February 28, 2019---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 and full year ended December 31, 2018.
Fourth Quarter and Full Year 2018
Highlights
- Net revenues1 for the fourth quarter of 2018
were RMB134.8 billion (US$219.6 billion), an increase of 22.4% from
the fourth quarter of 2017. Net service revenues for the fourth
quarter of 2018 were RMB14.6 billion (US$2.1 billion), an increase
of 45.7% from the fourth quarter of 2017. Net
revenues for the full year of 2018 were RMB462.0 billion
(US$67.2 billion), an increase of 27.5% from the full year of 2017.
Net service revenues for the full year of 2018 were RMB45.9 billion
(US$6.7 billion), an increase of 50.5% from the full year of
2017.
- Operating margin of JD Mall before unallocated
items3 for the fourth quarter of 2018 was 1.1%, as compared to 0.6%
for the same period last year. Operating margin of JD
Mall before unallocated items for the full year of 2018
was 1.6% as compared to 1.4% for the full year of 2017.
- Net loss from continuing operations
attributable to ordinary shareholders for the
fourth quarter of 2018 was RMB4.8 billion (US$0.7 billion),
compared to RMB0.9 billion for the same period last year.
Non-GAAP net income from continuing operations
attributable to ordinary shareholders4 for the
fourth quarter of 2018 was RMB749.9 million (US$109.1 million),
compared to RMB449.3 million for the same period last year.
Net loss from continuing operations
attributable to ordinary shareholders for the full
year of 2018 was RMB2.5 billion (US$0.4 billion), compared to a net
income from continuing operations attributable to ordinary
shareholders of RMB116.8 million for the full year of 2017.
Non-GAAP net income from continuing operations
attributable to ordinary shareholders for the full
year of 2018 was RMB3.5 billion (US$0.5 billion), compared to
RMB5.0 billion for the full year of 2017.
- Diluted EPS and Non-GAAP Diluted EPS. Diluted
net loss per ADS from continuing operations for the fourth quarter
of 2018 was RMB3.32 (US$0.48), compared to RMB0.64 for the fourth
quarter of 2017. Non-GAAP diluted net income per ADS from
continuing operations for the fourth quarter of 2018 was RMB0.51
(US$0.07), compared to RMB0.31 for the same quarter last year.
Diluted net loss per ADS from continuing operations for the full
year of 2018 was RMB1.73 (US$0.25), compared to diluted net income
per ADS from continuing operations of RMB0.08 for the full year of
2017. Non-GAAP diluted net income per ADS from continuing
operations for the full year of 2018 was RMB2.35 (US$0.34), as
compared to RMB3.41 in the full year of 2017.
- Annual active customer accounts increased to
305.3 million in the twelve months ended December 31, 2018 from
292.5 million in the twelve months ended December 31, 2017.
Quarterly active customer accounts[5] in the fourth quarter
and third quarter of 2018, on the other hand, increased by 20% and
22%, as compared to the same periods in 2017, respectively.
“In the fourth quarter of 2018, JD.com continued
to outperform the industry across our key product categories,” said
Richard Liu, Chairman and CEO of JD.com. “Our investments in
technology enhanced the customer experience and enabled greater
operating efficiency. As JD.com pushes the boundaries of retail, we
are committed to optimizing our resources across our business in
order to deliver long term value to our shareholders.”
“Overall, we saw healthy top line and bottom
line performance in the fourth quarter, reflecting our balanced
approach towards financial discipline and investing for the
future,” said Sidney Huang, Chief Financial Officer of JD.com. “In
particular, our core JD Mall business has continued to grow with
improving margin. We focused on developing industry leading
technology innovation and infrastructure to drive greater
efficiency and economies of scale in the future.”
Recent Business
Developments
- In the fourth quarter, JD.com took significant steps to
continue enhancing and expanding its Environmental, Social and
Governance (ESG) program. In October, JD was ranked 131st on the
Forbes World's Best Employers 2018 list, a significant increase
from its 251st ranking in 2017. In October, JD held its second
“Green Planet-Sustainable Week” program, partnering with the World
Wide Fund (WWF) and The China Children and Teenagers' Fund (CCTF)
to raise awareness around sustainable consumption through
initiatives including recycling used clothing and appliances in
around fifty cities across China.
- In October, JD.com formed a strategic partnership with Xinyu
Group, the largest international watch retailer in China. The
partnership creates one of the largest omnichannel watch sales and
service alliances in China, allowing Chinese customers to enjoy
seamless shopping experiences and convenient aftersales services.
In addition, in the fourth quarter, Rado, Hamilton and Certina
joined JD’s platform, adding to the list of premium international
watch brands available on JD.
- Recently, JD.com continued to attract premium brands to its
e-commerce platform through its reputation as China’s most trusted
retailer for quality products. Iconic New York-based luxury fashion
brand DKNY, and Sulwhasoo, a leading luxury beauty brand in Korea
owned by Amorepacific, launched flagship stores on JD.
- In December, JD Fresh partnered with Japanese chemical
manufacturing giant Mitsubishi Chemical to open the largest
hydroponic “plant factory” featuring Japanese hydroponic
technology in China, providing JD customers with new options for
safe, nutritious and environmentally friendly produce both online
and offline at JD’s 7FRESH supermarkets.
- As of the end of the fourth quarter, JD.com’s joint venture,
Dada-JD Daojia, had partnered with more than 100,000 stores from
leading supermarket brands including Walmart, Yonghui, Carrefour
and CR Vanguard, leveraging Dada’s crowd-sourcing delivery network
covering more than 450 cities. Dada-JD Daojia is China’s leading
on-demand logistics and omnichannel e-commerce platform.
- During the fourth quarter, JD expanded its leadership position
in fulfillment capabilities among China’s e-commerce companies. As
of December 31, 2018, JD.com operated over 550 warehouses covering
an aggregate gross floor area of approximately 12 million square
meters in China.
- JD.com had over 210,000 merchants on its online marketplace,
and over 178,000 full-time employees as of December 31, 2018.
Fourth Quarter 2018 Financial
Results
Net Revenues. For the
fourth quarter of 2018, JD.com reported net revenues of RMB134.8
billion (US$19.6 billion), representing a 22.4% increase from the
same period in 2017. Net product revenues increased by 20.1%, while
net service revenues increased by 45.7% in the fourth quarter of
2018, as compared to the fourth quarter of 2017.
Cost of
Revenues. Cost of
revenues increased by 20.7% to RMB115.7 billion (US$16.8 billion)
in the fourth quarter of 2018 from RMB95.8 billion in the fourth
quarter of 2017. This increase was primarily due to the growth of
the company’s online direct sales business, and costs related to
the logistics services provided to merchants and other
partners.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by
11.3% to RMB8.9 billion (US$1.3 billion) in the fourth quarter of
2018 from RMB8.0 billion in the fourth quarter of 2017. Fulfillment
expenses as a percentage of net revenues was 6.6% in the fourth
quarter of 2018, compared to 7.2% in the same period last year.
