JD.com, Inc. (NASDAQ: JD), China’s leading technology driven
e-commerce company and retail infrastructure service provider,
today announced its unaudited financial results for the quarter
ended March 31, 2019.
First Quarter 2019
Highlights
- Net revenues for the first quarter of 2019
were RMB121.1 billion (US$118.0 billion), an increase of 20.9% from
the first quarter of 2018. Net service revenues for the first
quarter of 2019 were RMB12.4 billion (US$1.9 billion), an increase
of 44.0% from the first quarter of 2018.
- Income from operations for the first quarter
of 2019 was RMB1.2 billion (US$0.2 billion), compared to RMB4.4
million for the same period last year. Non-GAAP income from
operations2 for the first quarter of 2019 was RMB2.0 billion
(US$0.3 billion) with a non-GAAP operating margin of 1.6%, as
compared to non-GAAP income from operations of RMB0.8 billion in
the first quarter of 2018 with a non-GAAP operating margin of 0.8%.
Operating margin of JD Retail (formerly known as
JD Mall) before unallocated items3 for the first quarter of 2019
increased by 0.6 percentage point compared to the same period last
year.
- Net income attributable to ordinary
shareholders for the first quarter of 2019 was RMB7.3
billion (US$1.1 billion), compared to RMB1.5 billion for the same
period last year. Non-GAAP net income
attributable to ordinary shareholders4 increased
by 215% to RMB3.3 billion (US$0.5 billion) in the first quarter of
2019 from RMB1.0 billion in the first quarter of 2018.
- Diluted EPS and Non-GAAP Diluted EPS. Diluted
net income per ADS for the first quarter of 2019 was RMB4.96
(US$0.74), compared to RMB1.04 for the first quarter of 2018.
Non-GAAP diluted net income per ADS for the first quarter of 2019
was RMB2.23 (US$0.33), compared to RMB0.71 for the same quarter
last year.
- Annual active customer accounts5 increased to
310.5 million in the twelve months ended March 31, 2019 from 305.3
million in the twelve months ended December 31, 2018. Quarterly
active customer accounts in the first quarter of 2019 increased by
15% as compared to the same period in 2018.
“JD.com’s focus on delivering the best and most
trusted online retail experience to customers throughout China
drove another strong performance for the first quarter,” said
Richard Liu, Chairman and CEO of JD.com. “We will continue to
invest in key technologies and top industry talent as we work to
reach an even broader customer base through cutting edge
innovation. With our growing scale and increasingly efficient
operations, JD.com remains well positioned to deliver strong
shareholder value for the long term.”
“The first quarter saw solid top line growth
with record breaking profitability, further demonstrating the
superiority of JD.com’s business model as compared to traditional
retail formats,” said Sidney Huang, Chief Financial Officer of
JD.com. “JD’s commitment to providing the best value to consumers
while increasing economies of scale over time was again reflected
in the improving margins in our core JD Retail business. We
will remain focused on customer experience and technology
innovation to support our long-term profitable growth.”
Business Highlights
- In the first quarter, JD.com continued to attract premium
international brands to its e-commerce platform. AEG, a renowned
German manufacturer of design-focused premium home appliances,
signed a strategic partnership with JD and debuted certain of its
high-tech products exclusively on JD. Brands which launched
flagship stores on JD recently include Swiss independent luxury
watch brands ORIS, Tissot and TITONI, Italian fashion house
MOSCHINO and popular New Zealand fresh food brands, Rockit and
Zespri, among others.
- In March, JD and Michelin China signed a strategic cooperation
agreement, and JD became the first direct-supply e-commerce
platform for Michelin in China. Consumers who buy Michelin tires on
JD will be given priority to choose Michelin’s high-end service
networks such as TYREPLUS to enjoy premium installation
service.
- During the first quarter, JD.com continued its commitment to
enhancing its Environmental, Social and Governance (ESG) program.
In January, JD issued a corporate social responsibility report,
highlighting its commitment to global sustainability and dedication
to giving back to the community. In March, JD again partnered with
the World Wide Fund for Nature (WWF) in support of the Earth Hour
global campaign, launching a range of sustainability initiatives
across its business, including enhancements to its Green Stream
Initiative, giving customers in seven cities including Beijing,
Shanghai and Guangzhou, the option to select reusable packaging for
an expanded range of products when placing orders.
