SHANGHAI, Nov. 29, 2018 /PRNewswire/ -- JMU Limited (the
"Company" or "JMU") (NASDAQ:
JMU), a leading B2B online e-commerce
platform that provides integrated services to suppliers and
customers in the foodservice industry in China, today announced its financial results
for the three months ended September 30,
2018.
Third Quarter 2018 Highlights
- Revenues in the third quarter of 2018 were US$28.7 million, representing an increase of 5.6%
from US$27.1 million in the third
quarter of 2017.
- Gross profit was US$401.1
thousand in the third quarter of 2018, representing an
increase of 166.3% from US$150.6
thousand in the third quarter of 2017.
- B2B online platform recorded gross billing of RMB 2,615 million (US$381
million) in the third quarter of 2018, measured in terms of
gross merchandise value ("GMV"), decreasing 51.5% from gross
billing of RMB5,391 million
(US$810 million) in the third quarter
of 2017, which was mainly due to the Company's focusing on
ready-to-cook and ready-to-eat products development.
- Active customer accounts were 32,314 as of September 30, 2018, decreasing 1.4% from 32,775
as of September 30, 2017.
- Third-party sellers on the Company's online marketplace
decreased to 13,646 compared to 14,364 as of September 30, 2017.
Ms. Xiaoxia Zhu, Co-chairperson
and Chief Executive Officer, commented, "As we are focusing on the
development of our ready-to-cook and ready-to-eat products, we are
pleased to report another quarter of revenue growth as customer
acceptance continues to grow in this area. We optimized our
operating structure by cooperating with source suppliers for our
ready-to-cook and ready-to-eat products, which decreased the number
of intermediaries and reduced related expenses, resulting in a
64.1% decrease in our operating expenses year over year.
"The fourth quarter will be a peak season for our business,
since the order volume is expected to increase due to year-end
celebrations and traditional Chinese holidays. We continue to
optimize our products and introduce new products to meet customer
demand and are also benefiting from broader brand recognition from
our increased number of tasting events. We will also keep improving
our operational efficiency to better serve our customers, and
expanding our market share in key areas. We are committed to
establishing a sustainable growth path that can help us achieve
profitability and benefit our shareholders."
Third Quarter 2018 Financial Performance
Revenues were US$28.7
million for the third quarter of 2018, representing an
increase of 5.6% from US$27.1 million
in the third quarter of 2017. The growth of revenue in the third
quarter of 2018 was mainly due to the increase in order volume.
Cost of revenues was US$28.3
million for the third quarter of 2018, showing an increase
of 4.7% from US$27.0 million in the
third quarter of 2017, which was generally in-line with the growth
of the Company's revenues.
Gross profit for the third quarter of 2018 was
US$401.1 thousand, representing a
166.3% increase from US$150.6
thousand in the third quarter of 2017.
Selling and marketing expenses in the third quarter of
2018 decreased 80.1% to US$805
thousand from US$4 million in
the third quarter of 2017. As a percentage of total revenue,
selling and marketing expenses were 2.8% and 14.9% in the third
quarter of 2018 and the same period of 2017, respectively.
General and administrative expenses in the third quarter
of 2018 were US$995 thousand,
representing an increase of 1.5% from US$980
thousand in the third quarter of 2017. As a percentage of
total revenues, general and administrative expenses were 3.5% and
3.6% in the third quarter of 2018 and the same period of 2017,
respectively.
Loss from operations in the third quarter of 2018 was
US$1.4 million, showing a decrease of
71.3% from US$4.9 million in the
third quarter of 2017.
Net loss attributable to the Company in the third quarter
of 2018 was US$1.7 million,
representing a decrease of 61.5% from US$4.5
million in the third quarter of 2017. Non-GAAP net loss
attributable to the Company, which excludes amortization of
acquired intangible assets, share-based compensation, and related
provision for income tax benefits, was US$1.5 million compared to US$2.6 million in the same period of 2017. For
the quarters ended September 30,
2018, and September 30, 2017,
the Company's weighted average number of ordinary shares used in
computing loss per ordinary share were 1,476,866,650 and
1,476,144,194, respectively.
As of September 30, 2018, the
Company's cash and cash equivalents were US$9.9 million, showing an increase of 101.8%
from US$4.9 million as of
December 31, 2017. Total
shareholders' equity was US$20.3
million as compared to US$103.5
million at the end of 2017, which was mainly due to the
impairment of US$73.8 million
provided for goodwill and acquired intangible assets in total
during the first nine month of 2018.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles
("GAAP"), we use various non-GAAP financial measures that are
adjusted from results based on U.S. GAAP to exclude amortization of
acquired intangible assets, impairment of goodwill, share-based
compensation and related provision for income tax benefits.
