JD.com, Inc. (NASDAQ:JD), China’s largest retailer, today announced
its unaudited financial results for the quarter ended September 30,
2017.
Third Quarter 2017 Highlights for
Continuing Operations
- Net revenues1 for the third quarter of 2017
were RMB83.7 billion (US$212.6 billion), an increase of 39.2% from
the third quarter of 2016.
- Gross profit3 for the third quarter of 2017
was RMB13.0 billion (US$2.0 billion), an increase of 50.3% from the
third quarter of 2016. Non-GAAP gross profit4 was
RMB12.8 billion (US$1.9 billion), an increase of 51.9% from the
same quarter last year.
- Net income from continuing operations
attributable to ordinary shareholders for the
third quarter of 2017 was RMB1.0 billion (US$0.2 billion), compared
to a net loss from continuing operations attributable to ordinary
shareholders of RMB0.5 billion for the same period last year.
Non-GAAP net income from continuing operations
attributable to ordinary shareholders5 for the
third quarter of 2017 was RMB2.2 billion (US$0.3 billion), an
increase of 359% from the third quarter of 2016.
- Diluted EPS and Non-GAAP Diluted EPS. Diluted
net income per ADS from continuing operations for the third quarter
of 2017 was RMB0.69 (US$0.10), compared to diluted net loss per ADS
from continuing operations of RMB0.32 for the third quarter of
2016. Non-GAAP diluted net income per ADS from continuing
operations for the third quarter of 2017 was RMB1.52 (US$0.23), as
compared to RMB0.33 in the third quarter of 2016.
- Operating cash flow from continuing operations
for the twelve months ended September 30, 2017 increased to RMB19.9
billion (US$3.0 billion) from RMB11.4 billion for the twelve months
ended September 30, 2016. Free cash flow6
from continuing operations, which excludes the
impact from JD Finance related credit products included in the
operating cash flow, for the twelve months ended September 30, 2017
was RMB14.6 billion (US$2.2 billion), compared to RMB15.0 billion
for the twelve months ended September 30, 2016, as several
accretive capital investments took place during the third quarter
of 2017.
- Annual active customer accounts increased by
34% to 266.3 million in the twelve months ended September 30, 2017
from 198.7 million in the twelve months ended September 30,
2016.
“We are achieving our mission of bringing
China’s consumers the widest selection of top brands and, by far,
the highest quality e-commerce experience,” said Richard Liu,
Chairman and CEO of JD.com. “We are also building robust product
content and enhancing user engagement, as our innovative tools
enable brands to execute highly targeted online marketing programs.
We look forward to helping more and more merchants and partners
leverage JD’s leading open infrastructure to drive efficiency and
grow sales.”
“We are very encouraged to see another quarter
of solid top line growth with record profitability,” said Sidney
Huang, JD.com’s Chief Financial Officer. “The scale economies of
our model are becoming clearer with every quarter. Looking ahead,
we will continue to prioritize investments in technology and
leading R&D talent as we execute on our vision to revolutionize
China’s retail industry.”
Recent Business
Developments
- In October, JD and Tencent expanded their partnership with the
launch of the JD-Tencent Retail Marketing Solution. The initiative
integrates insights on consumer behavior from Tencent’s social
media platforms with online and offline shopping data from JD and
its brand partners to enable more precise target marketing and
better understanding of consumer behavior for the brands on JD
platform. Consumers will also benefit from this solution, enjoying
expanded access to sales promotions and preferred discounts,
regardless of whether they are shopping online or in-store. During
the past three months, JD.com also formed strategic partnerships
with Baidu, Qihoo 360, NetEase, Sogou and iQIYI, leveraging these
companies’ powerful big data resources, massive user bases and AI
algorithm technologies to strengthen collaboration in precision
marketing, user access points and content marketing.
- In the third quarter, JD continued to strengthen its position
among top-tier international brands as the most trusted retail
platform in China. JD expanded its ongoing partnership with Italian
high fashion brand Armani with the opening of official online
stores for two additional Armani product lines, Emporio Armani and
Armani Exchange. JD Worldwide also worked with several
international brands to launch flagship stores, including Spectrum
Brands, Reckitt Benckiser and Tiger. Additionally, JD's newly
established Toplife platform attracted marquee brands such as
La Perla, Rimowa (LVMH), B&O Play, Trussardi and DYSON to meet
strong consumer demand for high-end luxury products.
- During the third quarter, JD Logistics test launched its first
unmanned sortation center, the first of its kind in the logistics
industry. JD also signed a series of agreements to lay the
groundwork for the rollout of China’s largest and most advanced
drone network. As the company expands the capabilities of JD
Logistics, it will continue making its technology infrastructure
and services available to businesses across a wide range of
industries.
- In September, JD Logistics expanded its environmentally
friendly logistics and packaging campaign, working together with
numerous international and domestic brands including P&G,
Nestle, Unilever, LEGO, Kimberly-Clark, Watsons, Erie, Johnson
& Johnson, Wrigley, Blue Moon and L’Oreal, among others.
Working with these brands, JD seeks to minimize environmental
impact by reducing the overall use of packaging materials. JD
estimates that the campaign will save billions of cardboard boxes
over the next three years.
- In the third quarter, JD enhanced its fresh product offerings
to meet strong customer demand. In July, JD launched the Canadian
Fresh Food Pavilion, the first country pavilion for fresh products
on the JD.com platform. With JD’s advanced cold-chain logistics
capabilities, live lobsters from Canada can be delivered to
customers’ doorsteps in China in as little as 48 hours. During JD’s
Super Canadian Day, 140,000 Canadian lobsters were sold within 24
hours.
- In September, JD.com, JD Finance, Central Group and Provident
Capital announced agreements to establish two joint ventures in
Thailand covering e-commerce and fintech services with an aggregate
investment of $500 million. Under the terms of the agreements,
JD.com will provide its extensive expertise in technology,
e-commerce and logistics to the joint ventures, while Central Group
will leverage its immense retail store network, its wealth of brand
and merchant relationships, and its retail behavior insights from
its popular loyalty program across both businesses.
- In October, JD and Sam’s Club launched a promotion offering
customers discounted bundled memberships for Sam’s Club and JD
Plus, JD.com’s membership program. With the introduction of JD Plus
over two years ago, JD became the first Chinese e-commerce company
to introduce an exclusive paid-for membership service.