Marketing
Expenses. Marketing expenses
increased by 33.9% to RMB6.4 billion (US$0.9 billion) in the fourth
quarter of 2018 from RMB4.7 billion in the fourth quarter of
2017.
Technology and Content
Expenses. Technology and content
expenses increased by 69.9% to RMB3.5 billion (US$0.5 billion) in
the fourth quarter of 2018 from RMB2.1 billion in the fourth
quarter of 2017 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 17.1% to RMB1.4 billion
(US$0.2 billion) in the fourth quarter of 2018 from RMB1.2 billion
in the fourth quarter of 2017.
Loss from operations and Non-GAAP
income/(loss) from operations6. Operating loss from
continuing operations for the fourth quarter of 2018 was RMB938.9
million (US$136.6 million), compared to RMB1,596.2 million for the
same period last year. Non-GAAP operating income from continuing
operations for the fourth quarter of 2018 was RMB313.0 million
(US$45.5 million) with a non-GAAP operating margin of 0.2%, as
compared to non-GAAP operating loss of RMB595.8 million in the
fourth quarter of 2017 with a non-GAAP operating margin of negative
0.5%. Operating margin of JD Mall before unallocated items for the
fourth quarter of 2018 was 1.1%, compared to 0.6% for the fourth
quarter of 2017.
Non-GAAP EBITDA7 from
continuing operations for the fourth quarter of 2018 was RMB1.5
billion (US$0.2 billion) with a non-GAAP EBITDA margin of 1.1%, as
compared to RMB138.0 million with a non-GAAP EBITDA margin of 0.1%
for the fourth quarter of 2017.
Others, net. Others, net
from continuing operations for the fourth quarter of 2018 was a
loss of RMB4.0 billion (US$0.6 billion), compared with an income of
RMB0.7 billion in the fourth quarter of 2017. The loss was
primarily attributable to loss from fair value change of long-term
investments of RMB4.1 billion (US$0.6 billion) due to market
volatility during the quarter.
Net loss attributable
to ordinary shareholders and Non-GAAP net
income attributable to ordinary
shareholders. Net loss from
continuing operations attributable to ordinary shareholders for the
fourth quarter of 2018 was RMB4.8 billion (US$0.7 billion),
compared to RMB0.9 billion for the same period last year. Non-GAAP
net income from continuing operations attributable to ordinary
shareholders for the fourth quarter of 2018 was RMB749.9 million
(US$109.1 million), compared to RMB449.3 million for the same
period last year.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net loss per ADS from
continuing operations for the fourth quarter of 2018 was RMB3.32
(US$0.48), compared to RMB0.64 for the fourth quarter of 2017.
Non-GAAP diluted net income per ADS from continuing operations for
the fourth quarter of 2018 was RMB0.51 (US$0.07), as compared to
RMB0.31 for the fourth quarter of 2017.
Cash Flow and Working
Capital
As of December 31, 2018, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB39.5 billion (US$5.8 billion), compared to RMB38.4
billion as of December 31, 2017. For the fourth quarter of 2018,
free cash flow from continuing operations of the company was as
follows:
|
For the three months ended |
|
December 31,
2017 |
December 31,
2018 |
December 31,
2018 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
|
|
Net cash provided by operating activities from
continuing operations |
3,386,634 |
|
6,028,130 |
|
876,755 |
|
Less: Impact from decreasing JD Digits (formerly
known as JD Finance) related credit products included in the
operating cash flow |
(2,873,809 |
) |
(5,793,961 |
) |
(842,697 |
) |
Less: Capital expenditures |
|
|
|
Capital expenditures related to
development projects available for sale* |
(1,295,382 |
) |
(2,515,276 |
) |
(365,830 |
) |
Other capital expenditures** |
(894,554 |
) |
(1,720,252 |
) |
(250,201 |
) |
Free cash flow |
(1,677,111 |
) |
(4,001,359 |
) |
(581,973 |
) |
* Including projects developed by the Company’s
property management group for internal and external leasing, which
may be disposed through various joint ventures or investment fund
structures in the future.** Including capital expenditures related
to the Company’s headquarters in Beijing and all other CAPEX.
Net cash used in investing activities from
continuing operations was RMB2.2 billion (US$0.3 billion) for the
fourth quarter of 2018, consisting primarily of cash paid for
capital expenditures of RMB4.2 billion, and increases in
investments in equity investees and investment securities of RMB1.6
billion, partially offset by decreases in short-term investments of
RMB3.1 billion.
Net cash used in financing activities from
continuing operations was RMB3.9 billion (US$0.6 billion) for the
fourth quarter of 2018, consisting primarily of repayment of
nonrecourse securitization debt and short-term borrowings.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Full Year 2018 Financial Results
Net Revenues. For the
full year of 2018, JD.com reported net revenues of RMB462.0 billion
(US$67.2 billion), representing a 27.5% increase from the full year
of 2017. Net product revenues increased by 25.4%, while net service
revenues increased by 50.5% in the full year of 2018, as compared
to the full year of 2017.
Cost of
Revenues. Cost of
revenues increased by 27.1% to RMB396.1 billion (US$57.6 billion)
in the full year of 2018 from RMB311.5 billion in the full year of
2017. This increase was primarily due to the growth of the
company’s online direct sales business, and costs related to the
logistics services provided to merchants and other partners.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by
23.8% to RMB32.0 billion (US$4.7 billion) in the full year of 2018
from RMB25.9 billion in the full year of 2017. Fulfillment expenses
as a percentage of net revenues was 6.9%, compared to 7.1% in the
full year of 2017.
Marketing
Expenses. Marketing expenses
increased by 28.9% to RMB19.2 billion (US$2.8 billion) in the full
year of 2018 from RMB14.9 billion in the full year of 2017.
Technology and Content
Expenses. Technology and content
expenses increased by 82.6% to RMB12.1 billion (US$1.8 billion) in
the full year of 2018 from RMB6.7 billion in the full year of 2017,
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 22.4% to RMB5.2 billion
(US$0.8 billion) in the full year of 2018 from RMB4.2 billion in
the full year of 2017.
Loss from operations and Non-GAAP income
from operations. Operating loss from continuing
operations for the full year of 2018 was RMB2.6 billion (US$0.4
billion), compared to RMB0.8 billion for the full year of 2017.
Non-GAAP operating income from continuing operations for the full
year of 2018 was RMB1.9 billion (US$0.3 billion) with a non-GAAP
operating margin of 0.4%, as compared to RMB2.9 billion for the
full year of 2017 with a non-GAAP operating margin of 0.8%.