- In the first quarter, JD Logistics launched China’s first
rotating package handling system designed for frozen storage at its
Wuhan Asia No.1 warehouse. Featuring mobile shelves which convey
frozen products to staff in a separate area, the system alleviates
the need for frequent trips to the freezer area and significantly
enhances working conditions and efficiency as compared to
traditional approaches. In March, JD Logistics also launched its
self-developed visual recognition batch scanning system at its
Wuhan Asia No.1 warehouse, greatly improving efficiency and
accuracy at the warehouse’s receiving station.
- In January, JD Logistics became the exclusive logistics service
provider for China CITIC Bank, responsible for delivering bonus
gifts to bank customers as they redeem reward points online. JD’s
parcel delivery service has continued to experience rapid growth
since its official launch in October 2018, expanding its services
to fifty major cities across China to date.
- As of April 30, 2019, JD.com’s joint venture, Dada-JD Daojia,
had partnered with over 270 Walmart stores, over 700 Yonghui
stores, over 180 Carrefour stores and over 1,000 CR Vanguard
stores, among numerous other leading supermarket brands, to provide
customers with an integrated omnichannel shopping experience
through Dada’s crowd-sourcing delivery network. In addition, JD
Daojia helped over 300 offline partners digitalize their
operations, resulting in significant efficiency improvements.
Dada-JD Daojia is China’s leading on-demand logistics and
omnichannel e-commerce platform.
- During the first quarter, JD expanded its leadership position
in fulfillment capabilities among China’s e-commerce companies. As
of March 31, 2019, JD.com operated over 550 warehouses covering an
aggregate gross floor area of over 12 million square meters in
China.
- JD.com had over 220,000 merchants on its online marketplace,
and over 179,000 full-time employees as of March 31, 2019.
First Quarter 2019 Financial
Results
Net Revenues. For the
first quarter of 2019, JD.com reported net revenues of RMB121.1
billion (US$18.0 billion), representing a 20.9% increase from the
same period in 2018. Net product revenues increased by 18.7%, while
net service revenues increased by 44.0% in the first quarter of
2019, as compared to the first quarter of 2018.
Cost of
Revenues. Cost of
revenues increased by 19.7% to RMB102.9 billion (US$15.3 billion)
in the first quarter of 2019 from RMB86.0 billion in the first
quarter of 2018. This increase was primarily due to the growth of
the company’s online direct sales business and costs related to the
logistics services provided to merchants and other partners.
Fulfillment
Expenses. Fulfillment expenses, which
primarily include procurement, warehousing, delivery, customer
service and payment processing expenses, increased by 12.4% to
RMB8.1 billion (US$1.2 billion) in the first quarter of 2019 from
RMB7.2 billion in the first quarter of 2018. Fulfillment expenses
as a percentage of net revenues decreased to 6.7% in the first
quarter of 2019, compared to 7.2% in the same period last year,
mainly due to economies of scale from enhanced logistics capacity
utilization and staff productivity.
Marketing
Expenses. Marketing expenses
increased by 12.9% to RMB3.9 billion (US$0.6 billion) in the first
quarter of 2019 from RMB3.5 billion in the first quarter of
2018.
Technology and Content
Expenses. Technology and content
expenses increased by 54.0% to RMB3.7 billion (US$0.6 billion) in
the first quarter of 2019 from RMB2.4 billion in the first quarter
of 2018 as a result of the company’s continued investment in top
R&D talent and technology infrastructure.
General and Administrative
Expenses. General and
administrative expenses increased by 22.8% to RMB1.3 billion
(US$0.2 billion) in the first quarter of 2019 from RMB1.1 billion
in the first quarter of 2018.
Income from operations and Non-GAAP
income from operations. Income from operations for
the first quarter of 2019 was RMB1.2 billion (US$0.2 billion),
compared to RMB4.4 million for the same period last year. Non-GAAP
income from operations for the first quarter of 2019 was RMB2.0
billion (US$0.3 billion) with a non-GAAP operating margin of 1.6%,
as compared to non-GAAP income from operations of RMB0.8 billion in
the first quarter of 2018 with a non-GAAP operating margin of 0.8%.
Operating margin of JD Retail before unallocated items for the
first quarter of 2019 increased by 0.6 percentage point compared to
the first quarter of 2018.
Non-GAAP EBITDA6 for the first
quarter of 2019 was RMB3.2 billion (US$0.5 billion) with a non-GAAP
EBITDA margin of 2.6%, as compared to RMB1.6 billion with a
non-GAAP EBITDA margin of 1.6% for the first quarter of 2018.
