JD.com, Inc. (NASDAQ:JD), the largest Chinese e-commerce company by
revenue, today announced its unaudited financial results for the
quarter ended September 30, 2016.
Third Quarter 2016
Highlights
- Net revenues for the third quarter of 2016
were RMB60.7 billion (US$[1]9.1 billion), an increase of 38% from
the third quarter of 2015. Revenues from services and
others, mainly from the company’s e-commerce platform
business, for the third quarter of 2016 were RMB5.6 billion (US$0.8
billion), an increase of 60% from the third quarter of 2015.
- Gross profit for the third quarter of 2016 was
RMB9.6 billion (US$1.4 billion). Non-GAAP gross
profit[2] for the third quarter of 2016 was RMB9.4 billion
(US$1.4 billion), an increase of 59% from RMB5.9 billion in the
third quarter of 2015.
- Loss from operations for the third quarter of
2016 was RMB416.2 million (US$62.4 million), compared to RMB667.2
million for the same period last year. Non-GAAP income from
operations[3] for the third quarter of 2016 was RMB401.0
million (US$60.1 million), as compared to non-GAAP loss from
operations of RMB179.6 million in the third quarter of 2015.
Non-GAAP operating margin of JD Mall[4] for the
third quarter of 2016 was 1.1%, compared to 0.7% for the third
quarter of 2015.
- EPS and Non-GAAP EPS. Net loss per ADS for the
third quarter of 2016 was RMB0.64 (US$0.10), compared to RMB0.39
for the third quarter of 2015. Non-GAAP net income per ADS for the
third quarter of 2016 was RMB0.20 (US$0.03), as compared to RMB0.02
in the third quarter of 2015.
- Operating cash flow for the third quarter of
2016 was RMB6.6 billion (US$1.0 billion) inflow, compared to RMB1.4
billion outflow for the same period last year. Free cash
flow[5], which excludes JD Finance net
originations[6]/(repayments) included in the operating cash flow,
for the third quarter of 2016 was RMB5.4 billion (US$0.8 billion)
inflow, compared to RMB0.3 billion outflow for the same period last
year. Free cash flow for the trailing twelve months ended September
30, 2016 totaled RMB16.7 billion (US$2.5 billion), compared to
RMB5.6 billion for the trailing twelve months ended September 30,
2015.
- GMV for the third quarter of 2016 increased by
43% to RMB158.8 billion (US$23.8 billion) from the core GMV
(excluding Paipai.com) of RMB111.0 billion in the third quarter of
2015. GMV excluding virtual items[7] for the third quarter of 2016
totaled RMB155.6 billion (US$23.3 billion), up 47% from the third
quarter of 2015.
- Annual active customer accounts increased by
57% to 198.7 million in the twelve months ended September 30, 2016
from 126.9 million in the twelve months ended September 30, 2015,
excluding unique customers from Paipai.com.
- Fulfilled orders excluding virtual items in
the third quarter of 2016 were 401.2 million, an increase of 55%
from 258.1 million orders fulfilled for the core business excluding
virtual items in the same period in 2015. Fulfilled orders placed
through mobile accounted for approximately 79.7% of total orders
fulfilled in the third quarter of 2016, an increase of more than
110% compared to the same period in 2015.
“We are delighted to announce another strong
quarter of results, with solid growth in revenue and new users, as
Chinese consumers increasingly prefer to shop online for
high-quality products,” said Richard Liu, Chief Executive
Officer of JD.com. “Long-term investment in our business model
is clearly winning over the market and changing the dynamics of
e-commerce in China. Looking ahead, we will continue to pursue
growth while stepping up our investment in cutting-edge
technologies to further enhance user experience.”
“We are very pleased to see continued
market-leading growth while improving our JD Mall operating margin
across all categories, and our free cash flow for the trailing
twelve months reached another record high,” said Sidney
Huang, JD.com's Chief Financial Officer. “We expect
further margin expansion in the years ahead as we focus on
technology-driven growth initiatives and strategic investments that
lay the groundwork for our long-term industry leadership.”
Recent Business Highlights
- In October, JD.com and Walmart announced the launch of a Sam’s
Club Flagship Store exclusively on JD.com, the Walmart Global
Flagship store on JD Worldwide and two-hour delivery service from
Walmart Stores in select cities through the JD Daojia app.
