JD.com, Inc. (NASDAQ:JD), China’s largest online retailer, today
announced its unaudited financial results for the quarter ended
March 31, 2017.
First Quarter 2017
Highlights
- Net revenues for the first quarter of 2017
were RMB76.2 billion (US$1 11.1 billion), an increase of 41.2%
from the first quarter of 2016. Net revenues excluding JD
Finance2 increased by 39.8% to RMB75.2 billion in the first
quarter of 2017, up from RMB53.8 billion in the same period last
year.
- Income from operations for the first quarter
of 2017 was RMB843.1 million (US$122.5 million), compared to loss
from operations of RMB864.9 million for the same period last year.
Non-GAAP income from operations3 for the
first quarter of 2017 was RMB1.7 billion (US$0.2 billion), as
compared to non-GAAP loss from operations of RMB295.7 million in
the first quarter of 2016.
- EPS and Non-GAAP EPS. Net income per ADS for
the first quarter of 2017 was RMB0.17 (US$0.02), compared to net
loss per ADS of RMB0.66 for the first quarter of 2016. Non-GAAP net
income per ADS for the first quarter of 2017 was RMB1.03 (US$0.15),
as compared to non-GAAP net loss per ADS of RMB0.15 in the first
quarter of 2016.
- GMV for the first quarter of 2017 increased by
42% to RMB184.1 billion (US$26.7 billion) from RMB129.3 billion in
the first quarter of 2016.
- Operating cash flow for the twelve months
ended March 31, 2017 increased 405% to RMB10.2 billion (US$1.5
billion) from RMB2.0 billion for the twelve months ended March 31,
2016. Free cash flow4, which excludes JD Finance
net originations5 included in the operating cash flow, for the
twelve months ended March 31, 2017 increased 120% to RMB16.8
billion (US$2.4 billion), compared to RMB7.7 billion for the twelve
months ended March 31, 2016.
- Annual active customer accounts increased by
40% to 236.5 million in the twelve months ended March 31, 2017 from
169.1 million in the twelve months ended March 31, 2016.
- Fulfilled orders in the first quarter of 2017
were 477.1 million, an increase of 39% from 342.1 million in the
same period in 2016. Fulfilled orders placed through mobile
accounted for approximately 81% of total orders fulfilled in the
first quarter of 2017, an increase of 56% compared to the same
period in 2016.
“The strong results across the board reflect
that the Chinese market is embracing our model of a high-quality
online shopping experience,” said Richard Liu, Chairman and
CEO of JD.com. “China’s increasingly discerning consumers are
migrating en masse to our unwavering vision of online retail that
prioritizes quality and user experience above all else. Looking
forward, we are focused on further enhancing our customer
experience, while leveraging the capabilities of our platform to
serve the needs of a broader business ecosystem.”
“We are pleased to report another strong quarter
of top and bottom line growth, as margins benefited from our
rapidly growing scale across all of our product categories, as well
as improved operating leverage,” said Sidney
Huang, JD.com’s Chief Financial Officer. “In the quarters
ahead, we will continue to invest in innovative technologies to
ensure long-term growth across our platform.”
Recent Business
Developments
- In April, JD.com became a certified member of the American
Apparel & Footwear Association (AAFA), the trusted public
policy and political voice of the apparel and footwear industry, a
first for a Chinese e-commerce company. As part of its AAFA
membership, JD.com will cooperate with international fashion brands
on issues surrounding IP protection as the company continues its
push to bring more top global fashion brands to Chinese consumers
through the JD.com platform.
- In the first quarter, Avène, the leading dermo-cosmetic brand
for sensitive skin in European pharmacies, and three brands under
Giorgio Armani, including EA7 Emporio Armani, Armani Jeans and
Emporio Armani Underwear, launched flagship stores on JD.com’s
direct sales platform, allowing them to leverage the company’s
national same- and next-day fulfillment network.
- In the first quarter, JD Worldwide partnered with ASDA, a
leading UK retailer under the Walmart umbrella, to bring
high-quality British products to Chinese consumers. Additionally,
JD Worldwide partnered with several other top international brands
including Bayer, Inferno and Cetaphil.
- In the first quarter, JD.com expanded its footprint in the home
furnishing and apparel categories, announcing strategic
partnerships at Milan Design Week with SAVIO FIRMINO, Bordignon and
Contractin, three leading Italian furniture brands. In addition, JD
partnered with Mercedes-Benz China Fashion Week and Shanghai
Fashion Week to stage fashion shows featuring top Chinese
designers.