Others, net. Others, net
for the first quarter of 2019 was an income of RMB6.9 billion
(US$1.0 billion), compared with an income of RMB1.8 billion in the
first quarter of 2018. The substantial increase was primarily due
to the increase of the fair value change of long-term investments
of RMB4.1 billion (US$0.6 billion) compared with same period of
last year.
Net income attributable
to ordinary shareholders and Non-GAAP net
income attributable to ordinary
shareholders. Net income
attributable to ordinary shareholders for the first quarter of 2019
was RMB7.3 billion (US$1.1 billion), compared to RMB1.5 billion for
the same period last year. Non-GAAP net income attributable to
ordinary shareholders for the first quarter of 2019 was RMB3.3
billion (US$0.5 billion), compared to RMB1.0 billion for the same
period last year.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for
the first quarter of 2019 was RMB4.96 (US$0.74), compared to
RMB1.04 for the first quarter of 2018. Non-GAAP diluted net income
per ADS for the first quarter of 2019 was RMB2.23 (US$0.33), as
compared to RMB0.71 for the first quarter of 2018.
Cash Flow and Working Capital
As of March 31, 2019, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB40.9 billion (US$6.1 billion), compared to RMB39.5
billion as of December 31, 2018. For the first quarter of 2019,
free cash flow of the company was as follows:
|
|
For the three months ended |
|
|
March 31,
2018 |
March 31,
2019 |
March 31,
2019 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
Net cash provided by/(used in) operating
activities |
|
(3,772,925 |
) |
3,323,251 |
|
495,180 |
|
Less: Impact from JD Baitiao receivables included in
the operating cash flow |
|
(1,279,454 |
) |
(2,161,118 |
) |
(322,017 |
) |
Less:
Capital expenditures |
|
|
|
|
Capital expenditures, net of disposals, related to development
projects available for sale* |
|
(1,185,711 |
) |
1,090,678 |
|
162,516 |
|
Other capital expenditures** |
|
(2,580,347 |
) |
(972,721 |
) |
(144,940 |
) |
Free cash
flow |
|
(8,818,437 |
) |
1,280,090 |
|
190,739 |
|
* Including logistics facilities and real estate
properties developed by the company’s property management group,
which may be disposed under various equity structures. ** Including
capital expenditures related to the company’s headquarters in
Beijing and all other CAPEX.
Net cash used in investing activities was RMB1.1
billion (US$0.2 billion) for the first quarter of 2019, consisting
primarily of increase in investments in equity investees, partially
offset by the decrease of loans to JD Digits. In addition, cash
paid for capital expenditures in the first quarter of 2019 was
RMB2.4 billion (US$0.4 billion), offset by the cash consideration
of RMB2.5 billion (US$0.4 billion) received for the disposals of
development projects, which mainly included cash received from JD
Logistics Properties Core Fund, L.P. (“JD LPC Fund”).
Net cash used in financing activities was RMB2.6
billion (US$0.4 billion) for the first quarter of 2019, consisting
primarily of repayment of nonrecourse securitization debt.
Supplemental Information
The table below sets forth the revenue
information for the first quarter of 2019:
|
|
For the three months ended |
|
|
March 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Electronics and home appliance revenues |
|
61,755,919 |
70,701,598 |
10,534,867 |
General merchandise revenues |
|
29,742,157 |
37,949,672 |
5,654,678 |
Net product revenues |
|
91,498,076 |
108,651,270 |
16,189,545 |
|
|
|
|
|
Marketplace and advertising revenues |
|
6,390,935 |
8,143,717 |
1,213,452 |
Logistics and other service revenues |
|
2,238,890 |
4,286,072 |
638,645 |
Net service revenues |
|
8,629,825 |
12,429,789 |
1,852,097 |
|
|
|
|
|
Total net revenues |
|
100,127,901 |
121,081,059 |
18,041,642 |
Recent Development
Strategic Cooperation with
Tencent
On May 10, 2019, the company renewed the
strategic cooperation agreement with Tencent, for a period of three
years starting from May 27, 2019. Tencent will continue to offer
the company prominent level 1 and level 2 access points on its
Weixin platform to provide traffic support, and the two parties
also intend to continue to cooperate in a number of areas including
communications, advertising and membership services, among others.
It is estimated that such traffic support, advertising spending and
other cooperation will amount to over US$800 million, which will be
paid or spent over the next three years. The company will issue to
Tencent a certain number of the company’s Class A ordinary shares
for a total consideration of over US$250 million at prevailing
market prices at certain pre-determined dates during the three-year
period. The Company expects to leverage the strategic partnership
with Tencent to enhance its customer experience, reach a larger
user base and further expand its presence on mobile commerce.
