JD.com, Inc. (NASDAQ: JD), China’s leading technology driven
e-commerce company and retail infrastructure service provider,
today announced its unaudited financial results for the quarter
ended June 30, 2019.
Second Quarter 2019
Highlights
- Net revenues for
the second quarter of 2019 were RMB150.3 billion (US$121.9
billion), an increase of 22.9% from the second quarter of 2018. Net
service revenues for the second quarter of 2019 were RMB16.8
billion (US$2.4 billion), an increase of 42.0% from the second
quarter of 2018.
- Income from
operations for the second quarter of 2019 was RMB2,266.6
million (US$330.2 million), compared to loss from operations of
RMB1,033.9 million for the same period last year. Non-GAAP2 income
from operations for the second quarter of 2019 was RMB3,217.5
million (US$468.7 million) with a non-GAAP operating margin of
2.1%, as compared to RMB113.2 million in the second quarter of 2018
with a non-GAAP operating margin of 0.1%.
- Net income
attributable to ordinary shareholders for the
second quarter of 2019 was RMB618.8 million (US$90.1 million),
compared to net loss attributable to ordinary shareholders of
RMB2,212.5 million for the same period last year. Non-GAAP
net income attributable to ordinary
shareholders increased by 644% to RMB3,558.9 million
(US$518.4 million) in the second quarter of 2019 from RMB478.1
million in the second quarter of 2018.
- Diluted EPS and Non-GAAP
Diluted EPS. Diluted net income per ADS for the second
quarter of 2019 was RMB0.36 (US$0.05), compared to diluted net loss
per ADS of RMB1.54 for the second quarter of 2018. Non-GAAP diluted
net income per ADS for the second quarter of 2019 was RMB2.30
(US$0.33), compared to RMB0.33 for the same quarter last year.
- Operating cash
flow for the twelve months ended June 30, 2019 increased
to RMB31.8 billion (US$4.6 billion) from RMB16.4 billion for the
twelve months ended June 30, 2018. Free cash flow,
which excludes the impact from JD Baitiao receivables included in
the operating cash flow, for the twelve months ended June 30, 2019
increased to RMB7.4 billion (US$1.1 billion), compared to outflow
of RMB5.8 billion for the twelve months ended June 30, 2018.
- Annual active customer
accounts3 increased to 321.3 million in the twelve months
ended June 30, 2019 from 310.5 million in the twelve months ended
March 31, 2019.
“Highlighted by our successful June 18th
anniversary sales event, JD’s strong performance in the second
quarter further demonstrated the resilience of our superior
business model in a highly competitive industry,” said Richard Liu,
Chairman and CEO of JD.com. “JD’s commitment to bringing users
the best overall shopping experience continues to win over consumer
mindshare. We will remain focused on leveraging technology and
innovation to enhance our offerings, increase efficiency and drive
shareholder value for the long term.”
“JD.com delivered robust growth in the second
quarter across our key metrics of revenue, profitability, cash flow
and customer base,” said Sidney Huang, Chief Financial Officer
of JD.com. “Our economies of scale and innovative technologies
are driving operating efficiency and further strengthening our
business model. Looking ahead, we will continue to invest in user
experience and our talented workforce to further grow the business
and create value for all of our stakeholders.”
Business Highlights
- In the second quarter, JD.com
continued to attract premium international brands to its e-commerce
platform. During JD’s June 18 Anniversary Sale, legendary Italian
fashion house Prada Group announced a partnership under which three
of its major brands Prada, Miu Miu, and Car Shoe opened first-party
flagship stores on JD.com. Twenty other fashion and luxury brands
have joined the JD platform since April, including French apparel
brands Sandro and Maje under the SMCP Group, iconic British brand
Mulberry and Italian high-end footwear brand Giuseppe Zanotti.
- Leveraging its capabilities in big
data and consumer insights, JD.com continued to collaborate with
brands and manufacturers to tailor products specifically for its
consumers. As part of JD’s Consumer to Manufacturer (C2M)
initiative, TCL, one of China’s leading appliance manufacturers,
partnered with JD in April and launched three new customized smart
appliances specifically for the Chinese consumer market. JD also
worked with top food and beverage company Nestlé on two C2M
projects. Using insights from JD, the brand was able to optimize
the flavor of its Purina cat food as well as its wafer bar packages
to support customer needs for a larger variety of flavors.
- In June, JD PLUS, JD.com’s premium
membership program, announced an in-depth cooperation with nineteen
international hotel brands including InterContinental Hotels and
Resorts, AccorHotels, the Ascott and WANDA Hotels and Resorts,
providing JD PLUS members even more benefits, including special
discounts, room upgrades and extra loyalty points at over 15,000
hotels worldwide. The hotel partnerships join other recent
additions to JD PLUS’ lifestyle offerings, including bundled
memberships with key partners including Sam’s Club, iQIYI and
Tencent Video. JD.com was the first e-commerce company in China to
introduce a paid membership service in 2016.