- In September, JD.com formed a strategic partnership with
Toutiao, a leading Chinese online news and content distribution
platform providing personalized content. As part of the
partnership, the two companies will jointly explore opportunities
to develop targeted and personalized marketing campaigns leveraging
Toutiao’s highly-regarded data mining capabilities and JD's
sophisticated digital marketing technologies.
- In the third quarter, JD.com continued to help partners raise
their brand awareness through its "Super Brand Day" joint marketing
campaigns. The customized campaigns bring brands closer to
consumers through highly effective, targeted promotions based on
data-driven customer insights. Participating brands during the
period included Dell, Philips, Huawei Honor and Xiaomi, as well as
general merchandise brands, including Wyeth and LUOLAI.
- In September, JD.com and Bacardi, the world’s largest privately
held spirit producer, jointly announced a strategic partnership
under which JD.com will become Bacardi’s strategic e-commerce
partner for its full line of products in China. As the most trusted
e-commerce platform for imported liquor brands in China, JD.com has
increasingly become the first choice for Chinese consumers when
purchasing spirits online.
- In September, JD.com held a fashion show during London Fashion
Week designed to raise the international profile of emerging
fashion brands in China. The London show follows upon the success
of similar events held in Milan and New York and demonstrates
JD.com’s commitment to bridging the worlds of fashion and
e-commerce through its JD Fashion platform.
- In the first nine months of 2016, JD Finance successfully sold
over RMB8.0 billion of loans without recourse through six tranches
of asset-backed securitization (ABS). Leveraging the expertise
gained from its successful issuance of ABS products, in September
JD Finance launched a platform providing value-added financial
services to businesses with securitization demands. The platform
employs several proprietary systems featuring highly effective risk
analytics and asset management tools to help businesses reduce
overall financing costs.
- In November, JD.com and ZestFinance, a U.S.-based machine
learning technology company, expanded their partnership with the
launch of a joint venture, ZRobot. Leveraging JD’s big data and
proprietary data analysis methodology and ZestFinance’s
credit-evaluation technology, ZRobot launched two products focusing
on credit analysis and fraud detection for financial and
non-financial institutions.
- During the third quarter, JD.com expanded its leadership
position in fulfillment capabilities among China’s e-commerce
companies. As of September 30, 2016, JD.com operated 254 warehouses
with an aggregate gross floor area of approximately 5.5 million
square meters. In the third quarter, over 85% of direct sales
orders nationwide were delivered on the same day or the day after
orders were placed.
- JD.com had approximately 110,000 merchants on its online
marketplace and a total of 115,811 full-time employees as of
September 30, 2016.
Third Quarter 2016 Financial Results
GMV and Net Revenues. GMV from
the online direct sales business was RMB86.8 billion in the third
quarter of 2016, up 42% from the third quarter of 2015. GMV from
the online marketplace business, excluding virtual items, totaled
RMB68.8 billion in the third quarter of 2016, an increase of 56%
from the third quarter of 2015. GMV from electronics and home
appliance products was RMB77.3 billion in the third quarter of
2016, an increase of 36% from the core GMV for the third quarter of
2015, while GMV from general merchandise and others excluding
virtual items was RMB78.3 billion in the third quarter of 2016, an
increase of 61% from the third quarter of 2015, and contributed
over 50% of total GMV excluding virtual items, up from 46% in the
third quarter of 2015.
For the third quarter of 2016, JD.com reported
net revenues of RMB60.7 billion (US$9.1 billion), representing a
38% increase from the same period in 2015. Net revenues from online
direct sales increased by 36%, while net revenues from services and
others increased by 60% in the third quarter of 2016, as compared
to the third quarter of 2015.
Cost of
Revenues. Cost of
revenues increased by 34% to RMB51.1 billion (US$7.7 billion) in
the third quarter of 2016 from RMB38.0 billion in the third quarter
of 2015. This increase was primarily due to the growth of the
company’s online direct sales business, the increased traffic
acquisition costs directly related to the online marketing services
provided to merchants and suppliers, as well as interest expenses
related to JD Finance.
Fulfillment Expenses.