Financing for JD
Health
On May 9, 2019, the company entered into
definitive agreements for the non-redeemable series A preferred
share financing of its healthcare subsidiary, JD Health, with
investors including CPEChina Fund, CICC Capital, and Baring Private
Equity Asia, among others. The total amount expected to be raised
is over US$1 billion, representing over 14.5% of equity interest of
JD Health on a fully diluted basis, subject to closing conditions
including regulatory approval applicable to certain investors. The
company will remain the majority shareholder of JD Health after the
completion of the transaction. The new financing will enable JD
Health to further expand its core business, attract industry talent
and explore new initiatives in the broader healthcare sector.
Second Quarter 2019
Guidance
Net revenues for the second quarter of 2019 are
expected to be between RMB145 billion and RMB150 billion,
representing a growth rate between 19% and 23% compared with the
second quarter of 2018. 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 10, 2019, (7:30 pm, Beijing/Hong
Kong Time on May 10, 2019) to discuss the first quarter 2019
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: |
1743319 |
A telephone replay will be available from 10:30 am, Eastern Time
on May 10, 2019 through 09:59 am, Eastern Time on May 18, 2019. The
dial-in details are as follows:
US Toll Free: |
+1-855-452-5696 or +1-646-254-3697 |
International |
+61-2-8199-0299 |
Passcode: |
1743319 |
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.
JD.com is a leading technology driven e-commerce
company and retail infrastructure service provider in China. Its
cutting-edge retail infrastructure enables consumers to buy
whatever they want, whenever and wherever they want it. The company
has opened its technology and infrastructure to partners, brands
and other sectors, as part of its Retail as a Service offering to
help drive productivity and innovation across a range of
industries. JD.com is the largest retailer in China, 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) 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, gain/(loss) on disposals of
long-lived assets and impairment of goodwill and intangible assets.
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/(loss) on disposals/deemed disposals of
investments, income from non-compete agreement, reconciling items
on the share of equity method investments, fair value change of
long-term investments, impairment of goodwill, intangible assets
and investments, gain/(loss) on disposals of long-lived assets and
tax effects on non-GAAP adjustments. The company defines free cash
flow as operating cash flow adding back the impact from JD Digits
related credit products included in the operating cash flow and
less capital expenditures, net of proceeds from disposals of
long-lived assets. Capital expenditures include purchase of
property, equipment and software, cash paid for construction in
progress, purchase of 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) 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 Digits related credit products included in the operating
cash flow and the demands that the expansion of fulfillment
infrastructure and technology platform has placed on financial
resources. The company also believes that the use of the non-GAAP
financial measures facilitates investors to understand and evaluate
the company’s current operating performance and future prospects in
the same manner as management does, if they so choose. The company
also believes that the non-GAAP financial measures provide useful
information to both management and investors by excluding certain
expenses, gain/loss and other items that are not expected to result
in future cash payments or that are non-recurring in nature or may
not be indicative of the company's core operating results and
business outlook.
The non-GAAP financial measures have limitations
as analytical tools. The company’s non-GAAP financial measures do
not reflect all items of income and expense that affect the
company’s operations or not represent the residual cash flow
available for discretionary expenditures. Further, these non-GAAP
measures may differ from the non-GAAP information used by other
companies, including peer companies, and therefore their
comparability may be limited. The company compensates for these
limitations by reconciling the non-GAAP financial measures to the
nearest U.S. GAAP performance measure, all of which should be
considered when evaluating performance. The company encourages you
to review the company’s financial information in its entirety and
not rely on a single financial measure.
CONTACTS:
Investor RelationsRuiyu
LiSenior Director of Investor Relations+86 (10)
8912-6805IR@JD.com
Media+86 (10)
8911-6155Press@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 29,
2019, which was RMB6.7112 to US$1.00. The percentages stated in
this press release are calculated based on the RMB amounts.2
Non-GAAP income/(loss) from operations is defined to exclude
share-based compensation, amortization of intangible assets
resulting from acquisitions, and certain other non-cash gain or
loss items from income/(loss) from operations. Non-GAAP operating
margin is calculated by dividing non-GAAP income/(loss) from
operations by net revenues. See “Unaudited Reconciliation of GAAP
and Non-GAAP Results” at the end of this press release.3
Unallocated items are consistent with non-GAAP adjustments and
include revenue from business cooperation arrangements with equity
investees, share-based compensation, amortization of intangible
assets resulting from assets and business acquisitions, gain/(loss)
on disposals of long-lived assets, and impairment of goodwill and
intangible assets, which are not allocated to segments.4 Non-GAAP
net income/(loss) attributable to ordinary shareholders is defined
to exclude share-based compensation, amortization of intangible
assets resulting from acquisitions, gain/(loss) on disposals/deemed
disposals of investments, and certain other non-cash gain or loss
items from net income/(loss) attributable to ordinary shareholders.