Reconciliations of our non-GAAP financial measures to our U.S.
GAAP financial measures are shown in tables at the end of this
earnings release, which provide more details about the non-GAAP
financial measures.
Our non-GAAP financial information is provided as additional
information to help investors compare business trends among
different reporting periods on a consistent basis and to enhance
investors' overall understanding of the historical and current
financial performance of our operations and our prospects for the
future. Our non-GAAP financial information should be considered in
addition to results prepared in accordance with U.S. GAAP, but
should not be considered a substitute for or superior to U.S. GAAP
financial results. In addition, our calculation of this non-GAAP
financial information may be different from the calculation used by
other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP loss from
operations and net loss attributable to the Company) which is
adjusted from results based on U.S. GAAP to exclude amortization of
acquired intangible assets, impairment of goodwill, share-based
compensation and income tax benefits. A limitation of using these
non-GAAP financial measures is that amortization of acquired
intangible assets, impairment of goodwill, share-based compensation
and related provision for income tax benefits have been and may
continue to be for the foreseeable future significant recurring
expenses in our results of operations. We compensate for these
limitations by providing reconciliations of our non-GAAP financial
measures to our U.S. GAAP financial measures. Please see the
reconciliation tables at the end of this earnings release.
About JMU Limited
JMU Limited currently operates China's leading B2B online e-commerce platform
that provides integrated services to suppliers and customers in the
catering industry. With the help of Internet and cloud
technologies, JMU has the vision to
reshape the procurement and distribution pattern and build a fair
business ecosystem in the catering industry in China. JMU keeps
concentrating on its ready-to-cook and ready-to eat products in
China.
Through cooperation with national and local industry
associations and reputable restaurant groups across China, JMU has
formed a leading industrial alliance and has great resource
leverage in China's catering
industry. JMU works closely with
suppliers and customers in the catering industry, providing
one-stop procurement services, as well as other value-added
services. For more information, please visit:
http://ir.ccjmu.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
"aim", "anticipate", "believe", "estimate", "expect", "going
forward", "intend", "ought to", "plan", "project", "potential",
"seek", "may", "might", "can", "could", "will", "would", "shall",
"should", "is likely to" and the negative form of these words and
other similar expressions. Among other things, statements that are
not historical facts, including statements about JMU's beliefs and expectations, the business
outlook and quotations from management in this announcement, as
well as JMU's strategic and operational
plans, are or contain 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: The general economic and business
conditions in China may
deteriorate. The growth of Internet and mobile user population in
China might not be as strong as
expected. JMU's plan to enhance
customer experience, upgrade infrastructure and increase service
offerings might not be well received. JMU might not be able to implement all of its
strategic plans as expected. Competition in China may intensify further. All information
provided in this press release is as of the date of this press
release and are based on assumptions that we believe to be
reasonable as of this date, and JMU
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Contact:
Luna Zhang
JMU Limited
zhangluna@ccjmu.com
Tel: +86 (021) 6015-1166, ext. 8904
Bill Zima
ICR Inc.
