JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading
technology driven e-commerce company transforming to become the
leading supply chain-based technology and service provider, today
announced its unaudited financial results for the three months and
six months ended June 30, 2020.
Second Quarter 2020
Highlights
- Net revenues for the second quarter of 2020
were RMB201.1 billion (US$1 28.5 billion), an increase of
33.8% from the second quarter of 2019. Net revenues from the sales
of general merchandise products for the second quarter of 2020 were
RMB64.0 billion (US$9.1 billion), an increase of 45.4% from the
second quarter of 2019. Net service revenues for the second quarter
of 2020 were RMB22.9 billion (US$3.2 billion), an increase of 36.4%
from the second quarter of 2019.
- Income from operations for the second quarter
of 2020 was RMB5.0 billion (US$0.7 billion), compared to RMB2.3
billion for the same period last year. Non-GAAP2
income from operations for the second quarter of
2020 was RMB5.6 billion (US$0.8 billion) with a non-GAAP operating
margin of 2.8%, as compared to RMB3.2 billion for the second
quarter of 2019 with a non-GAAP operating margin of 2.1%.
- Net income attributable to ordinary
shareholders for the second quarter of 2020 was RMB16.4
billion (US$2.3 billion), compared to RMB0.6 billion for the same
period last year. Non-GAAP net income
attributable to ordinary shareholders for the
second quarter of 2020 increased by 66.1% to RMB5.9 billion (US$0.8
billion) from RMB3.6 billion for the same period last year.
- Diluted net income per ADS for the second
quarter of 2020 was RMB10.47 (US$1.48), compared to RMB0.36 for the
second quarter of 2019. Non-GAAP diluted net income per
ADS for the second quarter of 2020 was RMB3.51 (US$0.50),
compared to RMB2.30 for the same period last year.
- Annual active customer accounts3 increased by
29.9% to 417.4 million in the twelve months ended June 30, 2020
from 321.3 million in the twelve months ended June 30, 2019. Mobile
daily active users4 in June 2020 increased by 40% as compared to
June 2019.
“Since the COVID-19 outbreak, JD has steadfastly
leveraged our distinctive supply chain and technology capabilities
to contribute to society and ensure the steady supply and
undisrupted delivery of daily necessities to consumers, while
helping to create jobs within our ecosystem and support business
partners amidst the dynamic economic environment,” said Richard
Liu, Chairman and Chief Executive Officer of JD.com. "I'm grateful
for the efforts of JD's employees and business partners in driving
another solid quarter of accelerated revenue growth, as our
extensive product offerings and superior services continue to
attract large numbers of new users.”
“Our scale advantages and cost efficiency
enabled us to provide attractive prices during our June 18 sales
promotions, benefiting consumers and society as China's economy
emerges from the difficult pandemic period, and helped drive solid
top and bottom line results for the second quarter,” said Sandy Xu,
Chief Financial Officer of JD.com. “Our strong financial and
operating performance form the basis for JD’s continued investment
in innovative supply chain capabilities and a superior customer
experience to support our long term growth.”
Business Highlights
Hong Kong Listing
- On June 18, 2020, JD.com successfully listed on the Main Board
of the Stock Exchange of Hong Kong Limited under the stock code
“9618”, with a global offering of 152,912,100 new Class A ordinary
shares (including a partial exercise of the over-allotment option
completed on July 15, 2020) (the “Global Offering”). The Hong
Kong-listed shares are fully fungible with JD.com’s American
depositary shares (“ADSs”) listed on the Nasdaq Stock Exchange,
based on the ratio of two ordinary shares per ADS. The gross
proceeds from the Global Offering, before deducting underwriting
fees and the offering expenses, amounted to approximately HK$34,558
million. JD.com plans to use the net proceeds to invest in key
supply chain-based technology initiatives to further enhance
customer experience and improve operating efficiency.
Environment, Social and
Governance
- In response to the COVID-19 resurgence in Beijing in June,
JD.com rapidly deployed prevention measures to protect consumers
and employees while ensuring the steady supply of daily
necessities. As the new outbreak was linked to a wholesale food
market in Beijing, JD.com carried out virus screening on fresh
produce. Contactless deliveries were made widely available in local
residential compounds, and JD delivery staff, truck drivers and
warehouse workers were all tested for the virus.
- In the second quarter, JD.com continued to contribute to
China’s poverty alleviation efforts, including joining a nationwide
program to offer tens of thousands jobs in its logistic and retail
operations and hosting live stream shows with rural counties to
promote local specialties. JD Health and JD Foundation launched
online purchase subsidies for low income families covering selected
medicines, creating the largest health poverty alleviation project
in China in terms of geographical coverage, population benefited
and total monetary amount.
JD Retail
- JD.com continued to attract premium global brands to its
platform as a widely trusted retailing channel for high quality
products. In the second quarter, brands including Prada’s high end
footwear brand Church’s, London based innovative luxury fashion
label Christopher Kane, well-known British furniture design brand
Tom Dixon, Italian luxury shoe brand Sergio Rossi, Korean high
street apparel brand SJYP and affordable Japanese cosmetics and
drug store Daikoku, all launched flagship stores on JD.com.