See “Unaudited Reconciliation of GAAP and Non-GAAP Results” at the
end of this press release.5 Annual or quarterly active customer
accounts are customer accounts that made at least one purchase
during the twelve months ended on the respective dates or
respective quarters, whether through online direct sales or online
marketplaces.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 “Unaudited
Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
|
JD.com, Inc. |
Unaudited Interim
Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
|
|
As of |
|
|
December 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
34,262,445 |
34,053,757 |
5,074,168 |
Restricted cash |
|
3,239,613 |
2,588,340 |
385,675 |
Short-term investments |
|
2,035,575 |
4,221,321 |
628,996 |
Accounts receivable, net (including JD Baitiao of RMB3.2 billion
and RMB6.3 billion as of March 31, 2019 and December 31, 2018,
respectively)(1) |
|
11,109,988 |
8,315,613 |
1,239,065 |
Advance to suppliers |
|
477,109 |
406,268 |
60,536 |
Inventories, net |
|
44,030,084 |
38,235,962 |
5,697,336 |
Prepayments and other current assets |
|
6,564,700 |
4,709,323 |
701,711 |
Amount due from related parties |
|
3,136,265 |
2,306,293 |
343,648 |
Assets held for sale(2) |
|
- |
231,267 |
34,460 |
Total current assets |
|
104,855,779 |
95,068,144 |
14,165,595 |
Non-current assets |
|
|
|
|
Property, equipment and software, net |
|
21,082,838 |
18,998,332 |
2,830,840 |
Construction in progress |
|
6,553,712 |
5,769,652 |
859,705 |
Intangible assets, net |
|
5,011,706 |
4,560,458 |
679,529 |
Land use rights, net |
|
10,475,658 |
10,043,474 |
1,496,524 |
Operating lease right-of-use assets(3) |
|
- |
6,927,864 |
1,032,284 |
Goodwill |
|
6,643,669 |
6,643,669 |
989,938 |
Investment in equity investees |
|
31,356,616 |
32,043,255 |
4,774,594 |
Investment securities |
|
15,901,573 |
21,014,225 |
3,131,217 |
Deferred tax assets |
|
103,158 |
103,158 |
15,371 |
Other non-current assets (including JD Baitiao of RMB0.6 billion
and RMB0.2 billion as of March 31, 2019 and December 31, 2018,
respectively)(1) |
|
5,283,948 |
5,190,986 |
773,481 |
Amount due from related parties |
|
1,896,200 |
821,266 |
122,372 |
Assets held for sale(2) |
|
- |
7,144,475 |
1,064,560 |
Total non-current assets |
|
104,309,078 |
119,260,814 |
17,770,415 |
Total assets |
|
209,164,857 |
214,328,958 |
31,936,010 |
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
|
|
As of |
|
|
December 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Short-term borrowings |
|
147,264 |
934,670 |
139,270 |
Nonrecourse securitization debt(1) |
|
4,397,670 |
934,917 |
139,307 |
Accounts payable |
|
79,985,018 |
71,369,452 |
10,634,380 |
Advances from customers |
|
13,017,603 |
13,710,517 |
2,042,931 |
Deferred revenues |
|
1,980,489 |
1,909,037 |
284,455 |
Taxes payable |
|
825,677 |
910,600 |
135,684 |
Amount due to related parties |
|
215,614 |
151,476 |
22,571 |
Accrued expenses and other current liabilities |
|
20,292,680 |
21,969,468 |
3,273,553 |
Operating lease liabilities(3) |
|
- |
2,674,342 |
398,489 |
Liabilities held for sale(2) |
|
- |
378,689 |
56,426 |
Total current liabilities |
|
120,862,015 |
114,943,168 |
17,127,066 |
Non-current liabilities |
|
|
|
|
Deferred revenues |
|
463,153 |
374,814 |
55,849 |
Unsecured senior notes |
|
6,786,143 |
6,661,448 |
992,587 |
Deferred tax liabilities |
|
828,473 |
996,329 |
148,458 |
Long-term borrowings |
|
3,088,440 |
3,030,075 |
451,495 |
Operating lease liabilities(3) |
|
- |
4,328,958 |
645,035 |
Other non-current liabilities |
|
308,489 |
282,289 |
42,062 |
Total non-current liabilities |
|
11,474,698 |
15,673,913 |
2,335,486 |
Total liabilities |
|
132,336,713 |
130,617,081 |
19,462,552 |
(1) JD