- In March, as part of its efforts to promote environmentally
friendly logistics, JD.com upgraded its recycling system for used
packaging materials. Customers in Beijing, Shanghai, Guangzhou and
Shenzhen can now return empty cardboard boxes to JD.com couriers to
receive credits for future purchases on
JD.com.
- As of March 31, 2017, JD.com’s joint venture, New Dada, had
partnered with 80 Walmart stores and 165 Yonghui stores to provide
consumers a premium online grocery shopping experience with
one-hour home delivery. New Dada is China’s largest crowdsourcing
logistics provider and O2O supermarket platform.
- During the first quarter, JD.com expanded its leadership
position in fulfillment capabilities among China’s e-commerce
companies. As of March 31, 2017, JD.com operated 263 warehouses
covering an aggregate gross floor area of approximately 5.8 million
square meters.
- In April, JD.com announced the establishment of JD Logistics, a
new business group under JD.com, which will leverage the company’s
advanced technology and logistics expertise to provide integrated
supply chain and logistics services to businesses across a wide
range of industries.
- JD.com had approximately 120,000 merchants on its online
marketplace as of April 30, 2017, and a total of 122,405 full-time
employees as of March 31, 2017.
First Quarter 2017 Financial
Results
GMV and Net Revenues. GMV
from the online direct sales business was RMB107.9 billion in the
first quarter of 2017, up 42% from the first quarter of 2016. GMV
from the online marketplace business was RMB76.2 billion in the
first quarter of 2017, an increase of 43% from the first quarter of
2016. GMV from electronics and home appliance products was RMB92.6
billion in the first quarter of 2017, an increase of 37% from the
first quarter of 2016, while GMV from general merchandise and
others was RMB91.5 billion in the first quarter of 2017, an
increase of 48% from the first quarter of 2016, and contributed 50%
of total GMV, up from 48% in the first quarter of 2016.
For the first quarter of 2017, JD.com reported
net revenues of RMB76.2 billion (US$11.1 billion), representing a
41% increase from the same period in 2016. Net revenues from online
direct sales increased by 40%, while net revenues from services and
others increased by 62% in the first quarter of 2017, as compared
to the first quarter of 2016. Net revenues excluding JD Finance
increased by 40% to RMB75.2 billion in the first quarter of 2017,
up from RMB53.8 billion in the same period last year.
Cost of
Revenues. Cost of
revenues increased by 38% to RMB64.0 billion (US$9.3 billion) in
the first quarter of 2017 from RMB46.2 billion in the first quarter
of 2016. This increase was primarily due to the growth of the
company’s online direct sales business and interest expenses
related to JD Finance.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery and
customer service expenses, increased by 30% to RMB5.9 billion
(US$0.9 billion) in the first quarter of 2017 from RMB4.5 billion
in the first quarter of 2016. 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 28% to RMB2.7 billion (US$0.4 billion) in the first
quarter of 2017 from RMB2.1 billion in the first quarter of
2016.
Technology and Content
Expenses. Technology and content
expenses increased by 40% to RMB1.6 billion (US$0.2 billion) in the
first quarter of 2017 from RMB1.1 billion in the first quarter of
2016.
General and Administrative
Expenses. General and
administrative expenses increased by 43% to RMB1.3 billion (US$0.2
billion) in the first quarter of 2017 from RMB0.9 billion in the
first quarter of 2016.
Income/(loss) from operations and
Non-GAAP income/(loss) from operations. Income from
operations for the first quarter of 2017 was RMB843.1 million
(US$122.5 million), compared to loss from operations of RMB864.9
million for the same period last year. Non-GAAP income from
operations for the first quarter of 2017 was RMB1.7 billion (US$0.2
billion) with a non-GAAP operating margin of 2.2%, as compared to
non-GAAP loss from operations of RMB295.7 million in the first
quarter of 2016.
Non-GAAP EBITDA6 for the
first quarter of 2017 totaled RMB2.2 billion (US$0.3 billion) with
a non-GAAP EBITDA margin of 2.9%, as compared to RMB0.1 billion
with a non-GAAP EBITDA margin of 0.2% for the first quarter of
2016.
Share of results of equity
investees. Share of results of equity investees for
the first quarter of 2017 was a loss of RMB520.7 million (US$75.6
million), compared to RMB164.0 million in the first quarter of
2016. The increase was primarily due to losses picked up from New
Dada and Tuniu.