Fulfillment expenses, which primarily include procurement,
warehousing, delivery and customer service expenses, increased by
48% to RMB5.1 billion (US$0.8 billion) in the third quarter of 2016
from RMB3.5 billion in the third quarter of 2015. Fulfillment
expenses as a percentage of net revenues increased to 8.4% compared
to 7.8% in the prior year period primarily due to the strategic
expansion into the consumable product category, which has lower
average order size.
Marketing
Expenses. Marketing expenses
increased by 32% to RMB2.2 billion (US$0.3 billion) in the third
quarter of 2016 from RMB1.7 billion in the third quarter of
2015.
Technology and Content
Expenses. Technology and content
expenses increased by 65% to RMB1.5 billion (US$0.2 billion) in the
third quarter of 2016 from RMB0.9 billion in the third quarter of
2015.
General and Administrative
Expenses. General and
administrative expenses increased by 70% to RMB1.3 billion (US$0.2
billion) in the third quarter of 2016 from RMB0.8 billion in the
third quarter of 2015, primarily due to the increased spending in
various new business initiatives.
Loss from operations and Non-GAAP income
from operations. Loss from operations for the third
quarter of 2016 was RMB416.2 million (US$62.4 million), compared to
RMB667.2 million for the same period last year. Non-GAAP income
from operations for the third quarter of 2016 was RMB401.0 million
(US$60.1 million) with a margin of 0.7%, as compared to non-GAAP
loss from operations of RMB179.6 million with a margin of negative
0.4% in the third quarter of 2015.
Non-GAAP operating margin of JD
Mall for the third quarter of 2016 was 1.1%, compared to
0.7% for the third quarter of 2015. Non-GAAP loss from operations
of New Businesses, including JD Finance, O2O, technology
initiatives and overseas business, for the third quarter of 2016
was approximately RMB0.3 billion. The company deconsolidated the
O2O business following its merger with Dada Nexus on April 26,
2016.
Non-GAAP EBITDA[8] for the
third quarter of 2016 totaled RMB932.3 million (US$139.8 million)
with a Non-GAAP EBITDA margin of 1.5%, compared to 0.2% for the
third quarter of 2015.
Share of results of
equity investees. Share of results of equity
investees for the third quarter of 2016 was a loss of RMB469.6
million (US$70.4 million), compared to a loss of RMB68.5 million in
the third quarter of 2015. The loss was primarily due to losses
picked up from the company’s equity method investments in Bitauto,
Tuniu and Dada.
Net Loss and Non-GAAP Net
Income[9]. Net loss for the third
quarter of 2016 was RMB807.9 million (US$121.2 million), compared
to RMB534.9 million for the same period last year. Non-GAAP net
income for the third quarter of 2016 was RMB269.0 million (US$40.3
million), as compared to RMB23.0 million in the third quarter of
2015.
EPS and Non-GAAP EPS. Net
loss per ADS for the third quarter of 2016 was RMB0.64 (US$0.10),
compared to RMB0.39 for the third quarter of 2015. Non-GAAP net
income per ADS for the third quarter of 2016 was RMB0.20 (US$0.03),
as compared to RMB0.02 in the third quarter of 2015.
Cash Flow and Working
Capital
As of September 30, 2016, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB35.4 billion (US$5.3 billion). For the third quarter of
2016, free cash flow of the company was as follows:
|
|
For the three months ended |
|
|
September 30, 2015 |
|
September 30, 2016 |
September 30, 2016 |
|
|
RMB |
|
RMB |
US$ |
|
|
(In thousands) |
Net cash provided by/(used in)
operating activities |
|
|
(1,402,110 |
) |
|
|
6,590,470 |
|
|
988,299 |
|
Add: JD Finance net originations/(repayments)
included in operating cash flow |
|
|
2,491,995 |
|
|
|
(176,988 |
) |
|
(26,541 |
) |
Less: Capital expenditures |
|
|
(1,341,474 |
) |
|
|
(994,742 |
) |
|
(149,170 |
) |
Free cash flow in/(out) |
|
|
(251,589 |
) |
|
|
5,418,740 |
|
|
812,588 |
|
|
|
|
|
|
|
For the nine months ended September 30, 2016, JD
Finance incurred a net cash outflow of RMB25.0 billion (US$3.8
billion) in loan originations and investment activities and
received a net cash inflow of RMB30.2 billion (US$4.5 billion)
through financing activities. As of September 30, 2016, the ending
balances of the consumer financing, business financing and supply
chain financing were RMB19.7 billion (US$3.0 billion), RMB0.5
billion (US$0.1 billion) and RMB10.1 billion (US$1.5 billion),
respectively.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Recent Developments
JD Finance Reorganization
JD.com’s board of directors (the “Board”)
authorized the company today to explore a possible reorganization
of JD Finance, which runs JD.com's internet finance business.