Digits performs credit risk assessment services for JD Baitiao
business and absorbs the credit risk of the underlying Baitiao
receivables. Due to the company’s continuing involvement in the
asset-backed securitization(“ABS”)arrangements prior to October
2017, the company was not able to derecognize the related Baitiao
receivables upon issuance of ABS. Beginning from October 2017, the
company revised certain structural arrangements for the new
issuance of ABS plans, and derecognized the related Baitiao
receivables. |
(2) As of
March 31, 2019, the company entered into definitive agreements to
transfer certain logistic facilities and real estate properties to
JD LPC fund and other investors, and classified the related assets
and liabilities as assets and liabilities held for sale under ASC
360, which included cash of RMB101.1 million. |
(3) On
January 1, 2019, the company adopted ASC 842, the new lease
standard, using the optional transition method. |
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
As of |
|
|
December 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Redeemable non-controlling
interests |
|
15,961,284 |
15,962,032 |
2,378,417 |
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000,000 shares authorized, 2,965,816 shares issued and
2,895,048 shares outstanding as of March 31, 2019) |
|
59,770,973 |
66,626,812 |
9,927,704 |
Non-controlling interests |
|
1,095,887 |
1,123,033 |
167,337 |
Total shareholders’ equity |
|
60,866,860 |
67,749,845 |
10,095,041 |
Total liabilities, redeemable
non-controlling interests and shareholders’
equity |
|
209,164,857 |
214,328,958 |
31,936,010 |
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
March 31,2018 |
|
March 31,2019 |
|
March 31,2019 |
|
|
|
RMB |
|
RMB |
|
US$ |
|
Net
revenues |
|
|
|
|
|
|
|
Net product revenues |
|
91,498,076 |
|
108,651,270 |
|
16,189,545 |
|
Net service revenues |
|
8,629,825 |
|
12,429,789 |
|
1,852,097 |
|
Total net
revenues |
|
100,127,901 |
|
121,081,059 |
|
18,041,642 |
|
Operating
expenses(5)(6) |
|
|
|
|
|
|
|
Cost of revenues |
|
(85,969,599 |
) |
(102,897,352 |
) |
(15,332,184 |
) |
Fulfillment |
|
(7,173,399 |
) |
(8,063,332 |
) |
(1,201,474 |
) |
Marketing |
|
(3,491,419 |
) |
(3,940,399 |
) |
(587,138 |
) |
Technology and content |
|
(2,413,034 |
) |
(3,716,545 |
) |
(553,782 |
) |
General and administrative |
|
(1,076,019 |
) |
(1,321,075 |
) |
(196,846 |
) |
Gain on disposals of long-lived assets |
|
- |
|
83,218 |
|
12,400 |
|
Income from
operations |
|
4,431 |
|
1,225,574 |
|
182,618 |
|
Other
income/(expenses) |
|
|
|
|
|
|
|
Share of results of equity investees |
|
(496,597 |
) |
(717,422 |
) |
(106,899 |
) |
Interest income(4) |
|
545,725 |
|
312,575 |
|
46,575 |
|
Interest expense(4) |
|
(228,664 |
) |
(187,445 |
) |
(27,930 |
) |
Others, net |
|
1,803,369 |
|
6,886,036 |
|
1,026,051 |
|
Income before
tax |
|
1,628,264 |
|
7,519,318 |
|
1,120,415 |
|
Income tax expenses |
|
(151,018 |
) |
(279,640 |
) |
(41,668 |
) |
Net
income |
|
1,477,246 |
|
7,239,678 |
|
1,078,747 |
|
Net loss attributable to
non-controlling interests shareholders |
|
(47,872 |
) |
(80,203 |
) |
(11,951 |
) |
Net income attributable to
mezzanine classified non-controlling interests shareholders |
|
178 |
|
748 |
|
111 |
|
Net income
attributable to ordinary shareholders |
|
1,524,940 |
|
7,319,133 |
|
1,090,587 |
|
|
|
|
|
|
(4) Interest expenses in relation to the nonrecourse securitization
debt, which were collected from JD Digits in the same amount as
interest income, were RMB170.9 million and RMB34.7 million for the
three months ended March 31, 2018 and 2019, respectively. |
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
For the three months ended |
|
|
March 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