Operating margin of JD Mall before unallocated items for the full
year of 2018 was 1.6%, compared to 1.4% for the full year of
2017.
Non-GAAP EBITDA from continuing
operations for the full year of 2018 totaled RMB5.7 billion (US$0.8
billion) with a non-GAAP EBITDA margin of 1.2%, increased from
RMB5.3 billion with a non-GAAP EBITDA margin of 1.5% for the full
year of 2017.
Net income/(loss)
attributable to ordinary shareholders and
Non-GAAP net income attributable to ordinary
shareholders. Net loss from
continuing operations attributable to ordinary shareholders for the
full year of 2018 was RMB2.5 billion (US$0.4 billion), compared to
net income from continuing operations attributable to ordinary
shareholders of RMB116.8 million for the full year of 2017.
Non-GAAP net income from continuing operations attributable to
ordinary shareholders for the full year of 2018 was RMB3.5 billion
(US$0.5 billion), compared to RMB5.0 billion for the full year of
2017.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net loss per ADS from
continuing operations for the full year of 2018 was RMB1.73
(US$0.25), compared to diluted net income per ADS from continuing
operations of RMB0.08 for the full year of 2017. Non-GAAP diluted
net income per ADS from continuing operations for the full year of
2018 was RMB2.35 (US$0.34) as compared to RMB3.41 in the full year
of 2017.
Cash Flow and Working Capital
For the full year of 2018, free cash flow from
continuing operations of the company was as follows:
|
For the year ended |
|
December 31,
2017 |
December 31,
2018 |
December 31,
2018 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
|
|
Net cash provided by operating activities from
continuing operations |
29,342,468 |
|
20,881,422 |
|
3,037,077 |
|
Less: Impact from decreasing JD Digits related
credit products included in the operating cash flow |
(289,214 |
) |
(7,369,421 |
) |
(1,071,838 |
) |
Less: Capital expenditures |
|
|
|
Capital expenditures related to
development projects available for sale* |
(3,848,531 |
) |
(8,857,569 |
) |
(1,288,280 |
) |
Other capital expenditures** |
(7,507,344 |
) |
(12,511,925 |
) |
(1,819,784 |
) |
Free cash flow |
17,697,379 |
|
(7,857,493 |
) |
(1,142,825 |
) |
* Including projects developed by the Company’s
property management group for internal and external leasing, which
may be disposed through various joint ventures or investment fund
structures in the future.** Including capital expenditures related
to the Company’s headquarters in Beijing, which totaled RMB4.2
billion and RMB2.6 billion for the years ended December 31, 2017
and 2018, respectively.
Net cash used in investing activities from
continuing operations was RMB26.1 billion (US$3.8 billion) for the
full year of 2018, consisting primarily of cash paid for capital
expenditures of RMB21.4 billion, and increase in investment in
equity investees and investment securities of RMB22.0 billion,
partially offset by decrease in short-term investments of RMB6.5
billion, and decrease in loans to JD Digits of RMB6.3 billion.
Net cash provided by financing activities from
continuing operations was RMB11.2 billion (US$1.6 billion) for the
full year of 2018, consisting primarily of proceeds from JD
Logistics financing of RMB16.0 billion, proceeds from issuance of
ordinary shares of RMB3.5 billion and net proceeds from long-term
borrowings of RMB2.8 billion, partially offset by repayment of
nonrecourse securitization debt of RMB12.0 billion.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Full-Year Supplemental Information
The table below sets forth the full year segment operating
results:
|
|
For the year ended |
|
|
December 31,
2017 |
December 31,2018 |
December 31,2018 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
Net revenues: |
|
|
|
|
JD Mall |
|
356,020,374 |
|
447,502,173 |
|
65,086,492 |
|
New businesses* |
|
6,021,508 |
|
14,665,281 |
|
2,132,976 |
|
Inter-segment** |
|
(546,667 |
) |
(1,103,943 |
) |
(160,562 |
) |
Total segment net revenues |
|
361,495,215 |
|
461,063,511 |
|
67,058,906 |
|
Unallocated items |
|
836,539 |
|
956,248 |
|
139,081 |
|
Total consolidated net revenues |
|
362,331,754 |
|
462,019,759 |
|
67,197,987 |
|
|
|
|
|
|
Operating income: |
|
|
|
|
JD Mall |
|
4,956,264 |
|
7,049,222 |
|
1,025,267 |
|
New businesses |
|
(2,070,668 |
) |
(5,136,657 |
) |
(747,097 |
) |
Total segment operating income |
|
2,885,596 |
|
1,912,565 |
|
278,170 |
|
Unallocated items |
|
(3,721,072 |
) |
(4,531,696 |
) |
(659,107 |
) |
Total consolidated operating loss |
|
(835,476 |
) |
(2,619,131 |
) |
(380,937 |
) |
* New businesses of the company include
logistics services provided to third parties, technology
initiatives, and overseas business.** The inter-segment
eliminations mainly consisted of services provided by JD Mall to
the overseas business, and services provided by JD Logistics to the
vendors of JD Mall, which were recorded as a deduction of cost of
revenues at the consolidated level.
The table below sets forth the full year revenue
information:
|
For the year ended |
|
December 31,
2017 |
December 31,2018 |
December
31,2018 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
|
|
Electronics and home appliance revenues |
236,268,621 |
280,059,089 |
40,732,905 |
General merchandise revenues |
95,555,789 |
136,049,657 |
19,787,602 |
Net product revenues |
331,824,410 |
416,108,746 |
60,520,507 |
|
|
|
|
Marketplace and advertising revenues |
25,390,981 |
33,531,862 |
4,877,007 |
Logistics and other service revenues |
5,116,363 |
12,379,151 |
1,800,473 |
Net service revenues |
30,507,344 |
45,911,013 |
6,677,480 |
|
|
|
|
Total net revenues |
362,331,754 |
462,019,759 |
67,197,987 |
Recent Development
Share Repurchase Program
On December 25, 2018, JD.com’s Board of
Directors authorized a share repurchase program under which the
company may repurchase up to US$1.0 billion worth of its ADSs over
the following 12 months. As of December 31, 2018, the company had
repurchased approximately 1.4 million ADSs for approximately
US$30.0 million.