- In the second quarter, livestreaming continued to grow in
popularity as a tool for suppliers and merchants to engage with
customers. Ms. Dong Mingzhu, Chairwoman of Gree Electronic
Appliances, booked a record-breaking sale during a three-hour
livestream show, featuring pre-sale customer education and product
recommendations. In order to diversify its user engagement channels
and fully leverage its supply chain strengths, JD Retail announced
a strategic partnership with Kwai, one of China’s leading short
video platforms. The debut event, a one-day livestream show jointly
held by the two companies, was a great success connecting Kwai’s
large user base to JD.com’s broad selection of high quality
products and superior online shopping experience.
- In April, JD Retail launched “Instant Delivery” services for
mobile products, with delivery of mobile phones in as fast as one
hour through JD Daojia. The initiative applies its omni-channel
strategies to more diversified categories and further improves
customer experience. The service currently covers selected
authorized stores as well as other partners within JD.com’s
omni-channel ecosystem.
- JD Retail continued to apply advanced technology to various
consumption scenarios in order to facilitate online purchasing.
Following the launch of its AR-based virtual shoe “try-on” service
- the first for an e-commerce platform in China - JD Retail
launched its AI-powered skin evaluation service in June, allowing
users to upload images from their mobile phone for analysis and
receive customized shopping guidance on suitable skincare and
cosmetics products.
JD Health
- On August 17, 2020, JD Health, a subsidiary of JD.com, entered
into a definitive agreement with Hillhouse Capital for its
non-redeemable series B preference share financing. The total
amount expected to be raised from Hillhouse Capital is over US$830
million. JD.com will remain the majority shareholder of JD Health
after the completion of this transaction, which is subject to
customary closing conditions. The closing is expected to occur in
the third quarter of 2020. Hillhouse Capital is a leading
investment management company that has established a comprehensive
ecosystem in the healthcare sector in China. By leveraging
Hillhouse Capital’s industry expertise and resources, JD Health
will further strengthen its pharmacy supply chain capabilities and
explore additional healthcare services opportunities in the broader
healthcare sector.
- In June, JD Health unveiled its Traditional Chinese Medicine
Consultation Center and Intelligent Otorhinolaryngology Services
Center, each bringing together the country’s top specialists and
providing online consultations and disease management programs for
patients nationwide. With the addition of these two centers, the
specialized virtual medical treatment centers within the JD Health
app cover areas including heart disease, mental health, diabetes,
kidney disease, pediatrics, oncology and maternity, among
others.
JD Logistics
- In the second quarter, JD Logistics launched a new Asia No.1
warehouse in Langfang, Hebei province, near Beijing, equipped with
the first automated storage and retrieval system for bulky items in
Asia’s e-commerce industry, greatly improving efficiency in
handling items including air conditioners, refrigerators and
furniture. Thanks to its continuous focus on technology innovation,
JD Logistics maintained fast delivery standards during the June 18
Anniversary Sale as orders surged to record highs, ensuring that
91% of packages from its direct sales platforms arrived at
consumers’ doorsteps same or next day throughout China.
- As of June 30, 2020, JD Logistics operated over 750 warehouses,
which covered an aggregate gross floor area of approximately 18
million square meters, including warehouse space managed under the
JD Logistics Open Warehouse Platform.
Equity Investees Update
- On June 25, 2020, JD.com announced that it has entered into
agreements with JD Digits, pursuant to which JD.com will acquire a
36.8% equity interest in JD Digits by converting its profit sharing
rights with respect to JD Digits as set forth in the Framework
Agreement entered into between the two parties in 2017, and
investing an additional RMB1.78 billion in cash in JD Digits to
satisfy the minimum capital registration requirement under the PRC
laws. Upon closing, the Framework Agreement, including the current
profit-sharing arrangement between JD.com and JD Digits, will
terminate, and JD Digits will become an equity method investee of
JD.com.
- Dada Group, one of JD.com’s important ecosystem partners,
listed on the Nasdaq Stock Market under the ticker “DADA” on June
5, 2020. Upon its initial public offering (IPO), JD.com purchased
additional shares as a cornerstone investor. As of June 30, 2020,
JD.com is the largest shareholder of Dada Group with a 47.9% stake.
JD.com has formed an extensive cooperation relationship with Dada,
as its local on-demand delivery and retail capabilities support
JD.com’s innovative projects and omni-channel strategy, together
bringing consumers the most convenient and advanced shopping
experience.
Operational Metrics Update
- As of June 30, 2020, JD.com had approximately 240,000 employees
excluding part-time and interns.
Second Quarter 2020
Financial Results
Net Revenues. For the second
quarter of 2020, JD.com reported net revenues of RMB201.1 billion
(US$28.5 billion), representing a 33.8% increase from the same
period in 2019. Net product revenues increased by 33.5%, while net
service revenues increased by 36.4% for the second quarter of 2020,
as compared to the same period of 2019.
Cost of
Revenues. Cost of
revenues increased by 34.5% to RMB172.4 billion (US$24.4 billion)
for the second quarter of 2020 from RMB128.2 billion for the second
quarter of 2019.
Fulfillment
Expenses. Fulfillment expenses, which
primarily include procurement, warehousing, delivery, customer
service and payment processing expenses, increased by 30.6% to
RMB12.0 billion (US$1.7 billion) for the second quarter of 2020
from RMB9.2 billion for the second quarter of 2019. Fulfillment
expenses as a percentage of net revenues was 5.9% for the second
quarter of 2020, compared to 6.1% for the same period last year,
mainly due to the nationwide relief for social security
contributions.