Net income/(loss) and Non-GAAP Net
income/(loss)7. Net income for the
first quarter of 2017 was RMB355.7 million (US$51.7 million),
compared to net loss of RMB867.3 million for the same period last
year. Non-GAAP net income for the first quarter of 2017 was RMB1.4
billion (US$0.2 billion), as compared to non-GAAP net loss of
RMB0.2 billion in the first quarter of 2016.
EPS and Non-GAAP
EPS. Net income per ADS for the
first quarter of 2017 was RMB0.17 (US$0.02), compared to net loss
per ADS of RMB0.66 for the first quarter of 2016. Non-GAAP net
income per ADS for the first quarter of 2017 was RMB1.03 (US$0.15)
as compared to non-GAAP net loss per ADS of RMB0.15 in the first
quarter of 2016.
Segment Revenues
For the first quarter of 2017, net revenues of
the reported segments were as follows:
| |
|
For the three months ended |
|
|
|
March 31, 2016 |
March 31, 2017 |
March 31, 2017 |
|
|
|
RMB |
RMB |
USD |
|
|
|
(In thousands) |
| Net
revenues: |
|
|
|
|
|
JD Mall8 |
|
53,820,060 |
|
75,079,876 |
|
10,907,699 |
|
|
New Businesses8 |
|
725,726 |
|
1,932,126 |
|
280,702 |
|
|
Inter-segment9 |
|
(576,123 |
) |
(786,342 |
) |
(114,241 |
) |
| Total
consolidated net revenues |
|
53,969,663 |
|
76,225,660 |
|
11,074,160 |
|
Cash Flow and Working Capital
As of March 31, 2017, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB35.0 billion (US$5.1 billion). For the first quarter of
2017, free cash flow of the company was as follows:
| |
|
For the three months ended |
|
|
|
March 31, 2016 |
March 31, 2017 |
March 31, 2017 |
|
|
|
RMB |
RMB |
USD |
|
|
|
(In thousands) |
| Net
cash provided by operating activities |
|
2,972,670 |
|
4,388,593 |
|
637,580 |
|
| Add:
JD Finance net originations included in operating cash
flow |
|
983,708 |
|
427,338 |
|
62,084 |
|
| Less:
Capital expenditures |
|
(1,042,011 |
) |
(672,888 |
) |
(97,758 |
) |
| Free
cash flow in |
|
2,914,367 |
|
4,143,043 |
|
601,906 |
|
Net cash used in investing activities was RMB8.5
billion (US$1.2 billion) for the first quarter of 2017, consisting
primarily of increases in investment in equity investees and
investment securities of RMB1.8 billion, cash paid for capital
expenditures of RMB0.7 billion, and increases in loan receivables
and other investments of RMB6.3 billion.
Net cash provided by financing activities was
RMB8.0 billion (US$1.2 billion) for the first quarter of 2017,
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.”
Second Quarter 2017
Guidance
Net revenues for the second quarter of 2017 are
expected to be between RMB88.0 billion and RMB90.5 billion,
representing a growth rate between 35% and 39% compared with the
second quarter of 2016. Net revenues excluding JD Finance for the
second quarter of 2017 are expected to be between RMB86.6 billion
and RMB89.1 billion, representing a growth rate between 33% and 37%
compared with the second 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 May 8, 2017 (7:30 pm Beijing/Hong Kong
Time on May 8, 2017) to discuss the first quarter 2017 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: |
11070259 |
A replay of the conference call may be accessed
by phone at the following numbers until May 16, 2017:
| US Toll
Free: |
+1-855-452-5696 or +1-646-254-3697 |
|
International |
+61-2-8199-0299 |
|
Passcode: |
11070259 |
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 the largest e-commerce company in
China and the largest Chinese retailer, both in terms of 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 March 31, 2017, JD.com operated 7 fulfillment centers
and 263 warehouses covering 2,672 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
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 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 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 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 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 readers. The conversion of Renminbi (RMB) into
US$ in this press release is based on the exchange rate set forth
in the H.10 statistical release of the Board of Governors of the
Federal Reserve System as of March 31, 2017, which was RMB6.8832 to
US$1.00. The percentages stated in this press release are
calculated based on the RMB amounts.
2 The company anticipates the JD Finance
reorganization may potentially be completed in the second quarter
of 2017. To assist investors in gaining a better understanding of
the trend of net revenues, the company discloses net revenues
excluding JD Finance, which represent the net revenues on a pro
forma basis as if the JD Finance reorganization had been closed at
the beginning of the periods presented.
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 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.