- In the second quarter, JD.com
continued to enhance its Environmental, Social and Governance (ESG)
program. On World Book and Copyright Day in April, JD Logistics, JD
Foundation, the China Children and Teenagers Foundation, and the
Stars Youth Development Center teamed up to launch the “Book
Sharing Project” enabling people from 12 major cities in China to
donate children books to nearly 250 primary schools, kindergartens
and community libraries in rural areas through JD’s logistics
network. From May 29 to June 8, JD, Disney China, and China
Charities Aid Foundation for Children launched a used toy donation
project, enabling consumers from ten cities to reserve free pickups
on the JD app.
- In April, JD Logistics introduced
its new cold chain service which utilizes idle capacity in the
industry to offer cold chain transport services. Combined with JD
Logistics’ previously launched cold chain services, it has formed a
one-stop shop F2B2C cold chain delivery system to meet the service
demands of manufacturers, merchants, and consumers. Relying on JD
Logistics’ cold chain transport capacity, iconic American food and
treats brand Dairy Queen recently teamed up with JD’s direct sales
platform for the global debut of its ice cream tubs.
- As of June 30, 2019, JD.com’s joint
venture Dada-JD Daojia has partnered with over 300 well-known chain
retailers, and continued to enrich its offerings through
cooperation with other retail brands. Dada-JD Daojia teamed up with
over thirty cosmetics and home retailers, including Watsons,
Mannings, MINISO and NATURE REPUBLIC, launching a dedicated channel
for home and fashion products on its platform. In the second
quarter, Dada cooperated with JD Logistics to provide fast
intra-city delivery services for merchants and consumers, with the
majority of goods delivered within 30 to 60 minutes. Dada-JD Daojia
is China’s leading on-demand logistics and omnichannel e-commerce
platform.
- During the second quarter, JD
expanded its leadership position in fulfillment capabilities among
China’s e-commerce companies. As of June 30, 2019, JD.com operated
approximately 600 warehouses. The total warehouses covered an
aggregate gross floor area of over 15 million square meters,
including approximately 2.5 million square meters managed under the
JD Logistics Open Warehouse Platform. Leveraging JD Logistics
sophisticated warehouse systems, the JDL Open Warehouse Platform
was launched in late 2017 and consolidates warehouse capacity from
partners to offer merchants and retailers convenient and flexible
warehouse management solutions.
- JD.com had over 220,000 merchants
on its online marketplace, and over 179,000 full-time employees as
of June 30, 2019.
Second Quarter 2019 Financial
Results
Net Revenues. For the
second quarter of 2019, JD.com reported net revenues of RMB150.3
billion (US$21.9 billion), representing a 22.9% increase from the
same period in 2018. Net product revenues increased by 20.8%, while
net service revenues increased by 42.0% in the second quarter of
2019, as compared to the second quarter of 2018.
Cost of
Revenues. Cost of
revenues increased by 21.2% to RMB128.2 billion (US$18.7 billion)
in the second quarter of 2019 from RMB105.8 billion in the second
quarter of 2018. This increase was primarily due to the growth of
the company’s online direct sales business and the logistics
services provided to third parties.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by
11.4% to RMB9.2 billion (US$1.3 billion) in the second quarter of
2019 from RMB8.2 billion in the second quarter of 2018. Fulfillment
expenses as a percentage of net revenues decreased to 6.1% in the
second quarter of 2019, compared to 6.7% in the same period last
year, mainly due to economies of scale from enhanced logistics
capacity utilization and staff productivity.
Marketing
Expenses. Marketing expenses
increased by 6.8% to RMB5.6 billion (US$0.8 billion) in the second
quarter of 2019 from RMB5.3 billion in the second quarter of
2018.
Technology and Content
Expenses. Technology and content
expenses increased by 34.0% to RMB3.7 billion (US$0.5 billion) in
the second quarter of 2019 from RMB2.8 billion in the second
quarter of 2018 as a result of the company’s continued investment
in top R&D talent and technology infrastructure.
General and Administrative
Expenses. General and
administrative expenses increased by 5.0% to RMB1.4 billion (US$0.2
billion) in the second quarter of 2019 from RMB1.3 billion in the
second quarter of 2018.
Income/(loss) from operations and
Non-GAAP income from operations. Income from
operations for the second quarter of 2019 was RMB2.3 billion
(US$0.3 billion), compared to loss from operations of RMB1.0
billion for the same period last year. Non-GAAP income from
operations for the second quarter of 2019 was RMB3.2 billion
(US$0.5 billion) with a non-GAAP operating margin of 2.1%, as
compared to RMB0.1 billion in the second quarter of 2018 with a
non-GAAP operating margin of 0.1%.