Fulfilled Gross
Margin5. Fulfilled gross margin for
the second quarter of 2020 was 8.3%, as compared to 8.6% for the
second quarter of 2019. The decrease was primarily due to a
one-time benefit from Value Added Tax Reform resulted in lower cost
of revenues in the second quarter of 2019.
Marketing
Expenses. Marketing expenses
increased by 21.0% to RMB6.8 billion (US$1.0 billion) for the
second quarter of 2020 from RMB5.6 billion for the second quarter
of 2019.
Research and Development
Expenses. Research and development
expenses was RMB3.6 billion (US$0.5 billion) for the second quarter
of 2020, as compared to RMB3.7 billion for the second quarter of
2019.
General and Administrative
Expenses. General and administrative
expenses was RMB1.4 billion (US$0.2 billion) for both the second
quarter of 2020 and 2019, respectively.
Income from Operations and Non-GAAP
Income from Operations. Income from operations for
the second quarter of 2020 was RMB5.0 billion (US$0.7 billion),
compared to RMB2.3 billion for the same period last year. Non-GAAP
income from operations for the second quarter of 2020 was RMB5.6
billion (US$0.8 billion) with a non-GAAP operating margin of 2.8%,
as compared to non-GAAP income from operations of RMB3.2 billion
for the second quarter of 2019 with a non-GAAP operating margin of
2.1%. Operating margin of JD Retail before unallocated items for
the second quarter of 2020 was 3.0%, compared to 2.8% for the
second quarter of 2019.
Non-GAAP EBITDA for the second
quarter of 2020 was RMB6.9 billion (US$1.0 billion) with a non-GAAP
EBITDA margin of 3.4%, compared to RMB4.4 billion with a non-GAAP
EBITDA margin of 2.9% for the second quarter of 2019.
Share of Results of Equity
Investees. In the second quarter of 2020, share of
results of equity investees was an income of RMB4.0 billion (US$0.6
billion), as compared to a loss of RMB0.3 billion for the second
quarter of 2019. The substantial increase was primarily due to a
dilution gain of RMB4.1 billion (US$0.6 billion) recognized upon
the IPO of Dada Group.
Others, net. Others are
other non-operating income/(loss), primarily consists of
gains/(losses) from fair value change of long-term investments,
gains from business and investment disposals, impairment of
investments, government incentives, and foreign exchange
gains/(losses). In the second quarter of 2020, other non-operating
income was RMB7.9 billion (US$1.1 billion), as compared to other
non-operating loss of RMB1.2 billion for the second quarter of
2019. The substantial increase was primarily due to the fair value
change of investment securities, which had a gain of RMB6.7 billion
(US$1.0 billion) for the second quarter of 2020, as compared to a
loss of RMB2.4 billion for the same period of last year.
Net Income
Attributable to Ordinary Shareholders and
Non-GAAP Net Income Attributable to Ordinary
Shareholders. Net income
attributable to ordinary shareholders for the second quarter of
2020 was RMB16.4 billion (US$2.3 billion), compared to RMB0.6
billion for the same period last year. Non-GAAP net income
attributable to ordinary shareholders for the second quarter of
2020 was RMB5.9 billion (US$0.8 billion), compared to RMB3.6
billion for the same period last year.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for the second
quarter of 2020 was RMB10.47 (US$1.48), compared to RMB0.36 for the
second quarter of 2019. Non-GAAP diluted net income per ADS for the
second quarter of 2020 was RMB3.51 (US$0.50), compared to RMB2.30
for the second quarter of 2019.
Cash Flow and Working
Capital
As of June 30, 2020, the company’s cash and cash
equivalents, restricted cash and short-term investments totaled
RMB126.0 billion (US$17.8 billion), compared to RMB64.5 billion as
of December 31, 2019. For the second quarter of 2020, free cash
flow of the company was as follows:
|
|
For the three months ended |
|
|
June 30,
2019 |
June 30,
2020 |
June 30,
2020 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Net cash provided by operating activities |
20,192,150 |
|
26,617,548 |
|
3,767,469 |
|
Add/(less): Impact from JD Baitiao receivables included in the
operating cash flow |
(448,964 |
) |
2,050,714 |
|
290,260 |
|
Less: |
Capital expenditures |
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds* |
(496,762 |
) |
(2,116,213 |
) |
(299,531 |
) |
|
Other capital
expenditures** |
(979,899 |
) |
(749,037 |
) |
(106,019 |
) |
Free cash flow |
18,266,525 |
|
25,803,012 |
|
3,652,179 |
|
* Including logistics facilities and other real
estate properties developed by JD Property, which may be sold under
various equity structures. In the second quarter of 2020,
approximately RMB0.5 billion proceeds from the sale of development
properties were included in this line, compared to nil in the
second quarter of 2019.
** Including capital expenditures related to the
company’s headquarters in Beijing and all other CAPEX.
Net cash used in investing activities was
RMB23.4 billion (US$3.3 billion) for the second quarter of 2020,
consisting primarily of increase in short-term investments of
RMB19.2 billion, cash paid for investments in equity investees and
purchases of investment securities of RMB4.5 billion, and cash paid
for capital expenditures of RMB3.4 billion, partially offset by the
cash acquired from business combination of RMB2.1 billion.