5 JD Finance net originations primarily
include “Jingbaobei,” “Jingxiaodai” and “JD Baitiao” that the
company provides to suppliers, merchants and consumers,
respectively.
6 Non-GAAP EBITDA is defined as non-GAAP
income/(loss) from operations plus depreciation and amortization
excluding amortization of intangible assets resulting from assets
and business acquisitions, and non-GAAP EBITDA margin is calculated
by dividing non-GAAP EBITDA by net revenues. See “Reconciliation of
GAAP and Non-GAAP Results” at the end of this press release.
7 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.
8 JD Mall represents the company’s
traditional e-commerce business. 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.
9 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 Interim Condensed Consolidated Balance
Sheets |
| (In thousands) |
| |
|
|
|
|
| |
|
As of |
| |
|
December 31,2016 |
March 31,2017 |
March 31,2017 |
| |
RMB |
RMB |
US$ |
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
19,771,695 |
23,624,192 |
3,432,152 |
|
Restricted cash |
|
4,391,955 |
6,218,778 |
903,472 |
|
Short-term investments |
|
7,173,626 |
5,193,544 |
754,525 |
|
Accounts receivable, net(1) (including JD Baitiao of RMB14.9
billion and RMB15.2 billion as of December 31, 2016 and
March 31, 2017, respectively) |
|
17,464,408 |
18,076,924 |
2,626,238 |
|
Advance to suppliers(1) |
|
1,423,736 |
1,559,075 |
226,504 |
|
Inventories, net |
|
28,909,438 |
26,860,550 |
3,902,335 |
|
Loan receivables, net(1) |
|
12,697,915 |
16,338,463 |
2,373,673 |
|
Investment securities and other investments |
|
11,490,369 |
16,052,384 |
2,332,111 |
|
Prepayments and other current assets |
|
2,198,906 |
2,618,458 |
380,413 |
|
Amount due from related parties(1) |
|
1,410,050 |
1,220,320 |
177,290 |
|
Total current assets |
|
106,932,098 |
117,762,688 |
17,108,713 |
|
Non-current assets |
|
|
|
|
|
Property, equipment and software, net |
|
7,397,029 |
7,319,199 |
1,063,342 |
|
Construction in progress |
|
1,992,123 |
2,187,932 |
317,866 |
|
Intangible assets, net |
|
8,454,297 |
8,007,623 |
1,163,358 |
|
Land use rights, net |
|
2,447,511 |
2,473,900 |
359,411 |
|
Goodwill |
|
6,541,668 |
6,541,668 |
950,382 |
|
Investment in equity investees |
|
15,235,020 |
15,499,685 |
2,251,814 |
|
Investment securities and other investments |
|
8,058,057 |
6,954,197 |
1,010,314 |
|
Other non-current assets(1) |
|
3,315,715 |
3,991,492 |
579,889 |
|
Total non-current assets |
|
53,441,420 |
52,975,696 |
7,696,376 |
|
Total assets |
|
160,373,518 |
170,738,384 |
24,805,089 |
|
|
|
|
|
|
| JD.com, Inc. |
| Unaudited Interim Condensed Consolidated Balance
Sheets |
| (In thousands) |
| |
|
|
|
|
| |
|
As of |
| |
|
December 31,
2016 |
March 31, 2017 |
March 31, 2017 |
| |
RMB |
RMB |
US$ |
|
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Short-term borrowings |
|
8,333,317 |
|
12,380,081 |
|
1,798,594 |
|
|
Nonrecourse securitization debt |
|
9,389,213 |
|
7,863,853 |
|
1,142,471 |
|
| Accounts
payable(1) (net of supplier financing of RMB7.0 billion and RMB6.9
billion as of December 31, 2016 and March 31, 2017,
respectively) |
|
43,988,087 |
|
43,747,397 |
|
6,355,677 |
|
|
Advances from customers |
|
11,632,766 |
|
12,364,852 |
|
1,796,381 |
|
|
Deferred revenues |
|
1,221,865 |
|
1,394,750 |