JD Logistics Properties Core Fund
In 2018, the Company established a property
management group (“JDPM”) to manage the expanding logistics
facilities and other real estate properties. JDPM develops and
manages these properties, and may seek opportunistic dispositions
to optimize the Company’s capital structure. In February 2019, JDPM
established JD Logistics Properties Core Fund, L.P. (the “Fund”)
together with GIC, Singapore’s sovereign wealth fund, for a total
committed capital of over RMB4.8 billion. JD serves as the general
partner and has committed 20% of the total capital of the Fund. The
investment committee of the Fund will oversee the key operations of
the Fund. Furthermore, on February 27, 2019, JD entered into a
definitive agreement with the Fund, pursuant to which JD will
dispose of certain of its modern logistics facilities to the
Fund for a total gross asset value of RMB10.9 billion, to
unlock meaningful value from its balance sheet and recycle capital
for its future growth initiatives. The Fund will use leverage to
finance the purchase, and the closing of the purchase is subject to
certain conditions, including the availability of debt financing.
It is expected that the disposition of the majority of these
logistics facilities will be completed in 2019. Subsequent to the
disposition, JD will lease back these facilities for operational
purposes. JDPM will serve as the asset manager managing the Fund’s
assets.
First Quarter 2019
Guidance
Net revenues for the first quarter of 2019 are
expected to be between RMB118 billion and RMB122 billion,
representing a growth rate between 18% and 22% compared with the
first 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 7:00 am, Eastern Time on February 28, 2019, (8:00 pm,
Beijing/Hong Kong Time on February 28, 2019) to discuss the fourth
quarter and full year 2018 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: |
2707999 |
A telephone replay will be available from 10:30
am, Eastern Time on February 28, 2019 through 07:59 am, Eastern
Time on March 7, 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: |
2707999 |
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, revenue from business cooperation
arrangements with equity investees and impairment of goodwill and
intangible assets. The company defines non-GAAP net income/(loss)
attributable to ordinary shareholders as net income/(loss)
attributable to ordinary shareholders excluding share-based
compensation, amortization of intangible assets resulting from
assets and business acquisitions, revenue from business cooperation
arrangements with equity investees, gain/(loss) on
disposals/revaluation of investments, income from non-compete
agreement, reconciling items on the share of equity method
investments, fair value change of long-term investments, impairment
of goodwill, intangible assets and investments, and tax effects on
non-GAAP adjustments. The company defines free cash flow as
operating cash flow adding back the impact from JD Digits related
credit products included in the operating cash flow and less
capital expenditures, which include purchase of property, equipment
and software, cash paid for construction in progress, purchase of
intangible assets and land use rights. The company defines non-GAAP
EBITDA as non-GAAP income/(loss) from operations plus depreciation
and amortization excluding amortization of intangible assets
resulting from assets and business acquisitions.
The company presents these non-GAAP financial
measures because they are used by management to evaluate operating
performance and formulate business plans. Non-GAAP 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 Digits related credit products included in the operating
cash flow and the demands that the expansion of fulfillment
infrastructure and technology platform has placed on financial
resources. The company also believes that the use of the non-GAAP
financial measures facilitates investors to understand and evaluate
the company’s current operating performance and future prospects in
the same manner as management does, if they so choose. The company
also believes that the non-GAAP financial measures provide useful
information to both management and investors by excluding certain
expenses, gain/loss and other items that are not expected to result
in future cash payments or that are non-recurring in nature or may
not be indicative of the company's core operating results and
business outlook.
The non-GAAP financial measures have limitations
as analytical tools. The company’s non-GAAP financial measures do
not reflect all items of income and expense that affect the
company’s operations or not represent the residual cash flow
available for discretionary expenditures. Further, these non-GAAP
measures may differ from the non-GAAP information used by other
companies, including peer companies, and therefore their
comparability may be limited. The company compensates for these
limitations by reconciling the non-GAAP financial measures to the
nearest U.S. GAAP performance measure, all of which should be
considered when evaluating performance. The company encourages you
to review the company’s financial information in its entirety and
not rely on a single financial measure.
CONTACTS:
Investor RelationsRuiyu
LiSenior Director of Investor Relations+86 (10)
8912-6805IR@JD.com
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 financial information and non-GAAP
financial information disclosed in this press release is presented
on a continuing operations basis, unless otherwise specifically
stated.
2 The U.S. dollar (US$) amounts disclosed in
this press release, except for those transaction amounts that were
actually settled in U.S. dollars, are presented solely for the
convenience of the readers. The conversion of Renminbi (RMB) into
US$ in this press release is based on the exchange rate set forth
in the H.10 statistical release of the Board of Governors of the
Federal Reserve System as of December 31, 2018, which was RMB6.8755
to US$1.00. The percentages stated in this press release are
calculated based on the RMB amounts.
3 Unallocated items are consistent with non-GAAP
adjustments and include revenue from business cooperation
arrangements with equity investees, share-based compensation,
amortization of intangible assets resulting from assets and
business acquisitions, and impairment of goodwill and intangible
assets, which are not allocated to segments.
4 Non-GAAP net income/(loss) attributable to
ordinary shareholders is defined to exclude share-based
compensation, amortization of intangible assets resulting from
acquisitions, gain/(loss) on disposals/revaluation of investments,
and certain other non-cash gain or loss items from net
income/(loss) attributable to ordinary shareholders. See “Unaudited
Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
5 Quarterly active customer accounts are
customer accounts that made at least one purchase during the
quarter, whether through online direct sales or online
marketplaces.
6 Non-GAAP income/(loss) from operations is
defined to exclude share-based compensation, amortization of
intangible assets resulting from acquisitions, and certain other
non-cash gain or loss items from income/(loss) from operations.