bill.zima@icrinc.com
Tel: +1(203)-682-8200
JMU LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars in thousands, except for number of shares and per share
(or ADS) data)
|
|
|
Three Months
Ended
|
September 30,
2017
|
|
September 30,
2018
|
|
|
|
|
Related
parties
|
4,005
|
|
2,821
|
Third
parties
|
23,141
|
|
25,832
|
Total
Revenues
|
27,146
|
|
28,653
|
Cost of
revenues
|
(26,996)
|
|
(28,252)
|
Gross
profit
|
150
|
|
401
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling and
marketing
|
(4,040)
|
|
(805)
|
General and
administrative
|
(980)
|
|
(995)
|
Impairment
loss
|
-
|
|
-
|
Total operating
expenses
|
(5,020)
|
|
(1,800)
|
Loss from
operations
|
(4,870)
|
|
(1,399)
|
Interest
income
|
(92)
|
|
(383)
|
Other income,
net
|
5
|
|
11
|
Loss before
provision for income taxes
|
(4,957)
|
|
(1,771)
|
Income tax
benefits
|
493
|
|
51
|
Net
loss
|
(4,464)
|
|
(1,720)
|
|
|
|
|
Net loss per
ordinary share
|
|
|
|
Basic
|
(0.003)
|
|
(0.001)
|
Diluted
|
(0.003)
|
|
(0.001)
|
Weighted average
shares used in calculating net loss per ordinary
share
|
|
|
|
Basic
|
1,476,144,194
|
|
1,476,866,650
|
Diluted
|
1,476,144,194
|
|
1,476,866,650
|
JMU LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
(US dollars in thousands)
|
|
|
Three Months
Ended
|
September 30,
2017
|
|
September 30,
2018
|
|
|
|
|
|
|
|
|
Net
loss
|
(4,464)
|
|
(1,720)
|
Other comprehensive
income/(loss)
|
|
|
|
Change in cumulative foreign
currency
translation adjustment
|
4,603
|
|
(847)
|
Comprehensive
income/(loss)
|
139
|
|
(2,567)
|
JMU LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)
|
|
|
|
|
|
December 31,
2017
|
|
September 30,
2018
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
4,912
|
|
9,912
|
Accounts receivable,
net
|
|
3,296
|
|
9,677
|
Inventories
|
|
539
|
|
818
|
Prepaid expenses and
other current assets, net
|
|
2,246
|
|
1,689
|
Amounts due from
related parties
|
|
3,063
|
|
5,497
|
Total current
assets
|
|
14,056
|
|
27,593
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
|
1,795
|
|
1,059
|
Acquired intangible
assets, net
|
|
10,264
|
|
7,671
|
Investment
|
|
768
|
|
728
|
Goodwill
|
|
108,940
|
|
33,274
|
Deferred tax
assets
|
|
157
|
|
103
|
Other non-current
assets
|
|
162
|
|
116
|
Total non-current
assets
|
|
122,086
|
|
42,951
|
TOTAL
ASSETS
|
|
136,142
|
|
70,544
|
LIABILITIES AND
SHAREHOLDER'S
EQUITY :
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
borrowings
|
|
7,685
|
|
7,280
|
Accounts and notes
payable
|
|
3,981
|
|
9,949
|
Accrued expenses and
other current liabilities
|
|
9,292
|
|
7,894
|
Advance from
customers
|
|
1,244
|
|
228
|
Amounts due to
related parties
|
|
604
|
|
4,079
|
Total current
liabilities
|
|
22,806
|
|
29,430
|
Non-current
liabilities:
|
|
|
|
|
Other non-current
liabilities
|
|
1,534
|
|
850
|
Deferred tax
liabilities
|
|
2,565
|
|
1,918
|
Amount due to related
parties
|
|
5,686
|
|
18,022
|
Total non-current
liabilities
|
|
9,785
|
|
20,790
|
TOTAL
LIABILITIES
|
|
32,591
|
|
50,220
|
Commitments and
contingencies
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Ordinary
shares
|
|
15
|
|
15
|
Additional paid-in
capital
|
|
634,071
|
|
634,344
|
Accumulated
deficit
|
|
(513,903)
|
|
(594,984)
|
Accumulated other
comprehensive loss
|
|
(16,632)
|
|
(19,051)
|
Total
shareholders' equity
|
|
103,551
|
|
20,324
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
136,142
|
|
70,544
|
JMU LIMITED
Reconciliation of Non-GAAP financial measures
to comparable GAAP measures
(US dollars in thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2017
|
|
September 30,
2018
|
Loss from
operations
|
|
4,870
|
|
1,399
|
Net loss attributable
to JMU Ltd.
|
|
4,464
|
|
1,720
|
|
|
|
|
|
Amortization of
acquired intangible assets
|
a
|
2,117
|
|
265
|
Provision for income
tax benefits
|
b
|
(493)
|
|
(51)
|
Share-based
compensation
|
c
|
237
|
|
39
|
Impairment
loss
|
d
|
-
|
|
-
|
|
|
|
|
|
Non-GAAP loss from
operation (a)(c)(d)
|
|
2,516
|
|
1,095
|
Non-GAAP net loss
attributable to JMU Ltd.(a)(b)(c)(d)
|
|
2,603
|
|
1,467
|
|
|
|
|
|
Note:
|
|
|
|
|
(a)Adjustment to
exclude amortization of acquired intangible assets
|
|
|
(b)Adjustment to
exclude income tax benefits
|
|
|
|
|
(c)Adjustment to
exclude share-based compensation
|
|
|
|
|
(d)Adjustment to
exclude impairment loss
|
|
|
|
|
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SOURCE JMU Ltd