|
202,631 |
|
|
Taxes payable |
|
575,848 |
|
509,657 |
|
74,044 |
|
|
Amount due to related parties |
|
167,655 |
|
147,875 |
|
21,483 |
|
|
Accrued expenses and other current liabilities |
|
29,431,484 |
|
32,561,051 |
|
4,730,511 |
|
|
Total current liabilities |
|
104,740,235 |
|
110,969,516 |
|
16,121,792 |
|
|
Non-current liabilities |
|
|
|
|
|
Deferred revenues |
|
2,156,835 |
|
1,931,652 |
|
280,633 |
|
|
Nonrecourse securitization debt |
|
4,077,627 |
|
6,660,250 |
|
967,610 |
|
|
Unsecured senior notes |
|
6,831,012 |
|
6,797,264 |
|
987,515 |
|
|
Deferred tax liabilities |
|
907,356 |
|
891,823 |
|
129,565 |
|
|
Other non-current liabilities |
|
440,670 |
|
417,731 |
|
60,688 |
|
|
Total non-current liabilities |
|
14,413,500 |
|
16,698,720 |
|
2,426,011 |
|
|
Total liabilities |
|
119,153,735 |
|
127,668,236 |
|
18,547,803 |
|
| |
|
|
|
|
|
Redeemable non-controlling interests |
|
7,056,921 |
|
7,196,059 |
|
1,045,453 |
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
| Ordinary
shares (US$0.00002 par value, 100,000,000 shares authorized,
2,938,709 shares issued and 2,838,850 shares outstanding as of
March 31, 2017) |
|
377 |
|
377 |
|
55 |
|
|
Additional paid-in capital |
|
59,258,417 |
|
60,428,627 |
|
8,779,147 |
|
|
Statutory reserves |
|
132,938 |
|
132,938 |
|
19,313 |
|
|
Treasury stock |
|
(5,181,880 |
) |
(5,100,198 |
) |
(740,963 |
) |
|
Accumulated deficit |
|
(21,860,345 |
) |
(21,482,144 |
) |
(3,120,953 |
) |
|
Accumulated other comprehensive income |
|
1,543,393 |
|
1,635,780 |
|
237,648 |
|
| Total
JD.com Inc. shareholders’ equity |
|
33,892,900 |
|
35,615,380 |
|
5,174,247 |
|
|
Non-controlling interests |
|
269,962 |
|
258,709 |
|
37,586 |
|
|
Total shareholders’ equity |
|
34,162,862 |
|
35,874,089 |
|
5,211,833 |
|
|
Total liabilities, redeemable
non-controlling interests and shareholders’
equity |
|
160,373,518 |
|
170,738,384 |
|
24,805,089 |
|
|
|
|
|
|
|
|
|
|
(1) As of March 31, 2017 and December 31, 2016,
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 RMB14.6 billion (US$2.1 billion) and RMB0.6 billion
(US$0.1 billion), respectively, as of March 31, 2017 and RMB14.3
billion and RMB0.6 billion, respectively, as of December 31, 2016
were included in the accounts receivable.
The balances of supply chain financing of RMB1.3
billion (US$0.2 billion) as of March 31, 2017 and RMB1.2 billion as
of December 31, 2016 were included in advance to suppliers.
The balances of consumer financing and supply
chain financing provided in the marketplace business of RMB12.2
billion (US$1.8 billion) and RMB4.2 billion (US$0.6 billion),
respectively, as of March 31, 2017 and RMB9.3 billion and RMB3.4
billion, respectively, as of December 31, 2016 were included in
loan receivables.
The balances of business financing of RMB0.1
billion (US$0.02 billion) as of March 31, 2017 and RMB0.1 billion
as of December 31, 2016 were included amounts due from related
parties.
The balances of consumer financing of RMB2.3
billion (US$0.3 billion) as of March 31, 2017 and RMB1.7 billion as
of December 31, 2016 were included in other non-current assets.
The balances of supply chain financing of RMB6.9
billion (US$1.0 billion) as of March 31, 2017 and RMB7.0 billion as
of December 31, 2016 were net off in the accounts payable.