Non-GAAP operating margin is calculated by dividing non-GAAP
income/(loss) from operations by net revenues. See “Unaudited
Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
7 Non-GAAP EBITDA is defined as non-GAAP
income/(loss) from operations plus depreciation and amortization
excluding amortization of intangible assets resulting from assets
and business acquisitions, and non-GAAP EBITDA margin is calculated
by dividing non-GAAP EBITDA by net revenues. See “Unaudited
Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
As of |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
25,688,327 |
34,262,445 |
4,983,266 |
Restricted cash |
4,110,210 |
3,239,613 |
471,182 |
Short-term investments |
8,587,852 |
2,035,575 |
296,062 |
Accounts receivable, net (including
JD Baitiao of RMB14.3 billion and RMB6.3 billion as of December 31,
2017 and 2018, respectively)(1) |
16,359,147 |
11,109,988 |
1,615,881 |
Advance to suppliers |
394,574 |
477,109 |
69,393 |
Inventories, net |
41,700,379 |
44,030,084 |
6,403,910 |
Prepayments and other current
assets |
7,391,602 |
6,564,700 |
954,794 |
Amount due from related
parties |
10,796,561 |
3,136,265 |
456,151 |
Total current
assets |
115,028,652 |
104,855,779 |
15,250,639 |
Non-current assets |
|
|
|
Property, equipment and software,
net |
12,574,178 |
21,082,838 |
3,066,372 |
Construction in progress |
3,196,516 |
6,553,712 |
953,198 |
Intangible assets, net |
6,692,717 |
5,011,706 |
728,922 |
Land use rights, net |
7,050,809 |
10,475,658 |
1,523,621 |
Goodwill |
6,650,570 |
6,643,669 |
966,282 |
Investment in equity investees |
18,551,319 |
31,356,616 |
4,560,631 |
Investment securities |
10,027,813 |
15,901,573 |
2,312,788 |
Deferred tax assets |
158,250 |
103,158 |
15,004 |
Other non-current assets (including
JD Baitiao of RMB0.9 billion and RMB0.2 billion as of December 31,
2017 and 2018, respectively)(1) |
2,227,942 |
5,283,948 |
768,518 |
Amount due from related
parties |
1,896,200 |
1,896,200 |
275,791 |
Total non-current assets |
69,026,314 |
104,309,078 |
15,171,127 |
Total assets |
184,054,966 |
209,164,857 |
30,421,766 |
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
As of |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Short-term borrowings |
200,000 |
147,264 |
21,419 |
Nonrecourse securitization
debt(1) |
12,684,881 |
4,397,670 |
639,615 |
Accounts payable |
74,337,708 |
79,985,018 |
11,633,338 |
Advances from customers |
13,605,298 |
13,017,603 |
1,893,332 |
Deferred revenues |
1,592,332 |
1,980,489 |
288,050 |
Taxes payable |
658,220 |
825,677 |
120,090 |
Amount due to related parties |
54,342 |
215,614 |
31,360 |
Accrued expenses and other current
liabilities |
15,117,840 |
20,292,680 |
2,951,448 |
Total current liabilities |
118,250,621 |
120,862,015 |
17,578,652 |
Non-current liabilities |
|
|
|
Deferred revenues |
1,273,545 |
463,153 |
67,363 |
Nonrecourse securitization
debt(1) |
4,475,238 |
- |
- |
Unsecured senior notes |
6,447,357 |
6,786,143 |
987,004 |
Deferred tax liabilities |
882,248 |
828,473 |
120,496 |
Long-term borrowings |
- |
3,088,440 |
449,195 |
Other non-current liabilities |
337,254 |
308,489 |
44,868 |
Total non-current
liabilities |
13,415,642 |
11,474,698 |
1,668,926 |
Total liabilities |
131,666,263 |
132,336,713 |
19,247,578 |
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands) |
|
|
|
|
|
As of |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
|
|
|
Redeemable non-controlling
interests |
- |
15,961,284 |
2,321,472 |
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
Total JD.com, Inc. shareholders’
equity (US$0.00002 par value, 100,000,000 shares authorized,
2,965,816 shares issued and 2,894,296 shares outstanding as of
December 31, 2018) |
52,040,814 |
59,770,973 |
8,693,326 |
Non-controlling interests |
347,889 |
1,095,887 |
159,390 |
Total shareholders’ equity |
52,388,703 |
60,866,860 |
8,852,716 |
Total liabilities, redeemable
non-controlling interests and shareholders’ equity |
184,054,966 |
209,164,857 |
30,421,766 |
|
|
|
|
(1) Due to
certain pre-existing contractual arrangement, the company remains
as the legal owner of the consumer credit (known as JD Baitiao)
receivables until they are repaid or sold through the new
asset-backed securitization (“ABS”) plan as described below. JD
Digits continues to perform the credit risk assessment services for
the JD Baitiao business and purchase the over-due receivables from
the company at carrying value to absorb the risks and obtain the
rewards from JD Baitiao business. The company also assisted JD
Digits in various ABS to raise funds to support the JD Baitiao
business. JD Digits acts as the servicer of the ABS and also
subscribes to the subordinate tranche. Due to the company’s
continuing involvement right in ABS under the historical
arrangement prior to October 2017, the company was not able to
derecognize the related Baitiao receivables through the legacy ABS
under U.S. GAAP. Beginning from October 2017, the company revised
certain structural arrangements for the issuance of ABS to
relinquish its continuing involvement right, and has been able to
derecognize certain Baitiao receivables through the new ABS plan.
As a result, the balances of Baitiao receivables are expected to
decrease gradually in the future with the adoption of the new ABS
plan, and nonrecourse securitization debt balance will gradually
decrease upon the settlement of the legacy ABS plan. |
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net
revenues |
|
|
|
|
|
|
|
Net
product revenues |
100,146,682 |
|
120,231,574 |
|
17,486,958 |
|
|
331,824,410 |
|
416,108,746 |
|
60,520,507 |
|
Net
service revenues |
10,018,652 |
|
14,600,975 |
|
2,123,624 |
|
|
30,507,344 |
|
45,911,013 |
|
6,677,480 |
|
Total net
revenues |
110,165,334 |
|
134,832,549 |
|
19,610,582 |
|
|
362,331,754 |
|
462,019,759 |
|
67,197,987 |
|
Operating
expenses(4)(5) |
|
|
|
|
|
|
|
Cost of
revenues |
(95,805,441 |
) |
(115,660,696 |
) |
(16,822,151 |
) |
|
(311,516,831 |
) |
(396,066,126 |
) |