In the second quarter of 2020, the company
acquired 54% equity interest in Jiangsu Five Star Appliance Co.,
Ltd. (“Jiangsu Five Star”) from the shareholder of Jiangsu Five
Star (the “Seller”) by converting a loan of approximately RMB1.03
billion owed by the Seller to the company and assuming the Seller’s
RMB0.4 billion debt owed to Jiangsu Five Star. Since then, Jiangsu
Five Star has become the company’s wholly-owned subsidiary.
Net cash provided by financing activities was
RMB28.5 billion (US$4.0 billion) for the second quarter of 2020,
consisting primarily of proceeds from issuance of ordinary shares
of RMB27.3 billion.
For the twelve months ended June 30, 2020, free
cash flow of the company was as follows:
|
|
For the twelve months ended |
|
|
June 30,
2019 |
June 30,
2020 |
June 30,
2020 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Net cash provided by operating activities |
31,756,192 |
|
26,340,890 |
|
3,728,311 |
|
Add/(less): Impact from JD Baitiao receivables included in the
operating cash flow |
(10,179,682 |
) |
1,002,640 |
|
141,915 |
|
Less: |
Capital expenditures |
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds |
(3,963,356 |
) |
(1,721,273 |
) |
(243,630 |
) |
|
Other capital expenditures |
(10,254,777 |
) |
(2,887,341 |
) |
(408,677 |
) |
Free cash flow |
7,358,377 |
|
22,734,916 |
|
3,217,919 |
|
Half-Year Supplemental
Information
The table below sets forth the half-year segment
operating results:
|
For the six months ended |
|
June 30, 2019 |
June 30,2020 |
June
30,2020 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
Net revenues: |
|
|
|
JD Retail |
260,493,299 |
|
331,060,999 |
|
46,858,643 |
|
New businesses* |
10,609,280 |
|
15,989,538 |
|
2,263,173 |
|
Inter-segment |
(242,661 |
) |
(299,297 |
) |
(42,363 |
) |
Total segment net revenues |
270,859,918 |
|
346,751,240 |
|
49,079,453 |
|
Unallocated items** |
501,743 |
|
508,027 |
|
71,907 |
|
Total consolidated net revenues |
271,361,661 |
|
347,259,267 |
|
49,151,360 |
|
|
|
|
|
Operating income/(loss): |
|
|
|
JD Retail |
7,233,587 |
|
10,137,365 |
|
1,434,851 |
|
New businesses* |
(1,960,980 |
) |
(1,092,306 |
) |
(154,606 |
) |
Including: gain on sale of development properties |
83,218 |
|
195,586 |
|
27,683 |
|
Total segment operating income |
5,272,607 |
|
9,045,059 |
|
1,280,245 |
|
Unallocated items** |
(1,780,481 |
) |
(1,680,535 |
) |
(237,864 |
) |
Total consolidated operating income |
3,492,126 |
|
7,364,524 |
|
1,042,381 |
|
* New businesses of the company include
logistics services provided to third parties, overseas business,
technology initiatives, as well as asset management services to
logistics property investors and sale of development properties by
JD Property.
JD Property develops and manages logistics
facilities and other real estate properties. By leveraging its fund
management platform, JD Property can realize development profits
and recycle capital from mature properties to fund new developments
and scale the business.
** Unallocated items include share-based
compensation, amortization of intangible assets resulting from
assets and business acquisitions, effects of business cooperation
arrangements, and impairment of goodwill and intangible assets,
which are not allocated to segments.
The table below sets forth the half-year revenue
information:
|
For the six months ended |
|
June
30,2019 |
June 30,2020 |
June
30,2020 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
|
|
Electronics and home appliance revenues |
160,188,234 |
|
191,778,310 |
|
27,144,458 |
|
General merchandise revenues |
81,979,339 |
|
116,501,709 |
|
16,489,747 |
|
Net product revenues |
242,167,573 |
|
308,280,019 |
|
43,634,205 |
|
|
|
|
|
|
|
|
Marketplace and advertising revenues |
19,221,424 |
|
23,579,686 |
|
3,337,488 |
|
Logistics and other service revenues |
9,972,664 |
|
15,399,562 |
|
2,179,667 |
|
Net service revenues |
29,194,088 |
|
38,979,248 |
|
5,517,155 |
|
|
|
|
|
|
|
|
Total net revenues |
271,361,661 |
|
347,259,267 |
|
49,151,360 |
|
Conference Call
JD.com’s management will hold a conference call
at 7:30 am, Eastern Time on August 17, 2020, (7:30 pm, Beijing/Hong
Kong Time on August 17, 2020) to discuss financial results for the
three months and six months ended June 30, 2020.
Please register in advance of the conference
using the link provided below and dial in 10 minutes prior to the
call, using participant dial-in numbers, Direct Event passcode and
unique registrant ID which would be provided upon registering. You
will be automatically linked to the live call after completion of
this process, unless required to provide the conference ID below
due to regional restrictions.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/3771815
CONFERENCE ID: 3771815
A telephone replay will be available from 10:30
am, Eastern Time on August 17, 2020 through 9:59 am, Eastern Time
on August 25, 2020. 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: |
3771815 |
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 transforming to become the leading supply chain-based
technology and service provider. The company’s cutting-edge retail
infrastructure seeks to enable 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 share 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 on sale of
development properties 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 and foreign exchange impact in relation to sale
of development properties 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 the proceeds from sale
of development properties. 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
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)
8912-6804IR@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.
