JD.com, Inc. (NASDAQ:JD), the largest Chinese e-commerce company by
revenue, today announced its unaudited financial results for the
quarter and full year ended December 31, 2016.
Fourth Quarter and Full Year 2016
Highlights
- Net revenues for the fourth quarter of 2016
were RMB80.3 billion (US$111.6 billion), an increase of 47% from
the fourth quarter of 2015. Revenues from services and
others, mainly from the company’s e-commerce platform
business, for the fourth quarter of 2016 were RMB7.4 billion
(US$1.1 billion), an increase of 58% from the fourth quarter of
2015. Net revenues for the full year of 2016 were
RMB260.2 billion (US$37.5 billion), an increase of 44% from the
full year of 2015. Revenues from services and
others increased by 66% in 2016.
- Gross profit for the fourth quarter of 2016
was RMB12.3 billion (US$1.8 billion). Non-GAAP gross
profit2 for the fourth quarter of 2016 was RMB12.1
billion (US$1.7 billion), an increase of 58% from RMB7.6 billion in
the fourth quarter of 2015. Gross profit for the
full year of 2016 was RMB39.5 billion (US$5.7 billion).
Non-GAAP gross profit for the full year of 2016
was RMB38.6 billion (US$5.6 billion), an increase of 62% from
RMB23.8 billion in the full year of 2015.
- Loss from operations for the fourth quarter of
2016 was RMB441.6 million (US$63.6 million), compared to RMB4.2
billion for the same period last year. Non-GAAP income from
operations3 for the fourth quarter of 2016 was
RMB489.6 million (US$70.5 million), as compared to non-GAAP loss
from operations of RMB840.1 million in the fourth quarter of 2015.
Non-GAAP operating margin of JD Mall4 for the
fourth quarter of 2016 was 0.8%, compared to 0.04% for the fourth
quarter of 2015. Loss from operations for the full
year of 2016 was RMB2.1 billion (US$0.3 billion), compared to
RMB6.5 billion for the full year of 2015. Non-GAAP income
from operations for the full year of 2016 was RMB1.0
billion (US$0.1 billion), as compared to non-GAAP loss from
operations of RMB1.6 billion in the full year of 2015.
Non-GAAP operating margin of JD Mall for the full
year of 2016 was 0.9%, compared to 0.3% for the full year of
2015.
- EPS and Non-GAAP EPS. Net loss per ADS for the
fourth quarter of 2016 was RMB1.26 (US$0.18), compared to RMB5.57
for the fourth quarter of 2015. Non-GAAP net income per ADS for the
fourth quarter of 2016 was RMB0.40 (US$0.06), as compared to
non-GAAP net loss per ADS of RMB0.48 in the fourth quarter of 2015.
Net loss per ADS for the full year of 2016 was RMB2.76 (US$0.40),
compared to RMB6.86 for the full year of 2015. Non-GAAP net income
per ADS for the full year of 2016 was RMB0.75 (US$0.11), as
compared to non-GAAP net loss per ADS of RMB0.62 in the full year
of 2015.
- GMV for the fourth quarter of 2016 increased
by 46% to RMB209.7 billion (US$30.2 billion) from the core GMV
(excluding Paipai.com) of RMB143.2 billion in the fourth quarter of
2015. GMV excluding virtual items5 for the fourth quarter of
2016 totaled RMB206.2 billion (US$29.7 billion), up 50% from the
fourth quarter of 2015. GMV for the full year of
2016 was RMB658.2 billion (US$94.8 billion), an increase of 47%
compared with the core GMV for the full year of 2015. GMV excluding
virtual items increased by 52% year-over-year to RMB644.3 billion
(US$92.8 billion) in 2016.
- Operating cash flow for the twelve months
ended December 31, 2016 increased 417% to RMB8.8 billion (US$1.3
billion) from RMB1.7 billion in 2015. Free cash
flow6, which excludes JD Finance net
originations7 included in the operating cash flow, for the
twelve months ended December 31, 2016 increased 121% to RMB15.6
billion (US$2.2 billion), compared to RMB7.1 billion in 2015.
- Annual active customer accounts increased by
46% to 226.6 million in the twelve months ended December 31, 2016
from 155.0 million in 2015, excluding unique customers from
Paipai.com.
- Fulfilled orders excluding virtual items in
the fourth quarter of 2016 were 505.7 million, an increase of 43%
from 353.1 million orders fulfilled for the core business excluding
virtual items in the same period in 2015. Fulfilled orders placed
through mobile accounted for approximately 80% of total orders
fulfilled in the fourth quarter of 2016, an increase of more than
70% compared to the same period in 2015. Fulfilled orders excluding
virtual items for the full year of 2016 were 1.6 billion, an
increase of 55% from 1.0 billion for the full year of 2015.
Fulfilled orders placed through mobile accounted for approximately
78.3% of total orders fulfilled in the full year of 2016, an
increase of more than 110% compared to the full year of 2015.
“We are very pleased to see continued strong
momentum across the board, further demonstrating that our vision of
a high-quality e-commerce experience is winning the Chinese
market,” said Richard Liu, Chief Executive Officer
of JD.com. “Our robust growth reflects the appreciation among
Chinese consumers for our commitment to authentic products and
unparalleled service. As we look to the future, our focus on
superior technology will be the key to further extending our
industry leadership.”
“We’re delighted to report very strong top and
bottom line growth for the quarter, and margins continued to
benefit from the rapidly expanding scale of the JD.com platform,”
said Sidney Huang, JD.com's Chief Financial Officer.
“We remain committed to investing in technology and customer
service to drive long-term sustainable growth across our
established and emerging business areas.”
Recent Business
Developments
- In February 2017, at JD.com’s annual employee meeting, CEO
Richard Liu laid out his vision for the company’s next 12 years of
operation as a world-class technology leader. Mr. Liu said that
JD.com’s relentless focus on developing industry-leading
technologies including AI and big data will help further transform
the current business through improved efficiency and better user
experience, while also laying the groundwork for future areas of
growth.
- In December 2016, JD.com added voice shopping functionality to
DingDong A1, the flagship version of its voice-enabled smart
speaker. JD.com users can now check the status of their orders,
listen to product promotions and complete the entire shopping
process through voice interaction with the DingDong A1 smart
speaker.
- In November 2016, JD.com announced a two-year strategic
partnership with global spirits leader Remy Cointreau Group, which
will enable JD.com to source products directly from the brand for
its direct sales platform. JD.com has increasingly become the go-to
choice for purchasing authentic wines and spirits among Chinese
consumers.
- To satisfy the demand of Chinese consumers for high-quality
imported products, in the fourth quarter of 2016 JD Worldwide
expanded its partnerships with top international brands including
DHC, Japan’s no.1 direct skincare brand; Calbee, Japan’s
most popular cross-border snack producer; Mattel, the world’s
largest toy manufacturer; and Too Cool for School, the cutting-edge
Korean cosmetics brand.
- In January 2017, JD Finance teamed up with China UnionPay to
develop a wide variety of innovative financial solutions for the
Chinese market. The two parties will cooperate across a range of
sectors, including online payment solutions, co-branded credit
cards and rural financing programs. They will also explore
opportunities to work together in areas such as risk control, rural
e-commerce and big data analysis.