| |
|
| JD.com, Inc. |
|
| Unaudited Interim Condensed Consolidated Statements of
Operations and Non-GAAP Net Income/(Loss) Per ADS |
|
| (In thousands, except per share data) |
|
| |
|
|
|
|
For the three months ended |
|
| |
|
March 31,2016 |
March 31,2017 |
March 31,2017 |
|
|
|
RMB |
RMB |
US$ |
|
|
Net revenues |
|
|
|
|
|
| Online
direct sales |
|
49,975,605 |
|
69,749,089 |
|
10,133,236 |
|
|
| Services
and others |
|
3,994,058 |
|
6,476,571 |
|
940,924 |
|
|
|
Total net revenues |
|
53,969,663 |
|
76,225,660 |
|
11,074,160 |
|
|
|
|
|
|
|
|
|
|
Operating expenses(2)(3) |
|
|
|
|
|
| Cost of
revenues |
|
(46,212,860 |
) |
(63,989,962 |
) |
(9,296,543 |
) |
|
|
Fulfillment |
|
(4,504,126 |
) |
(5,852,594 |
) |
(850,272 |
) |
|
|
Marketing |
|
(2,116,270 |
) |
(2,709,000 |
) |
(393,567 |
) |
|
|
Technology and content |
|
(1,111,318 |
) |
(1,556,752 |
) |
(226,167 |
) |
|
| General
and administrative |
|
(889,955 |
) |
(1,274,254 |
) |
(185,125 |
) |
|
|
Total operating expenses |
|
(54,834,529 |
) |
(75,382,562 |
) |
(10,951,674 |
) |
|
|
Income/(loss)
from operations |
|
(864,866 |
) |
843,098 |
|
122,486 |
|
|
|
Other income/(expenses) |
|
|
|
|
|
| Share of
results of equity investees |
|
(164,011 |
) |
(520,683 |
) |
(75,645 |
) |
|
| Interest
income |
|
66,553 |
|
108,301 |
|
15,734 |
|
|
| Interest
expense |
|
(33,467 |
) |
(66,268 |
) |
(9,627 |
) |
|
| Others,
net |
|
148,239 |
|
83,840 |
|
12,180 |
|
|
|
Income/(loss)
before tax |
|
(847,552 |
) |
448,288 |
|
65,128 |
|
|
| Income
tax expenses |
|
(19,700 |
) |
(92,592 |
) |
(13,452 |
) |
|
|
Net income/(loss) |
|
(867,252 |
) |
355,696 |
|
51,676 |
|
|
| Net loss
attributable to non-controlling interests shareholders |
|
(635 |
) |
(22,505 |
) |
(3,270 |
) |
|
| Net
income attributable to mezzanine classified non-controlling
interests shareholders |
|
43,175 |
|
139,139 |
|
20,214 |
|
|
|
Net
income/(loss)
attributable to ordinary
shareholders |
|
(909,792 |
) |
239,062 |
|
34,732 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income/(loss) |
|
(206,029 |
) |
1,437,475 |
|
208,839 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income/(loss)
attributable to ordinary
shareholders |
|
(205,394 |
) |
1,459,980 |
|
212,109 |
|
|
| |
|
| JD.com, Inc. |
| Unaudited Interim Condensed Consolidated Statements of
Operationsand Non-GAAP Net Income/(Loss) Per ADS |
| (In thousands, except per share data) |
|
|
|
|
|
|
|
|
For the three months ended |
|
| |
|
March 31,2016 |
March 31,2017 |
March 31,2017 |
|
|
|
RMB |
RMB |
US$ |
|
|
Net
income/(loss)
per share: |
|
|
|
|
|
|
Basic |
|
(0.33 |
) |
0.08 |
|
0.01 |
|
|
|
Diluted |
|
(0.33 |
) |
0.08 |
|
0.01 |
|
|
|
Net
income/(loss)
per ADS: |
|
|
|
|
|
|
Basic |
|
(0.66 |
) |
0.17 |
|
0.02 |
|
|
|
Diluted |
|
(0.66 |
) |
0.17 |
|
0.02 |
|
|
|
Non-GAAP net income/(loss)
per ADS(4): |
|
|
|
|
|
|
Basic |
|
(0.15 |
) |
1.03 |
|
0.15 |
|
|
|
Diluted |
|
(0.15 |
) |
1.01 |
|
0.15 |
|
|
| Weighted average number of
shares: |
|
|
|
Basic |
|
2,742,495 |
|
2,837,203 |
|
2,837,203 |
|
|
|
Diluted |
|
2,742,495 |
|
2,887,564 |
|
2,887,564 |
|
|
|
|
|
|
|
|
|
| (2) Includes share-based compensation expenses as follows: |
|
|
Fulfillment |
|
(57,567 |
) |
(92,776 |
) |
(13,479 |
) |
|
|
Marketing |
|
(15,523 |
) |
(24,208 |
) |
(3,517 |
) |
|
|
Technology and content |
|
(88,106 |
) |
(142,811 |
) |
(20,748 |
) |
|
| General
and administrative |
|
(265,284 |
) |
(353,299 |
) |
(51,328 |
) |
|
|
|
|
|
|
|
|
| (3) Includes amortization of intangible assets resulting from
assets and business acquisitions as follows: |
|
|
Fulfillment |
|
(4,764 |
) |
(44,694 |
) |
(6,493 |
) |
|
|
Marketing |
|
(302,932 |
) |
(301,101 |
) |
(43,744 |
) |
|
|
Technology and content |
|
(503 |
) |
(20,661 |
) |
(3,002 |
) |
|
| General
and administrative |
|
(44,951 |
) |
(76,326 |
) |
(11,089 |
) |
|
| |
|
| (4) Non-GAAP basic net income/(loss) per share is
calculated by dividing non-GAAP net income/(loss) attributable to