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
As of |
|
December 31,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
36,971,420 |
71,571,976 |
10,130,356 |
Restricted cash |
2,940,859 |
5,742,904 |
812,855 |
Short-term investments |
24,602,777 |
48,730,308 |
6,897,327 |
Accounts receivable, net (including JD Baitiao of RMB1.0 billion
and RMB3.7 billion as of December 31, 2019 and June 30, 2020,
respectively)(1) |
6,190,588 |
9,674,251 |
1,369,301 |
Advance to suppliers |
593,130 |
2,319,717 |
328,335 |
Inventories, net |
57,932,156 |
54,476,745 |
7,710,683 |
Prepayments and other current assets |
5,629,561 |
8,882,333 |
1,257,212 |
Amount due from related parties |
4,234,067 |
3,804,468 |
538,487 |
Assets held for sale(2) |
- |
273,970 |
38,778 |
Total current assets |
139,094,558 |
205,476,672 |
29,083,334 |
Non-current assets |
|
|
|
Property, equipment and software, net |
20,654,071 |
17,909,536 |
2,534,930 |
Construction in progress |
5,806,308 |
7,742,463 |
1,095,875 |
Intangible assets, net |
4,110,034 |
4,408,977 |
624,050 |
Land use rights, net |
10,891,742 |
10,902,645 |
1,543,169 |
Operating lease right-of-use assets |
8,643,597 |
11,501,571 |
1,627,942 |
Goodwill |
6,643,669 |
9,271,897 |
1,312,352 |
Investment in equity investees |
35,575,807 |
48,202,565 |
6,822,630 |
Investment securities |
21,417,104 |
26,417,909 |
3,739,212 |
Deferred tax assets |
80,556 |
153,935 |
21,788 |
Other non-current assets |
6,806,258 |
7,284,148 |
1,031,005 |
Assets held for sale(2) |
- |
3,208,117 |
454,079 |
Total non-current assets |
120,629,146 |
147,003,763 |
20,807,032 |
Total assets |
259,723,704 |
352,480,435 |
49,890,366 |
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
As of |
|
December 31,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Short-term debts |
- |
8,788,184 |
1,243,887 |
Accounts payable |
90,428,382 |
100,209,905 |
14,183,791 |
Advances from customers |
16,078,619 |
18,765,896 |
2,656,140 |
Deferred revenues |
3,326,594 |
4,054,132 |
573,825 |
Taxes payable |
2,015,788 |
2,515,719 |
356,077 |
Amount due to related parties |
317,978 |
1,179,112 |
166,892 |
Unsecured senior notes |
- |
3,532,830 |
500,040 |
Accrued expenses and other current liabilities |
24,656,180 |
28,733,986 |
4,067,031 |
Operating lease liabilities |
3,193,480 |
4,109,880 |
581,716 |
Liabilities held for sale(2) |
- |
58,870 |
8,333 |
Total current liabilities |
140,017,021 |
171,948,514 |
24,337,732 |
Non-current liabilities |
|
|
|
Deferred revenues |
1,942,635 |
1,862,264 |
263,586 |
Unsecured senior notes |
6,912,492 |
10,404,250 |
1,472,626 |
Deferred tax liabilities |
1,338,988 |
1,398,509 |
197,946 |
Long-term borrowings |
3,139,290 |
3,185,775 |
450,917 |
Operating lease liabilities |
5,523,164 |
7,492,961 |
1,060,560 |
Other non-current liabilities |
225,883 |
184,592 |
26,127 |
Total non-current liabilities |
19,082,452 |
24,528,351 |
3,471,762 |
Total liabilities |
159,099,473 |
196,476,865 |
27,809,494 |
(1) JD Digits performs credit risk assessment
services for JD Baitiao business and absorbs the credit risk of the
underlying Baitiao receivables. Facilitated by JD Digits, the
Company periodically securitizes Baitiao receivables through the
transfer of those assets to asset-backed securitization plans and
derecognizes the related Baitiao receivables through sales type
arrangements
(2) The company entered into definitive
agreements to transfer certain logistic facilities and real estate
properties to JD Logistics Properties Core Fund II, L.P. (the “Core
Fund II”). As of June 30, 2020, classified the related assets and
liabilities as assets and liabilities held for sale under ASC 360,
which included cash of RMB176.5 million.