- As of January 31, 2017, JD.com’s joint venture, New Dada, had
partnered with 68 Walmart stores and 139 Yonghui stores to provide
consumers with speedy premium online grocery shopping experience.
New Dada is China’s largest crowdsourcing logistics provider and
O2O supermarket platform.
- During the fourth quarter of 2016, JD.com expanded its
leadership position in fulfillment capabilities among China’s
e-commerce companies. As of December 31, 2016, JD.com operated 256
warehouses covering an aggregate gross floor area of approximately
5.6 million square meters and a total of 6,906 delivery stations
and pickup stations across China.
- JD.com had over 120,000 merchants on its online marketplace and
a total of 120,622 full-time employees as of December 31,
2016.
Fourth Quarter 2016 Financial
Results
GMV and Net Revenues. GMV
from the online direct sales business was RMB114.7 billion in the
fourth quarter of 2016, up 46% from the fourth quarter of 2015. GMV
from the online marketplace business, excluding virtual items,
totaled RMB91.4 billion in the fourth quarter of 2016, an increase
of 57% from the fourth quarter of 2015. GMV from electronics and
home appliance products was RMB99.9 billion in the fourth quarter
of 2016, an increase of 42% from the fourth quarter of 2015, while
GMV from general merchandise and others excluding virtual items was
RMB106.3 billion in the fourth quarter of 2016, an increase of 59%
from the fourth quarter of 2015, and contributed 52% of total GMV
excluding virtual items, up from 49% in the fourth quarter of
2015.
For the fourth quarter of 2016, JD.com reported
net revenues of RMB80.3 billion (US$11.6 billion), representing a
47% increase from the same period in 2015. Net revenues from online
direct sales increased by 46%, while net revenues from services and
others increased by 58% in the fourth quarter of 2016, as compared
to the fourth quarter of 2015.
Cost of
Revenues. Cost of
revenues increased by 45% to RMB67.9 billion (US$9.8 billion) in
the fourth quarter of 2016 from RMB46.8 billion in the fourth
quarter of 2015. This increase was primarily due to the growth of
the company’s online direct sales business, the increased traffic
acquisition costs directly related to the online marketing services
provided to merchants and suppliers, as well as interest expenses
related to JD Finance.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery and
customer service expenses, increased by 37% to RMB6.2 billion
(US$0.9 billion) in the fourth quarter of 2016 from RMB4.5 billion
in the fourth quarter of 2015. Fulfillment expenses as a percentage
of net revenues decreased to 7.7% compared to 8.3% in the prior
year period.
Marketing
Expenses. Marketing expenses
increased by 38% to RMB3.7 billion (US$0.5 billion) in the fourth
quarter of 2016 from RMB2.7 billion in the fourth quarter of
2015.
Technology and Content
Expenses. Technology and content
expenses increased by 36% to RMB1.5 billion (US$0.2 billion) in the
fourth quarter of 2016 from RMB1.1 billion in the fourth quarter of
2015.
General and Administrative
Expenses. General and
administrative expenses increased by 37% to RMB1.4 billion (US$0.2
billion) in the fourth quarter of 2016 from RMB1.0 billion in the
fourth quarter of 2015.
Loss from operations and Non-GAAP
income/(loss) from operations. Loss from operations
for the fourth quarter of 2016 was RMB441.6 million (US$63.6
million), compared to RMB4.2 billion for the same period last year.
Non-GAAP income from operations for the fourth quarter of 2016 was
RMB489.6 million (US$70.5 million) with a margin of 0.6%, as
compared to non-GAAP loss from operations of RMB840.1 million with
a margin of negative 1.5% in the fourth quarter of 2015.
Non-GAAP operating margin of JD Mall for the
fourth quarter of 2016 was 0.8%, compared to 0.04% for the fourth
quarter of 2015.
Non-GAAP EBITDA8 for the
fourth quarter of 2016 totaled RMB1.1 billion (US$0.2 billion) with
a non-GAAP EBITDA margin of 1.3%, as compared to non-GAAP EBITDA
loss of 0.5 billion with a non-GAAP EBITDA margin of negative 0.9%
for the fourth quarter of 2015.
Share of results of equity
investees. Share of results of equity investees for
the fourth quarter of 2016 was a loss of RMB1.4 billion (US$0.2
billion), compared to a loss of RMB3.0 billion in the fourth
quarter of 2015. The loss for the fourth quarter of 2016 was
primarily due to a RMB0.9 billion non-cash impairment in Bitauto,
as well as losses picked up from the company’s equity method
investments.
Net Loss and Non-GAAP Net
Income/(Loss)9. Net loss for the
fourth quarter of 2016 was RMB1.7 billion (US$0.2 billion),
compared to RMB7.6 billion for the same period last year. Non-GAAP
net income for the fourth quarter of 2016 was RMB546.1 million
(US$78.7 million), as compared to non-GAAP net loss of RMB661.7
million in the fourth quarter of 2015.
EPS and Non-GAAP
EPS. Net loss per ADS for the
fourth quarter of 2016 was RMB1.26 (US$0.18), compared to RMB5.57
for the fourth quarter of 2015. Non-GAAP net income per ADS for the
fourth quarter of 2016 was RMB0.40 (US$0.06) as compared to
non-GAAP net loss per ADS of RMB0.48 in the fourth quarter of
2015.
Cash Flow and Working Capital
As of December 31, 2016, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB31.3 billion (US$4.5 billion). For the fourth quarter of
2016, free cash flow of the company was as follows:
|
|
For the three months ended |
|
|
December 31, 2015 |
December 31, 2016 |
December 31, 2016 |
|
|
RMB |
RMB |
USD |
|
|
(In thousands) |
Net
cash used in operating activities |
|
(1,066,177 |
) |
|
(2,983,401 |
) |
|
(429,699 |
) |
Add:
JD Finance net originations included in operating cash flow |
|
2,946,111 |
|
|
3,480,411 |
|
|
501,283 |
|
Less:
Capital expenditures |
|
(1,614,037 |
) |
|
(1,311,334 |
) |
|
(188,871 |
) |
Free
cash flow in/(out) |
|
265,897 |
|
|
(814,324 |
) |
|
(117,287 |
) |
Net cash used in investing activities was
RMB14.6 billion (US$2.1 billion) for the fourth quarter of 2016,
consisting primarily of increases in short-term investments of
RMB0.3 billion, increases in investment in equity investees and
investment securities of RMB1.2 billion, cash paid for capital
expenditures of RMB1.3 billion, and increases in loan
receivables and other investments of RMB11.2 billion.
Net cash provided by financing activities was
RMB12.2 billion (US$1.8 billion) for the fourth quarter of 2016,
consisting primarily of net proceeds from JD Finance’s short-term
borrowing, nonrecourse securitization debt and other financing
activities.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Full Year 2016 Financial
Results
GMV and Net Revenues. GMV
for the full year of 2016 from the online direct sales business was
RMB372.3 billion, up 46% from the full year of 2015. GMV for the
full year of 2016 from the online marketplace business, excluding
virtual items, totaled RMB272.0 billion, an increase of 61% from
the full year of 2015. GMV from electronics and home appliance
products was RMB327.8 billion in the full year of 2016, an increase
of 43% from the full year of 2015, while GMV from general
merchandise and others excluding virtual items was RMB316.6 billion
in the full year of 2016, an increase of 62% from the full year of
2015.
