income/(loss) from continuing operations attributable to ordinary shareholders | (1,261,380 | ) | (909,233 | ) | (139,746 | ) | (2,000,444 | ) | 116,819 | 17,957 | ||||
Add: Share-based compensation | 615,768 | 762,402 | 117,179 | 2,061,432 | 2,780,062 | 427,288 | ||||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 447,580 | 448,921 | 68,997 | 1,608,777 | 1,777,549 | 273,205 | ||||||||
Add: Reconciling items on the share of equity method investments(12) | 206,974 | 377,858 | 58,076 | 539,325 | 1,071,115 | 164,627 | ||||||||
Add: Impairment of goodwill, intangible assets, and investments | 960,959 | - | - | 1,959,746 | 139,823 | 21,490 | ||||||||
Reversal of: Gain on disposal of JD Daojia | - | - | - | (1,227,760 | ) | - | - | |||||||
Reversal of: Revenue from business cooperation arrangements with equity investees | (169,838 | ) | (210,970 | ) | (32,425 | ) | (819,486 | ) | (836,539 | ) | (128,574 | ) | ||
Reversal of: Income from non-compete agreement | (20,374 | ) | (19,680 | ) | (3,025 | ) | (53,186 | ) | (80,449 | ) | (12,365 | ) | ||
Non-GAAP net income from continuing operations attributable to ordinary shareholders | 779,689 | 449,298 | 69,056 | 2,068,404 | 4,968,380 | 763,628 | ||||||||
Total net revenues | 79,411,128 | 110,165,334 | 16,932,103 | 258,289,947 | 362,331,754 | 55,689,371 | ||||||||
Non-GAAP net margin from continuing operations | 1.0 | % | 0.4 | % | 0.4 | % | 0.8 | % | 1.4 | % | 1.4 | % | ||
(12) For the fourth quarter of 2017, the reconciling items on the share of equity method investments included the impact of share-based compensation of RMB164.0 million, amortization of intangible assets resulting from assets and business acquisitions of RMB88.1 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 RMB102.7 million. For the full year of 2017, the reconciling items on the share of equity method investments included the impact of share-based compensation of RMB235.7 million, amortization of intangible assets resulting from assets and business acquisitions of RMB354.7 million, share of amortization of equity investments’ intangibles not on their books of RMB92.4 million, and net income attributable to mezzanine equity holder of RMB388.3 million. Earning from equity method investments in publicly listed companies and certain privately held companies is recorded one quarter in arrears. | ||||||||||||||
Source: JD.com