- As of October 31, 2017, JD.com’s joint venture, New Dada, had
partnered with 146 Walmart stores and 301 Yonghui stores, among
numerous other supermarkets and grocery stores, to provide
consumers a premium online fresh grocery shopping experience with
one-hour home delivery. New Dada is China’s largest crowdsourcing
logistics provider and O2O grocery platform.
- During the third quarter, JD expanded its leadership position
in fulfillment capabilities among China’s e-commerce companies. As
of September 30, 2017, JD.com operated 405 warehouses covering an
aggregate gross floor area of approximately 9 million square meters
in China. JD Logistics also provides scheduled delivery service in
250 Chinese cities, allowing customers to choose a convenient
2-hour delivery window in which to receive their goods.
- JD.com had approximately 160,000 merchants on its online
marketplace, and a total of 137,975 full-time employees as of
September 30, 2017.
Third Quarter 2017 Financial
Results
Net Revenues. For the
third quarter of 2017, JD.com reported net revenues of RMB83.7
billion (US$12.6 billion), representing a 39.2% increase from the
same period in 2016. Net revenues from online direct sales
increased by 38.5%, while net revenues from services and others
increased by 46.2% in the third quarter of 2017, as compared to the
third quarter of 2016.
Cost of
Revenues. Cost of
revenues increased by 37.3% to RMB70.8 billion (US$10.6 billion) in
the third quarter of 2017 from RMB51.5 billion in the third quarter
of 2016. This increase was primarily due to the growth of the
company’s online direct sales business, the traffic acquisition
costs directly related to the online marketing services provided to
merchants and suppliers, as well as the 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 40%
to RMB6.4 billion (US$1.0 billion) in the third quarter of 2017
from RMB4.5 billion in the third quarter of 2016. Fulfillment
expenses as a percentage of net revenues was 7.6%, compared to 7.5%
in the same period last year.
Marketing
Expenses. Marketing expenses
increased by 55% to RMB3.3 billion (US$0.5 billion) in the third
quarter of 2017 from RMB2.1 billion in the third quarter of
2016.
Technology and Content
Expenses. Technology and content
expenses increased by 43% to RMB1.8 billion (US$0.3 billion) in the
third quarter of 2017 from RMB1.2 billion in the third quarter of
2016.
General and Administrative
Expenses. General and
administrative expenses increased by 8% to RMB1.1 billion (US$0.2
billion) in the third quarter of 2017 from RMB1.0 billion in the
third quarter of 2016.
Income/(loss) from operations and
Non-GAAP income from operations7. Operating income
from continuing operations for the third quarter of 2017 was
RMB502.4 million (US$75.5 million), compared to operating loss from
continuing operations of RMB234.4 million for the same period last
year. Non-GAAP operating income from continuing operations for the
third quarter of 2017 was RMB1,472.1 million (US$221.3 million)
with a non-GAAP operating margin of 1.8%, as compared to RMB542.3
million in the third quarter of 2016 with a non-GAAP operating
margin of 0.9%.
Non-GAAP EBITDA8 from
continuing operations for the third quarter of 2017 totaled RMB2.1
billion (US$0.3 billion) with a non-GAAP EBITDA margin of 2.5%, as
compared to RMB1.0 billion with a non-GAAP EBITDA margin of 1.7%
for the third quarter of 2016.
Net income/(loss)
attributable to ordinary shareholders and
Non-GAAP Net income attributable to ordinary
shareholders. Net income from
continuing operations attributable to ordinary shareholders for the
third quarter of 2017 was RMB1.0 billion (US$0.2 billion), compared
to net loss from continuing operations attributable to ordinary
shareholders of RMB0.5 billion for the same period last year.
Non-GAAP net income from continuing operations attributable to
ordinary shareholders for the third quarter of 2017 was RMB2.2
billion (US$0.3 billion), an increase of 359% from RMB0.5 billion
in the third quarter of 2016.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS
from continuing operations for the third quarter of 2017 was
RMB0.69 (US$0.10), compared to diluted net loss per ADS from
continuing operations of RMB0.32 for the third quarter of 2016.
Non-GAAP diluted net income per ADS from continuing operations for
the third quarter of 2017 was RMB1.52 (US$0.23) as compared to
RMB0.33 in the third quarter of 2016.
Cash Flow and Working
Capital
As of September 30, 2017, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB41.8 billion (US$6.3 billion), an increase of 71% from
RMB24.4 billion as of December 31, 2016. For the third quarter of
2017, free cash flow from continuing operations of the company was
as follows:
|
|
|
|
For the three months ended |
|
|
|
September 30,
2016 |
|
September 30,
2017 |
September 30,
2017 |
|
|
|
RMB |
|
RMB |
USD |
|
|
|
|
|
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by/(used in) operating activities from continuing operations |
|
6,402,825 |
|
|
(244,703 |
) |
(36,779 |
) |
|
Less: Reduction in JD
Finance related credit products included in the operating cash
flow |
|
(131,611 |
) |
|
(1,559,382 |
) |
(234,377 |
) |
|
Less:
Capital expenditures |
|
|
|
|
|
|
Land use rights and construction in progress |
|
(496,159 |
) |
|
(5,384,486 |
) |
(809,296 |
) |
|
Other CAPEX |
|
(436,274 |
) |
|
(1,812,924 |
) |
(272,484 |
) |
|
Free
cash flow |
|
5,338,781 |
|
|
(9,001,495 |
) |
(1,352,936 |
) |
|
|
Net cash used in investing activities from
continuing operations was RMB4.2 billion (US$0.6 billion) for the
third quarter of 2017, consisting primarily of cash paid for
capital expenditures of RMB7.2 billion, increases in investment in
equity investees and investment securities of RMB2.5 billion,
increases in short-term investments of RMB2.3 billion, and
partially offset by cash consideration received in respect to JD
Finance reorganization of RMB8.6 billion.
In the third quarter 2017, we received the
majority of the cash consideration in respect to JD Finance
reorganization. As of September 30, 2017, approximately RMB2.5
billion consideration remained receivable, which was received in
October 2017.
