Press Releases
JD.com Announces Second Quarter 2016 Results
Second Quarter 2016 Highlights
- Net revenues for the second quarter of 2016 were
RMB65.2 billion (US$19.8 billion), an increase of 42.0% from the second quarter of 2015. Revenues from services and others, mainly from the company’s e-commerce platform business, for the second quarter of 2016 wereRMB5.5 billion (US$0.8 billion ), an increase of 67% from the second quarter of 2015. - Gross profit for the second quarter of 2016 was
RMB9.8 billion (US$1.5 billion ). Non-GAAP gross profit2 for the second quarter of 2016 wasRMB9.5 billion (US$1.4 billion ), an increase of 66% fromRMB5.8 billion in the second quarter of 2015. - Loss from operations for the second quarter of 2016 was
RMB358.2 million (US$53.9 million ) compared toRMB723.1 million for the same period last year. Non-GAAP income from operations3 for the second quarter of 2016 wasRMB361.5 million (US$54.4 million ) as compared to non-GAAP loss from operations ofRMB246.7 million in the second quarter of 2015. Non-GAAP operating margin ofJD Mall 4 for the second quarter of 2016 was approximately 1.1%, compared to approximately 0.4% for the second quarter of 2015. - Operating cash flow for the second quarter of 2016 was
RMB2.2 billion (US$0.3 billion ) compared toRMB1.5 billion for the same period last year. Free cash flow5, which excludes JD Finance net originations6 included in the operating cash flow, for the second quarter of 2016 wasRMB8.1 billion (US$1.2 billion ) compared toRMB4.7 billion for the same period last year. Free cash flow for the trailing twelve months endedJune 30, 2016 totaledRMB11.0 billion (US$1.7 billion ), compared toRMB6.6 billion for the trailing twelve months endedJune 30, 2015 . - GMV for the second quarter of 2016 increased by 47% to
RMB160.4 billion (US$24.1 billion ) from the core GMV (excluding Paipai.com) ofRMB108.7 billion in the second quarter of 2015. GMV excluding virtual items7 for the second quarter of 2016 totaledRMB157.1 billion (US$23.6 billion ), up 52% from the second quarter of 2015. - Annual active customer accounts increased by 65% to 188.1 million in the twelve months ended
June 30, 2016 from 114.0 million in the twelve months endedJune 30, 2015 , excluding unique customers from Paipai.com. - Fulfilled orders excluding virtual items in the second quarter of 2016 were 373.4 million, an increase of 56% from 240.0 million orders fulfilled for the core business excluding virtual items in the same period in 2015. Fulfilled orders placed through mobile accounted for approximately 79.3% of total orders fulfilled in the second quarter of 2016, an increase of more than 130% compared to the same period in 2015.
“We are pleased to record another strong quarter of healthy growth, with improving operating performance driving customer satisfaction,” said Richard Liu, Chief Executive Officer of JD.com. “With our reputation for high-quality online shopping and same-day delivery already cemented with Chinese consumers, we are taking steps to further extend that advantage through efforts like our new strategic alliance with Walmart and Chinese online supermarket Yihaodian. We are successfully pursuing our vision of providing a superior, all-categories e-commerce platform through partnerships with top brands and investments in cutting-edge technologies that extend our lead in fulfillment and overall user experience.”
“We are thrilled to see continued record free cash flow for the trailing twelve months, reflecting the underlying strength of our overall business,” said Sidney Huang, JD.com's Chief Financial Officer. “We are also encouraged by the momentum in our new business initiatives, including JD Finance, which has been self-funding its growth by leveraging its technologies and track record in the first half of 2016. Looking ahead, we will maintain our focus on achieving sustainable, high-quality growth across our businesses, alongside disciplined strategic investments in key business initiatives and technologies.”
Recent Business Highlights
- In June,
JD.com and Walmart announced a strategic alliance to better serve consumers acrossChina through a powerful combination of e-commerce and retail. The two companies will collaborate on e-commerce, including further building the Yihaodian brand and business, launching a Sam’s Club flagship store onJD.com , pursuing O2O initiatives, and leveraging one another’s supply chains to increase product selection for customers acrossChina .
- In July,
JD.com andLenovo expanded their existing relationship with the announcement of a new multi-year partnership designed to address the growing online demand forLenovo products from consumers and businesses throughoutChina . As part of the agreement,JD.com will become the preferred platform forLenovo to debut strategic products, and the two companies will leverage each other’s strengths to collaborate on precision marketing and expanding rural outreach.