Non-GAAP EBITDA for the second
quarter of 2019 was RMB4.4 billion (US$0.6 billion) with a non-GAAP
EBITDA margin of 2.9%, as compared to RMB0.9 billion with a
non-GAAP EBITDA margin of 0.8% for the second quarter of 2018.
Net income/(loss)
attributable to ordinary shareholders and
Non-GAAP net income attributable to ordinary
shareholders. Net income
attributable to ordinary shareholders for the second quarter of
2019 was RMB0.6 billion (US$0.1 billion), compared to net loss
attributable to ordinary shareholders of RMB2.2 billion for the
same period last year. Non-GAAP net income attributable to ordinary
shareholders for the second quarter of 2019 was RMB3.6 billion
(US$0.5 billion), compared to RMB0.5 billion for the same period
last year.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for
the second quarter of 2019 was RMB0.36 (US$0.05), compared to
diluted net loss per ADS of RMB1.54 for the second quarter of 2018.
Non-GAAP diluted net income per ADS for the second quarter of 2019
was RMB2.30 (US$0.33), as compared to RMB0.33 for the second
quarter of 2018.
Cash Flow and Working Capital
As of June 30, 2019, the company’s cash and cash
equivalents, restricted cash and short-term investments totaled
RMB60.2 billion (US$8.8 billion), compared to RMB39.5 billion as of
December 31, 2018. For the second quarter of 2019, free cash flow
of the company was as follows:
|
For the three months ended |
|
June 30,
2018 |
June 30,
2019 |
June 30,
2019 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
|
|
Net cash provided by operating activities |
16,413,556 |
|
20,192,150 |
|
2,941,318 |
|
Add/(less): Impact from JD
Baitiao receivables included in the operating cash flow |
1,479,633 |
|
(448,964 |
) |
(65,399 |
) |
Less: Capital expenditures |
|
|
|
Capital expenditures,
net of disposals, related to development projects available for
sale* |
(3,114,586 |
) |
(496,762 |
) |
(72,362 |
) |
Other capital
expenditures** |
(1,629,421 |
) |
(979,899 |
) |
(142,738 |
) |
Free cash flow |
13,149,182 |
|
18,266,525 |
|
2,660,819 |
|
* Including logistics facilities and real estate
properties developed by the company’s property management group,
which may be disposed under various equity structures. ** Including
capital expenditures related to the company’s headquarters in
Beijing and all other CAPEX.
Net cash used in investing activities was
RMB21.0 billion (US$3.1 billion) for the second quarter of 2019,
consisting primarily of increase in short-term investments of
RMB20.3 billion (US$3.0 billion) and equity investments of RMB3.1
billion (US$0.5 billion), partially offset by the RMB3.4 billion
(US$0.5 billion) cash received from the disposals of business and
equity investments.
Net cash used in financing activities was RMB0.4
billion (US$0.1 billion) for the second quarter of 2019.
Half-Year Supplemental
Information
The table below sets forth the half-year segment operating
results:
|
For the six months ended |
|
June 30,
2018 |
June 30,2019 |
June
30,2019 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
Net revenues: |
|
|
|
JD Retail |
216,427,623 |
|
260,493,299 |
|
37,945,127 |
|
New Businesses* |
6,035,208 |
|
10,609,280 |
|
1,545,416 |
|
Inter-segment |
(521,366 |
) |
(242,661 |
) |
(35,348 |
) |
Total segment net
revenues |
221,941,465 |
|
270,859,918 |
|
39,455,195 |
|
Unallocated items |
477,466 |
|
501,743 |
|
73,087 |
|
Total consolidated net
revenues |
222,418,931 |
|
271,361,661 |
|
39,528,282 |
|
|
|
|
|
Operating income/(loss): |
|
|
|
JD Retail |
3,377,223 |
|
7,233,587 |
|
1,053,691 |
|
New Businesses |
(2,415,888 |
) |
(2,044,198 |
) |
(297,773 |
) |
Total segment operating
income |
961,335 |
|
5,189,389 |
|
755,918 |
|
Unallocated items |
(1,990,823 |
) |
(1,697,263 |
) |
(247,234 |
) |
Total consolidated operating
income/(loss) |
(1,029,488 |
) |
3,492,126 |
|
508,684 |
|
* New Businesses of the company include
technology initiatives, overseas business and logistics services
provided to third parties.