RMB |
RMB |
US$ |
(5) Includes
share-based compensation expenses as follows: |
Cost of revenues |
|
(13,421 |
) |
(13,029 |
) |
(1,941 |
) |
Fulfillment |
|
(83,292 |
) |
(57,538 |
) |
(8,573 |
) |
Marketing |
|
(34,503 |
) |
(39,183 |
) |
(5,838 |
) |
Technology and content |
|
(175,902 |
) |
(226,955 |
) |
(33,817 |
) |
General and administrative |
|
(326,990 |
) |
(281,341 |
) |
(41,921 |
) |
(6) Includes
amortization of intangible assets resulting from assets and
business acquisitions as follows: |
Fulfillment |
|
(41,887 |
) |
(41,887 |
) |
(6,241 |
) |
Marketing |
|
(303,811 |
) |
(300,482 |
) |
(44,773 |
) |
Technology and content |
|
(24,261 |
) |
(24,940 |
) |
(3,716 |
) |
General and administrative |
|
(76,326 |
) |
(76,327 |
) |
(11,373 |
) |
|
|
|
|
|
Net income per
share: |
|
|
|
|
Basic |
|
0.53 |
|
2.53 |
|
0.38 |
|
Diluted |
|
0.52 |
|
2.48 |
|
0.37 |
|
|
|
|
|
|
Net income per
ADS: |
|
|
|
|
Basic |
|
1.07 |
|
5.06 |
|
0.75 |
|
Diluted |
|
1.04 |
|
4.96 |
|
0.74 |
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Non-GAAP Net Income Per ADS |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
March 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Non-GAAP net income
attributable to ordinary shareholders |
|
1,047,415 |
3,294,365 |
490,874 |
|
|
|
|
|
|
|
Weighted average
number of shares: |
|
|
|
|
|
Basic |
|
2,854,368 |
2,893,977 |
2,893,977 |
|
Diluted |
|
2,939,178 |
2,952,051 |
2,952,051 |
|
Diluted (Non-GAAP) |
|
2,939,178 |
2,952,051 |
2,952,051 |
|
|
|
|
|
|
|
Non-GAAP net income
per ADS (7): |
|
|
|
|
|
Basic |
|
0.73 |
2.28 |
0.34 |
|
Diluted |
|
0.71 |
2.23 |
0.33 |
|
|
|
|
|
|
|
(7) 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
and Free Cash Flow |
(In thousands) |
|
|
|
|
|
For the three months ended |
|
|
March 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Net cash provided by/(used in) operating activities |
|
(3,772,925 |
) |
3,323,251 |
|
495,180 |
|
Net cash used in investing
activities |
|
(941,140 |
) |
(1,102,985 |
) |
(164,350 |
) |
Net cash provided by/(used in)
financing activities |
|
13,307,073 |
|
(2,555,951 |
) |
(380,849 |
) |
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(454,499 |
) |
(423,213 |
) |
(63,060 |
) |
Net increase/(decrease) in
cash, cash equivalents and restricted cash |
|
8,138,509 |
|
(758,898 |
) |
(113,079 |
) |
Cash, cash equivalents and
restricted cash at beginning of period(8) |
|
29,798,537 |
|
37,502,058 |
|
5,587,981 |
|
Cash, cash equivalents and
restricted cash at end of period(8) |
|
37,937,046 |
|
36,743,160 |
|
5,474,902 |
|
|
|
|
|
|
Net cash provided by/(used in) operating
activities |
|
(3,772,925 |
) |
3,323,251 |
|
495,180 |
|
Less: Impact from JD Baitiao receivables included in
the operating cash flow |
|
(1,279,454 |
) |
(2,161,118 |
) |
(322,017 |
) |
Less: Capital expenditures |
|
|
|
|
Capital expenditures, net of disposals, related to development
projects available for sale |
|
(1,185,711 |
) |
1,090,678 |
|
162,516 |
|
Other capital expenditures |
|
(2,580,347 |
) |
(972,721 |
) |
(144,940 |
) |
Free cash flow |
|
(8,818,437 |
) |
1,280,090 |
|
190,739 |
|
|
|
|
|
|
(8) Including cash, cash equivalents and
restricted cash classified as assets held for sale. |
|
|
JD.com, Inc. |
Supplemental Financial Information and Business Metrics |
|
|
|
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
Q1 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (in RMB billions) |
|
(8.8 |
) |
13.1 |
(8.2 |
) |
(4.0 |
) |
1.3 |
Inventory turnover days(9) – trailing twelve months (“TTM”) |
|
38.1 |
|
39.1 |
39.1 |
|
38.7 |
|
36.5 |
Accounts payable turnover days(10) – TTM |
|
59.6 |
|
62.7 |
61.7 |
|
60.2 |
|
57.4 |
Accounts receivable turnover days(11) – TTM |