ordinary shareholders by the weighted average number of ordinary
shares outstanding during the periods. Non-GAAP diluted net
income/(loss) per share is calculated by dividing non-GAAP net
income/(loss) attributable to ordinary shareholders by the weighted
average number of ordinary shares and dilutive potential ordinary
shares outstanding during the periods, including the dilutive
effect of share-based awards as determined under the treasury stock
method. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net
income/(loss) per share multiplied by two. |
| JD.com, Inc. |
| Unaudited Interim Condensed Consolidated Statements of
Cash Flows |
| (In thousands) |
| |
|
|
|
|
For the three months ended |
|
|
|
March 31,2016 |
March 31,2017 |
March 31,2017 |
|
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
| Net cash
provided by operating activities |
|
2,972,670 |
|
4,388,593 |
|
637,580 |
|
| Net cash
used in investing activities |
|
(1,487,502 |
) |
(8,488,834 |
) |
(1,233,268 |
) |
| Net cash
provided by financing activities |
|
11,761,705 |
|
7,989,359 |
|
1,160,704 |
|
| Effect of
exchange rate changes on cash and cash equivalents |
|
(55,747 |
) |
(36,621 |
) |
(5,321 |
) |
| Net
increase in cash and cash equivalents |
|
13,191,126 |
|
3,852,497 |
|
559,695 |
|
| Cash and
cash equivalents at beginning of period |
|
17,863,868 |
|
19,771,695 |
|
2,872,457 |
|
| Cash and
cash equivalents at end of period |
|
31,054,994 |
|
23,624,192 |
|
3,432,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash
provided by operating activities |
|
2,972,670 |
|
4,388,593 |
|
637,580 |
|
| Add: JD
Finance net originations included in operating cash flow |
|
983,708 |
|
427,338 |
|
62,084 |
|
| Less:
Capital expenditures |
|
(1,042,011 |
) |
(672,888 |
) |
(97,758 |
) |
| Free cash
flow in |
|
2,914,367 |
|
4,143,043 |
|
601,906 |
|
As the 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 since the second quarter of 2016,
cash flows resulted from loan receivables have been reclassified
from operating activities in cash flows to investing activities in
cash flows. Cash flows resulted from loan receivables of RMB0.6
billion for the first quarter of 2016 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 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
|
|
|
|
|
|
|
|
| Free cash
flow - trailing twelve months (“TTM”) (in RMB billions) |
|
7.7 |
11.0 |
16.7 |
15.6 |
16.8 |
| Inventory
turnover(5) – TTM |
|
37.3 |
38.5 |
37.7 |
38.0 |
37.1 |
| Accounts
payable turnover(6) – TTM |
|
46.3 |
49.8 |
52.1 |
52.6 |
52.7 |
| Accounts
receivable turnover(7) – TTM |
|
3.1 |
3.1 |
3.3 |
3.3 |
3.5 |
| GMV(8)
(in RMB billions) |
|
129.3 |
160.4 |
158.8 |
209.7 |
184.1 |
| Orders
fulfilled(9) (in millions) |
|
342.1 |
418.9 |
456.2 |
558.2 |
477.1 |
| Annual
active customer accounts(10) (in millions) |
|
169.1 |
188.1 |
198.7 |
226.6 |
236.5 |
|
|
|
|
|
|
|
|
(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) GMV is defined as the total value of all
orders for products and services placed in the company’s online
direct sales business and on the company’s online marketplaces,
regardless of whether the goods are sold or delivered or whether
the goods are returned. GMV includes the value from orders placed
on the company’s websites and mobile applications as well as orders
placed on third-party mobile applications that are fulfilled by the
company or third-party merchants. The company’s calculation of GMV
includes shipping charges paid by buyers to sellers and excludes
any transactions in the company’s B2C business with order value
exceeding 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 first quarter of 2017 would have been RMB253.2
billion.
(9) Orders fulfilled are defined as the total
number of orders delivered, including the orders for products and
services sold in the company’s online direct sales business and on
the company’s online marketplaces, net of orders returned.
