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. We agreed to issue to Tencent a certain number of our Class A ordinary shares for a total consideration of approximately US$250 million at prevailing market prices at certain
pre-determined dates during the three-year period, of which 8,127,302 of our Class A ordinary shares were issued in May 2019.
In June 2019, we completed an investment in AiHuiShou International Co. Ltd. (AiHuiShou), an online second-hand consumer
electronics trading platform. In connection with this investment, we merged our Paipai Secondhand business into AiHuiShou with certain exclusive traffic resources for the next five years, and additionally invested certain amount in cash in exchange
for a non-controlling interest in AiHuiShou.
In September 2019, we officially launched our social
e-commerce platform, Jingxi, as part of our strategy to penetrate into lower-tier cities. Jingxi is available to consumers across multiple channels including the standalone Jingxi app, Jingxi mini program and
a Weixin first-level entry point. Combining social media and retail, Jingxi provides quality goods and services at attractive prices. Jingxi also has partnered with domestic manufacturers in over one hundred industrial clusters, serving as a bridge
between manufacturers and consumers.
In November 2019, our healthcare subsidiary, JD Health International, Inc. (JD Health)
completed the non-redeemable series A preferred share financing with a group of third-party investors. The total amount of financing raised was US$931 million, representing 13.5% of the ownership of JD Health on a fully diluted basis.
Change of Our Independent Registered Public Accounting Firm
On June 22, 2019, we engaged Deloitte Touche Tohmatsu Certified Public Accountants LLP (Deloitte) as our independent
registered public accounting firm, and dismissed PricewaterhouseCoopers Zhong Tian LLP (PwC). The change of our independent registered public accounting firm had been approved by the audit committee of our board, and the decision was not
made due to any disagreements between us and PwC.
The reports of PwC on our consolidated financial statements for the fiscal years ended
December 31, 2017 and 2018 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle.
During the fiscal years ended December 31, 2017 and 2018 and the subsequent interim period through June 22, 2019, there have been no
(i) disagreements between us and PwC on any matter of accounting principles or practices, financial statement disclosure, or audit scope or procedure, which disagreements if not resolved to the satisfaction of PwC would have caused them to make
reference thereto in their reports on the consolidated financial statements for such years, or (ii) reportable events as defined in Item 16F(a)(1)(v) of the instructions to Form 20-F.
We have provided PwC with a copy of the disclosures hereunder and required under Item 16F of Form 20-F
and requested from PwC a letter addressed to the SEC indicating whether it agrees with such disclosures. A copy of PwCs letter dated December 3, 2019 is attached as Exhibit 16.1 to the registration statement on Form F-3 filed with the SEC on December 3, 2019.
During each of the fiscal years ended
December 31, 2017 and 2018 and the subsequent interim period through June 22, 2019, neither we nor anyone on behalf of us has consulted with Deloitte regarding (i) the application of accounting principles to a specific transaction,
either completed or proposed, or the type of audit opinion that might be rendered on our consolidated financial statements, and neither a written report nor oral advice was provided to us that Deloitte concluded was an important factor considered by
us in reaching a decision as to any accounting, audit, or financial reporting issue, (ii) any matter that was the subject of a