(57,605,429 |
) |
Fulfillment |
(7,960,097 |
) |
(8,860,519 |
) |
(1,288,709 |
) |
|
(25,865,128 |
) |
(32,009,658 |
) |
(4,655,612 |
) |
Marketing |
(4,743,326 |
) |
(6,352,543 |
) |
(923,939 |
) |
|
(14,918,107 |
) |
(19,236,740 |
) |
(2,797,868 |
) |
Technology and content |
(2,060,873 |
) |
(3,502,059 |
) |
(509,353 |
) |
|
(6,652,374 |
) |
(12,144,383 |
) |
(1,766,327 |
) |
General
and administrative |
(1,191,798 |
) |
(1,395,636 |
) |
(202,987 |
) |
|
(4,214,790 |
) |
(5,159,666 |
) |
(750,442 |
) |
Impairment of goodwill and intangible assets |
- |
|
- |
|
- |
|
|
- |
|
(22,317 |
) |
(3,246 |
) |
Total operating
expenses |
(111,761,535 |
) |
(135,771,453 |
) |
(19,747,139 |
) |
|
(363,167,230 |
) |
(464,638,890 |
) |
(67,578,924 |
) |
Loss from operations |
(1,596,201 |
) |
(938,904 |
) |
(136,557 |
) |
|
(835,476 |
) |
(2,619,131 |
) |
(380,937 |
) |
Other
income/(expenses) |
|
|
|
|
|
|
|
Share of
results of equity investees |
(556,954 |
) |
(171,284 |
) |
(24,912 |
) |
|
(1,926,720 |
) |
(1,113,105 |
) |
(161,894 |
) |
Interest
income(2) |
811,839 |
|
389,887 |
|
56,707 |
|
|
2,530,490 |
|
2,117,921 |
|
308,039 |
|
Interest
expense(3) |
(282,475 |
) |
(144,847 |
) |
(21,067 |
) |
|
(963,742 |
) |
(854,538 |
) |
(124,287 |
) |
Others,
net |
672,540 |
|
(3,951,371 |
) |
(574,703 |
) |
|
1,316,408 |
|
95,175 |
|
13,843 |
|
Income/(loss)
before tax |
(951,251 |
) |
(4,816,519 |
) |
(700,532 |
) |
|
120,960 |
|
(2,373,678 |
) |
(345,236 |
) |
|
|
|
|
|
|
|
|
(2) Interest income charged to JD Digits in relation
to nonrecourse securitization debt were RMB221.3 million and
RMB74.7 million for the three months ended December 31, 2017 and
2018, and RMB702.1 million and RMB527.0 million for the years ended
December 31, 2017 and 2018, respectively, same as the interest
expense below. |
(3) Interest expense in relation to nonrecourse
securitization debt were the same RMB221.3 million and RMB74.7
million for the three months ended December 31, 2017 and 2018, and
RMB702.1 million and RMB527.0 million for the years ended December
31, 2017 and 2018, respectively. |
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Income/(loss)
before tax |
(951,251 |
) |
(4,816,519 |
) |
(700,532 |
) |
|
120,960 |
|
(2,373,678 |
) |
(345,236 |
) |
Income
tax expenses |
(13,000 |
) |
(60,967 |
) |
(8,867 |
) |
|
(139,593 |
) |
(426,872 |
) |
(62,086 |
) |
Net loss from
continuing operations |
(964,251 |
) |
(4,877,486 |
) |
(709,399 |
) |
|
(18,633 |
) |
(2,800,550 |
) |
(407,322 |
) |
Net
income from discontinued operations, net
of tax |
- |
|
- |
|
- |
|
|
6,915 |
|
- |
|
- |
|
Net
loss |
(964,251 |
) |
(4,877,486 |
) |
(709,399 |
) |
|
(11,718 |
) |
(2,800,550 |
) |
(407,322 |
) |
Net loss from
continuing operations attributable to non-controlling interests
shareholders |
(55,018 |
) |
(73,599 |
) |
(10,705 |
) |
|
(135,452 |
) |
(311,409 |
) |
(45,293 |
) |
Net loss from
discontinued operations attributable to non-controlling interests
shareholders |
- |
|
- |
|
- |
|
|
(5,030 |
) |
- |
|
- |
|
Net income from
continuing operations attributable to mezzanine classified
non-controlling interests shareholders |
- |
|
839 |
|
122 |
|
|
- |
|
2,492 |
|
362 |
|
Net income from
discontinued operations attributable to mezzanine classified
non-controlling interests shareholders |
- |
|
- |
|
- |
|
|
281,021 |
|
- |
|
- |
|
Net
loss attributable to ordinary
shareholders |
(909,233 |
) |
(4,804,726 |
) |
(698,816 |
) |
|
(152,257 |
) |
(2,491,633 |
) |
(362,391 |
) |
|
|
|
|
|
|
|
|
Including: Net loss from discontinued operations
attributable to ordinary shareholders |
- |
|
- |
|
- |
|
|
(269,076 |
) |
- |
|
- |
|
Net income/(loss) from continuing operations attributable
to ordinary shareholders |
(909,233 |
) |
(4,804,726 |
) |
(698,816 |
) |
|
116,819 |
|
(2,491,633 |
) |
(362,391 |
) |
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
(4) Includes
share-based compensation expenses as follows: |
Cost of
revenues |
(10,962 |
) |
(23,986 |
) |
(3,489 |
) |
|
(27,513 |
) |
(71,983 |
) |
(10,469 |
) |
Fulfillment |
(113,536 |
) |
(94,799 |
) |
(13,788 |
) |
|
(425,706 |
) |
(418,895 |
) |
(60,926 |
) |
Marketing |
(38,208 |
) |
(52,252 |
) |
(7,600 |
) |
|
(135,749 |
) |
(190,499 |
) |
(27,707 |
) |
Technology
and content |
(192,746 |
) |
(350,810 |
) |
(51,023 |
) |
|
(670,612 |
) |
(1,162,579 |
) |
(169,090 |
) |
General and
administrative |
(406,950 |
) |
(515,200 |
) |
(74,933 |
) |
|
(1,520,482 |
) |
(1,816,033 |
) |
(264,131 |
) |
(5) Includes
amortization of intangible assets resulting from assets and
business acquisitions as follows: |
Fulfillment |
(41,084 |
) |
(41,897 |
) |
(6,094 |
) |
|
(163,979 |
) |
(167,573 |
) |
(24,372 |
) |
Marketing |
(308,662 |
) |
(310,469 |
) |
(45,156 |
) |
|
(1,221,952 |
) |
(1,231,889 |
) |
(179,171 |
) |
Technology and content |
(21,861 |
) |
(22,807 |
) |
(3,317 |
) |
|
(83,844 |
) |
(98,402 |
) |
(14,312 |
) |
General
and administrative |
(77,314 |
) |
(77,314 |
) |
(11,245 |
) |
|
(307,774 |
) |
(307,774 |
) |
(44,764 |
) |
|
|
|
|
|
|
|
|
Net income/(loss)
per share: |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Continuing operations |
(0.32 |
) |
(1.66 |
) |
(0.24 |
) |
|
0.04 |
|
(0.87 |
) |
(0.13 |
) |
Discontinued operations |
- |
|
- |
|
- |
|
|
(0.09 |
) |
- |
|
- |
|
Net loss
per share |
(0.32 |
) |
(1.66 |
) |
(0.24 |
) |
|
(0.05 |
) |
(0.87 |
) |
(0.13 |
) |
Diluted |
|
|
|
|
|
|
|
Continuing operations |
(0.32 |
) |
(1.66 |
) |
(0.24 |
) |
|
0.04 |
|
(0.87 |
) |
(0.13 |
) |
Discontinued operations |
- |
|
- |
|
- |
|
|
(0.09 |
) |
- |
|
- |
|
Net loss
per share |
(0.32 |
) |
(1.66 |
) |
(0.24 |
) |
|
(0.05 |
) |
(0.87 |
) |
(0.13 |
) |
|
|
|
|
|
|
|
|
Net
income/(loss) per ADS: |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Continuing operations |
(0.64 |
) |
(3.32 |
) |
(0.48 |
) |
|
0.08 |
|
(1.73 |
) |
(0.25 |
) |
Discontinued operations |
- |
|
- |
|
- |
|
|
(0.19 |
) |
- |
|
- |
|
Net loss
per ADS |
(0.64 |
) |
(3.32 |
) |
(0.48 |
) |
|
(0.11 |