- In the second quarter,
JD.com announced the launch of British Mall, a new channel on the JD Worldwide platform dedicated to helping Chinese consumers purchase a wide range of high-quality products from leading UK brands. Liverpool FC and children’s fashion brand Group Zannier also launched flagship stores on JD Worldwide as part of the effort.
- In the second quarter, several major international brands launched flagship stores on
JD.com , including well-known Japanese cosmetic brands Kose’s Sekkisei and Shiseido’s Anessa, popular Korean cosmetic brand Innisfree, leading fashion brand New Look, and the world’s top cognac brand, Louis XIII.JD.com continues to expand its partnerships with overseas brands to meet the fast-growing demand from Chinese consumers for high-quality, authentic imported products.
- In May, the Shanghai Stock Exchange approved an RMB2 billion asset-backed securitization project based on JD Finance’s supplier financing products, the first of its kind in
China . The successful issuance of this product is a validation of JD Finance’s strong risk control capabilities and proprietary credit analysis model. In the first half of 2016, JD Finance successfully sold overRMB7.6 billion of loans without recourse through five tranches of asset-based securities.
- In July,
JD.com became a Fortune Global 500 company for the first time, ranking #366 on the list of the world’s largest companies.
- During the second quarter,
JD.com extended its leadership in fulfillment capabilities among China’s e-commerce companies. As ofJune 30, 2016 ,JD.com operated 234 warehouses with an aggregate gross floor area of approximately 5.2 million square meters and a total of 6,756 delivery stations and pickup stations acrossChina , and its delivery network covered 2,639 counties and districts.
JD.com had approximately 100,000 merchants on its online marketplace and a total of 113,679 full-time employees as ofJune 30, 2016 .
Second Quarter 2016 Financial Results
GMV and Net Revenues. GMV from the online direct sales business was
For the second quarter of 2016,
Cost of Revenues. Cost of revenues increased by 39% to
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery and customer service expenses, increased by 57% to
Marketing Expenses. Marketing expenses increased by 31% to
Technology and Content Expenses. Technology and content expenses increased by 71% to
General and Administrative Expenses. General and administrative expenses increased by 76% to
Loss from operations and Non-GAAP income from operations. Loss from operations for the second quarter of 2016 was
Non-GAAP operating margin of
Non-GAAP EBITDA8 for the second quarter of 2016 totaled
Share of results of equity investees and Others, net. Share of results of equity investees for the second quarter of 2016 was
Net Loss and Non-GAAP Net Income9. Net loss for the second quarter of 2016 was
As of
| For the three months ended | |||||||||||
| June 30, 2015 | June 30, 2016 | June 30, 2016 | |||||||||
| RMB | RMB | US$ | |||||||||
| (In thousands) | |||||||||||
| Net cash provided by operating activities | 1,512,737 | 2,187,278 | 329,117 | ||||||||
| Add: JD Finance net originations included in operating cash flow | 4,307,494 | 7,017,281 | 1,055,881 | ||||||||
| Less: Capital expenditures | (1,094,611 | ) | (1,112,078 | ) | (167,333 | ) | |||||
| Free cash flow | 4,725,620 | 8,092,481 | 1,217,665 | ||||||||
For the six months ended
For working capital turnover days, see table under “Supplemental Financial Information and Business Metrics.”
Recent Developments
Appointment of
Due to family reasons,
Share Repurchase Program
In
Third Quarter 2016 Guidance
Net revenues for the third quarter of 2016 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: | 58103059 |
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: | 58103059 |
Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.jd.com.
About
Non-GAAP Measures
In evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP gross profit, non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss), non-GAAP net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per weighted average shares and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in
The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP gross profit, non-GAAP income/(loss) from operations, non-GAAP net income/(loss) 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 net originations included in 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
Director of Investor Relations
+86 (10) 8912-6805
IR@JD.com
Media
VP, International Corporate Affairs
+86 (10) 8911-6155 (
+1 (914) 439-5315 (US)
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 U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into US$ in this press release is based on the noon buying rate in The
2 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. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
3 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.
4 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. Non-GAAP operating margin of
5 Free cash flow, a non-GAAP measurement of liquidity, is defined as operating cash flow adding back JD Finance net originations included in 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.
6 JD Finance net originations primarily include “Jingbaobei,” “Jingxiaodai” and “JD Baitiao” that the company provides to suppliers, merchants and customers, respectively.
7 Virtual items primarily include prepaid phone cards, prepaid game cards, group buying coupons and online travel products.
8 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.