Net cash used in financing activities from
continuing operations was RMB1.5 billion (US$0.2 billion) for the
third quarter of 2017, consisting primarily of repayment of
nonrecourse securitization debt and short-term borrowings.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Fourth Quarter 2017
Guidance
Net revenues for the fourth quarter of 2017 are
expected to be between RMB107 billion and RMB110 billion,
representing a growth rate between 35% and 39% compared with the
fourth quarter of 2016, excluding the impact from JD Finance for
both 2017 and 2016 periods. 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 November 13, 2017, (8:30 pm,
Beijing/Hong Kong Time on November 13, 2017) to discuss the third
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: |
1189318 |
|
|
A telephone replay will be available from 10:30 am, Eastern Time
on November 13, 2017 through 07:59 am, Eastern Time on November 21,
2017. 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: |
1189318 |
|
|
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 both the largest e-commerce
company in China, and the largest Chinese retailer, by revenue. The
company strives to offer consumers the best online shopping
experience. Through its user-friendly website, native mobile apps,
and WeChat and Mobile QQ entry points, JD offers consumers a
superior shopping experience. The company has the largest
fulfillment infrastructure of any e-commerce company in China. As
of September 30, 2017, JD.com operated 7 fulfillment
centers and 405 warehouses covering 2,830 counties and districts
across China, staffed by its own employees. JD.com is a
member of the NASDAQ100 and a Fortune Global 500 company.
Non-GAAP Measures
In evaluating the business, the company
considers and uses non-GAAP measures, such as non-GAAP gross
profit, non-GAAP income/(loss) from operations,
non-GAAP operating margin, non-GAAP net income/(loss) attributable
to ordinary shareholders, non-GAAP net margin, free cash flow,
non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss)
per weighted average number of shares and non-GAAP net
income/(loss) per ADS, as supplemental measures to review and
assess operating performance. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). The company
defines non-GAAP gross profit as the difference of net revenues and
cost of revenue excluding revenue from business cooperation
arrangements with equity investees and share-based compensation
included in cost of revenues. 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) 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, preferred shares redemption value accretion,
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 the impact from
JD Finance related credit products included in the operating cash
flow and less capital expenditures, which 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 gross profit,
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 Finance 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
MediaJosh GartnerVP,
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 financial information and non-GAAP
financial information disclosed in this press release is presented
on a continuing operations basis, unless otherwise specifically
stated.
2 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 September 29, 2017, which was
RMB6.6533 to US$1.00. The percentages stated in this press release
are calculated based on the RMB amounts.
3 The company’s cost of revenues does not
include certain costs, such as fulfillment costs related to
warehousing and delivery for its direct sales business and staff
costs for its marketplace business, its gross profit may not be
comparable to those of other companies that may include such costs
in cost of revenues and in the calculation of gross profit.
4 Non-GAAP gross profit is defined as the
difference of net revenues and cost of revenue excluding revenue
from business cooperation arrangements with equity investees and
share-based compensation included in cost of revenues. See
“Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
5 Non-GAAP net income/(loss) attributable to
ordinary shareholders 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) attributable to ordinary shareholders. See
“Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
6 Free cash flow, a non-GAAP measurement of
liquidity, is defined as operating cash flow adding back the impact
from JD Finance related credit products included in the operating
cash flow and less capital expenditures, which include purchase of
property, equipment and software, cash paid for construction in
progress and purchase of intangible assets and land use rights.
7 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.
8 Non-GAAP EBITDA is defined as non-GAAP
income/(loss) from operations plus depreciation and amortization
excluding amortization of intangible assets resulting from assets
and business acquisitions, and non-GAAP EBITDA margin is calculated
by dividing non-GAAP EBITDA by net revenues. See “Reconciliation of
GAAP and Non-GAAP Results” at the end of this press
release.
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance
Sheets |
(In thousands) |
|
|
|
|
|
As of |
|
|
December 31,2016 |
September 30,2017 |
September 30,2017 |
|
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
|
Current
assets |
|
|
|
|
Cash and
cash equivalents |
|
15,567,036 |
21,610,621 |
3,248,106 |
Restricted cash |
|
2,293,640 |
4,120,373 |
619,298 |
Short-term investments |
|
6,548,001 |
16,058,826 |
2,413,663 |
Accounts
receivable, net (including JD Baitiao of RMB14.8 billion and
RMB17.0 billion as of December 31, 2016 and September 30, 2017,
