SHANGHAI, Nov. 22, 2017 /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,
2017.
Third Quarter 2017 Highlights
- Revenues in the third quarter of 2017 were $27.1 million, an increase of 36.9% from
$19.8 million in the third quarter of
2016.
- Gross profit was $150.6 thousand
in the third quarter of 2017, improving from a gross loss of
$145.0 thousand in the third quarter
of 2016.
- B2B online platform recorded gross billing of RMB 5,391 million (US$810
million) in the third quarter of 2017, measured in terms of
gross merchandise value ("GMV"), increasing 68.8% from gross
billing of RMB 3,194 million
(US$479 million) in the third quarter
of 2016.
- Active customer accounts were 33,198 as of September 30, 2017, as compared to 33,214 as of
September 30, 2016.
- Third-party sellers on the Company's JMU online marketplace increased 13.6% to 16,012 as
of September 30, 2017, compared to
14,094 as of September 30, 2016.
Ms. Xiaoxia Zhu, Co-chairperson
and Chief Executive Officer commented, "We are pleased to deliver
top-line results and maintain steady growth momentum of our online
marketplace in the third quarter of 2017. We are also actively
seeking new growth opportunities beyond our online direct sales
model to add to our core competency and broaden client engagement
and retention. Our goal is to provide clients with more value-added
supply chain solutions through advanced technology and research. In
the third quarter, a major focus of our R&D efforts was on
ready-to-cook, ready-to-eat products and OEM manufacturing
improvements. Our previously announced partnerships with Nippon
ACCESS and TANSH both play an essential role in fulfilling our
goals to build a supply chain eco-system spanning raw material
purchases to packaged food delivery. Looking ahead, we will
continue to focus on our source supplier expansion to create more
organic growth as well as selectively partner with well-known
brands to develop our packaged food product line and supply chain
solutions."
Third Quarter 2017 Financial
Performance
Revenues were $27.1 million
for the third quarter of 2017, an increase of 36.9% from
$19.8 million in the third quarter of
2016. The growth of revenue in the third quarter 2017 was mainly
due to the ongoing increase in sales from online direct sales.
Cost of revenues was $27.0
million in third quarter 2017, an increase of 35.1% from
$20.0 million in the third quarter of
2016, which was generally in line with revenue growth.
Gross profit for the third quarter of 2017 was
$150.6 thousand, as compared to gross
loss of $145.0 thousand in third
quarter 2016. The improvement was mainly attributable to
JMU's new pricing strategy and higher
discounts in purchasing price from suppliers due to sizable trading
volume.
Operating expenses were $5.0
million in the third quarter of 2017, a decrease of 35.6%
from $7.8 million in the prior year
period. The decrease in operating expenses was mainly due to
$2.2 million decrease in volume-based
rebates accrued in the third quarter of 2017.
Loss from operations in third quarter 2017 was
$4.9 million, a decrease of 38.7%
from $7.9 million in third quarter
2016.
Net loss attributable to the Company in the third quarter
of 2017 was $4.5 million, as compared
with $7.4 million in the third
quarter of 2016. Non-GAAP net loss attributable to the Company,
which excludes amortization of acquired intangible assets,
impairment of goodwill, share-based compensation and related
provision for income tax benefits, was $2.6
million in the third quarter of 2017 compared to
$5.1 million in the third quarter of
2016. For the quarter ended September 30,
2017 and 2016, the Company's weighted average number of
ordinary shares used in computing loss per ordinary share was
1,476,144,194 and 1,476,208,670, respectively.
As of September 30, 2017, the
Company's cash and cash equivalents was $2.7
million, an increase of 4.9% as compared to $2.6 million as of December 31, 2016. Total shareholders' equity
remained stable at $245.4 million,
compared to $248.4 million at the end
of 2016.
Conference Call Information
The Company will hold a conference call at 8:00 am ET (9:00 pm
Beijing/Hong Kong time) on Wednesday, November 22, 2017 to discuss its third
quarter 2017 results. Listeners may access the call by dialing.
U.S.
|
800-281-7973
|
Hong Kong
|
800-961-105
|
China
|
4001-209-101
|
Access
code
|
1829207
|
A webcast will also be available through the Company's investor
relations website at http://ir.ccjmu.com.
A replay of the call will be available through November 29, 2017 by dialing:
U.S.
|
888-203-1112
|
Hong Kong
|
800-901-108
|
China
|
400-120-1651
|
Access
code
|
1829207
|
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 is
further promoting the use of its platform for small- and
medium-sized restaurants and restaurant chains 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:
Freda Feng, IR Director
JMU Limited
fengxiaohong@ccjmu.com
Tel: +86-21-6015-1166 ext.8904
Bill Zima
ICR Inc.