9 Non-GAAP net income/(loss) 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), and non-GAAP net margin is calculated by dividing non-GAAP net income/(loss) by net revenues. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
| JD.com, Inc. | ||||
| Unaudited Interim Condensed Consolidated Balance Sheets | ||||
| (In thousands) | ||||
| As of | ||||
| December 31, 2015 |
June 30, 2016 |
June 30, 2016 |
||
| RMB | RMB | US$ | ||
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | 17,863,868 | 36,381,637 | 5,474,298 | |
| Restricted cash | 2,114,913 | 3,665,741 | 551,579 | |
| Short-term investments | 2,780,482 | 3,350,110 | 504,087 | |
| Accounts receivable, net(1)(2) (including JD Baitiao of RMB6.7 billion and RMB12.2 billion as of December 31, 2015 and June 30, 2016, respectively) | 8,193,665 | 14,166,681 | 2,131,642 | |
| Advance to suppliers(1) | 927,177 | 1,342,337 | 201,980 | |
| Inventories, net | 20,539,543 | 23,989,777 | 3,609,711 | |
| Loan receivables(1) (2) | 3,698,488 | 6,812,639 | 1,025,089 | |
| Prepayments and other current assets | 1,486,441 | 1,200,197 | 180,593 | |
| Amount due from related parties | 863,516 | 1,267,540 | 190,725 | |
| Total current assets | 58,468,093 | 92,176,659 | 13,869,704 | |
| Non-current assets | ||||
| Property, equipment and software, net | 6,233,106 | 7,215,844 | 1,085,759 | |
| Construction in progress | 1,266,992 | 1,314,963 | 197,861 | |
| Intangible assets, net | 5,263,983 | 9,367,912 | 1,409,578 | |
| Land use rights, net | 1,928,192 | 2,206,874 | 332,065 | |
| Goodwill | 29,050 | 6,541,668 | 984,316 | |
| Investment in equity investees | 8,864,249 | 11,725,861 | 1,764,375 | |
| Investment securities | 1,005,831 | 959,905 | 144,436 | |
| Other non-current assets(1) | 2,106,673 | 4,729,223 | 711,600 | |
| Total non-current assets | 26,698,076 | 44,062,250 | 6,629,990 | |
| Total assets | 85,166,169 | 136,238,909 | 20,499,694 | |
| JD.com, Inc. | ||||||||||
| Unaudited Interim Condensed Consolidated Balance Sheets | ||||||||||
| (In thousands) | ||||||||||
| As of | ||||||||||
| December 31, 2015 |
June 30, 2016 |
June 30, 2016 |
||||||||
| RMB | RMB | US$ | ||||||||
| LIABILITIES | ||||||||||
| Current liabilities | ||||||||||
| Short-term borrowing | 3,040,209 | 5,984,474 | 900,476 | |||||||
| Nonrecourse securitization debt | 579,843 | 4,769,880 | 717,718 | |||||||
| Accounts payable(1) (net of supplier financing of RMB4.7 billion and RMB6.8 billion as of December 31, 2015 and June 30, 2016, respectively) | 29,819,341 | 38,912,974 | 5,855,185 | |||||||
| Advances from customers | 7,173,885 | 9,574,180 | 1,440,615 | |||||||
| Deferred revenues | 1,028,350 | 1,173,314 | 176,547 | |||||||
| Taxes payable | 103,211 | 98,979 | 14,893 | |||||||
| Amount due to related parties | 104,726 | 522,393 | 78,604 | |||||||
| Accrued expenses and other current liabilities | 7,178,065 | 12,435,879 | 1,871,211 | |||||||
| Deferred tax liabilities | 1,228 | 938,185 | 141,167 | |||||||
| Total current liabilities | 49,028,858 | 74,410,258 | 11,196,416 | |||||||
| Non-current liabilities | ||||||||||
| Deferred revenues | 2,705,164 | 2,727,043 | 410,335 | |||||||
| Nonrecourse securitization debt | 2,753,699 | 6,009,120 | 904,185 | |||||||
| Unsecured senior notes | - | 6,523,473 | 981,579 | |||||||
| Other non-current liabilities | - | 460,736 | 69,326 | |||||||
| Total non-current liabilities | 5,458,863 | 15,720,372 | 2,365,425 | |||||||
| Total liabilities | 54,487,721 | 90,130,630 | 13,561,841 | |||||||
| Redeemable non-controlling interests | - | 6,786,662 | 1,021,180 | |||||||
| SHAREHOLDERS’ EQUITY | ||||||||||
| Ordinary shares (US$0.00002 par value, 100,000,000 shares authorized, 2,938,709 shares issued and 2,886,622 shares outstanding as of June 30, 2016) | 358 | 377 | 57 | |||||||
| Additional paid-in capital | 48,393,126 | 58,192,223 | 8,756,109 | |||||||