respectively)(1) |
|
16,141,007 |
18,307,832 |
2,751,692 |
Advance
to suppliers |
|
257,117 |
675,949 |
101,596 |
Inventories, net |
|
28,909,425 |
36,310,132 |
5,457,462 |
Prepayments and other current assets |
|
5,987,103 |
7,833,004 |
1,177,312 |
Amount
due from related parties |
|
9,074,275 |
18,731,802 |
2,815,415 |
Assets
held for sale |
|
22,154,494 |
- |
- |
Total current
assets |
|
106,932,098 |
123,648,539 |
18,584,544 |
Non-current
assets |
|
|
|
|
Property,
equipment and software, net |
|
7,023,409 |
9,972,630 |
1,498,900 |
Construction in progress |
|
1,992,123 |
2,856,806 |
429,382 |
Intangible assets, net |
|
8,310,657 |
6,993,845 |
1,051,184 |
Land use
rights, net |
|
2,447,511 |
6,829,793 |
1,026,527 |
Goodwill |
|
6,527,019 |
6,533,920 |
982,057 |
Investment in equity investees |
|
14,628,786 |
17,554,471 |
2,638,461 |
Investment securities |
|
1,059,632 |
1,862,014 |
279,863 |
Other
non-current assets (including JD Baitiao of RMB0.8 billion and
RMB1.2 billion as of December 31, 2016 and September 30, 2017,
respectively)(1) |
|
2,223,672 |
2,281,343 |
342,890 |
Amount
due from related parties |
|
1,896,200 |
1,896,200 |
285,001 |
Assets
held for sale |
|
7,332,411 |
- |
- |
Total
non-current assets |
|
53,441,420 |
56,781,022 |
8,534,265 |
Total
assets |
|
160,373,518 |
180,429,561 |
27,118,809 |
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance
Sheets |
(In thousands) |
|
|
|
As of |
|
|
December 31,2016 |
September 30,2017 |
September 30,2017 |
|
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
|
Current
liabilities |
|
|
|
|
Short-term borrowings |
|
1,878,286 |
1,000,000 |
150,301 |
Nonrecourse securitization debt(1) |
|
9,231,101 |
11,302,787 |
1,698,824 |
Accounts
payable |
|
46,035,884 |
67,596,442 |
10,159,837 |
Advances
from customers |
|
11,466,334 |
15,255,657 |
2,292,946 |
Deferred
revenues |
|
1,138,426 |
1,429,200 |
214,811 |
Taxes
payable |
|
565,288 |
449,397 |
67,545 |
Amount
due to related parties |
|
154,924 |
30,008 |
4,510 |
Accrued
expenses and other current liabilities |
|
10,512,590 |
13,236,738 |
1,989,500 |
Liabilities held for sale |
|
23,757,403 |
- |
- |
Total current
liabilities |
|
104,740,236 |
110,300,229 |
16,578,274 |
Non-current
liabilities |
|
|
|
|
Deferred
revenues |
|
2,104,461 |
1,478,449 |
222,213 |
Nonrecourse securitization debt(1) |
|
2,318,389 |
9,056,938 |
1,361,270 |
Unsecured
senior notes |
|
6,831,012 |
6,545,342 |
983,774 |
Deferred
tax liabilities |
|
907,356 |
860,757 |
129,373 |
Other
non-current liabilities |
|
440,670 |
362,318 |
54,457 |
Liabilities held for sale |
|
1,811,611 |
- |
- |
Total
non-current liabilities |
|
14,413,499 |
18,303,804 |
2,751,087 |
Total
liabilities |
|
119,153,735 |
128,604,033 |
19,329,361 |
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance
Sheets |
(In thousands) |
|
|
|
|
|
|
|
As of |
|
|
December 31,2016 |
September 30,2017 |
September 30,2017 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Redeemable
non-controlling interests held for
sale |
|
7,056,921 |
- |
- |
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
Total
JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000,000 shares authorized, 2,938,709 shares issued and
2,847,927 shares outstanding as of September 30, 2017) |
|
33,892,900 |
51,496,514 |
7,739,997 |
Non-controlling interests |
|
269,962 |
329,014 |
49,451 |
Total
shareholders’ equity |
|
34,162,862 |
51,825,528 |
7,789,448 |
Total
liabilities, redeemable non-controlling interests and shareholders’
equity |
|
160,373,518 |
180,429,561 |
27,118,809 |
|
|
|
|
|
(1) Due to certain existing contractual arrangement,
the company will remain as the legal owner of the existing consumer
credit (known as JD Baitiao) receivables, while JD Finance will
continue to perform the credit risk assessment services for the
individuals and purchase the over-due receivables from the company
at carrying value to absorb the risks and obtain the rewards from
JD Baitiao business. The company also facilitated JD Finance in
various asset-backed securitization (“ABS”) to raise fund to
support the JD Baitiao business. JD Finance will act as the
servicer of the ABS and will also subscribe to the subordinate
tranche. Due to the company’s continuing involvement right in ABS
under the historical arrangement, the company cannot derecognize
the existing Baitiao receivables through ABS under U.S. GAAP. In
the fourth quarter of 2017, the company revised certain structural
arrangements for the issuance of ABS to relinquish its continuing
involvement right, so the company will be able to derecognize the
Baitiao receivables through the new ABS plan going forward. As a
result, the balances of Baitiao receivables are expected to reduce
gradually in the future with the adoption of the new ABS plan, and
nonrecourse securitization debt will gradually reduce upon the
settlement of the original ABS plan. |
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
September 30,2016 |
September 30,2017 |
September 30,2017 |
|
September 30,2016 |
September 30,2017 |
September 30,2017 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net
revenues |
|
|
|
|
|
|
|
Online
direct sales |
55,195,489 |
|
76,466,266 |
|
11,492,983 |
|
|
165,009,328 |
|
231,677,728 |
|
34,821,476 |
|
Services
and others |
4,978,236 |
|
7,279,992 |
|
1,094,193 |
|
|
13,869,491 |
|
20,488,692 |
|
3,079,478 |
|
Total net
revenues |
60,173,725 |
|
83,746,258 |
|
12,587,176 |
|
|
178,878,819 |
|
252,166,420 |
|
37,900,954 |
|
|
|
|
|
|
|
|
|
Operating
expenses(2)(3) |
|
|
|
|
|
|
|
Cost of
revenues |
(51,537,518 |
) |
(70,763,508 |
) |
(10,635,851 |
) |
|
(154,364,119 |