) |
(1.73 |
) |
(0.25 |
) |
Diluted |
|
|
|
|
|
|
|
Continuing operations |
(0.64 |
) |
(3.32 |
) |
(0.48 |
) |
|
0.08 |
|
(1.73 |
) |
(0.25 |
) |
Discontinued operations |
- |
|
- |
|
- |
|
|
(0.18 |
) |
- |
|
- |
|
Net loss
per ADS |
(0.64 |
) |
(3.32 |
) |
(0.48 |
) |
|
(0.10 |
) |
(1.73 |
) |
(0.25 |
) |
JD.com, Inc. |
Unaudited Non-GAAP Net Income Per ADS from Continuing
Operations |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Non-GAAP net
income from continuing operations attributable to ordinary
shareholders |
449,298 |
749,902 |
109,073 |
|
4,968,380 |
3,459,772 |
503,204 |
|
|
|
|
|
|
|
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
Basic |
2,849,216 |
2,895,114 |
2,895,114 |
|
2,844,826 |
2,877,903 |
2,877,903 |
Diluted |
2,849,216 |
2,895,114 |
2,895,114 |
|
2,911,462 |
2,877,903 |
2,877,903 |
Diluted
(Non-GAAP) |
2,924,235 |
2,937,822 |
2,937,822 |
|
2,911,462 |
2,943,379 |
2,943,379 |
|
|
|
|
|
|
|
|
Non-GAAP net
income per ADS from continuing
operations(6): |
|
|
|
|
|
|
|
Basic |
0.32 |
0.52 |
0.08 |
|
3.49 |
2.40 |
0.35 |
Diluted |
0.31 |
0.51 |
0.07 |
|
3.41 |
2.35 |
0.34 |
|
|
|
|
|
|
|
|
(6) Non-GAAP
basic net income/(loss) per share is calculated by dividing
non-GAAP net income/(loss) attributable to ordinary shareholders by
the weighted average number of ordinary shares outstanding during
the periods. Non-GAAP diluted net income/(loss) per share is
calculated by dividing non-GAAP net income/(loss) attributable to
ordinary shareholders by the weighted average number of ordinary
shares and dilutive potential ordinary shares outstanding during
the periods, including the dilutive effect of share-based awards as
determined under the treasury stock method. Non-GAAP net
income/(loss) per ADS is equal to non-GAAP net income/(loss) per
share multiplied by two. |
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Cash
Flows and Free Cash Flow |
(In thousands) |
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
December
31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net cash provided by
continuing operating activities |
3,386,634 |
|
6,028,130 |
|
876,755 |
|
|
29,342,468 |
|
20,881,422 |
|
3,037,077 |
|
Net cash used in
discontinued operating activities |
- |
|
- |
|
- |
|
|
(2,485,741 |
) |
- |
|
- |
|
Net cash provided by
operating activities |
3,386,634 |
|
6,028,130 |
|
876,755 |
|
|
26,856,727 |
|
20,881,422 |
|
3,037,077 |
|
Net cash provided
by/(used in) continuing investing activities |
4,695,130 |
|
(2,188,115 |
) |
(318,248 |
) |
|
(21,944,120 |
) |
(26,078,992 |
) |
(3,793,032 |
) |
Net cash used in
discontinued investing activities |
- |
|
- |
|
- |
|
|
(17,871,171 |
) |
- |
|
- |
|
Net cash provided
by/(used in) investing activities |
4,695,130 |
|
(2,188,115 |
) |
(318,248 |
) |
|
(39,815,291 |
) |
(26,078,992 |
) |
(3,793,032 |
) |
Net cash provided
by/(used in) continuing financing activities |
(3,801,146 |
) |
(3,920,878 |
) |
(570,268 |
) |
|
5,180,365 |
|
11,219,928 |
|
1,631,871 |
|
Net cash provided by
discontinued financing activities |
- |
|
- |
|
- |
|
|
14,054,620 |
|
- |
|
- |
|
Net cash provided
by/(used in) financing activities |
(3,801,146 |
) |
(3,920,878 |
) |
(570,268 |
) |
|
19,234,985 |
|
11,219,928 |
|
1,631,871 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
(213,075 |
) |
(130,541 |
) |
(18,987 |
) |
|
(641,534 |
) |
1,681,163 |
|
244,515 |
|
Net increase/(decrease)
in cash, cash equivalents and restricted cash |
4,067,543 |
|
(211,404 |
) |
(30,748 |
) |
|
5,634,887 |
|
7,703,521 |
|
1,120,431 |
|
Cash, cash equivalents
and restricted cash at beginning of period |
25,730,994 |
|
37,713,462 |
|
5,485,196 |
|
|
24,163,650 |
|
29,798,537 |
|
4,334,017 |
|
Cash, cash equivalents
and restricted cash at end of period |
29,798,537 |
|
37,502,058 |
|
5,454,448 |
|
|
29,798,537 |
|
37,502,058 |
|
5,454,448 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by continuing operating
activities |
3,386,634 |
|
6,028,130 |
|
876,755 |
|
|
29,342,468 |
|
20,881,422 |
|
3,037,077 |
|
Less: Impact from JD Digits related credit
products included in the operating cash flow |
(2,873,809 |
) |
(5,793,961 |
) |
(842,697 |
) |
|
(289,214 |
) |
(7,369,421 |
) |
(1,071,838 |
) |
Less: Capital expenditures |
|
|
|
|
|
|
|
|
Capital expenditures related to
development projects available for sale |
(1,295,382 |
) |
(2,515,276 |
) |
(365,830 |
) |
|
(3,848,531 |
) |
(8,857,569 |
) |
(1,288,280 |
) |
Other capital expenditures |
(894,554 |
) |
(1,720,252 |
) |
(250,201 |
) |
|
(7,507,344 |
) |
(12,511,925 |
) |
(1,819,784 |
) |
Free cash flow |
(1,677,111 |
) |
(4,001,359 |
) |
(581,973 |
) |
|
17,697,379 |
|
(7,857,493 |
) |
(1,142,825 |
) |
JD.com, Inc. |
Supplemental Financial Information and Business Metrics |
|
|
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow (in RMB billions) |
|
(1.7 |
) |
(8.8 |
) |
13.1 |
(8.2 |
) |
(4.0 |
) |
Inventory
turnover days(7) – trailing twelve months (“TTM”) |
|
38.1 |
|
37.2 |
|
37.9 |
37.8 |
|
37.3 |
|
Accounts
payable turnover days(8) – TTM |
|
59.1 |
|
58.2 |
|
60.9 |
59.7 |
|
58.1 |
|
Accounts
receivable turnover days(9) – TTM |
|
1.4 |
|
1.6 |
|
1.9 |
2.3 |
|
2.7 |
|
GMV(10)
(in RMB billions) |
|
403.4 |
|
330.2 |
|
437.4 |
394.8 |
|
514.4 |
|
Annual
active customer accounts(11) (in millions) |
|
292.5 |
|
301.8 |
|
313.8 |
305.2 |
|
305.3 |
|
|
|
|
|
|
|
|
(7) Inventory turnover days are the quotient of
average inventory over five quarter ends to total cost of revenues
for the last twelve months and then multiplied by 360 days. (8)
Accounts payable turnover days are the quotient of average accounts
payable over five quarter ends to total cost of revenues for the
last twelve months and then multiplied by 360 days. Presented are
the accounts payable turnover days for the online direct sales
business. (9) Accounts receivable turnover days are the quotient of
average accounts receivable over five quarter ends to total net
revenues of the last twelve months and then multiplied by 360 days.