For the full year of 2016, JD.com reported net
revenues of RMB260.2 billion (US$37.5 billion), representing a 44%
increase from the full year of 2015. Net revenues from online
direct sales increased by 42%, while net revenues from services and
others increased by 66% in the full year of 2016, as compared to
the full year of 2015.
Cost of
Revenues. Cost of
revenues increased by 41% to RMB220.7 billion (US$31.8 billion) in
the full year of 2016 from RMB157.0 billion in the full year of
2015. The increase was due to the growth of the company’s direct
sales business and the increased traffic acquisition costs directly
related to the online marketing services provided to merchants and
suppliers, as well as interest expenses related to JD Finance.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery and
customer service expenses, increased by 50% to RMB21.0 billion
(US$3.0 billion) in the full year of 2016 from RMB13.9 billion in
the full year of 2015. Fulfillment expenses as a percentage of net
revenues increased to 8.1% compared to 7.7% in the prior year
primarily due to the strategic expansion into the consumable
product category, which has lower average order size.
Marketing
Expenses. Marketing expenses
increased by 37% to RMB10.6 billion (US$1.5 billion) in the full
year of 2016 from RMB7.7 billion in the full year of 2015.
Technology and Content
Expenses. Technology and content
expenses increased by 56% to RMB5.4 billion (US$0.8 billion) in the
full year of 2016 from RMB3.5 billion in the full year of 2015.
General and Administrative
Expenses. General and
administrative expenses increased by 62% to RMB4.7 billion (US$0.7
billion) in the full year of 2016 from RMB2.9 billion in the full
year of 2015.
Loss from operations and Non-GAAP
income/(loss) from operations. Loss from operations
in the full year of 2016 was RMB2.1 billion (US$0.3 billion),
compared to RMB6.5 billion in the full year of 2015. Non-GAAP
income from operations in the full year of 2016 was RMB1.0 billion
(US$0.1 billion) with a margin of 0.4%, as compared to non-GAAP
loss from operations of RMB1.6 billion with a margin of negative
0.9% in the full year of 2015. Non-GAAP operating margin of
JD Mall in the full year of 2016 was 0.9%, compared to
0.3% for the full year of 2015.
Non-GAAP EBITDA in the full
year of 2016 totaled RMB3.0 billion (US$0.4 billion) with a
non-GAAP EBITDA margin of 1.1%, as compared to non-GAAP EBITDA loss
of 0.4 billion with a non-GAAP EBITDA margin of negative 0.2% in
the full year of 2015.
Share of results of
equity investees. Share of results of equity
investees in the full year of 2016 was a loss of RMB3.1 billion
(US$0.5 billion), compared to a loss of RMB3.1 billion in the full
year of 2015. The loss in the full year of 2016 was primarily due
to a RMB1.8 billion non-cash impairment in investments including
Bitauto and Tuniu, as well as losses picked up from the company’s
equity method investments.
Net Loss and Non-GAAP Net
Income/(Loss). Net loss for the full year of 2016
was RMB3.5 billion (US$0.5 billion), compared to RMB9.4 billion for
the full year of 2015. Non-GAAP net income for the full year of
2016 was RMB1.0 billion (US$0.1 billion), as compared to non-GAAP
net loss of RMB0.9 billion in the full year of 2015.
EPS and Non-GAAP EPS. Net
loss per ADS for the full year of 2016 was RMB2.76 (US$0.40),
compared to RMB6.86 in the full year of 2015. Non-GAAP net income
per ADS for the full year of 2016 was RMB0.75 (US$0.11), as
compared to non-GAAP net loss per ADS of RMB0.62 in the full year
of 2015.
Segment Revenues
For the full year of 2016, net revenues of the
reported segments were as follows:
|
|
For the year ended |
|
|
December 31, 2015 |
December 31, 2016 |
December 31, 2016 |
|
|
RMB |
RMB |
USD |
|
|
(In thousands) |
Net
revenues: |
|
|
|
|
JD Mall |
|
180,963,402 |
|
|
258,196,109 |
|
|
37,187,975 |
|
New Businesses |
|
2,014,242 |
|
|
4,572,335 |
|
|
658,553 |
|
Inter-segment10 |
|
(1,690,689 |
) |
|
(2,582,669 |
) |
|
(371,982 |
) |
Total
consolidated net revenues |
|
181,286,955 |
|
|
260,185,775 |
|
|
37,474,546 |
|
Cash Flow and Working Capital
For the full year of 2016, free cash flow of the
company was as follows:
|
|
For the year ended |
|
|
December 31, 2015 |
December 31, 2016 |
December 31, 2016 |
|
|
RMB |
RMB |
USD |
|
|
(In thousands) |
Net
cash provided by operating activities |
|
1,696,322 |
|
|
8,767,017 |
|
|
1,262,713 |
|
Add:
JD Finance net originations included in operating cash flow |
|
10,664,135 |
|
|
11,304,412 |
|
|
1,628,174 |
|
Less:
Capital expenditures |
|
(5,299,759 |
) |
|
(4,460,165 |
) |
|
(642,397 |
) |
Free
cash flow |
|
7,060,698 |
|
|
15,611,264 |
|
|
2,248,490 |
|
For the full year of 2016, JD Finance incurred a
net cash outflow of RMB39.8 billion (US$5.7 billion) and received a
net cash inflow of RMB42.3 billion (US$6.1 billion) through
financing activities. As of December 31, 2016, the ending balances
of the consumer financing, business financing and supply chain
financing were RMB25.3 billion (US$3.6 billion), RMB0.7 billion
(US$0.1 billion) and RMB11.5 billion (US$1.7 billion),
respectively.
Net cash used in investing activities was
RMB48.3 billion (US$7.0 billion) for the full year of 2016,
consisting primarily of increases in short-term investments of
RMB4.2 billion, increases in investment in equity investees,
investment securities and other investments of RMB25.8 billion,
cash paid for capital expenditures of RMB4.5 billion, and increase
in loan receivables of RMB10.3 billion.
Net cash provided by financing activities was
RMB40.7 billion (US$5.9 billion) for the full year of 2016,
consisting primarily of net proceeds from the company’s short-term
borrowing of RMB5.3 billion and unsecured senior notes of RMB6.4
billion, net proceeds from JD Finance’s nonrecourse securitization
debt and other financing activities of RMB28.0 billion, and JD
Finance’s Series A financing of RMB6.6 billion, partially offset by
the company’s repurchase of its ordinary shares of RMB5.9
billion.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Recent Developments
JD Finance Reorganization
On March 1, 2017, JD.com entered into definitive
agreements relating to the reorganization of JD Finance, which runs
JD.com’s internet finance business. Pursuant to the definitive
agreements, JD.com will dispose of all its equity stake of 68.6% in
JD Finance so that JD.com will hold neither legal ownership nor
effective control of JD Finance, and will receive approximately
RMB14.3 billion in cash upon transaction closing and 40% of the
future pre-tax profit of JD Finance when JD Finance has a positive
pre-tax income on a cumulative basis. In addition, JD.com will be
able to convert its profit sharing right with respect to JD Finance
into 40% of JD Finance’s equity interest, subject to applicable
regulatory approvals.