) |
(215,711,390 |
) |
(32,421,714 |
) |
Fulfillment |
(4,540,077 |
) |
(6,373,789 |
) |
(957,989 |
) |
|
(13,095,772 |
) |
(17,905,031 |
) |
(2,691,150 |
) |
Marketing |
(2,132,554 |
) |
(3,300,107 |
) |
(496,011 |
) |
|
(6,643,977 |
) |
(10,174,781 |
) |
(1,529,283 |
) |
Technology and content |
(1,229,353 |
) |
(1,756,050 |
) |
(263,937 |
) |
|
(3,271,965 |
) |
(4,591,501 |
) |
(690,109 |
) |
General
and administrative |
(968,645 |
) |
(1,050,418 |
) |
(157,879 |
) |
|
(2,416,161 |
) |
(3,022,992 |
) |
(454,360 |
) |
Total operating
expenses |
(60,408,147 |
) |
(83,243,872 |
) |
(12,511,667 |
) |
|
(179,791,994 |
) |
(251,405,695 |
) |
(37,786,616 |
) |
Income/(loss)
from operations |
(234,422 |
) |
502,386 |
|
75,509 |
|
|
(913,175 |
) |
760,725 |
|
114,338 |
|
Other
income/(expenses) |
|
|
|
|
|
|
|
Share of
results of equity investees |
(468,599 |
) |
(477,077 |
) |
(71,705 |
) |
|
(1,712,860 |
) |
(1,369,766 |
) |
(205,878 |
) |
Interest
income, net |
120,460 |
|
521,317 |
|
78,355 |
|
|
361,640 |
|
1,037,384 |
|
155,920 |
|
Others,
net |
97,209 |
|
484,711 |
|
72,853 |
|
|
1,561,687 |
|
643,868 |
|
96,774 |
|
Income/(loss)
before tax |
(485,352 |
) |
1,031,337 |
|
155,012 |
|
|
(702,708 |
) |
1,072,211 |
|
161,154 |
|
Income
tax expenses |
(2,182 |
) |
(53,177 |
) |
(7,993 |
) |
|
(65,783 |
) |
(126,593 |
) |
(19,027 |
) |
Net
income/(loss) from continuing operations |
(487,534 |
) |
978,160 |
|
147,019 |
|
|
(768,491 |
) |
945,618 |
|
142,127 |
|
Net
income/(loss)
from discontinued operations, net of tax |
(320,407 |
) |
- |
|
- |
|
|
(1,038,788 |
) |
6,915 |
|
1,039 |
|
Net
income/(loss) |
(807,941 |
) |
978,160 |
|
147,019 |
|
|
(1,807,279 |
) |
952,533 |
|
143,166 |
|
Net loss from
continuing operations attributable to non-controlling interests
shareholders |
(20,161 |
) |
(36,130 |
) |
(5,430 |
) |
|
(29,427 |
) |
(80,434 |
) |
(12,089 |
) |
Net loss from
discontinued operations attributable to non-controlling interests
shareholders |
- |
|
- |
|
- |
|
|
(2,369 |
) |
(5,030 |
) |
(756 |
) |
Net income from
discontinued operations attributable to mezzanine classified
non-controlling interests shareholders |
133,810 |
|
- |
|
- |
|
|
308,208 |
|
281,021 |
|
42,238 |
|
Net
income/(loss) from continuing operations attributable to ordinary
shareholders |
(467,373 |
) |
1,014,290 |
|
152,449 |
|
|
(739,064 |
) |
1,026,052 |
|
154,216 |
|
Net loss from
discontinued operations attributable to ordinary
shareholders |
(454,217 |
) |
- |
|
- |
|
|
(1,344,627 |
) |
(269,076 |
) |
(40,443 |
) |
Net
income/(loss)
attributable to ordinary shareholders |
(921,590 |
) |
1,014,290 |
|
152,449 |
|
|
(2,083,691 |
) |
756,976 |
|
113,773 |
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
September
30,2016 |
September
30,2017 |
September
30,2017 |
|
September
30,2016 |
September
30,2017 |
September
30,2017 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
(2)
Includes share-based compensation expenses as follows: |
Cost of
revenues |
|
(4,908 |
) |
(7,235 |
) |
(1,087 |
) |
|
(12,046 |
) |
(16,551 |
) |
(2,488 |
) |
Fulfillment |
|
(94,195 |
) |
(115,632 |
) |
(17,380 |
) |
|
(239,340 |
) |
(312,170 |
) |
(46,920 |
) |
Marketing |
|
(23,812 |
) |
(38,079 |
) |
(5,723 |
) |
|
(64,070 |
) |
(97,541 |
) |
(14,661 |
) |
Technology and content |
|
(134,648 |
) |
(185,138 |
) |
(27,826 |
) |
|
(337,548 |
) |
(477,866 |
) |
(71,824 |
) |
General
and administrative |
|
(299,246 |
) |
(388,160 |
) |
(58,341 |
) |
|
(792,660 |
) |
(1,113,532 |
) |
(167,365 |
) |
(3)
Includes amortization of intangible assets resulting from assets
and business acquisitions as follows: |
Fulfillment |
|
(41,846 |
) |
(40,678 |
) |
(6,114 |
) |
|
(50,785 |
) |
(122,895 |
) |
(18,471 |
) |
Marketing |
|
(307,759 |
) |
(307,759 |
) |
(46,257 |
) |
|
(914,455 |
) |
(913,290 |
) |
(137,269 |
) |
Technology and content |
|
(20,923 |
) |
(20,661 |
) |
(3,105 |
) |
|
(25,248 |
) |
(61,983 |
) |
(9,316 |
) |
General
and administrative |
|
(77,314 |
) |
(77,314 |
) |
(11,620 |
) |
|
(170,709 |
) |
(230,460 |
) |
(34,638 |
) |
|
|
|
|
|
|
|
|
|
Net
income/(loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Continuing operations |
|
(0.16 |
) |
0.36 |
|
0.05 |
|
|
(0.26 |
) |
0.36 |
|
0.05 |
|
Discontinued operations |
|
(0.16 |
) |
- |
|
- |
|
|
(0.48 |
) |
(0.09 |
) |
(0.01 |
) |
Net
income/(loss) per share |
|
(0.32 |
) |
0.36 |
|
0.05 |
|
|
(0.75 |
) |
0.27 |
|
0.04 |
|
Diluted |
|
|
|
|
|
|
|
|
Continuing operations |
|
(0.16 |
) |
0.35 |
|
0.05 |
|
|
(0.26 |
) |
0.35 |
|
0.05 |
|
Discontinued operations |
|
(0.16 |
) |
- |
|
- |
|
|
(0.48 |
) |
(0.09 |
) |
(0.01 |
) |
Net
income/(loss) per share |
|
(0.32 |
) |
0.35 |
|
0.05 |
|
|
(0.75 |
) |
0.26 |
|
0.04 |
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) per ADS: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Continuing operations |
|
(0.32 |
) |
0.71 |
|
0.11 |
|
|
(0.53 |
) |
0.72 |
|
0.11 |
|
Discontinued operations |
|
(0.32 |
) |
- |
|
- |
|
|
(0.96 |
) |
(0.19 |
) |
(0.03 |
) |
Net
income/(loss) per ADS |
|
(0.64 |
) |
0.71 |
|
0.11 |
|
|
(1.49 |
) |
0.53 |
|
0.08 |
|
Diluted |
|
|
|
|
|
|
|
|
Continuing operations |
|
(0.32 |
) |
0.69 |
|
0.10 |
|
|
(0.53 |
) |
0.71 |
|
0.11 |
|
Discontinued operations |
|
(0.32 |
) |
- |
|
- |
|
|
(0.96 |
) |
(0.19 |
) |
(0.03 |
) |
Net
income/(loss) per ADS |
|
(0.64 |
) |
0.69 |
|
0.10 |
|
|
(1.49 |
) |
0.52 |
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Non-GAAP Net Income Per ADS from Continuing
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
September 30,2016 |
September 30,2017 |
September 30,2017 |
|
September 30,2016 |
September 30,2017 |