| Statutory reserves | 55,560 | 55,560 | 8,360 | |||||||
| Treasury stock | (3 | ) | (338,864 | ) | (50,988 | ) | ||||
| Accumulated deficit | (18,690,910 | ) | (19,678,613 | ) | (2,961,016 | ) | ||||
| Accumulated other comprehensive income | 782,484 | 939,785 | 141,408 | |||||||
| Total JD.com Inc. shareholders’ equity | 30,540,615 | 39,170,468 | 5,893,930 | |||||||
| Non-controlling interests | 137,833 | 151,149 | 22,743 | |||||||
| Total shareholders’ equity | 30,678,448 | 39,321,617 | 5,916,673 | |||||||
| Total liabilities, redeemable non-controlling interests and shareholders’ equity | 85,166,169 | 136,238,909 | 20,499,694 | |||||||
(1) As of
The balances of consumer financing and business financing of
The balances of supply chain financing of
The balances of consumer financing and supply chain financing provided in the marketplace business of
The balances of consumer financing of
The balances of supply chain financing of
(2) As JD Finance business has changed from supporting the overall JD platform to an independently operated and self-funded business, accounts receivables from consumers in marketplace resulted from JD Baitiao provided by JD finance are mainly for investment purpose and are reclassified to loan receivables. Accounts receivable balance of
| JD.com, Inc. | |||||||||||
| Unaudited Interim Condensed Consolidated Statements of Operations and Non-GAAP Net Income/(Loss) Per ADS |
|||||||||||
| (In thousands, except per share data) | |||||||||||
| For the three months ended | |||||||||||
| June 30, 2015 |
June 30, 2016 |
June 30, 2016 |
|||||||||
| RMB | RMB | US$ | |||||||||
| Net revenues | |||||||||||
| Online direct sales | 42,616,447 | 59,705,701 | 8,983,839 | ||||||||
| Services and others | 3,312,240 | 5,531,054 | 832,251 | ||||||||
| Total net revenues | 45,928,687 | 65,236,755 | 9,816,090 | ||||||||
| Operating expenses(3)(4) | |||||||||||
| Cost of revenues | (40,019,182 | ) | (55,466,733 | ) | (8,346,008 | ) | |||||
| Fulfillment | (3,252,010 | ) | (5,112,584 | ) | (769,284 | ) | |||||
| Marketing | (1,981,922 | ) | (2,598,184 | ) | (390,945 | ) | |||||
| Technology and content | (784,621 | ) | (1,338,905 | ) | (201,463 | ) | |||||
| General and administrative | (614,092 | ) | (1,078,499 | ) | (162,280 | ) | |||||
| Total operating expenses | (46,651,827 | ) | (65,594,905 | ) | (9,869,980 | ) | |||||
| Loss from operations | (723,140 | ) | (358,150 | ) | (53,890 | ) | |||||
| Other income/(expenses) | |||||||||||
| Share of results of equity investees | (27,718 | ) | (1,081,362 | ) | (162,711 | ) | |||||
| Interest income | 98,261 | 105,462 | 15,869 | ||||||||
| Interest expense | (3,273 | ) | (91,262 | ) | (13,732 | ) | |||||
| Others, net | 143,379 | 1,337,550 | 201,259 | ||||||||
| Loss before tax | (512,491 | ) | (87,762 | ) | (13,205 | ) | |||||
| Income tax benefits/(expenses) | 2,069 | (44,324 | ) | (6,669 | ) | ||||||
| Net loss | (510,422 | ) | (132,086 | ) | (19,874 | ) | |||||
| Net loss attributable to non-controlling interests shareholders | - | (11,000 | ) | (1,655 | ) | ||||||
| Net income attributable to mezzanine classified non-controlling interests shareholders | - | 131,223 | 19,745 | ||||||||
| Net loss attributable to ordinary shareholders | (510,422 | ) | (252,309 | ) | (37,964 | ) | |||||
| Non-GAAP net income/(loss) | (15,714 | ) | 391,360 | 58,888 | |||||||
| JD.com, Inc. | ||||||||||||
| Unaudited Interim Condensed Consolidated Statements of Operations and Non-GAAP Net Income/(loss) Per ADS |
||||||||||||
| (In thousands, except per share data) | ||||||||||||
| For the three months ended | ||||||||||||
| June 30, 2015 |
June 30, 2016 |
June 30, 2016 |
||||||||||
| RMB | RMB | US$ | ||||||||||
| Net loss per share: | ||||||||||||
| Basic | (0.19 | ) | (0.09 | ) | (0.01 | ) | ||||||
| Diluted | (0.19 | ) | (0.09 | ) | (0.01 | ) | ||||||