The table below sets forth the half-year revenue
information:
|
For the six months ended |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
|
|
Electronics and home appliance
revenues |
139,329,043 |
160,188,234 |
23,334,047 |
General merchandise
revenues |
62,657,814 |
81,979,339 |
11,941,637 |
Net product revenues |
201,986,857 |
242,167,573 |
35,275,684 |
|
|
|
|
Marketplace and advertising
revenues |
15,321,947 |
19,221,424 |
2,799,916 |
Logistics and other service
revenues |
5,110,127 |
9,972,664 |
1,452,682 |
Net service revenues |
20,432,074 |
29,194,088 |
4,252,598 |
|
|
|
|
Total net revenues |
222,418,931 |
271,361,661 |
39,528,282 |
|
|
Third Quarter 2019
Guidance
Net revenues for the third quarter of 2019 are
expected to be between RMB126 billion and RMB130 billion,
representing a growth rate between 20% and 24% compared with the
third quarter of 2018. 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 August 13, 2019, (7:30 pm, Beijing/Hong
Kong Time on August 13, 2019) to discuss the second quarter 2019
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: |
3927938 |
A telephone replay will be available from 10:30 am, Eastern Time
on August 13, 2019 through 09:59 am, Eastern Time on August 21,
2019. 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: |
3927938 |
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.
JD.com is a leading technology driven e-commerce
company and retail infrastructure service provider in China. Its
cutting-edge retail infrastructure enables consumers to buy
whatever they want, whenever and wherever they want it. The company
has opened its technology and infrastructure to partners, brands
and other sectors, as part of its Retail as a Service offering to
help drive productivity and innovation across a range of
industries. JD.com is the largest retailer in China, 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
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 income/(loss) from
operations as income/(loss) from operations excluding share-based
compensation, amortization of intangible assets resulting from
assets and business acquisitions, effects of business cooperation
arrangements, gain/(loss) on disposals of long-lived assets 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, effects of
business cooperation arrangements and non-compete agreements,
gain/(loss) on disposals/deemed disposals of investments,
reconciling items on the share of equity method investments,
loss/(gain) from fair value change of long-term investments,
impairment of goodwill, intangible assets and investments,
gain/(loss) on disposals of long-lived assets and tax effects on
non-GAAP adjustments. The company defines free cash flow as
operating cash flow adjusting the impact from JD Baitiao
receivables included in the operating cash flow and capital
expenditures, net of proceeds from disposals of long-lived assets.
Capital expenditures 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. 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.
The company presents these non-GAAP financial
measures because they are used by management to evaluate operating
performance and formulate business plans. 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 Baitiao receivables 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
Media+86 (10)
8911-6155Press@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 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 June 28, 2019, which was RMB6.8650 to
US$1.00. The percentages stated in this press release are
calculated based on the RMB amounts.2 See the sections entitled
“Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and
Non-GAAP Results” for more information about the non-GAAP measures
referred to in this press release.3 Annual or quarterly active
customer accounts are customer accounts that made at least one
purchase during the twelve months ended on the respective dates or
respective quarters, through either online direct sales or online
marketplaces.
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except otherwise noted) |
|
|
|
As of |
|
December 31,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
