SHANGHAI, May 31, 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 March 31,
2018.
First Quarter 2018 Highlights
- Revenues in the first quarter of 2018 were $29.5 million, representing an increase of 50.1%
from $19.7 million in the first
quarter of 2017.
- Gross profit was $225 thousand in
the first quarter of 2018, improved from $106 thousand in the first quarter of 2017.
- B2B online platform recorded gross billing of RMB2.2 billion (US$344.2
million) in the first quarter of 2018, measured in terms of
gross merchandise value ("GMV"), increasing 5.2% from gross billing
of RMB2.1 billion (US$298.1 million) in the first quarter of
2017.
- Active customer accounts were 33,025 as of March 31, 2018, decreasing 1.6% from 33,559 as of
March 31, 2017.
- Third-party sellers on the Company's online marketplace
decreased to 15,710 compared to 16,789 as of March 31, 2017.
Ms. Xiaoxia Zhu, Chairperson and
Chief Executive Officer commented, "We are pleased to deliver
revenue and gross profit growth in the first quarter of 2018
compared to the same period of 2017. This demonstrates solid
execution of our business, which aims to maintain strength in our
existing market while also capturing new market opportunities that
can contribute to our development."
"Through our strategic partnerships and development of
Ready-to-Cook and Ready-to-Eat products, we are able to expand our
portfolio of products and services that fulfill a wide range of
customer demands. We look forward to continuing to build our
company's market position and maintaining operational efficiency as
we scale the business." Ms. Zhu concluded.
First Quarter 2018 Financial Performance
Revenues were $29.5 million
for the first quarter of 2018, representing an increase of 50.1%
from $19.7 million in the first
quarter of 2017. The growth of revenue in the first quarter of 2018
was mainly due to the increase in order volumes.
Cost of revenues was $29.3
million for the first quarter of 2018, increasing 49.8% from
$19.6 million in the first quarter of
2017, which was generally in line with the growth of the Company's
revenues.
Gross profit for the first quarter of 2018 was
$225.0 thousand, representing a
112.3% increase from $105.9 thousand
in the first quarter of 2017.
Selling and marketing expenses in the first quarter of
2018 decreased 58.0% to $1.6 million
from $3.9 million in the first
quarter of 2017. As a percentage of total revenue, selling and
marketing expense was 5.5% and 19.7% in the first quarter of 2018
and the same period of 2017, respectively.
General and administrative expenses in the first quarter
of 2018 were $1.2 million,
representing a decrease of 32.8% compared to $1.8 million in the first quarter of 2017. As a
percentage of total revenues, general and administrative expenses
were 4.2% and 9.3% in the first quarter of 2018 and the same period
2017, respectively. The decrease was primarily a result of the
Company's improvement in management and operational efficiency.
Loss from operations in the first quarter of 2018 was
$2.6 million, a 53.0% decrease from a
loss from operations of $5.6 million
in the first quarter of 2017.
Net loss attributable to the Company in the first quarter
of 2018 was $2.7 million,
representing a decrease of 46.3% compared to $5.1 million in the first quarter of 2017.
Non-GAAP net loss attributable to the Company, which excludes
amortization of acquired intangible assets, impairment loss,
share-based compensation, and related provision for income tax
benefits, was $2.3 million in the
first quarter of 2018 compared to $3.0
million in the same period of 2017. For the quarters ended
March 31, 2018 and March 31, 2017, the Company's weighted average
number of ordinary shares used in computing loss per ordinary share
was 1,476,257,423 and 1,475,946,602, respectively.
As of March 31, 2018, the
Company's cash and cash equivalents were $1.5 million, decreasing 68.5% compared to
$4.9 million as of December 31, 2017. Total shareholders' equity was
$104.8 million as compared to
$103.6 million as of December 31, 2017.