Richard Liu, JD.com’s Chairman of the Board and
Chief Executive Officer, will acquire an approximately 4.3% equity
stake of JD Finance at the same price as third-party investors and
pursuant to the same set of definitive agreements. Mr. Liu will
also obtain a majority of voting rights in JD Finance through his
equity stake and voting proxy and/or other arrangement with other
investors and ESOP participants.
The transactions contemplated under the
definitive agreements are subject to certain closing conditions,
and are currently expected to close in mid-2017. Upon the
completion of the transactions, it is expected that JD Finance will
be deconsolidated from JD.com’s consolidated financial
statements.
The Company’s Board of Directors, acting upon
the unanimous recommendation of its Audit Committee consisting of
independent and disinterested directors, approved the definitive
agreements and the transactions contemplated thereunder. The Audit
Committee reviewed and considered the terms of the definitive
agreements and the transactions with the assistance of its
financial and legal advisors.
Share Repurchase Program
In September 2015, JD.com’s Board of Directors
authorized a share repurchase program under which the company may
repurchase up to US$1.0 billion worth of its ADSs over the
following 24 months. As of February 28, 2017, the company had
repurchased approximately 31.1 million ADSs for approximately
US$777 million.
First Quarter 2017
Guidance
Net revenues for the first quarter of 2017 are
expected to be between RMB72.3 billion and RMB74.3 billion,
representing a growth rate between 34% and 38% compared with the
first quarter of 2016. This forecast reflects JD.com's current and
preliminary expectation, which is subject to change.
Conference Call
JD.com's management will hold a conference call
at 7:30 am Eastern Time on March 2, 2017 (8:30 pm Beijing/Hong Kong
Time on March 2, 2017) to discuss the fourth quarter and full year
2016 financial results.
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: |
74018494 |
A replay of the conference call may be accessed
by phone at the following numbers until March 10, 2017:
US Toll
Free: |
+1-855-452-5696 or +1-646-254-3697 |
International |
+61-2-8199-0299 |
Passcode: |
74018494 |
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.
JD.com is China’s leading online retailer
and the country’s largest Internet company by revenue. The company
strives to offer consumers the best online shopping experience.
Through its user-friendly website, native mobile apps, and WeChat
and Mobile QQ entry points, JD offers consumers a superior shopping
experience. The company has the largest fulfillment infrastructure
of any e-commerce company in China. As of December 31,
2016, JD.com operated 7 fulfillment centers and 256
warehouses, and in total of 6,906 delivery stations and pickup
stations in 2,655 counties and districts across China, staffed by
its own employees. JD.com is a member of the NASDAQ100
and a Fortune Global 500 company.
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 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 United States of America (“U.S. GAAP”). The company
defines non-GAAP gross profit as the difference of net revenues and
cost of revenue excluding revenue from business cooperation
arrangements with equity investees. The company defines non-GAAP
income/(loss) from operations as income/(loss) from operations
excluding share-based compensation, amortization of intangible
assets resulting from assets and business acquisitions, revenue
from business cooperation arrangements with equity investees and
impairment of goodwill and intangible assets. The company defines
non-GAAP net income/(loss) as net income/(loss) excluding
share-based compensation, amortization of intangible assets
resulting from assets and business acquisitions, revenue from
business cooperation arrangements with equity investees, gain on
disposals of investments and business, income from non-compete
agreement, reconciling items on the share of equity method
investments, impairment of goodwill, intangible assets and
investments. The company defines non-GAAP net income/(loss)
attributable to ordinary shareholders as net income/(loss)
attributable to ordinary shareholders excluding share-based
compensation, amortization of intangible assets resulting from
assets and business acquisitions, revenue from business cooperation
arrangements with equity investees, gain on disposals of
investments and business, income from non-compete agreement,
reconciling items on the share of equity method investments, net
income attributable to mezzanine classified non-controlling
interest shareholders, impairment of goodwill, intangible assets
and investments. The company defines free cash flow as operating
cash flow adding back JD Finance net originations/(repayments)
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. The company defines non-GAAP
EBITDA as non-GAAP income/(loss) from operations plus depreciation
and amortization excluding amortization of intangible assets
resulting from assets and business acquisitions.
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),
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
net originations/(repayments) 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 RelationsRuiyu Li
Senior Director of Investor Relations+86 (10)
8912-6805IR@JD.com
MediaJosh Gartner VP,
International Corporate AffairsPress@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
JD.com's strategic and operational plans, contain forward-looking
statements. JD.com may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission (the “SEC”), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about JD.com's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: JD.com's growth strategies; its future business
development, results of operations and financial condition; its
ability to attract and retain new customers and to increase
revenues generated from repeat customers; its expectations
regarding demand for and market acceptance of its products and
services; trends and competition in China's e-commerce market;
changes in its revenues and certain cost or expense items; the
expected growth of the Chinese e-commerce market; Chinese
governmental policies relating to JD.com's industry and general
economic conditions in China. Further information regarding these
and other risks is included in JD.com's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and JD.com undertakes no
obligation to update any forward-looking statement, except as
required under applicable law.
_________________
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
City of New York for cable transfers in RMB per US$ as certified
for customs purposes by the Federal Reserve Bank of New York as of
December 31, 2016, which was RMB6.9430 to US$1.00. The percentages
stated in this press release are calculated based on the RMB
amounts.
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 JD Mall is defined
to exclude impact of the company’s new businesses and impact of
Paipai.com from non-GAAP operating margin of the company for
comparative periods. New businesses of the company include JD
Finance, O2O (deconsolidated since its merger with Dada Nexus to
form New Dada on April 26, 2016), insurance, technology initiatives
as well as overseas business (collectively, “New Businesses”).
5 Virtual items primarily include prepaid
phone cards, prepaid game cards, group buying coupons and online
travel products.
6 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.
7 JD Finance net originations primarily
include “Jingbaobei,” “Jingxiaodai” and “JD Baitiao” that the
company provides to suppliers, merchants and customers,
respectively.
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.