34,262,445 |
32,778,459 |
4,774,721 |
Restricted cash |
3,239,613 |
2,823,258 |
411,254 |
Short-term investments |
2,035,575 |
24,562,246 |
3,577,895 |
Accounts receivable, net (including JD Baitiao of RMB2.5 billion
and RMB6.3 billion as of June 30, 2019 and December 31, 2018,
respectively)(1) |
11,109,988 |
8,414,552 |
1,225,718 |
Advance to suppliers |
477,109 |
800,011 |
116,535 |
Inventories, net |
44,030,084 |
45,520,934 |
6,630,872 |
Prepayments and other current assets |
6,564,700 |
6,881,859 |
1,002,454 |
Amount due from related parties |
3,136,265 |
5,349,902 |
779,301 |
Assets held for sale(2) |
- |
325,388 |
47,398 |
Total current
assets |
104,855,779 |
127,456,609 |
18,566,148 |
Non-current
assets |
|
|
|
Property, equipment and software, net |
21,082,838 |
19,229,386 |
2,801,076 |
Construction in progress |
6,553,712 |
5,578,693 |
812,628 |
Intangible assets, net |
5,011,706 |
4,407,596 |
642,039 |
Land use rights, net |
10,475,658 |
10,261,794 |
1,494,799 |
Operating lease right-of-use assets(3) |
- |
6,657,471 |
969,770 |
Goodwill |
6,643,669 |
6,643,669 |
967,760 |
Investment in equity investees |
31,356,616 |
36,732,694 |
5,350,720 |
Investment securities |
15,901,573 |
18,404,580 |
2,680,929 |
Deferred tax assets |
103,158 |
86,910 |
12,660 |
Other non-current assets (including JD Baitiao of RMB0.5 billion
and RMB0.2 billion as of June 30, 2019 and December 31, 2018,
respectively)(1) |
5,283,948 |
5,665,252 |
825,237 |
Amount due from related parties |
1,896,200 |
- |
- |
Assets held for sale(2) |
- |
4,366,467 |
636,048 |
Total non-current
assets |
104,309,078 |
118,034,512 |
17,193,666 |
Total
assets |
209,164,857 |
245,491,121 |
35,759,814 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except otherwise noted) |
|
|
|
As of |
|
December 31,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Short-term borrowings |
147,264 |
137,494 |
20,028 |
Nonrecourse securitization debt(1) |
4,397,670 |
- |
- |
Accounts payable |
79,985,018 |
93,393,171 |
13,604,249 |
Advances from customers |
13,017,603 |
12,984,498 |
1,891,405 |
Deferred revenues |
1,980,489 |
4,637,056 |
675,463 |
Taxes payable |
825,677 |
1,321,791 |
192,541 |
Amount due to related parties |
215,614 |
376,933 |
54,906 |
Accrued expenses and other current liabilities |
20,292,680 |
24,019,398 |
3,498,822 |
Operating lease liabilities(3) |
- |
2,845,863 |
414,547 |
Liabilities held for sale(2) |
- |
364,106 |
53,038 |
Total current liabilities |
120,862,015 |
140,080,310 |
20,404,999 |
Non-current liabilities |
|
|
|
Deferred revenues |
463,153 |
2,245,724 |
327,127 |
Unsecured senior notes |
6,786,143 |
6,804,805 |
991,232 |
Deferred tax liabilities |
828,473 |
1,031,481 |
150,252 |
Long-term borrowings |
3,088,440 |
3,093,615 |
450,636 |
Operating lease liabilities(3) |
- |
3,952,623 |
575,764 |
Other non-current liabilities |
308,489 |
266,003 |
38,748 |
Total non-current liabilities |
11,474,698 |
17,394,251 |
2,533,759 |
Total liabilities |
132,336,713 |
157,474,561 |
22,938,758 |
|
|
|
|
(1) JD Digits
performs credit risk assessment services for JD Baitiao business
and absorbs the credit risk of the underlying Baitiao receivables.
Due to the company’s continuing involvement in the asset-backed
securitization(“ABS”)arrangements prior to October 2017, the
company was not able to derecognize the related Baitiao receivables
upon issuance of ABS. Beginning from October 2017, the company
revised certain structural arrangements for the new issuance of ABS
plans, and derecognized the related Baitiao receivables. |
(2) As of June 30,
2019, the company entered into definitive agreements to transfer
certain logistic facilities and real estate properties to JD LPC
fund and other investors, and classified the related assets and
liabilities as assets and liabilities held for sale under ASC 360,
which included cash of RMB271.7 million. |
(3) On January 1,
2019, the company adopted ASC 842, the new lease standard, using
the optional transition method. |
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except otherwise noted) |
|
|
As of |
|
December 31,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