| Net loss per ADS: | ||||||||||||
| Basic | (0.37 | ) | (0.18 | ) | (0.03 | ) | ||||||
| Diluted | (0.37 | ) | (0.18 | ) | (0.03 | ) | ||||||
| Non-GAAP net income/(loss) per ADS: | ||||||||||||
| Basic | (0.01 | ) | 0.29 | 0.04 | ||||||||
| Diluted | (0.01 | ) | 0.29 | 0.04 | ||||||||
| Weighted average number of shares: | ||||||||||||
| Basic | 2,735,186 | 2,763,103 | 2,763,103 | |||||||||
| Diluted | 2,735,186 | 2,763,103 | 2,763,103 | |||||||||
| (3) Includes share-based compensation expenses as follows: | ||||||||||||
| Fulfillment | (49,708 | ) | (107,652 | ) | (16,198 | ) | ||||||
| Marketing | (12,572 | ) | (28,375 | ) | (4,270 | ) | ||||||
| Technology and content | (59,182 | ) | (145,323 | ) | (21,867 | ) | ||||||
| General and administrative | (139,895 | ) | (297,420 | ) | (44,752 | ) | ||||||
| (4) Includes amortization of intangible assets resulting from assets and business acquisitions as follows: | ||||||||||||
| Fulfillment | (5,579 | ) | (10,475 | ) | (1,576 | ) | ||||||
| Marketing | (304,571 | ) | (303,764 | ) | (45,707 | ) | ||||||
| Technology and content | (5,906 | ) | (3,822 | ) | (575 | ) | ||||||
| General and administrative | (44,771 | ) | (48,444 | ) | (7,289 | ) | ||||||
| JD.com, Inc. | ||||||||||
| Unaudited Interim Condensed Consolidated Statements of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| For the three months ended | ||||||||||
| June 30, 2015 |
June 30, 2016 |
June 30, 2016 |
||||||||
| RMB | RMB | US$ | ||||||||
| Net cash provided by operating activities | 1,512,737 | 2,187,278 | 329,117 | |||||||
| Net cash used in investing activities | (4,311 | ) | (11,197,546 | ) | (1,684,880 | ) | ||||
| Net cash provided by financing activities | 1,341,410 | 13,891,438 | 2,090,227 | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 6,580 | 445,473 | 67,029 | |||||||
| Net increase in cash and cash equivalents | 2,856,416 | 5,326,643 | 801,493 | |||||||
| Cash and cash equivalents at beginning of period | 14,680,367 | 31,054,994 | 4,672,805 | |||||||
| Cash and cash equivalents at end of period | 17,536,783 | 36,381,637 | 5,474,298 | |||||||
| Net cash provided by operating activities | 1,512,737 | 2,187,278 | 329,117 | |||||||
| Add: JD Finance net originations included in operating cash flow | 4,307,494 | 7,017,281 | 1,055,881 | |||||||
| Less: Capital expenditures | (1,094,611 | ) | (1,112,078 | ) | (167,333 | ) | ||||
| Free cash flow | 4,725,620 | 8,092,481 | 1,217,665 | |||||||
As JD Finance business has changed from supporting the overall JD platform to an independently operated and self-funded business, loans to consumers and merchants in marketplace business and third parties are made mainly for investment purpose. Accordingly cash flows resulted from loan receivables are reclassified from operating activities in cash flows to investing activities in cash flows. Cash flows resulted from loan receivables of
| JD.com, Inc. | |||||||
| Supplemental Financial Information and Business Metrics | |||||||
| Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | ||
| Free cash flow - trailing twelve months (TTM) (in RMB billions) | 2.1 | 6.6 | 5.6 | 7.1 | 7.7 | 11.0 | |
| Inventory turnover(5) – TTM | 35.3 | 36.4 | 36.4 | 36.9 | 37.3 | 38.5 | |
| Accounts payable turnover(6) – TTM | 41.9 | 43.6 | 44.5 | 44.6 | 46.3 | 49.8 | |
| Accounts receivable turnover(7) – TTM | 3.1 | 3.2 | 3.2 | 3.2 | 3.1 | 3.1 | |
| GMV(8) (9) excluding virtual items (in RMB billions) | 78.7 | 103.3 | 105.5 | 137.0 | 125.5 | 157.1 | |
| Orders fulfilled(8) (10) excluding virtual items (in millions) | 175.6 | 240.0 | 258.1 | 353.1 | 313.0 | 373.4 | |
| Annual active customer accounts(8) (11) (in millions) | 97.8 | 114.0 | 126.9 | 155.0 | 169.1 | 188.1 | |
(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 excluding the impact from supplier financing.