10 The inter-segment eliminations mainly
consist of revenues related to payment processing and financing
services provided by JD Finance to JD Mall, and promotion and
advertising services provided by JD Mall to New Businesses.
|
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
|
|
|
|
As of |
|
|
December 31,2015 |
December 31,2016 |
December 31,2016 |
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
17,863,868 |
19,771,695 |
2,847,716 |
Restricted cash |
|
2,114,913 |
4,391,955 |
632,573 |
Short-term investments |
|
2,780,482 |
7,173,626 |
1,033,217 |
Accounts receivable, net(1)(2) (including JD Baitiao of RMB6.7
billion and RMB14.9 billion as of December 31, 2015 and
December 31, 2016, respectively) |
|
8,193,665 |
17,464,408 |
2,515,398 |
Advance to suppliers(1) |
|
927,177 |
1,423,736 |
205,061 |
Inventories, net |
|
20,539,543 |
28,909,438 |
4,163,825 |
Loan receivables, net(1) (2) |
|
3,698,488 |
12,697,915 |
1,828,880 |
Investment securities and other investments |
|
- |
11,490,369 |
1,654,957 |
Prepayments and other current assets |
|
1,486,441 |
2,198,906 |
316,707 |
Amount due from related parties(1) |
|
863,516 |
1,410,050 |
203,089 |
Total current assets |
|
58,468,093 |
106,932,098 |
15,401,423 |
Non-current assets |
|
|
|
|
Property, equipment and software, net |
|
6,233,106 |
7,397,029 |
1,065,394 |
Construction in progress |
|
1,266,992 |
1,992,123 |
286,925 |
Intangible assets, net |
|
5,263,983 |
8,454,297 |
1,217,672 |
Land use rights, net |
|
1,928,192 |
2,447,511 |
352,515 |
Goodwill |
|
29,050 |
6,541,668 |
942,196 |
Investment in equity investees |
|
8,864,249 |
15,684,721 |
2,259,070 |
Investment securities and other investments |
|
1,005,831 |
8,058,057 |
1,160,602 |
Other non-current assets(1) |
|
2,106,673 |
3,315,715 |
477,562 |
Total non-current assets |
|
26,698,076 |
53,891,121 |
7,761,936 |
Total assets |
|
85,166,169 |
160,823,219 |
23,163,359 |
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
|
|
|
|
As of |
|
|
December 31,
2015 |
December 31,
2016 |
December 31,
2016 |
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Short-term borrowing |
|
3,040,209 |
|
8,333,317 |
|
1,200,247 |
|
Nonrecourse securitization debt |
|
579,843 |
|
9,389,213 |
|
1,352,328 |
|
Accounts
payable(1) (net of supplier financing of RMB4.7 billion and RMB7.0
billion as of December 31, 2015 and December 31, 2016,
respectively) |
|
29,819,341 |
|
43,988,087 |
|
6,335,602 |
|
Advances from customers |
|
7,173,885 |
|
11,632,766 |
|
1,675,467 |
|
Deferred revenues |
|
1,028,350 |
|
1,324,389 |
|
190,752 |
|
Taxes payable |
|
103,211 |
|
575,848 |
|
82,939 |
|
Amount due to related parties |
|
104,726 |
|
167,655 |
|
24,147 |
|
Accrued expenses and other current liabilities |
|
7,178,065 |
|
29,431,484 |
|
4,239,015 |
|
Total current liabilities |
|
49,027,630 |
|
104,842,759 |
|
15,100,497 |
|
Non-current liabilities |
|
|
|
|
Deferred revenues |
|
2,705,164 |
|
2,408,465 |
|
346,891 |
|
Nonrecourse securitization debt |
|
2,753,699 |
|
4,077,627 |
|
587,300 |
|
Unsecured senior notes |
|
- |
|
6,831,012 |
|
983,870 |
|
Deferred tax liabilities |
|
1,228 |
|
907,356 |
|
130,686 |
|
Other non-current liabilities |
|
- |
|
440,670 |
|
63,470 |
|
Total non-current liabilities |
|
5,460,091 |
|
14,665,130 |
|
2,112,217 |
|
Total liabilities |
|
54,487,721 |
|
119,507,889 |
|
17,212,714 |
|
|
|
|
|
|
Redeemable non-controlling interests |
|
- |
|
7,056,921 |
|
1,016,408 |
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
Ordinary
shares (US$0.00002 par value, 100,000,000 shares authorized,
2,938,709 shares issued and 2,836,444 shares outstanding as of
December 31, 2016) |
|
358 |
|
377 |
|
54 |
|
Additional paid-in capital |
|
48,393,126 |
|
59,258,417 |
|
8,534,987 |
|
Statutory reserves |
|
55,560 |
|
132,938 |
|
19,147 |
|
Treasury stock |
|
(3 |
) |
(5,181,880 |
) |
(746,346 |
) |
Accumulated deficit |
|
(18,690,910 |
) |
(22,190,445 |
) |
(3,196,089 |
) |
Accumulated other comprehensive income |
|
782,484 |
|
1,969,040 |
|
283,601 |
|
Total
JD.com Inc. shareholders’ equity |
|
30,540,615 |
|
33,988,447 |
|
4,895,354 |
|
Non-controlling interests |
|
137,833 |
|
269,962 |
|
38,883 |
|
Total shareholders’ equity |
|
30,678,448 |
|
34,258,409 |
|
4,934,237 |
|
Total
liabilities, redeemable non-controlling interests and shareholders’
equity |
|
85,166,169 |
|
160,823,219 |
|
23,163,359 |
|
(1) As of December 31, 2016 and December 31,
2015, the balances of consumer financing, supply chain financing
and business financing that affected the balances of accounts
receivable, advance to suppliers, loan receivables, amount due from
related parties, other non-current assets and accounts payable were
as follows:
The balances of consumer financing and business
financing of RMB14.3 billion (US$2.1 billion), RMB0.6 billion
(US$0.1 billion) as of December 31, 2016 and RMB6.4 billion, RMB0.3
billion as of December 31, 2015, respectively were included in the
accounts receivable.
The balances of supply chain financing of RMB1.2
billion (US$0.2 billion) as of December 31, 2016, and RMB0.2
billion as of December 31, 2015, respectively were included in
advance to suppliers.
The balances of consumer financing and supply
chain financing provided in the marketplace business of RMB9.3
billion (US$1.3 billion), RMB3.4 billion (US$0.5 billion) as of
December 31, 2016 and RMB2.6 billion, RMB1.1 billion as of December
31, 2015, respectively were included in loan receivables.
The balances of business financing of RMB0.1
billion (US$0.01 billion) as of December 31, 2016 and RMB0.2
billion as of December 31, 2015, respectively were included amounts
due from related parties.
The balances of consumer financing of RMB1.7
billion (US$0.2 billion) as of December 31, 2016 and RMB1.0 billion
as of December 31, 2015, respectively were included in other
non-current assets.
The balances of supply chain financing of RMB7.0
billion (US$1.0 billion) as of December 31, 2016 and RMB4.7 billion
as of December 31, 2015, respectively were net off in the accounts
payable.
(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 RMB1.3 billion as of
December 31, 2015 has been reclassified to conform to the current
period financial statement presentation.