|
|
|
Redeemable
non-controlling interests |
15,961,284 |
15,962,796 |
2,325,243 |
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000,000 shares authorized, 2,973,943 shares issued and
2,917,742 shares outstanding as of June 30, 2019) |
59,770,973 |
69,837,538 |
10,172,983 |
Non-controlling interests |
1,095,887 |
2,216,226 |
322,830 |
Total shareholders’
equity |
60,866,860 |
72,053,764 |
10,495,813 |
Total liabilities,
redeemable non-controlling interests and
shareholders’ equity |
209,164,857 |
245,491,121 |
35,759,814 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net
revenues |
|
|
|
|
|
|
|
Net product revenues |
110,488,781 |
|
133,516,303 |
|
19,448,842 |
|
|
201,986,857 |
|
242,167,573 |
|
35,275,684 |
|
Net service revenues |
11,802,249 |
|
16,764,299 |
|
2,441,996 |
|
|
20,432,074 |
|
29,194,088 |
|
4,252,598 |
|
Total net
revenues |
122,291,030 |
|
150,280,602 |
|
21,890,838 |
|
|
222,418,931 |
|
271,361,661 |
|
39,528,282 |
|
Cost of revenues |
(105,777,074 |
) |
(128,155,583 |
) |
(18,667,965 |
) |
|
(191,746,673 |
) |
(231,052,935 |
) |
(33,656,655 |
) |
Fulfillment |
(8,214,954 |
) |
(9,155,158 |
) |
(1,333,599 |
) |
|
(15,388,353 |
) |
(17,218,490 |
) |
(2,508,156 |
) |
Marketing |
(5,261,139 |
) |
(5,621,380 |
) |
(818,846 |
) |
|
(8,752,558 |
) |
(9,561,779 |
) |
(1,392,830 |
) |
Technology and content |
(2,780,551 |
) |
(3,725,903 |
) |
(542,739 |
) |
|
(5,193,585 |
) |
(7,442,448 |
) |
(1,084,115 |
) |
General and administrative |
(1,291,231 |
) |
(1,356,026 |
) |
(197,527 |
) |
|
(2,367,250 |
) |
(2,677,101 |
) |
(389,964 |
) |
Gain on disposals of long-lived assets |
- |
|
- |
|
- |
|
|
- |
|
83,218 |
|
12,122 |
|
Income/(loss) from
operations(5)(6) |
(1,033,919 |
) |
2,266,552 |
|
330,162 |
|
|
(1,029,488 |
) |
3,492,126 |
|
508,684 |
|
Other
income/(expenses) |
|
|
|
|
|
|
|
Share of results of equity investees |
(260,249 |
) |
(303,360 |
) |
(44,189 |
) |
|
(756,846 |
) |
(1,020,782 |
) |
(148,694 |
) |
Interest income(4) |
606,022 |
|
375,699 |
|
54,727 |
|
|
1,151,747 |
|
688,274 |
|
100,258 |
|
Interest expense(4) |
(239,894 |
) |
(154,846 |
) |
(22,556 |
) |
|
(468,558 |
) |
(342,291 |
) |
(49,860 |
) |
Others, net |
(1,185,801 |
) |
(1,199,356 |
) |
(174,706 |
) |
|
617,568 |
|
5,686,680 |
|
828,358 |
|
Income/(loss) before
tax |
(2,113,841 |
) |
984,689 |
|
143,438 |
|
|
(485,577 |
) |
8,504,007 |
|
1,238,746 |
|
Income tax expenses |
(163,334 |
) |
(438,807 |
) |
(63,919 |
) |
|
(314,352 |
) |
(718,447 |
) |
(104,654 |
) |
Net
income/(loss) |
(2,277,175 |
) |
545,882 |
|
79,519 |
|
|
(799,929 |
) |
7,785,560 |
|
1,134,092 |
|
Net loss attributable to non-controlling interests
shareholders |
(65,434 |
) |
(73,699 |
) |
(10,735 |
) |
|
(113,306 |
) |
(153,902 |
) |
(22,418 |
) |
Net income attributable to mezzanine classified non-controlling
interests shareholders |
729 |
|
764 |
|
111 |
|
|
907 |
|
1,512 |
|
220 |
|
Net income/(loss)
attributable to ordinary shareholders |
(2,212,470 |
) |
618,817 |
|
90,143 |
|
|
(687,530 |
) |
7,937,950 |
|
1,156,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Interest expenses in relation to the nonrecourse securitization
debt, which were collected from JD Digits in the same amount as
interest income, were RMB161.5 million and RMB3.0 million for the
three months ended June 30, 2018 and 2019, respectively. For the
six months ended June 30, 2018 and 2019, they were RMB332.3 million
and RMB37.6 million, respectively. |
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
(5) Includes
share-based compensation expenses as follows: |
Cost of revenues |
(14,535 |
) |
(21,043 |
) |
(3,065 |
) |
|
(27,956 |
) |
(34,072 |
) |
(4,963 |
) |
Fulfillment |
(113,113 |
) |
(122,718 |
) |
(17,876 |
) |
|
(196,405 |
) |
(180,256 |
) |
(26,257 |
) |
Marketing |
(50,669 |
) |
(71,408 |
) |
(10,402 |
) |
|
(85,172 |
) |
(110,591 |
) |
(16,109 |
) |
Technology and content |
(291,078 |
) |
(365,430 |
) |
(53,231 |
) |
|
(466,980 |
) |
(592,385 |
) |
(86,291 |
) |
General and administrative |
(468,388 |
) |
(440,259 |
) |
(64,131 |
) |
|
(795,378 |
) |
(721,600 |
) |
(105,113 |
) |
(6) Includes