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
As of |
|
December 31,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
|
|
|
|
MEZZANINE EQUITY |
|
|
|
Convertible redeemable non-controlling
interests |
15,964,384 |
15,965,960 |
2,259,835 |
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000,000 shares authorized, 3,109,882 shares issued and
3,077,901 shares outstanding as of June 30, 2020) |
81,855,970 |
136,345,754 |
19,298,489 |
Non-controlling interests |
2,803,877 |
3,691,856 |
522,548 |
Total shareholders’ equity |
84,659,847 |
140,037,610 |
19,821,037 |
Total liabilities, mezzanine equity and shareholders’
equity |
259,723,704 |
352,480,435 |
49,890,366 |
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data and otherwise noted) |
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net revenues |
|
|
|
|
|
|
|
Net product revenues |
133,516,303 |
|
178,186,881 |
|
25,220,716 |
|
|
242,167,573 |
|
308,280,019 |
|
43,634,205 |
|
Net service revenues |
16,764,299 |
|
22,867,177 |
|
3,236,639 |
|
|
29,194,088 |
|
38,979,248 |
|
5,517,155 |
|
Total net revenues |
150,280,602 |
|
201,054,058 |
|
28,457,355 |
|
|
271,361,661 |
|
347,259,267 |
|
49,151,360 |
|
Cost of revenues |
(128,155,583 |
) |
(172,418,571 |
) |
(24,404,265 |
) |
|
(231,052,935 |
) |
(296,088,270 |
) |
(41,908,575 |
) |
Fulfillment |
(9,155,158 |
) |
(11,956,352 |
) |
(1,692,312 |
) |
|
(17,218,490 |
) |
(22,356,142 |
) |
(3,164,307 |
) |
Marketing |
(5,621,380 |
) |
(6,803,919 |
) |
(963,032 |
) |
|
(9,561,779 |
) |
(11,272,235 |
) |
(1,595,481 |
) |
Research and development |
(3,725,903 |
) |
(3,603,600 |
) |
(510,056 |
) |
|
(7,442,448 |
) |
(7,538,759 |
) |
(1,067,042 |
) |
General and administrative |
(1,356,026 |
) |
(1,423,127 |
) |
(201,431 |
) |
|
(2,677,101 |
) |
(2,834,923 |
) |
(401,257 |
) |
Gain on sale of development properties |
- |
|
195,586 |
|
27,683 |
|
|
83,218 |
|
195,586 |
|
27,683 |
|
Income from operations(3)(4) |
2,266,552 |
|
5,044,075 |
|
713,942 |
|
|
3,492,126 |
|
7,364,524 |
|
1,042,381 |
|
Other income/(expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of results of equity investees |
(303,360 |
) |
4,004,164 |
|
566,753 |
|
|
(1,020,782 |
) |
2,883,944 |
|
408,196 |
|
Interest income |
375,699 |
|
538,027 |
|
76,153 |
|
|
688,274 |
|
1,061,081 |
|
150,186 |
|
Interest expense |
(154,846 |
) |
(324,218 |
) |
(45,890 |
) |
|
(342,291 |
) |
(531,318 |
) |
(75,203 |
) |
Others, net |
(1,199,356 |
) |
7,947,525 |
|
1,124,899 |
|
|
5,686,680 |
|
7,814,969 |
|
1,106,137 |
|
Income before tax |
984,689 |
|
17,209,573 |
|
2,435,857 |
|
|
8,504,007 |
|
18,593,200 |
|
2,631,697 |
|
Income tax expenses |
(438,807 |
) |
(796,550 |
) |
(112,744 |
) |
|
(718,447) |
) |
(1,122,994 |
) |
(158,949 |
) |
Net income |
545,882 |
|
16,413,023 |
|
2,323,113 |
|
|
7,785,560 |
|
17,470,206 |
|
2,472,748 |
|
Net loss attributable to non-controlling interests
shareholders |
(73,699 |
) |
(34,384 |
) |
(4,867 |
) |
|
(153,902 |
) |
(50,804 |
) |
(7,191 |
) |
Net income attributable to mezzanine equity classified as
non-controlling interests shareholders |
764 |
|
794 |
|
112 |
|
|
1,512 |
|
1,576 |
|
223 |
|
Net income attributable to ordinary
shareholders |
618,817 |
|
16,446,613 |
|
2,327,868 |
|
|
7,937,950 |
|
17,519,434 |
|
2,479,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
(3) |
Includes share-based compensation expenses as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
(21,043 |
) |
(13,638 |
) |
(1,930 |
) |
|
(34,072 |
) |
(34,498 |
) |
(4,883 |
) |
|
Fulfillment |
(122,718 |
) |
(64,616 |
) |
(9,146 |
) |
|
(180,256 |
) |
(196,494 |
) |
(27,812 |
) |
|
Marketing |
(71,408 |
) |
(54,183 |
) |
(7,669 |
) |
|
(110,591 |
) |
(131,255 |
) |
(18,578 |
) |
|
Research and development |
(365,430 |
) |
(190,127 |
) |
(26,911 |
) |
|
(592,385 |
) |
(550,726 |
) |
(77,950 |
) |
|
General and administrative |
(440,259 |