September 30,2017 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Non-GAAP net
income from continuing operations attributable to ordinary
shareholders |
|
484,073 |
2,220,602 |
333,759 |
|
1,288,715 |
4,519,082 |
679,223 |
|
|
|
|
|
|
|
|
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
Basic |
|
2,879,201 |
2,847,511 |
2,847,511 |
|
2,794,933 |
2,843,363 |
2,843,363 |
Diluted |
|
2,879,201 |
2,924,929 |
2,924,929 |
|
2,794,933 |
2,907,204 |
2,907,204 |
Diluted
(Non-GAAP) |
|
2,915,213 |
2,924,929 |
2,924,929 |
|
2,844,995 |
2,907,204 |
2,907,204 |
|
|
|
|
|
|
|
|
|
Non-GAAP net
income from continuing operations per ADS(4): |
|
|
|
|
|
|
|
|
Basic |
|
0.34 |
1.56 |
0.23 |
|
0.92 |
3.18 |
0.48 |
Diluted |
|
0.33 |
1.52 |
0.23 |
|
0.91 |
3.11 |
0.47 |
|
|
|
|
|
|
|
|
|
(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 and Free Cash Flow |
(In thousands) |
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
September
30,2016 |
September
30,2017 |
September
30,2017 |
|
September
30,2016 |
September
30,2017 |
September
30,2017 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net cash provided
by/(used in) continuing operating activities |
|
6,402,825 |
|
(244,703 |
) |
(36,779 |
) |
|
13,501,830 |
|
23,423,727 |
|
3,520,618 |
|
Net cash provided
by/(used in) discontinued operating activities |
|
187,645 |
|
- |
|
- |
|
|
(1,751,412 |
) |
(2,485,741 |
) |
(373,610 |
) |
Net cash provided
by/(used in) operating activities |
|
6,590,470 |
|
(244,703 |
) |
(36,779 |
) |
|
11,750,418 |
|
20,937,986 |
|
3,147,008 |
|
Net cash used in
continuing investing activities |
|
(10,038,098 |
) |
(4,178,543 |
) |
(628,041 |
) |
|
(12,370,475 |
) |
(25,933,878 |
) |
(3,897,897 |
) |
Net cash used in
discontinued investing activities |
|
(10,987,594 |
) |
- |
|
- |
|
|
(21,340,265 |
) |
(15,772,855 |
) |
(2,370,682 |
) |
Net cash used in
investing activities |
|
(21,025,692 |
) |
(4,178,543 |
) |
(628,041 |
) |
|
(33,710,740 |
) |
(41,706,733 |
) |
(6,268,579 |
) |
Net cash provided
by/(used in) continuing financing activities |
|
(6,490,973 |
) |
(1,546,127 |
) |
(232,385 |
) |
|
6,514,399 |
|
8,981,511 |
|
1,349,933 |
|
Net cash provided by
discontinued financing activities |
|
9,350,824 |
|
- |
|
- |
|
|
21,998,595 |
|
14,054,620 |
|
2,112,428 |
|
Net cash provided
by/(used in) financing activities |
|
2,859,851 |
|
(1,546,127 |
) |
(232,385 |
) |
|
28,512,994 |
|
23,036,131 |
|
3,462,361 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
28,329 |
|
(274,981 |
) |
(41,329 |
) |
|
418,055 |
|
(428,458 |
) |
(64,397 |
) |
Net increase/(decrease)
in cash and cash equivalents |
|
(11,547,042 |
) |
(6,244,354 |
) |
(938,534 |
) |
|
6,970,727 |
|
1,838,926 |
|
276,393 |
|
Cash and cash
equivalents at beginning of period |
|
36,381,637 |
|
27,854,975 |
|
4,186,640 |
|
|
17,863,868 |
|
19,771,695 |
|
2,971,713 |
|
Cash and cash
equivalents at end of period |
|
24,834,595 |
|
21,610,621 |
|
3,248,106 |
|
|
24,834,595 |
|
21,610,621 |
|
3,248,106 |
|
Less: Cash and cash
equivalents of held for sale |
|
2,794,330 |
|
- |
|
- |
|
|
2,794,330 |
|
- |
|
- |
|
Cash and cash
equivalents of continuing operations at end of period |
|
22,040,265 |
|
21,610,621 |
|
3,248,106 |
|
|
22,040,265 |
|
21,610,621 |
|
3,248,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP
and Non-GAAP measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by/(used in) operating activities from continuing operations |
|
6,402,825 |
|
|
|
|
(244,703 |
) |
|
|
(36,779 |
) |
|
13,501,830 |
|
23,423,727 |
|
3,520,618 |
|
Add/(less): Impact from
JD Finance related credit products included in the operating cash
flow |
|
(131,611 |
) |
|
|
|
(1,559,382 |
) |
|
|
(234,377 |
) |
|
5,177,620 |
|
2,584,595 |
|
388,468 |
|
Less: Capital
expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land use
rights and construction in progress |
|
(496,159 |
) |
|
|
|
(5,384,486 |
) |
|
|
(809,296 |
) |
|
(1,307,527 |
) |
(6,675,136 |
) |
(1,003,282 |
) |
Other
CAPEX |
|
(436,274 |
) |
|
|
|
(1,812,924 |
) |
|
|
(272,484 |
) |
|
(1,630,457 |
) |
(2,490,803 |
) |
(374,371 |
) |
Free cash flow |
|
5,338,781 |
|
|
|
|
(9,001,495 |
) |
|
|
(1,352,936 |
) |
|
15,741,466 |
|
16,842,383 |
|
2,531,433 |
|
|
|
JD.com, Inc. |
Supplemental Financial Information and Business
Metrics |
|
|
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
|
|
|
|
|
|
|
|
|
Free cash
flow - trailing twelve months (“TTM”) (in RMB billions) |
|
4.4 |
9.2 |
15.0 |
13.5 |
17.3 |
28.9 |
14.6 |
Inventory
turnover days(5) – TTM |
|
36.8 |
38.0 |
37.3 |
37.6 |
36.7 |
36.3 |
36.9 |
Accounts
payable turnover days(6) – TTM |
|
45.7 |
49.2 |
51.5 |
52.0 |
52.3 |
56.2 |
58.4 |
Accounts
receivable turnover days(7) – TTM |
|
1.3 |
1.3 |
1.2 |
1.3 |
1.2 |
1.2 |
1.3 |
GMV(8)
(in RMB billions) |
|
178.6 |
228.9 |
228.6 |
303.0 |
253.2 |
335.3 |
302.5 |
Annual
active customer accounts(9) (in millions) |
|
169.1 |
188.1 |
198.7 |
226.6 |
236.5 |
258.3 |
266.3 |
|
|
|
|
|
|
|
|
|
(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. (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 JD Baitiao. (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 orders placed on our websites
and mobile apps as well as orders placed on third-party websites
and mobile apps that are fulfilled by us or by our third-party
merchants. GMV includes shipping charges paid by buyers to sellers
and excludes certain transactions over certain amounts that are
comparable to the disclosed parameters in GMV definition by our
major industry peer. (9) 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. |
Unaudited Historical Selected Financial Data(12) |
(In thousands) |
|
|
For the year ended |
|
December 31, 2014 |