amortization of intangible assets resulting from assets and
business acquisitions as follows: |
Fulfillment |
(41,892 |
) |
(41,892 |
) |
(6,102 |
) |
|
(83,779 |
) |
(83,779 |
) |
(12,204 |
) |
Marketing |
(307,140 |
) |
(4,208 |
) |
(613 |
) |
|
(610,951 |
) |
(304,690 |
) |
(44,383 |
) |
Technology and content |
(24,261 |
) |
(24,940 |
) |
(3,633 |
) |
|
(48,522 |
) |
(49,880 |
) |
(7,266 |
) |
General and administrative |
(76,820 |
) |
(76,820 |
) |
(11,190 |
) |
|
(153,146 |
) |
(153,147 |
) |
(22,308 |
) |
|
|
|
|
|
|
|
|
Net income/(loss) per
share: |
|
|
|
|
|
|
|
Basic |
(0.77 |
) |
0.21 |
|
0.03 |
|
|
(0.24 |
) |
2.73 |
|
0.40 |
|
Diluted |
(0.77 |
) |
0.18 |
|
0.03 |
|
|
(0.24 |
) |
2.68 |
|
0.39 |
|
|
|
|
|
|
|
|
|
Net income/(loss) per
ADS: |
|
|
|
|
|
|
|
Basic |
(1.54 |
) |
0.42 |
|
0.06 |
|
|
(0.48 |
) |
5.47 |
|
0.80 |
|
Diluted |
(1.54 |
) |
0.36 |
|
0.05 |
|
|
(0.48 |
) |
5.37 |
|
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Non-GAAP Net Income Per ADS from Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to ordinary shareholders |
478,137 |
3,558,935 |
518,420 |
|
1,525,552 |
6,853,300 |
998,292 |
|
|
|
|
|
|
|
|
Weighted average
number of shares: |
|
|
|
|
|
|
|
Basic |
2,868,756 |
2,913,608 |
2,913,608 |
|
2,861,562 |
2,903,792 |
2,903,792 |
Diluted |
2,868,756 |
2,965,731 |
2,965,731 |
|
2,861,562 |
2,958,891 |
2,958,891 |
Diluted (Non-GAAP) |
2,940,271 |
2,965,731 |
2,965,731 |
|
2,939,725 |
2,958,891 |
2,958,891 |
|
|
|
|
|
|
|
|
Non-GAAP net
income per ADS: |
|
|
|
|
|
|
|
Basic |
0.33 |
2.44 |
0.36 |
|
1.07 |
4.72 |
0.69 |
Diluted |
0.33 |
2.30 |
0.33 |
|
1.04 |
4.56 |
0.66 |
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Cash Flows and Free
Cash Flow |
(In thousands) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
16,413,556 |
|
20,192,150 |
|
2,941,318 |
|
|
12,640,631 |
|
23,515,401 |
|
3,425,404 |
|
Net cash used in investing
activities |
(20,347,156 |
) |
(21,028,488 |
) |
(3,063,145 |
) |
|
(21,288,296 |
) |
(22,131,473 |
) |
(3,223,813 |
) |
Net cash provided by/(used in)
financing activities |
4,829,045 |
|
(449,004 |
) |
(65,405 |
) |
|
18,136,118 |
|
(3,004,955 |
) |
(437,721 |
) |
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
1,191,602 |
|
415,633 |
|
60,544 |
|
|
737,103 |
|
(7,580 |
) |
(1,104 |
) |
Net increase/(decrease) in
cash, cash equivalents and restricted cash |
2,087,047 |
|
(869,709 |
) |
(126,688 |
) |
|
10,225,556 |
|
(1,628,607 |
) |
(237,234 |
) |
Cash, cash equivalents and
restricted cash at beginning of period(7) |
37,937,046 |
|
36,743,160 |
|
5,352,245 |
|
|
29,798,537 |
|
37,502,058 |
|
5,462,791 |
|
Cash, cash equivalents and
restricted cash at end of period(7) |
40,024,093 |
|
35,873,451 |
|
5,225,557 |
|
|
40,024,093 |
|
35,873,451 |
|
5,225,557 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
16,413,556 |
|
20,192,150 |
|
2,941,318 |
|
|
12,640,631 |
|
23,515,401 |
|
3,425,404 |
|
Add/(less): Impact from JD
Baitiao receivables included in the operating cash flow |
1,479,633 |
|
(448,964 |
) |
(65,399 |
) |
|
200,179 |
|
(2,610,082 |
) |
(380,201 |
) |
Add/(less): Capital
expenditures |
|
|
|
|
|
|
|
Capital expenditures, net of disposals, related to development
projects available for sale |
(3,114,586 |
) |
(496,762 |
) |
(72,362 |
) |
|
(4,300,297 |
) |
593,916 |
|
86,513 |
|
Other capital
expenditures |
(1,629,421 |
) |
(979,899 |
) |
(142,738 |
) |
|
(4,209,768 |
) |
(1,952,620 |
) |
(284,431 |
) |
Free cash flow |
13,149,182 |
|
18,266,525 |
|
2,660,819 |
|
|
4,330,745 |
|
19,546,615 |
|
2,847,285 |
|
|
|
|
|
|
|
|
|
(7) Including
cash, cash equivalents and restricted cash classified as assets
held for sale. |
|
|
JD.com, Inc. |
Supplemental Financial Information and Business Metrics |
|
Q2 2018 |
Q3 2018 |
Q4 2018 |
Q1 2019 |
Q2 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (in RMB billions) |
13.1 |
(8.2 |
) |
(4.0 |
) |
1.3 |
18.3 |
Inventory turnover days(8) –
trailing twelve months (“TTM”) |
39.1 |
39.1 |
|
38.7 |
|
36.5 |
36.3 |
Accounts payable turnover
days(9) – TTM |
62.7 |
61.7 |
|
60.2 |
|
57.4 |
59.4 |
Accounts receivable turnover
days(10) – TTM |
1.9 |
2.3 |
|