|
1.6 |
|
1.9 |
2.3 |
|
2.7 |
|
3.0 |
Annual active customer accounts (in millions) |
|
301.8 |
|
313.8 |
305.2 |
|
305.3 |
|
310.5 |
|
|
|
|
|
|
|
(9) Inventory turnover days are the quotient of average inventory
to cost of revenues of direct sales business for the last twelve
months and then multiplied by 360 days. |
(10) Accounts payable turnover days are the quotient of average
accounts payable of direct sales business to cost of revenues of
direct sales business for the last twelve months and then
multiplied by 360 days. |
(11) Accounts receivable turnover days are the quotient of average
accounts receivable to total net revenues of the last twelve months
and then multiplied by 360 days. Presented are the accounts
receivable turnover days excluding the impact from JD Baitiao. |
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
March 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Income from operations |
|
4,431 |
|
1,225,574 |
|
182,618 |
|
|
Reversal of: Revenue from
business cooperation arrangements with equity investees |
|
(236,737 |
) |
(232,106 |
) |
(34,585 |
) |
|
Add: Share-based
compensation |
|
634,108 |
|
618,046 |
|
92,090 |
|
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
446,285 |
|
443,636 |
|
66,103 |
|
|
Reversal of: Gain on disposals
of long-lived assets |
|
- |
|
(83,218 |
) |
(12,400 |
) |
|
Non-GAAP income from
operations |
|
848,087 |
|
1,971,932 |
|
293,826 |
|
|
Add: Depreciation and
amortization excluding amortization of intangible assets resulting
from assets and business acquisitions |
|
748,260 |
|
1,229,432 |
|
183,192 |
|
|
Non-GAAP
EBITDA |
|
1,596,347 |
|
3,201,364 |
|
477,018 |
|
|
|
|
|
|
|
|
Total net revenues |
|
100,127,901 |
|
121,081,059 |
|
18,041,642 |
|
|
|
|
|
|
|
|
Non-GAAP operating
margin |
|
0.8 |
% |
1.6 |
% |
1.6 |
% |
|
|
|
|
|
|
|
Non-GAAP EBITDA
margin |
|
1.6 |
% |
2.6 |
% |
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
|
|
|
|
For the three months ended |
|
|
March 31,2018 |
March 31,2019 |
March 31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Net income attributable to ordinary shareholders |
|
1,524,940 |
|
7,319,133 |
|
1,090,587 |
|
Add: Share-based
compensation |
|
634,108 |
|
618,046 |
|
92,090 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
446,285 |
|
443,636 |
|
66,103 |
|
Add: Reconciling items on the share of equity method
investments(12) |
|
301,599 |
|
162,538 |
|
24,219 |
|
Add: Impairment of goodwill, intangible assets, and
investments |
|
6,088 |
|
817,581 |
|
121,823 |
|
Reversal of: Gain on disposals of long-lived
assets |
|
- |
|
(83,218 |
) |
(12,400 |
) |
Reversal of: Gain from fair value change of long-term
investments |
|
(1,614,376 |
) |
(5,750,537 |
) |
(856,857 |
) |
Reversal of: Gain on disposals/deemed disposals of
investments |
|
- |
|
(2,638 |
) |
(393 |
) |
Reversal of: Revenue from business cooperation
arrangements with equity investees |
|
(236,737 |
) |
(232,106 |
) |
(34,585 |
) |
Reversal of: Income from non-compete agreement |
|
(18,948 |
) |
(20,090 |
) |
(2,994 |
) |
Add: Tax effects on non-GAAP adjustments |
|
4,456 |
|
22,020 |
|
3,281 |
|
Non-GAAP net income attributable to ordinary
shareholders |
|
1,047,415 |
|
3,294,365 |
|
490,874 |
|
|
|
|
|
|
Total net revenues |
|
100,127,901 |
|
121,081,059 |
|
18,041,642 |
|
|
|
|
|
|
Non-GAAP net
margin |
|
1.0 |
% |
2.7 |
% |
2.7 |
% |
|
|
|
|
|
(12) To exclude the non-GAAP to GAAP reconciling items on the share
of equity method investments, net of share of amortization of
intangibles not on their books. Earning from equity method
investments in publicly listed companies and certain privately held
companies is recorded one quarter in arrears. |
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