) |
(310,660 |
) |
(43,971 |
) |
|
(721,600 |
) |
(696,765 |
) |
(98,621 |
) |
(4) |
Includes amortization of business cooperation arrangement and
intangible assets resulting from assets and business acquisitions
as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment |
(41,892 |
) |
(48,200 |
) |
(6,822 |
) |
|
(83,779 |
) |
(89,633 |
) |
(12,687 |
) |
|
Marketing |
(56,032 |
) |
(146,709 |
) |
(20,766 |
) |
|
(356,514 |
) |
(285,658 |
) |
(40,432 |
) |
|
Research and development |
(24,940 |
) |
(24,700 |
) |
(3,496 |
) |
|
(49,880 |
) |
(49,400 |
) |
(6,992 |
) |
|
General and administrative |
(76,820 |
) |
(77,313 |
) |
(10,942 |
) |
|
(153,147 |
) |
(154,133 |
) |
(21,816 |
) |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
0.21 |
|
5.55 |
|
0.79 |
|
|
2.73 |
|
5.95 |
|
0.84 |
|
|
Diluted |
0.18 |
|
5.23 |
|
0.74 |
|
|
2.68 |
|
5.68 |
|
0.80 |
|
|
|
|
|
|
|
|
|
|
Net income per ADS: |
|
|
|
|
|
|
|
|
Basic |
0.42 |
|
11.11 |
|
1.57 |
|
|
5.47 |
|
11.90 |
|
1.68 |
|
|
Diluted |
0.36 |
|
10.47 |
|
1.48 |
|
|
5.37 |
|
11.37 |
|
1.61 |
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Non-GAAP Net Income Per Share and Per ADS |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to ordinary
shareholders |
3,558,935 |
5,911,148 |
836,670 |
|
6,853,300 |
8,883,354 |
1,257,359 |
|
|
|
|
|
|
|
|
Weighted average number of shares: |
|
|
|
|
|
|
|
Basic |
2,913,608 |
2,961,278 |
2,961,278 |
|
2,903,792 |
2,943,981 |
2,943,981 |
Diluted |
2,965,731 |
3,041,244 |
3,041,244 |
|
2,958,891 |
3,020,015 |
3,020,015 |
|
|
|
|
|
|
|
|
Non-GAAP net income per share: |
|
|
|
|
|
|
|
Basic |
1.22 |
2.00 |
0.28 |
|
2.36 |
3.02 |
0.43 |
Diluted |
1.15 |
1.75 |
0.25 |
|
2.28 |
2.77 |
0.39 |
|
|
|
|
|
|
|
|
Non-GAAP net income per ADS: |
|
|
|
|
|
|
|
Basic |
2.44 |
3.99 |
0.57 |
|
4.72 |
6.03 |
0.85 |
Diluted |
2.30 |
3.51 |
0.50 |
|
4.56 |
5.55 |
0.79 |
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of Cash Flows
and Free Cash Flow |
(In thousands) |
|
|
For the three months ended |
|
For the six months ended |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
20,192,150 |
|
26,617,548 |
|
3,767,469 |
|
|
23,515,401 |
|
25,075,071 |
|
3,549,146 |
|
Net cash used in investing activities |
(21,028,488 |
) |
(23,389,954 |
) |
(3,310,633 |
) |
|
(22,131,473 |
) |
(31,586,306 |
) |
(4,470,751 |
) |
Net cash provided by/(used in) financing activities |
(449,004 |
) |
28,454,594 |
|
4,027,486 |
|
|
(3,004,955 |
) |
43,541,004 |
|
6,162,829 |
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
415,633 |
|
(60,032 |
) |
(8,496 |
) |
|
(7,580 |
) |
549,333 |
|
77,753 |
|
Net increase/(decrease) in cash, cash equivalents and restricted
cash |
(869,709 |
) |
31,622,156 |
|
4,475,826 |
|
|
(1,628,607 |
) |
37,579,102 |
|
5,318,977 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
36,743,160 |
|
45,869,225 |
|
6,492,367 |
|
|
37,502,058 |
|
39,912,279 |
|
5,649,216 |
|
Cash, cash equivalents and restricted cash at end of period(5) |
35,873,451 |
|
77,491,381 |
|
10,968,193 |
|
|
35,873,451 |
|
77,491,381 |
|
10,968,193 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
20,192,150 |
|
26,617,548 |
|
3,767,469 |
|
|
23,515,401 |
|
25,075,071 |
|
3,549,146 |
|
Add/(Less): Impact from JD Baitiao receivables included in the
operating cash flow |
(448,964 |
) |
2,050,714 |
|
290,260 |
|
|
(2,610,082 |
) |
2,626,442 |
|
371,749 |
|
Add/(Less): Capital expenditures |
|
|
|
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds |
(496,762 |
) |
(2,116,213 |
) |
(299,531 |
) |
|
593,916 |
|
(3,547,758 |
) |
(502,153 |
) |
Other capital expenditures |
(979,899 |
) |
(749,037 |
) |
(106,019 |
) |
|
(1,952,620 |
) |
(1,325,220 |
) |
(187,573 |
) |
Free cash flow |
18,266,525 |
|
25,803,012 |
|
3,652,179 |
|
|
19,546,615 |
|
22,828,535 |
|
3,231,169 |
|
(5) Including cash, cash equivalents and
restricted cash classified as assets held for sale.