(10) Annual active customer accounts are
customer accounts that made at least one purchase during the twelve
months ended on the respective dates, whether through online direct
sales or online marketplaces.
| |
| JD.com, Inc. |
| Reconciliation of GAAP and Non-GAAP Results |
| (In thousands, except percentage data) |
| |
|
|
|
For the three months ended |
|
|
|
March 31,2016 |
March 31, 2017 |
March 31, 2017 |
|
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Income/(loss) from operations |
|
(864,866 |
) |
843,098 |
|
122,486 |
|
| Reversal
of: Revenue from business cooperation arrangements with equity
investees |
|
(210,462 |
) |
(232,389 |
) |
(33,762 |
) |
| Add:
Share-based compensation |
|
426,480 |
|
613,094 |
|
89,072 |
|
| Add:
Amortization of intangible assets resulting from assets and
business acquisitions |
|
353,150 |
|
442,782 |
|
64,328 |
|
|
Non-GAAP income/(loss) from operations |
|
(295,698 |
) |
1,666,585 |
|
242,124 |
|
| Add:
Depreciation and amortization excluding amortization of intangible
assets resulting from assets and business acquisitions |
|
420,333 |
|
552,746 |
|
80,304 |
|
|
Non-GAAP EBITDA |
|
124,635 |
|
2,219,331 |
|
322,428 |
|
|
|
|
|
|
|
| Total net
revenues |
|
53,969,663 |
|
76,225,660 |
|
11,074,160 |
|
|
|
|
|
|
|
|
Non-GAAP operating margin |
|
-0.5 |
% |
2.2 |
% |
2.2 |
% |
|
|
|
|
|
|
|
Non-GAAP EBITDA margin |
|
0.2 |
% |
2.9 |
% |
2.9 |
% |
| JD.com, Inc. |
| Reconciliation of GAAP and Non-GAAP Results |
| (In thousands, except percentage data) |
| |
|
|
|
|
For the three months ended |
|
|
|
March 31,2016 |
March 31,2017 |
March 31,2017 |
|
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
| Net
income/(loss) |
|
(867,252 |
) |
355,696 |
|
51,676 |
|
| Add:
Share-based compensation |
|
426,480 |
|
613,094 |
|
89,072 |
|
| Add:
Amortization of intangible assets resulting from assets and
business acquisitions |
|
353,150 |
|
442,782 |
|
64,328 |
|
| Add:
Reconciling items on the share of equity method
investments(11) |
|
92,055 |
|
222,283 |
|
32,294 |
|
| Add:
Impairment of goodwill, intangible assets, and investments |
|
- |
|
56,514 |
|
8,210 |
|
| Reversal
of: Revenue from business cooperation arrangements with equity
investees |
|
(210,462 |
) |
(232,389 |
) |
(33,762 |
) |
| Reversal
of: Income from non-compete agreement |
|
- |
|
(20,505 |
) |
(2,979 |
) |
|
Non-GAAP net income/(loss) |
|
(206,029 |
) |
1,437,475 |
|
208,839 |
|
|
|
|
|
|
|
| Total net
revenues |
|
53,969,663 |
|
76,225,660 |
|
11,074,160 |
|
|
|
|
|
|
|
|
Non-GAAP net margin |
|
-0.4 |
% |
1.9 |
% |
1.9 |
% |
|
|
|
|
|
|
| Net
income/(loss) attributable to ordinary shareholders |
|
(909,792 |
) |
239,062 |
|
34,732 |
|
| Add:
Non-GAAP adjustments to net income/(loss)(12) |
|
661,223 |
|
1,081,779 |
|
157,163 |
|
| Add: Net
income attributable to mezzanine classified non-controlling
interests shareholders |
|
43,175 |
|
139,139 |
|
20,214 |
|
|
Non-GAAP net income/(loss)
attributable to ordinary
shareholders |
|
(205,394 |
) |
1,459,980 |
|
212,109 |
|
|
|
|
|
|
|
| (11) For the first quarter of 2017, the reconciling
items on the share of equity method investments included the impact
of share-based compensation of RMB18.7 million, amortization of
intangible assets resulting from assets and business acquisitions
of RMB88.3 million, share of amortization of equity investments’
intangibles not on their books of RMB23.1 million, and net income
attributable to mezzanine equity holder of RMB92.2 million. Earning
from equity method investments in publicly listed companies and
certain privately held companies is recorded one quarter in
arrears. |
| |
| (12) See the table above about the reconciliation of
net income/(loss) to non-GAAP net income/(loss) for more
information of these non-GAAP adjustments. |
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