Presented are the accounts receivable turnover days excluding the
impact from JD Baitiao. (10) GMV is defined as the total value of
all orders for products and services placed in the company’s online
direct sales business and on the company’s online marketplaces,
regardless of whether the goods are sold or delivered or whether
the goods are returned. GMV includes orders placed on our websites
and mobile apps as well as orders placed on third-party websites
and mobile apps that are fulfilled by us or by our third-party
merchants. GMV includes shipping charges paid by buyers to sellers
and for prudent consideration excludes certain transactions over
certain amounts that are comparable to the disclosed parameters in
GMV definition by our major industry peer. The company believes
that GMV provides a measure of the overall volume of transactions
that flow through our platform in a given period and is only useful
for the purposes of industry and peer comparisons. (11) Annual
active customer accounts are customer accounts that made at least
one purchase during the twelve months ended on the respective
dates, whether through online direct sales or online
marketplaces. |
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
(In thousands, except percentage data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Loss from operations
from continuing operations |
(1,596,201 |
) |
(938,904 |
) |
(136,557 |
) |
|
(835,476 |
) |
(2,619,131 |
) |
(380,937 |
) |
Reversal of: Revenue
from business cooperation arrangements with equity investees |
(210,970 |
) |
(237,651 |
) |
(34,565 |
) |
|
(836,539 |
) |
(956,248 |
) |
(139,081 |
) |
Add: Share-based
compensation |
762,402 |
|
1,037,047 |
|
150,833 |
|
|
2,780,062 |
|
3,659,989 |
|
532,323 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
448,921 |
|
452,487 |
|
65,812 |
|
|
1,777,549 |
|
1,805,638 |
|
262,619 |
|
Add: Impairment of
goodwill, intangible assets, and investments |
- |
|
- |
|
- |
|
|
- |
|
22,317 |
|
3,246 |
|
Non-GAAP
income/(loss) from operations from continuing
operations |
(595,848 |
) |
312,979 |
|
45,523 |
|
|
2,885,596 |
|
1,912,565 |
|
278,170 |
|
Add: Depreciation and
amortization excluding amortization of intangible assets resulting
from assets and business acquisitions |
733,880 |
|
1,162,228 |
|
169,039 |
|
|
2,415,167 |
|
3,754,396 |
|
546,054 |
|
Non-GAAP EBITDA
from continuing operations |
138,032 |
|
1,475,207 |
|
214,562 |
|
|
5,300,763 |
|
5,666,961 |
|
824,224 |
|
|
|
|
|
|
|
|
|
Total net revenues |
110,165,334 |
|
134,832,549 |
|
19,610,582 |
|
|
362,331,754 |
|
462,019,759 |
|
67,197,987 |
|
|
|
|
|
|
|
|
|
Non-GAAP
operating margin from continuing operations |
-0.5 |
% |
0.2 |
% |
0.2 |
% |
|
0.8 |
% |
0.4 |
% |
0.4 |
% |
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
margin from continuing operations |
0.1 |
% |
1.1 |
% |
1.1 |
% |
|
1.5 |
% |
1.2 |
% |
1.2 |
% |
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
(In thousands, except percentage data) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
December 31,2017 |
December 31,2018 |
December 31,2018 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net income/(loss) from
continuing operations attributable to ordinary shareholders |
(909,233 |
) |
(4,804,726 |
) |
(698,816 |
) |
|
116,819 |
|
(2,491,633 |
) |
(362,391 |
) |
Add: Share-based
compensation |
762,402 |
|
1,037,047 |
|
150,833 |
|
|
2,780,062 |
|
3,659,989 |
|
532,323 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
448,921 |
|
452,487 |
|
65,812 |
|
|
1,777,549 |
|
1,805,638 |
|
262,619 |
|
Add/(reversal of): Reconciling items on the share
of equity method investments(12) |
377,858 |
|
(41,246 |
) |
(5,999 |
) |
|
1,071,115 |
|
581,785 |
|
84,617 |
|
Add: Impairment of goodwill, intangible assets,
and investments |
- |
|
194,111 |
|
28,232 |
|
|
139,823 |
|
615,455 |
|
89,514 |
|
Add: Loss from fair value change of long-term
investments |
- |
|
4,064,650 |
|
591,179 |
|
|
- |
|
1,512,979 |
|
220,054 |
|
Add/(reversal of): Loss/(gain) on
disposals/revaluation of investments |
- |
|
107,557 |
|
15,644 |
|
|
- |
|
(1,320,266 |
) |
(192,025 |
) |
Reversal of: Revenue from business cooperation
arrangements with equity investees |
(210,970 |
) |
(237,651 |
) |
(34,565 |
) |
|
(836,539 |
) |
(956,248 |
) |
(139,081 |
) |
Reversal of: Income from non-compete
agreement |
(19,680 |
) |
(20,594 |
) |
(2,995 |
) |
|
(80,449 |
) |
(78,772 |
) |
(11,457 |
) |
Add/(reversal of): Tax effects on non-GAAP
adjustments |
- |
|
(1,733 |
) |
(252 |
) |
|
- |
|
130,845 |
|
19,031 |
|
Non-GAAP net income from continuing
operations attributable to ordinary shareholders |
449,298 |
|
749,902 |
|
109,073 |
|
|
4,968,380 |
|
3,459,772 |
|
503,204 |
|
|
|
|
|
|
|
|
|
Total net revenues |
110,165,334 |
|
134,832,549 |
|
19,610,582 |
|
|
362,331,754 |
|
462,019,759 |
|
67,197,987 |
|
|
|
|
|
|
|
|
|
Non-GAAP net
margin from continuing operations |
0.4 |
% |
0.6 |
% |
0.6 |
% |
|
1.4 |
% |
0.7 |
% |
0.7 |
% |
|
|
|
|
|
|
|
|
(12) 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. Earning from equity
method investments in publicly listed companies and certain
privately held companies is recorded one quarter in arrears. |
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