December 31, 2015 |
December 31, 2016 |
|
RMB |
RMB |
RMB |
|
|
|
|
Net
revenues |
|
|
|
Online
direct sales |
108,561,762 |
|
167,936,020 |
|
237,943,632 |
|
Services
and others |
6,380,431 |
|
13,106,280 |
|
20,346,315 |
|
Total
net revenues |
114,942,193 |
|
181,042,300 |
|
258,289,947 |
|
|
|
|
|
Operating
expenses(10)(11) |
|
|
|
Cost of
revenues |
(102,533,636 |
) |
(158,960,400 |
) |
(222,934,637 |
) |
Fulfillment |
(7,226,957 |
) |
(12,367,030 |
) |
(18,559,691 |
) |
Marketing |
(3,939,212 |
) |
(7,232,717 |
) |
(10,158,686 |
) |
Technology and content |
(1,613,183 |
) |
(2,902,033 |
) |
(4,452,708 |
) |
General
and administrative |
(5,070,153 |
) |
(2,187,890 |
) |
(3,435,878 |
) |
Impairment of goodwill and intangible assets related to
Paipai.com |
- |
|
(2,750,129 |
) |
- |
|
Total operating
expenses |
(120,383,141 |
) |
(186,400,199 |
) |
(259,541,600 |
) |
Loss from
operations |
(5,440,948 |
) |
(5,357,899 |
) |
(1,251,653 |
) |
Other
income/(expenses) |
|
|
|
Share of
results of equity investees |
- |
|
(2,852,677 |
) |
(2,781,909 |
) |
Interest
income, net |
637,726 |
|
600,411 |
|
608,285 |
|
Others,
net |
214,485 |
|
(145,807 |
) |
1,543,376 |
|
Loss before
tax |
(4,588,737 |
) |
(7,755,972 |
) |
(1,881,901 |
) |
Income
tax benefits/(expenses) |
(13,610 |
) |
14,646 |
|
(166,391 |
) |
Net loss from
continuing operations |
(4,602,347 |
) |
(7,741,326 |
) |
(2,048,292 |
) |
Net loss from
discontinued operations, net of tax |
(394,011 |
) |
(1,376,180 |
) |
(1,365,432 |
) |
Net
loss |
(4,996,358 |
) |
(9,117,506 |
) |
(3,413,724 |
) |
|
|
JD.com, Inc. |
Unaudited Historical Selected Financial Data(12) |
(In thousands) |
|
|
For the year ended |
|
December 31, 2014 |
December 31, 2015 |
December 31, 2016 |
|
RMB |
RMB |
RMB |
|
|
|
|
Net loss from
continuing operations attributable to non-controlling interests
shareholders |
- |
|
(9,566 |
) |
(47,848 |
) |
Net loss from
discontinued operations attributable to non-controlling interests
shareholders |
- |
|
- |
|
(3,743 |
) |
Net income from
discontinued operations attributable to mezzanine classified
non-controlling interests shareholders |
- |
|
- |
|
444,657 |
|
Preferred shares
redemption value accretion from continuing operations |
7,957,640 |
|
- |
|
- |
|
Net loss from
continuing operations attributable to ordinary
shareholders |
(12,559,987 |
) |
(7,731,760 |
) |
(2,000,444 |
) |
Net loss from
discontinued operations attributable to ordinary
shareholders |
(394,011 |
) |
(1,376,180 |
) |
(1,806,346 |
) |
Net loss
attributable to ordinary shareholders |
(12,953,998 |
) |
(9,107,940 |
) |
(3,806,790 |
) |
|
|
|
|
Non-GAAP net
income from continuing operations attributable to ordinary
shareholders |
721,259 |
|
399,805 |
|
2,068,404 |
|
|
|
|
|
(10)
Includes share-based compensation expenses as follows: |
Cost of revenues |
(2,877 |
) |
(7,529 |
) |
(17,485 |
) |
Fulfillment |
(119,477 |
) |
(164,162 |
) |
(332,383 |
) |
Marketing |
(23,508 |
) |
(47,510 |
) |
(87,261 |
) |
Technology and
content |
(74,209 |
) |
(208,898 |
) |
(470,234 |
) |
General and
administrative |
(4,006,656 |
) |
(648,187 |
) |
(1,154,069 |
) |
(11)
Includes amortization of intangible assets resulting from assets
and business acquisitions as follows: |
Fulfillment |
(7,908 |
) |
(9,564 |
) |
(92,631 |
) |
Marketing |
(924,737 |
) |
(1,225,318 |
) |
(1,222,214 |
) |
Technology and
content |
(18,591 |
) |
(23,748 |
) |
(45,909 |
) |
General and
administrative |
(145,643 |
) |
(180,118 |
) |
(248,023 |
) |
|
(12) The above unaudited selected financial data of
prior periods are presented to reflect the results of JD Finance
deconsolidation and JD Logistics cost reclassification. As of June
30, 2017, JD Finance has been deconsolidated from the company as a
result of the reorganization, principal terms of which were
previously announced. Accordingly, JD Finance’s historical
financial results for periods prior to July 1, 2017 are reflected
in the company’s consolidated financial statements as discontinued
operations. In April 2017, the company established JD Logistics, a
new business group under JD.com, which leverages the company’s
advanced technology and logistics expertise to provide logistics
services to businesses across a wide range of industries. As JD
Logistics has changed from supporting the overall JD platform to an
independently operated business unit, cost related to the logistics
services provided to merchants and other third parties are
reclassified from fulfillment expenses to cost of revenues. The
amount of fulfillment expenses that has been reclassified to
conform to the current period financial statement presentation were
RMB0.8 billion, RMB1.7 billion and RMB2.6 billion for the years
ended December 31, 2014, 2015, and 2016, respectively. |
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
(In thousands, except percentage data) |
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
September 30,2016 |
September 30,2017 |
September 30,2017 |
|
September 30,2016 |
September 30,2017 |
September 30,2017 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net revenues from
continuing operations |
|
60,173,725 |
|
83,746,258 |
|
12,587,176 |
|
|
178,878,819 |
|
252,166,420 |
|
37,900,954 |
|
Less: Cost of revenues
from continuing operations |
|
(51,537,518 |
) |
(70,763,508 |
) |
(10,635,851 |
) |
|
(154,364,119 |
) |
(215,711,390 |
) |
(32,421,714 |
) |
Gross profit |
|
8,636,207 |
|
12,982,750 |
|
1,951,325 |
|
|
24,514,700 |
|
36,455,030 |
|
5,479,240 |
|
Less: Revenue from
business cooperation arrangements with equity investees |
|
(227,966 |
) |
(210,970 |
) |
(31,709 |
) |
|
(649,648 |
) |