JD.com, Inc. |
Supplemental Financial Information and Business Metrics |
|
Q2 2019 |
Q3 2019 |
Q4 2019 |
Q1 2020 |
Q2 2020 |
|
|
|
|
|
|
Free cash flow (in RMB billions) – trailing twelve months
(“TTM”) |
7.4 |
15.6 |
19.5 |
15.2 |
22.7 |
Inventory turnover days(6) – TTM |
36.3 |
35.1 |
35.8 |
35.4 |
34.8 |
Accounts payable turnover days(7) – TTM |
59.4 |
56.6 |
54.5 |
51.7 |
50.8 |
Accounts receivable turnover days(8) – TTM |
3.3 |
3.2 |
3.2 |
3.1 |
2.9 |
Annual active customer accounts (in millions) |
321.3 |
334.4 |
362.0 |
387.4 |
417.4 |
(6) TTM inventory turnover days are the quotient
of average inventory over the immediately preceding five quarters,
up to and including the last quarter of the period, to cost of
revenues of retail business for the last twelve months, and then
multiplied by 360 days. (7) TTM accounts payable turnover days are
the quotient of average accounts payable for retail business over
the immediately preceding five quarters, up to and including the
last quarter of the period, to cost of revenues of retail business
for the last twelve months, and then multiplied by 360 days. (8)
TTM accounts receivable turnover days are the quotient of average
accounts receivable over the immediately preceding five quarters,
up to and including the last quarter of the annual period, to total
net revenues for 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 30,2019 |
June 30,2020 |
June 30,2020 |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Income from operations |
2,266,552 |
|
5,044,075 |
|
713,942 |
|
|
3,492,126 |
|
7,364,524 |
|
1,042,381 |
|
Add: Share-based compensation |
1,020,858 |
|
633,224 |
|
89,627 |
|
|
1,638,904 |
|
1,609,738 |
|
227,844 |
|
Add: Amortization of intangible assets resulting from assets and
business acquisitions |
147,860 |
|
154,421 |
|
21,856 |
|
|
591,496 |
|
301,582 |
|
42,686 |
|
Reversal of: Effects of business cooperation arrangements |
(217,813 |
) |
(42,544 |
) |
(6,021 |
) |
|
(449,919 |
) |
(230,785 |
) |
(32,666 |
) |
Reversal of: Gain on sale of development properties |
- |
|
(195,586 |
) |
(27,683 |
) |
|
(83,218 |
) |
(195,586 |
) |
(27,683 |
) |
Non-GAAP income from operations |
3,217,457 |
|
5,593,590 |
|
791,721 |
|
|
5,189,389 |
|
8,849,473 |
|
1,252,562 |
|
Add: Depreciation and other amortization |
1,212,026 |
|
1,306,835 |
|
184,971 |
|
|
2,441,458 |
|
2,565,299 |
|
363,095 |
|
Non-GAAP EBITDA |
4,429,483 |
|
6,900,425 |
|
976,692 |
|
|
7,630,847 |
|
11,414,772 |
|
1,615,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues |
150,280,602 |
|
201,054,058 |
|
28,457,355 |
|
|
271,361,661 |
|
347,259,267 |
|
49,151,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin |
2.1 |
% |
2.8 |
% |
2.8 |
% |
|
1.9 |
% |
2.5 |
% |
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA margin |
2.9 |
% |
3.4 |
% |
3.4 |
% |
|
2.8 |
% |
3.3 |
% |
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 30,2019 |
June 30,2020 |
June 30,2020 |
|
June 30,2019 |
June 30,2020 |
June 30,2020 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders |
618,817 |
|
16,446,613 |
|
2,327,868 |
|
|
7,937,950 |
|
17,519,434 |
|
2,479,716 |
|
Add: Share-based compensation |
1,020,858 |
|
633,224 |
|
89,627 |
|
|
1,638,904 |
|
1,609,738 |
|
227,844 |
|
Add: Amortization of intangible assets resulting from assets and
business acquisitions |
147,860 |
|
154,421 |
|
21,856 |
|
|
591,496 |
|
301,582 |
|
42,686 |
|
Add: Reconciling items on the share of equity method
investments(9) |
47,473 |
|
190,956 |
|
27,028 |
|
|
210,011 |
|
116,469 |
|
16,485 |
|
Add: Impairment of goodwill, intangible assets, and
investments |
738,284 |
|
239,986 |
|
33,968 |
|
|
1,555,865 |
|
661,735 |
|
93,663 |
|
Add/(Reversal of): Loss/(Gain) from fair value change of long-term
investments |
2,434,509 |
|
(6,737,705 |
) |
(953,660 |
) |
|
(3,316,028 |
) |
(6,068,002 |
) |
(858,870 |
) |
Reversal of: Gain and foreign exchange impact in relation to sale
of development properties |
- |
|
(195,586 |
) |
(27,683 |
) |
|
(83,218 |
) |
(195,586 |
) |
(27,683 |
) |
Reversal of: Gain on disposals/deemed disposals of investments |
(1,206,568 |
) |
(4,774,833 |
) |
(675,834 |
) |
|
(1,209,206 |
) |
(4,789,833 |
) |
(677,957 |
) |
Including: Dilution gain recognized upon the IPO of Dada Group |
- |
|
(4,138,838 |
) |
(585,814 |
) |
|
- |
|
(4,138,838 |
) |
(585,814 |
) |
Reversal of: Effects of business cooperation arrangements and
non-compete agreements |
(238,102 |
) |
(63,638 |
) |
(9,007 |
) |
|
(490,298 |
) |
(272,660 |
) |
(38,593 |
) |
Add/(Reversal of): Tax effects on non-GAAP adjustments |
(4,196 |
) |
17,710 |
|
2,507 |
|
|
17,824 |
|
477 |
|
68 |
|
Non-GAAP net income attributable to ordinary
shareholders |
3,558,935 |
|
5,911,148 |
|
836,670 |
|
|
6,853,300 |
|
8,883,354 |
|
1,257,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues |
150,280,602 |
|
201,054,058 |
|
28,457,355 |
|
|
271,361,661 |
|
347,259,267 |
|
49,151,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net margin |
2.4 |
% |
2.9 |
% |
2.9 |
% |
|
2.5 |
% |
2.6 |
% |
2.6 |
% |
(9) To exclude the non-GAAP to GAAP reconciling
items on the share of equity method investments, and share of
amortization of intangibles not on their books.
________________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 30,
2020, which was RMB7.0651 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 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.4
Mobile daily active users refer to the daily average number of
users who used JD mobile app on a given day during a calendar
month.5 Fulfilled gross margin is calculated by dividing fulfilled
gross profit by net revenues. Fulfilled gross profit is defined as
the difference between net revenues and the total amount of cost of
revenues and fulfillment expenses.
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