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 loss, 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 loss , share-based
compensation and income tax benefits. A limitation of using these
non-GAAP financial measures is that amortization of acquired
intangible assets, impairment loss , 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
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars in thousands, except for number of shares and per share
(or ADS) data)
|
|
Three Months
Ended
|
March 31,
2017
|
|
March 31,
2018
|
|
|
|
|
Related
parties
|
3,142
|
|
3,648
|
Third
parties
|
16,540
|
|
25,899
|
Total
Revenues
|
19,682
|
|
29,547
|
Cost of
revenues
|
(19,576)
|
|
(29,322)
|
Gross
profit
|
106
|
|
225
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling and
marketing
|
(3,868)
|
|
(1,626)
|
General and
administrative
|
(1,833)
|
|
(1,232)
|
Impairment
loss
|
-
|
|
-
|
Total operating
expenses
|
(5,701)
|
|
(2,858)
|
Loss from
operations
|
(5,595)
|
|
(2,633)
|
Interest
expense
|
(17)
|
|
(221)
|
Other income,
net
|
35
|
|
61
|
Loss before
provision for income taxes
|
(5,577)
|
|
(2,793)
|
Income tax
benefits
|
497
|
|
64
|
Net
loss
|
(5,080)
|
|
(2,729)
|
|
|
|
|
Net loss per
ordinary share
|
|
|
|
Basic
|
(0.00)
|
|
(0.00)
|
Diluted
|
(0.00)
|
|
(0.00)
|
Weighted average
shares used in calculating net loss per
ordinary share
|
|
|
|
Basic
|
1,475,946,602
|
|
1,476,257,423
|
Diluted
|
1,475,946,602
|
|
1,476,257,423
|
JMU LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
(US dollars in thousands)
|
|
Three Months
Ended
|
March 31,
2017
|
|
March 31,
2018
|
|
|
|
|
|
|
|
|
Net
loss
|
(5,080)
|
|
(2,729)
|
Other comprehensive
income, net of tax of $nil:
|
|
|
|
Change in cumulative foreign
currency translation adjustment
|
2,150
|
|
3,887
|
Comprehensive
(loss)/income
|
(2,930)
|
|
1,158
|
JMU LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)
|
|
|
|
|
December 31,
2017
|
|
March 31,
2018
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
4,912
|
|
1,545
|
Accounts receivable,
net
|
|
3,296
|
|
8,376
|
Inventories
|
|
539
|
|
589
|
Prepaid expenses and
other current assets, net
|
|
2,246
|
|
2,092
|
Amounts due from
related parties
|
|
3,063
|
|
6,641
|
Total current
assets
|
|
14,056
|
|
19,243
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
|
1,795
|
|
1,741
|
Acquired intangible
assets, net
|
|
10,264
|
|
10,319
|
Investment
|
|
768
|
|
797
|
Goodwill
|
|
108,940
|
|
112,999
|
Deferred tax
assets
|
|
157
|
|
146
|
Other non-current
assets
|
|
162
|
|
152
|
Total non-current
assets
|
|
122,086
|
|
126,154
|
TOTAL
ASSETS
|
|
136,142
|
|
145,397
|
LIABILITIES AND
SHAREHOLDER'S EQUITY:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
borrowings
|
|
7,685
|
|
7,971
|
Accounts and notes
payable
|
|
3,981
|
|
9,127
|
Accrued expenses and
other current liabilities
|
|
9,292
|
|
7,756
|
Advance from
customers
|
|
1,244
|
|
933
|
Amounts due to
related parties
|
|
604
|
|
2,253
|
Total current
liabilities
|
|
22,806
|
|
28,040
|
Non-current
liabilities:
|
|
|
|
|
Other non-current
liabilities
|
|
1,534
|
|
1,619
|
Deferred tax
liabilities
|
|
2,565
|
|
2,580
|
Amount due to related
parties
|
|
5,686
|
|
8,322
|
Total non-current
liabilities
|
|
9,785
|
|
12,521
|
TOTAL
LIABILITIES
|
|
32,591
|
|
40,561
|
Commitments and
contingencies
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Ordinary
shares
|
|
15
|
|
15
|
Additional paid-in
capital
|
|
634,071
|
|
634,198
|
Accumulated
deficit
|
|
(513,903)
|
|
(516,632)
|
Accumulated other
comprehensive loss
|
|
(16,632)
|
|
(12,745)
|
Total
shareholders' equity
|
|
103,551
|
|
104,836
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
136,142
|
|
145,397
|
JMU LIMITED
Reconciliation of Non-GAAP financial measures
to comparable GAAP measures
(US dollars in thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2017
|
|
March 31,
2018
|
Loss from
operations
|
|
5,595
|
|
2,633
|
Net loss attributable
to JMU Ltd.
|
|
5,080
|
|
2,729
|
|
|
|
|
|
Amortization of
acquired intangible assets
|
a
|
2,050
|
|
324
|
Provision for income
tax benefits
|
b
|
(497)
|
|
(64)
|
Share-based
compensation
|
c
|
534
|
|
125
|
Impairment
loss
|
d
|
-
|
|
-
|
|
|
|
|
|
Non-GAAP loss from
operation(a)(c)(d)
|
|
3,011
|
|
2,184
|
Non-GAAP net loss
attributable to JMU Ltd.(a)(b)(c)(d)
|
|
2,993
|
|
2,344
|
|
|
|
|
|
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