(625,569 |
) |
(94,024 |
) |
Add: Share-based
compensation included in cost of revenues |
|
4,908 |
|
7,235 |
|
1,087 |
|
|
12,046 |
|
16,551 |
|
2,488 |
|
Non-GAAP gross
profit |
|
8,413,149 |
|
12,779,015 |
|
1,920,703 |
|
|
23,877,098 |
|
35,846,012 |
|
5,387,704 |
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
operations from continuing operations |
|
(234,422 |
) |
502,386 |
|
75,509 |
|
|
(913,175 |
) |
760,725 |
|
114,338 |
|
Reversal of: Revenue
from business cooperation arrangements with equity investees |
|
(227,966 |
) |
(210,970 |
) |
(31,709 |
) |
|
(649,648 |
) |
(625,569 |
) |
(94,024 |
) |
Add: Share-based
compensation |
|
556,809 |
|
734,244 |
|
110,357 |
|
|
1,445,664 |
|
2,017,660 |
|
303,258 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
447,842 |
|
446,412 |
|
67,096 |
|
|
1,161,197 |
|
1,328,628 |
|
199,694 |
|
Non-GAAP income
from operations from continuing operations |
|
542,263 |
|
1,472,072 |
|
221,253 |
|
|
1,044,038 |
|
3,481,444 |
|
523,266 |
|
Add: Depreciation and
amortization excluding amortization of intangible assets resulting
from assets and business acquisitions |
|
479,320 |
|
641,143 |
|
96,365 |
|
|
1,302,912 |
|
1,681,287 |
|
252,700 |
|
Non-GAAP EBITDA
from continuing operations |
|
1,021,583 |
|
2,113,215 |
|
317,618 |
|
|
2,346,950 |
|
5,162,731 |
|
775,966 |
|
|
|
|
|
|
|
|
|
|
Total net revenues from
continuing operations |
|
60,173,725 |
|
83,746,258 |
|
12,587,176 |
|
|
178,878,819 |
|
252,166,420 |
|
37,900,954 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating margin from continuing operations |
|
0.9 |
% |
1.8 |
% |
1.8 |
% |
|
0.6 |
% |
1.4 |
% |
1.4 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
margin from continuing operations |
|
1.7 |
% |
2.5 |
% |
2.5 |
% |
|
1.3 |
% |
2.0 |
% |
2.0 |
% |
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
(In thousands, except percentage data) |
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
September
30,2016 |
September
30,2017 |
September
30,2017 |
|
September
30,2016 |
September
30,2017 |
September
30,2017 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net income/(loss) from
continuing operations attributable to ordinary shareholders |
|
(467,373 |
) |
1,014,290 |
|
152,449 |
|
|
(739,064 |
) |
1,026,052 |
|
154,216 |
|
Add: Share-based
compensation |
|
556,809 |
|
734,244 |
|
110,357 |
|
|
1,445,664 |
|
2,017,660 |
|
303,258 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
447,842 |
|
446,412 |
|
67,096 |
|
|
1,161,197 |
|
1,328,628 |
|
199,694 |
|
Add: Reconciling items
on the share of equity method investments(13) |
|
157,048 |
|
239,816 |
|
36,045 |
|
|
332,351 |
|
693,257 |
|
104,197 |
|
Add: Impairment of
goodwill, intangible assets, and investments |
|
37,559 |
|
16,666 |
|
2,505 |
|
|
998,787 |
|
139,823 |
|
21,016 |
|
Reversal of: Gain on
disposal of JD Daojia |
|
- |
|
- |
|
- |
|
|
(1,227,760 |
) |
- |
|
- |
|
Reversal of: Revenue
from business cooperation arrangements with equity investees |
|
(227,966 |
) |
(210,970 |
) |
(31,709 |
) |
|
(649,648 |
) |
(625,569 |
) |
(94,024 |
) |
Reversal of: Income
from non-compete agreement |
|
(19,846 |
) |
(19,856 |
) |
(2,984 |
) |
|
(32,812 |
) |
(60,769 |
) |
(9,134 |
) |
Non-GAAP net
income from continuing operations attributable to ordinary
shareholders |
|
484,073 |
|
2,220,602 |
|
333,759 |
|
|
1,288,715 |
|
4,519,082 |
|
679,223 |
|
|
|
|
|
|
|
|
|
|
Total net revenues from
continuing operations |
|
60,173,725 |
|
83,746,258 |
|
12,587,176 |
|
|
178,878,819 |
|
252,166,420 |
|
37,900,954 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
margin from continuing operations |
|
0.8 |
% |
2.7 |
% |
2.7 |
% |
|
0.7 |
% |
1.8 |
% |
1.8 |
% |
|
|
|
|
|
|
|
|
|
(13) For the third quarter of 2017, the reconciling
items on the share of equity method investments included the impact
of share-based compensation of RMB28.4 million, amortization of
intangible assets resulting from assets and business acquisitions
of RMB89.1 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 RMB99.2 million. Earning
from equity method investments in publicly listed companies and
certain privately held companies is recorded one quarter in
arrears. |
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
(In thousands, except percentage data) |
|
|
For the year ended |
|
December 31, 2014 |
December 31, 2015 |
December 31, 2016 |
|
RMB |
RMB |
RMB |
|
|
|
|
Net loss
from continuing operations attributable to ordinary
shareholders |
(12,559,987 |
) |
(7,731,760 |
) |
(2,000,444 |
) |
Add:
Share-based compensation |
4,226,727 |
|
1,076,286 |
|
2,061,432 |
|
Add:
Amortization of intangible assets resulting from assets and
business acquisitions |
1,096,879 |
|
1,438,748 |
|
1,608,777 |
|
Add:
Reconciling items on the share of equity method investments |
- |
|
174,102 |
|
539,325 |
|
Add:
Impairment of goodwill, intangible assets, and investments |
- |
|
5,946,878 |
|
1,959,746 |
|
Reversal
of: Revenue from business cooperation arrangements with equity
investees |
- |
|
(504,449 |
) |
(819,486 |
) |
Reversal
of: Gain on disposal of JD Daojia |
- |
|
- |
|
(1,227,760 |
) |
Reversal
of: Income from non-compete agreement |
- |
|
- |
|
(53,186 |
) |
Add:
Preferred shares redemption value accretion |
7,957,640 |
|
- |
|
- |
|
Non-GAAP net income from continuing operations attributable
to ordinary shareholders |
721,259 |
|
399,805 |
|
2,068,404 |
|
|
|
|
|
Total net
revenues from continuing operations |
114,942,193 |
|
181,042,300 |
|
258,289,947 |
|
|
|
|
|
Non-GAAP net margin from continuing
operations |
0.6 |
% |
0.2 |
% |
0.8 |
% |
|
|
|
|
|
|
|
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