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of
Operations and Non-GAAP Net Income/(Loss) Per ADS |
(In thousands, except per share data) |
|
|
For the three months ended |
|
For the year ended |
|
December 31,2015 |
September
30,2016 |
December 31,2016 |
December 31,2016 |
|
December 31,2015 |
December 31,2016 |
December 31,2016 |
|
RMB |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Net
revenues |
|
|
|
|
|
|
|
|
Online
direct sales |
49,914,650 |
|
55,172,944 |
|
72,847,736 |
|
10,492,256 |
|
|
167,720,984 |
|
237,701,986 |
|
34,236,207 |
|
Services
and others |
4,692,893 |
|
5,552,837 |
|
7,405,840 |
|
1,066,663 |
|
|
13,565,971 |
|
22,483,789 |
|
3,238,339 |
|
Total net
revenues |
54,607,543 |
|
60,725,781 |
|
80,253,576 |
|
11,558,919 |
|
|
181,286,955 |
|
260,185,775 |
|
37,474,546 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses(3)(4) |
|
|
|
|
|
|
|
|
Cost of
revenues |
(46,798,500 |
) |
(51,077,961 |
) |
(67,941,173 |
) |
(9,785,564 |
) |
|
(157,008,329 |
) |
(220,698,727 |
) |
(31,787,228 |
) |
Fulfillment |
(4,532,210 |
) |
(5,122,940 |
) |
(6,210,851 |
) |
(894,549 |
) |
|
(13,920,988 |
) |
(20,950,501 |
) |
(3,017,500 |
) |
Marketing |
(2,665,241 |
) |
(2,192,641 |
) |
(3,665,929 |
) |
(528,004 |
) |
|
(7,736,172 |
) |
(10,573,024 |
) |
(1,522,832 |
) |
Technology and content |
(1,080,054 |
) |
(1,462,600 |
) |
(1,468,084 |
) |
(211,448 |
) |
|
(3,453,804 |
) |
(5,380,907 |
) |
(775,012 |
) |
General
and administrative |
(1,027,880 |
) |
(1,285,817 |
) |
(1,409,112 |
) |
(202,954 |
) |
|
(2,876,989 |
) |
(4,663,383 |
) |
(671,667 |
) |
Impairment of goodwill and intangible assets related to
Paipai.com |
(2,750,129 |
) |
- |
|
- |
|
- |
|
|
(2,750,129 |
) |
- |
|
- |
|
Total operating
expenses |
(58,854,014 |
) |
(61,141,959 |
) |
(80,695,149 |
) |
(11,622,519 |
) |
|
(187,746,411 |
) |
(262,266,542 |
) |
(37,774,239 |
) |
Loss from
operations |
(4,246,471 |
) |
(416,178 |
) |
(441,573 |
) |
(63,600 |
) |
|
(6,459,456 |
) |
(2,080,767 |
) |
(299,693 |
) |
Other
income/(expenses) |
|
|
|
|
|
|
|
|
Share of
results of equity investees |
(3,038,039 |
) |
(469,603 |
) |
(1,429,516 |
) |
(205,893 |
) |
|
(3,134,283 |
) |
(3,144,492 |
) |
(452,901 |
) |
Interest
income |
91,923 |
|
139,417 |
|
170,186 |
|
24,512 |
|
|
414,999 |
|
481,618 |
|
69,367 |
|
Interest
expense |
(60,987 |
) |
(71,731 |
) |
(63,197 |
) |
(9,102 |
) |
|
(82,507 |
) |
(259,657 |
) |
(37,398 |
) |
Others,
net |
(387,693 |
) |
12,812 |
|
210,449 |
|
30,311 |
|
|
(140,597 |
) |
1,709,050 |
|
246,154 |
|
Loss before
tax |
(7,641,267 |
) |
(805,283 |
) |
(1,553,651 |
) |
(223,772 |
) |
|
(9,401,844 |
) |
(3,294,248 |
) |
(474,471 |
) |
Income
tax benefits /(expenses) |
9,199 |
|
(2,658 |
) |
(112,818 |
) |
(16,249 |
) |
|
14,262 |
|
(179,500 |
) |
(25,853 |
) |
Net
loss |
(7,632,068 |
) |
(807,941 |
) |
(1,666,469 |
) |
(240,021 |
) |
|
(9,387,582 |
) |
(3,473,748 |
) |
(500,324 |
) |
Net loss
attributable to non-controlling interests shareholders |
(5,486 |
) |
(20,161 |
) |
(19,795 |
) |
(2,851 |
) |
|
(9,566 |
) |
(51,591 |
) |
(7,431 |
) |
Net
income attributable to mezzanine classified non-controlling
interests shareholders |
- |
|
133,810 |
|
136,449 |
|
19,653 |
|
|
- |
|
444,657 |
|
64,044 |
|
Net loss
attributable to ordinary shareholders |
(7,626,582 |
) |
(921,590 |
) |
(1,783,123 |
) |
(256,823 |
) |
|
(9,378,016 |
) |
(3,866,814 |
) |
(556,937 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP net
income/(loss) |
(661,664 |
) |
268,996 |
|
546,099 |
|
78,658 |
|
|
(860,055 |
) |
1,000,426 |
|
144,092 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income/(loss) attributable to ordinary shareholders |
(656,178 |
) |
289,157 |
|
565,894 |
|
81,509 |
|
|
(850,489 |
) |
1,052,017 |
|
151,523 |
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of
Operations and Non-GAAP Net Income/(Loss) Per ADS |
(In thousands, except per share data) |
|
|
|
|
|
Three months ended |
|
For the year ended |
|
December 31,2015 |
September
30,2016 |
December 31,2016 |
December 31,2016 |
|
December 31,2015 |
December 31,2016 |
December 31,2016 |
|
RMB |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
|
Net loss per share: |
Basic |
(2.79 |
) |
(0.32 |
) |
(0.63 |
) |
(0.09 |
) |
|
(3.43 |
) |
(1.38 |
) |
(0.20 |
) |
Diluted |
(2.79 |
) |
(0.32 |
) |
(0.63 |
) |
(0.09 |
) |
|
(3.43 |
) |
(1.38 |
) |
(0.20 |
) |
|
Net loss per ADS: |
Basic |
(5.57 |
) |
(0.64 |
) |
(1.26 |
) |
(0.18 |
) |
|
(6.86 |
) |
(2.76 |
) |
(0.40 |
) |
Diluted |
(5.57 |
) |
(0.64 |
) |
(1.26 |
) |
(0.18 |
) |
|
(6.86 |
) |
(2.76 |
) |
(0.40 |
) |
|
Non-GAAP net income/(loss) per ADS(5): |
Basic |
(0.48 |
) |
0.20 |
|
0.40 |
|
0.06 |
|
|
(0.62 |
) |
0.75 |
|
0.11 |
|
Diluted |
(0.48 |
) |
0.20 |
|
0.39 |
|
0.06 |
|
|
(0.62 |
) |
0.74 |
|
0.11 |
|
|
Weighted average number of shares: |
Basic |
2,736,515 |
|
2,879,201 |
|
2,834,273 |
|
2,834,273 |
|
|
2,735,034 |
|
2,804,768 |
|
2,804,768 |
|
Diluted |
2,736,515 |
|
2,879,201 |
|
2,834,273 |
|
2,834,273 |
|
|
2,735,034 |
|
2,804,768 |
|
2,804,768 |
|
Diluted
(non-GAAP) |
2,736,515 |
|
2,914,658 |
|
2,874,359 |
|
2,874,359 |
|
|
2,735,034 |
|
2,851,901 |
|
2,851,901 |
|
|
|
|
|
|
|
|
|
|
(3) Includes share-based compensation expenses as
follows: |
Fulfillment |
(58,625 |
) |
(103,731 |
) |
(118,123 |
) |
(17,013 |
) |
|
(184,733 |
) |