bill.zima@icrinc.com
Tel: +1(203)-682-8200
JMU LIMITED
FORMERLY KNOWN AS WOWO LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars in thousands, except for number of shares and per share
(or ADS) data)
|
|
|
Three Months
Ended
|
September 30,
2016
|
|
September 30,
2017
|
|
|
|
|
Related
parties
|
2,769
|
|
4,005
|
Third
parties
|
17,067
|
|
23,141
|
Total
Revenues
|
19,836
|
|
27,146
|
Cost of
revenues
|
(19,981)
|
|
(26,996)
|
Gross (loss)
profit
|
(145)
|
|
150
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling and
marketing
|
(4,236)
|
|
(4,040)
|
General and
administrative
|
(3,565)
|
|
(980)
|
Total operating
expenses
|
(7,801)
|
|
(5,020)
|
Loss from
operations
|
(7,946)
|
|
(4,870)
|
Interest income
(expense)
|
5
|
|
(92)
|
Other income,
net
|
-
|
|
5
|
Loss before
tax
|
(7,941)
|
|
(4,957)
|
Income tax
benefits
|
530
|
|
493
|
Net
loss
|
(7,411)
|
|
(4,464)
|
|
|
|
|
Net loss per
ordinary share
|
|
|
|
Basic
|
(0.0050)
|
|
(0.0030)
|
Diluted
|
(0.0050)
|
|
(0.0030)
|
|
|
|
|
Weighted average
shares used in calculating net loss per ordinary
share
|
|
|
|
Basic
|
1,476,208,670
|
|
1,476,144,194
|
Diluted
|
1,476,208,670
|
|
1,476,144,194
|
JMU LIMITED
FORMERLY KNOWN AS WOWO LIMITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(US dollars in thousands)
|
|
|
Three Months
Ended
|
September 30,
2016
|
|
September 30,
2017
|
|
|
|
|
|
|
|
|
Net
loss
|
(7,411)
|
|
(4,464)
|
Other comprehensive
(loss) income, net of tax of nil:
|
|
|
|
Change in cumulative
foreign currency translation adjustment
|
(932)
|
|
4,603
|
Comprehensive
(loss)/income
|
(8,343)
|
|
139
|
JMU LIMITED
FORMERLY KNOWN AS WOWO LIMITED
CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)
|
|
|
|
|
December 31,
2016
|
|
September 30,
2017
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
2,605
|
|
2,733
|
Accounts receivable,
net
|
|
1,645
|
|
11,251
|
Inventories,
net
|
|
224
|
|
362
|
Prepaid expenses and
other current assets
|
|
8,678
|
|
8,371
|
Deferred tax
assets
|
|
63
|
|
-
|
Amounts due from
related parties
|
|
213
|
|
2,899
|
Total current
assets
|
|
13,428
|
|
25,616
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
|
1,978
|
|
1,878
|
Acquired intangible
assets, net
|
|
36,274
|
|
31,488
|
Investment
|
|
720
|
|
752
|
Goodwill
|
|
221,337
|
|
230,975
|
Deferred tax
assets
|
|
156
|
|
169
|
Other non-current
assets
|
|
152
|
|
158
|
Total non-current
assets
|
|
260,617
|
|
265,420
|
TOTAL
ASSETS
|
|
274,045
|
|
291,036
|
LIABILITIES AND
SHAREHOLDERS' EQUITY:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
borrowings
|
|
-
|
|
7,515
|
Accounts and notes
payable
|
|
2,200
|
|
12,472
|
Accrued expenses and
other current liabilities
|
|
9,033
|
|
5,967
|
Advance from
customers
|
|
2,282
|
|
2,483
|
Amounts due to
related parties
|
|
1,711
|
|
862
|
Total current
liabilities
|
|
15,226
|
|
29,299
|
Non-current
liabilities:
|
|
|
|
|
Other non-current
liabilities
|
|
1,352
|
|
1,500
|
Deferred tax
liabilities
|
|
9,069
|
|
7,872
|
Amounts due to
related parties
|
|
-
|
|
6,955
|
Total non-current
liabilities
|
|
10,421
|
|
16,327
|
TOTAL
LIABILITIES
|
|
25,647
|
|
45,626
|
Shareholders'
equity:
|
|
|
|
|
Ordinary
shares
|
|
15
|
|
15
|
Additional paid-in
capital
|
|
632,995
|
|
634,182
|
Accumulated
deficit
|
|
(352,004)
|
|
(366,638)
|
Accumulated other
comprehensive loss
|
|
(32,608)
|
|
(22,149)
|
Total
shareholders' equity
|
|
248,398
|
|
245,410
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
274,045
|
|
291,036
|
|
|
|
|
|
JMU LIMITED
FORMERLY KNOWN AS WOWO LIMITED
Reconciliation of Non-GAAP financial measures
to comparable GAAP measures
(US dollars in thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2016
|
|
September 30,
2017
|
Loss from
operations
|
|
7,946
|
|
4,870
|
Net loss
|
|
7,411
|
|
4,464
|
|
|
|
|
|
Amortization of
acquired intangible assets
|
a
|
2,118
|
|
2,117
|
Income tax
benefits
|
b
|
(530)
|
|
(493)
|
Share-based
compensation
|
c
|
708
|
|
237
|
Impairment of
goodwill
|
d
|
-
|
|
-
|
|
|
|
|
|
Non-GAAP loss from
operation (a)(c)(d)
|
|
5,120
|
|
2,516
|
Non-GAAP net loss
(a)(b)(c)(d)
|
|
5,115
|
|
2,603
|
|
|
|
|
|
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 of goodwill
|
|
|
|
|
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SOURCE JMU Ltd