2.7 |
|
3.0 |
3.3 |
Annual active customer
accounts (in millions) |
313.8 |
305.2 |
|
305.3 |
|
310.5 |
321.3 |
|
|
|
|
|
|
(8) Inventory
turnover days are the quotient of average inventory to cost of
revenues of direct sales business for the last twelve months and
then multiplied by 360 days. |
(9) Accounts
payable turnover days are the quotient of average accounts payable
of direct sales business to cost of revenues of direct sales
business for the last twelve months and then multiplied by 360
days. |
(10) Accounts
receivable turnover days are the quotient of average accounts
receivable 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. |
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Income/(loss) from operations |
(1,033,919 |
) |
2,266,552 |
|
330,162 |
|
|
(1,029,488 |
) |
3,492,126 |
|
508,684 |
|
Add: Share-based
compensation |
937,783 |
|
1,020,858 |
|
148,705 |
|
|
1,571,891 |
|
1,638,904 |
|
238,733 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
450,113 |
|
147,860 |
|
21,538 |
|
|
896,398 |
|
591,496 |
|
86,161 |
|
Reversal of: Effects of
business cooperation arrangements |
(240,729 |
) |
(217,813 |
) |
(31,728 |
) |
|
(477,466 |
) |
(449,919 |
) |
(65,538 |
) |
Reversal of: Gain on disposals
of long-lived assets |
- |
|
- |
|
- |
|
|
- |
|
(83,218 |
) |
(12,122 |
) |
Non-GAAP income from
operations |
113,248 |
|
3,217,457 |
|
468,677 |
|
|
961,335 |
|
5,189,389 |
|
755,918 |
|
Add: Depreciation and other
amortization |
809,119 |
|
1,212,026 |
|
176,552 |
|
|
1,557,379 |
|
2,441,458 |
|
355,639 |
|
Non-GAAP
EBITDA |
922,367 |
|
4,429,483 |
|
645,229 |
|
|
2,518,714 |
|
7,630,847 |
|
1,111,557 |
|
|
|
|
|
|
|
|
|
Total net revenues |
122,291,030 |
|
150,280,602 |
|
21,890,838 |
|
|
222,418,931 |
|
271,361,661 |
|
39,528,282 |
|
|
|
|
|
|
|
|
|
Non-GAAP operating
margin |
0.1 |
% |
2.1 |
% |
2.1 |
% |
|
0.4 |
% |
1.9 |
% |
1.9 |
% |
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
margin |
0.8 |
% |
2.9 |
% |
2.9 |
% |
|
1.1 |
% |
2.8 |
% |
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
June 30,2018 |
June 30,2019 |
June 30,2019 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net income/(loss) attributable to ordinary shareholders |
(2,212,470 |
) |
618,817 |
|
90,143 |
|
|
(687,530 |
) |
7,937,950 |
|
1,156,290 |
|
Add: Share-based
compensation |
937,783 |
|
1,020,858 |
|
148,705 |
|
|
1,571,891 |
|
1,638,904 |
|
238,733 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
450,113 |
|
147,860 |
|
21,538 |
|
|
896,398 |
|
591,496 |
|
86,161 |
|
Add: Reconciling items on the
share of equity method investments(11) |
162,285 |
|
47,473 |
|
6,915 |
|
|
463,884 |
|
210,011 |
|
30,592 |
|
Add: Impairment of goodwill,
intangible assets, and investments |
- |
|
738,284 |
|
107,543 |
|
|
6,088 |
|
1,555,865 |
|
226,637 |
|
Add/(reversal of): Loss/(gain)
from fair value change of long-term investments, net of tax |
2,683,962 |
|
2,434,509 |
|
354,626 |
|
|
1,069,586 |
|
(3,316,028 |
) |
(483,034 |
) |
Reversal of: Gain on disposals
of long-lived assets |
- |
|
- |
|
- |
|
|
- |
|
(83,218 |
) |
(12,122 |
) |
Reversal of: Gain on
disposals/deemed disposals of investments |
(1,410,201 |
) |
(1,206,568 |
) |
(175,756 |
) |
|
(1,410,201 |
) |
(1,209,206 |
) |
(176,141 |
) |
Reversal of: Effects of
business cooperation arrangements and non-compete agreements |
(259,724 |
) |
(238,102 |
) |
(34,683 |
) |
|
(515,409 |
) |
(490,298 |
) |
(71,420 |
) |
Add: Tax effects on non-GAAP
adjustments |
126,389 |
|
(4,196 |
) |
(611 |
) |
|
130,845 |
|
17,824 |
|
2,596 |
|
Non-GAAP net income
attributable to ordinary shareholders |
478,137 |
|
3,558,935 |
|
518,420 |
|
|
1,525,552 |
|
6,853,300 |
|
998,292 |
|
|
|
|
|
|
|
|
|
Total net revenues |
122,291,030 |
|
150,280,602 |
|
21,890,838 |
|
|
222,418,931 |
|
271,361,661 |
|
39,528,282 |
|
|
|
|
|
|
|
|
|
Non-GAAP net
margin |
0.4 |
% |
2.4 |
% |
2.4 |
% |
|
0.7 |
% |
2.5 |
% |
2.5 |
% |
|
|
|
|
|
|
|
|
(11) To exclude the non-GAAP to GAAP reconciling items on the share
of equity method investments, net of share of amortization of
intangibles not on their books. |
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