(387,073 |
) |
(55,750 |
) |
Marketing |
(17,015 |
) |
(24,991 |
) |
(28,715 |
) |
(4,136 |
) |
|
(50,091 |
) |
(97,604 |
) |
(14,058 |
) |
Technology and content |
(93,443 |
) |
(144,849 |
) |
(176,581 |
) |
(25,433 |
) |
|
(234,165 |
) |
(554,859 |
) |
(79,916 |
) |
General
and administrative |
(309,003 |
) |
(328,433 |
) |
(413,112 |
) |
(59,501 |
) |
|
(724,956 |
) |
(1,304,249 |
) |
(187,851 |
) |
(4)
Includes amortization of intangible assets resulting from assets
and business acquisitions as follows: |
Fulfillment |
(5,616 |
) |
(44,996 |
) |
(44,996 |
) |
(6,481 |
) |
|
(22,163 |
) |
(105,231 |
) |
(15,156 |
) |
Marketing |
(309,156 |
) |
(307,759 |
) |
(307,759 |
) |
(44,327 |
) |
|
(1,225,318 |
) |
(1,222,214 |
) |
(176,036 |
) |
Technology and content |
(5,987 |
) |
(20,923 |
) |
(20,661 |
) |
(2,976 |
) |
|
(23,748 |
) |
(45,909 |
) |
(6,612 |
) |
General
and administrative |
(45,445 |
) |
(77,314 |
) |
(77,314 |
) |
(11,136 |
) |
|
(180,118 |
) |
(248,023 |
) |
(35,723 |
) |
|
(5)
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 |
(In thousands) |
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2015 |
September
30,2016 |
December 31,2016 |
December 31,2016 |
|
December 31,2015 |
December 31,2016 |
December 31,2016 |
|
RMB |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Net cash provided
by/(used in) operating activities |
(1,066,177 |
) |
6,590,470 |
|
(2,983,401 |
) |
(429,699 |
) |
|
1,696,322 |
|
8,767,017 |
|
1,262,713 |
|
Net cash used in
investing activities |
(5,695,028 |
) |
(21,025,692 |
) |
(14,557,837 |
) |
(2,096,765 |
) |
|
(5,790,525 |
) |
(48,268,577 |
) |
(6,952,121 |
) |
Net cash provided by
financing activities |
3,075,344 |
|
2,859,851 |
|
12,186,477 |
|
1,755,218 |
|
|
4,700,273 |
|
40,699,471 |
|
5,861,943 |
|
Effect of exchange rate
changes on cash and cash equivalents |
228,148 |
|
28,329 |
|
291,861 |
|
42,037 |
|
|
343,147 |
|
709,916 |
|
102,249 |
|
Net increase/(decrease)
in cash and cash equivalents |
(3,457,713 |
) |
(11,547,042 |
) |
(5,062,900 |
) |
(729,209 |
) |
|
949,217 |
|
1,907,827 |
|
274,784 |
|
Cash and cash
equivalents at beginning of period |
21,321,581 |
|
36,381,637 |
|
24,834,595 |
|
3,576,925 |
|
|
16,914,651 |
|
17,863,868 |
|
2,572,932 |
|
Cash and cash
equivalents at end of period |
17,863,868 |
|
24,834,595 |
|
19,771,695 |
|
2,847,716 |
|
|
17,863,868 |
|
19,771,695 |
|
2,847,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by/(used in) operating activities |
(1,066,177 |
) |
6,590,470 |
|
(2,983,401 |
) |
(429,699 |
) |
|
1,696,322 |
|
8,767,017 |
|
1,262,713 |
|
Add: JD Finance net
originations/(repayments) included in operating cash flow |
2,946,111 |
|
(176,988 |
) |
3,480,411 |
|
501,283 |
|
|
10,664,135 |
|
11,304,412 |
|
1,628,174 |
|
Less:
Capital expenditures |
(1,614,037 |
) |
(994,742 |
) |
(1,311,334 |
) |
(188,871 |
) |
|
(5,299,759 |
) |
(4,460,165 |
) |
(642,397 |
) |
Free cash flow
in/(out) |
265,897 |
|
5,418,740 |
|
(814,324 |
) |
(117,287 |
) |
|
7,060,698 |
|
15,611,264 |
|
2,248,490 |
|
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 RMB1.3 billion and RMB3.5 billion for the
fourth quarter of 2015 and the full year of 2015 have been
reclassified from operating activities to investing activities in
cash flow statements. Free cash flow remains the same for all the
presented and prior periods.
|
JD.com, Inc. |
Supplemental Financial Information and Business
Metrics |
|
|
Q1 2015 |
Q2 2015 |
Q3 2015 |
Q4 2015 |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
|
|
|
|
|
|
|
|
|
|
Free cash flow -
trailing twelve months (“TTM”) (in RMB billions) |
|
2.1 |
6.6 |
5.6 |
7.1 |
7.7 |
11.0 |
16.7 |
15.6 |
Inventory turnover(6) –
TTM |
|
35.3 |
36.4 |
36.4 |
36.9 |
37.3 |
38.5 |
37.7 |
38.0 |
Accounts payable
turnover(7) – TTM |
|
41.9 |
43.6 |
44.5 |
44.6 |
46.3 |
49.8 |
52.1 |
52.6 |
Accounts receivable
turnover(8) – TTM |
|
3.1 |
3.2 |
3.2 |
3.2 |
3.1 |
3.1 |
3.3 |
3.3 |
GMV(9) (10) excluding
virtual items (in RMB billions) |
|
78.7 |
103.3 |
105.5 |
137.0 |
125.5 |
157.1 |
155.6 |
206.2 |
Orders fulfilled(9)
(11) excluding virtual items (in millions) |
|
175.6 |
240.0 |
258.1 |
353.1 |
313.0 |
373.4 |
401.2 |
505.7 |
Annual active customer
accounts(9) (12) (in millions) |
|
97.8 |
114.0 |
126.9 |
155.0 |
169.1 |
188.1 |
198.7 |
226.6 |
|
|
|
|
|
|
|
|
|
|
(6) 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.
(7) 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.
(8) 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.
(9) Selected operating data for all presented
periods excludes the impact of Paipai.com.
(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 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 RMB2,000 that
are not ultimately sold or delivered. If the company’s calculation
of GMV includes 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 and shipping
charges paid by buyers to sellers, and excludes products or
services with list prices above RMB100,000 as well as transactions
conducted by buyers who make purchases exceeding RMB1,000,000 in
the aggregate in a single day (similar to the practice of the
company’s major industry peer), the company’s GMV for the fourth
quarter and the full year of 2016 would have been RMB303.0 billion
and RMB939.2 billion, respectively.
(11) 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.