(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 consumer financing.
(8) Selected operating data for all presented periods excludes the impact of Paipai.com.
(9) 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 website and mobile applications as well as orders placed on third-party mobile applications that are fulfilled by the company or third-party merchants who are enabled by the company’s marketplaces. 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
(10) 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.
(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. | ||||||||||
| Reconciliation of GAAP and Non-GAAP Results | ||||||||||
| (In thousands, except percentage data) | ||||||||||
| For the three months ended | ||||||||||
| June 30, 2015 |
June 30, 2016 |
June 30, 2016 |
||||||||
| RMB | RMB | US$ | ||||||||
| Net revenues | 45,928,687 | 65,236,755 | 9,816,090 | |||||||
| Less: Cost of revenues | (40,019,182 | ) | (55,466,733 | ) | (8,346,008 | ) | ||||
| Gross profit | 5,909,505 | 9,770,022 | 1,470,082 | |||||||
| Less: Revenue from business cooperation arrangements with equity investees | (145,724 | ) | (225,579 | ) | (33,943 | ) | ||||
| Non-GAAP gross profit | 5,763,781 | 9,544,443 | 1,436,139 | |||||||
| Loss from operations | (723,140 | ) | (358,150 | ) | (53,890 | ) | ||||
| Reversal of: Revenue from business cooperation arrangements with equity investees | (145,724 | ) | (225,579 | ) | (33,943 | ) | ||||
| Add: Share-based compensation | 261,357 | 578,770 | 87,087 | |||||||
| Add: Amortization of intangible assets resulting from assets and business acquisitions | 360,827 | 366,505 | 55,147 | |||||||
| Non-GAAP income/(loss) from operations | (246,680 | ) | 361,546 | 54,401 | ||||||
| Add: Depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions | 283,005 | 490,829 | 73,855 | |||||||
| Non-GAAP EBITDA | 36,325 | 852,375 | 128,256 | |||||||
| Total net revenues | 45,928,687 | 65,236,755 | 9,816,090 | |||||||
| Non-GAAP operating margin | -0.5 | % | 0.6 | % | 0.6 | % | ||||
| Non-GAAP EBITDA margin | 0.1 | % | 1.3 | % | 1.3 | % | ||||
| JD.com, Inc. |
|||||||||||
| Reconciliation of GAAP and Non-GAAP Results |
|||||||||||
| (In thousands, except percentage data) |
|||||||||||
| For the three months ended | |||||||||||
| June 30, 2015 |
June 30, 2016 |
June 30, 2016 |
|||||||||
| RMB | RMB | US$ | |||||||||
| Net loss | (510,422 | ) | (132,086 | ) | (19,874 | ) | |||||
| Add: Share-based compensation | 261,357 | 578,770 | 87,087 | ||||||||
| Add: Amortization of intangible assets resulting from assets and business acquisitions | 360,827 | 366,505 | 55,147 | ||||||||
| Add: Reconciling items on the share of equity method investments(12) | 18,248 | 83,248 | 12,526 | ||||||||
| Add: Impairment of goodwill, intangible assets and investments | - | 961,228 | 144,635 | ||||||||
| Reversal of: Gain on disposals of investments and business | - | (1,227,760 | ) | (184,739 | ) | ||||||
| Reversal of: Revenue from business cooperation arrangements with equity investees | (145,724 | ) | (225,579 | ) | (33,943 | ) | |||||
| Reversal of: Income from non-compete agreement | - | (12,966 | ) | (1,951 | ) | ||||||
| Non-GAAP net income/(loss) | (15,714 | ) | 391,360 | 58,888 | |||||||
| Total net revenues | 45,928,687 | 65,236,755 | 9,816,090 | ||||||||
| Non-GAAP net margin | -0.03 | % | 0.6 | % | 0.6 | % | |||||
(12) For the second quarter of 2016, the reconciling items on the share of equity method investments included the impact of share-based compensation of