(12) 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 |
|
For the year ended |
|
December 31,2015 |
September
30,2016 |
December 31,2016 |
December 31,2016 |
|
December 31,2015 |
December 31,2016 |
December 31,2016 |
|
RMB |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Net revenues |
54,607,543 |
|
60,725,781 |
|
80,253,576 |
|
11,558,919 |
|
|
181,286,955 |
|
260,185,775 |
|
37,474,546 |
|
Less: Cost of
revenues |
(46,798,500 |
) |
(51,077,961 |
) |
(67,941,173 |
) |
(9,785,564 |
) |
|
(157,008,329 |
) |
(220,698,727 |
) |
(31,787,228 |
) |
Gross profit |
7,809,043 |
|
9,647,820 |
|
12,312,403 |
|
1,773,355 |
|
|
24,278,626 |
|
39,487,048 |
|
5,687,318 |
|
Reversal of: Revenue
from business cooperation arrangements with equity investees |
(188,050 |
) |
(235,791 |
) |
(256,073 |
) |
(36,882 |
) |
|
(520,351 |
) |
(927,905 |
) |
(133,646 |
) |
Non-GAAP gross profit |
7,620,993 |
|
9,412,029 |
|
12,056,330 |
|
1,736,473 |
|
|
23,758,275 |
|
38,559,143 |
|
5,553,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
(4,246,471 |
) |
(416,178 |
) |
(441,573 |
) |
(63,600 |
) |
|
(6,459,456 |
) |
(2,080,767 |
) |
(299,693 |
) |
Reversal of: Revenue
from business cooperation arrangements with equity investees |
(188,050 |
) |
(235,791 |
) |
(256,073 |
) |
(36,882 |
) |
|
(520,351 |
) |
(927,905 |
) |
(133,646 |
) |
Add: Share-based
compensation |
478,086 |
|
602,004 |
|
736,531 |
|
106,083 |
|
|
1,193,945 |
|
2,343,785 |
|
337,575 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
366,204 |
|
450,992 |
|
450,730 |
|
64,920 |
|
|
1,451,347 |
|
1,621,377 |
|
233,527 |
|
Add: Impairment of
goodwill, intangible assets |
2,750,129 |
|
- |
|
- |
|
- |
|
|
2,750,129 |
|
- |
|
- |
|
Non-GAAP
income/(loss) from operations |
(840,102 |
) |
401,027 |
|
489,615 |
|
70,521 |
|
|
(1,584,386 |
) |
956,490 |
|
137,763 |
|
Add: Depreciation and
amortization excluding amortization of intangible assets resulting
from assets and business acquisitions |
374,405 |
|
531,316 |
|
569,491 |
|
82,022 |
|
|
1,167,714 |
|
2,011,969 |
|
289,784 |
|
Non-GAAP
EBITDA |
(465,697 |
) |
932,343 |
|
1,059,106 |
|
152,543 |
|
|
(416,672 |
) |
2,968,459 |
|
427,547 |
|
|
|
|
|
|
|
|
|
|
Total net revenues |
54,607,543 |
|
60,725,781 |
|
80,253,576 |
|
11,558,919 |
|
|
181,286,955 |
|
260,185,775 |
|
37,474,546 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating margin |
-1.5 |
% |
0.7 |
% |
0.6 |
% |
0.6 |
% |
|
-0.9 |
% |
0.4 |
% |
0.4 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
margin |
-0.9 |
% |
1.5 |
% |
1.3 |
% |
1.3 |
% |
|
-0.2 |
% |
1.1 |
% |
1.1 |
% |
JD.com, Inc. |
Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2015 |
September
30,2016 |
December 31,2016 |
December 31,2016 |
|
December 31,2015 |
December 31,2016 |
December 31,2016 |
|
RMB |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Net loss |
(7,632,068 |
) |
(807,941 |
) |
(1,666,469 |
) |
(240,021 |
) |
|
(9,387,582 |
) |
(3,473,748 |
) |
(500,324 |
) |
Add: Share-based
compensation |
478,086 |
|
602,004 |
|
736,531 |
|
106,083 |
|
|
1,193,945 |
|
2,343,785 |
|
337,575 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
366,204 |
|
450,992 |
|
450,730 |
|
64,920 |
|
|
1,451,347 |
|
1,621,377 |
|
233,527 |
|
Add: Reconciling items
on earning from equity method investments(13) |
85,680 |
|
157,048 |
|
206,974 |
|
29,810 |
|
|
174,102 |
|
539,325 |
|
77,679 |
|
Add: Impairment of
goodwill, intangible assets and investments |
6,228,484 |
|
122,530 |
|
1,094,780 |
|
157,682 |
|
|
6,228,484 |
|
2,178,538 |
|
313,775 |
|
Reversal of: Revenue
from business cooperation arrangements with equity investees |
(188,050 |
) |
(235,791 |
) |
(256,073 |
) |
(36,882 |
) |
|
(520,351 |
) |
(927,905 |
) |
(133,646 |
) |
Reversal of: Gain on
disposals of investments and business |
- |
|
- |
|
- |
|
- |
|
|
- |
|
(1,227,760 |
) |
(176,834 |
) |
Reversal of: Income
from non-compete agreement |
- |
|
(19,846 |
) |
(20,374 |
) |
(2,934 |
) |
|
- |
|
(53,186 |
) |
(7,660 |
) |
Non-GAAP net
income/(loss) |
(661,664 |
) |
268,996 |
|
546,099 |
|
78,658 |
|
|
(860,055 |
) |
1,000,426 |
|
144,092 |
|
|
|
|
|
|
|
|
|
|
Total net revenues |
54,607,543 |
|
60,725,781 |
|
80,253,576 |
|
11,558,919 |
|
|
181,286,955 |
|
260,185,775 |
|
37,474,546 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
margin |
-1.2 |
% |
0.4 |
% |
0.7 |
% |
0.7 |
% |
|
-0.5 |
% |
0.4 |
% |
0.4 |
% |
|
(13) For the fourth quarter of 2016, the reconciling
items on the share of equity method investments included the impact
of share-based compensation of RMB17.6 million, amortization of
intangible assets resulting from assets and business acquisitions
of RMB86.8 million, share of amortization of equity investments’
intangibles not on their books of RMB38.4 million, and net income
attributable to mezzanine equity holder of RMB64.2 million. For the
full year of 2016, the reconciling items on the share of equity
method investments included the impact of share-based compensation
of RMB53.5 million, amortization of intangible assets resulting
from assets and business acquisitions of RMB256.2 million, share of
amortization of equity investments’ intangibles not on their books
of RMB123.4 million, and net income attributable to mezzanine
equity holder of RMB106.2 million. Earning from equity method
investments in publicly listed companies and certain privately held
companies is recorded one quarter in arrears. |
JD.com, Inc. |
Reconciliation of GAAP and Non-GAAP Results |
(In thousands) |
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2015 |
September
30,2016 |
December 31,2016 |
December 31,2016 |
|
December 31,2015 |
December
31,2016 |
December
31,2016 |
|
RMB |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Net loss attributable
to ordinary shareholders |
(7,626,582 |
) |
(921,590 |
) |
(1,783,123 |
) |
(256,823 |
) |
|
(9,378,016 |
) |
(3,866,814 |
) |
(556,937 |
) |
Add: Non-GAAP
adjustments to net loss(14) |
6,970,404 |
|
1,076,937 |
|
2,212,568 |
|
318,679 |
|
|
8,527,527 |
|
4,474,174 |
|
644,416 |
|
Add: Net income
attributable to mezzanine classified non-controlling interests
shareholders |
- |
|
133,810 |
|
136,449 |
|
19,653 |
|
|
- |
|
444,657 |
|
64,044 |
|
Non-GAAP net
income/(loss) attributable to ordinary shareholders |
(656,178 |
) |
289,157 |
|
565,894 |
|
81,509 |
|
|
(850,489 |
) |
1,052,017 |
|
151,523 |
|
|
(14) See the table above about the reconciliation of
net loss to non-GAAP net income/(loss) for more information of
these non-GAAP adjustments. |
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