The key objectives of the reorganization are to transform JD
Finance into a company with only Chinese investors as shareholders
in order to facilitate its development in certain licensed
financial service businesses in China, and to take advantage of the
liquidity provided by the Chinese capital market.
It is currently contemplated that JD.com will
dispose of all its equity stake in JD Finance so that JD.com will
hold neither legal ownership nor effective control of JD Finance.
JD.com will enter into a series of sales, license and business
cooperation agreements, through which JD.com will be able to
receive cash from investors at fair market value and 40% of the
pre-tax profit of JD Finance when JD Finance has a positive pre-tax
income on a cumulative basis. In addition, JD.com will be entitled
to convert its rights with respect to JD Finance into 40% of
JD Finance’s equity interest, subject to applicable regulatory
approvals. Assuming the successful completion of the
reorganization, it is expected that JD Finance will be
deconsolidated from JD,com’s consolidated financial statements.
To ensure long-term close strategic partnership
between JD.com and JD Finance, Mr. Richard Liu, JD.com’s chairman
of the Board and Chief Executive Officer, intends to participate in
the transaction by acquiring a minority equity stake of JD Finance
at the same fair market price as third-party investors, who will be
identified and determined in the process and are expected to
acquire a higher percentage of the equity stake in JD Finance. It
is currently contemplated that, at the closing of the transaction,
Mr. Liu’s economic interest in JD Finance would be similar to his
economic interest in JD.com to ensure alignment of interest, and
Mr. Liu also intends to obtain the majority of voting rights in JD
Finance through his equity stake and voting proxy and/or other
arrangement with other investors and ESOP participants.
The independent audit committee of the Board
intends to work with third-party professional advisors to evaluate
the detailed plans in connection with the proposed reorganization
of JD Finance. Any such plans will be subject to the audit
committee's review and approval and ultimately the Board’s further
consideration and approval. There can be no assurance that any
transaction will occur as a result of this exploration process or,
if undertaken, the terms or timing thereof.
Share Repurchase Program
In September 2015, 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 24 months. As of September 30, 2016, the company had
repurchased approximately 26.0 million ADSs for approximately
US$659 million. As previously disclosed, in order to lower the
average cost of acquiring shares in the ongoing share repurchase
program, the company entered into structured repurchase agreements
involving the use of capped call options for the purchase of
shares. The company paid a fixed sum of cash upon execution of the
agreements. Upon expiration of the agreements, if the closing
market price of the company’s common stock is at or above the
pre-determined price (the “Strike Price”), the company will have
its initial investment returned with a premium in either cash or
shares at the company’s election. If the closing market price is
below the Strike Price, the company will receive the number of
shares specified in the agreements. As of September 30, 2016, the
company had US$100 million prepaid amount outstanding for the
capped call options, which will be settled in the fourth quarter of
2016.
Fourth Quarter 2016
Guidance
Net revenues for the fourth quarter of 2016 are
expected to be between RMB75.0 billion and RMB77.5 billion,
representing a growth rate between 37% and 42% compared with the
fourth quarter of 2015. This forecast reflects JD.com’s current and
preliminary expectation, which is subject to change.
Conference Call
JD.com’s management will hold a conference call
at 7:30 am Eastern Time on November 15, 2016 (8:30 pm Beijing/ Hong
Kong Time on November 15, 2016) to discuss the third quarter 2016
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: |
8075594 |
A replay of the conference call may be accessed
by phone at the following numbers until November 23, 2016:
US Toll
Free: |
+1-855-452-5696 or +1-646-254-3697 |
International |
+61-2-8199-0299 |
Passcode: |
8075594 |
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, Inc.
JD.com, Inc. is China’s leading online direct
sales company and the country’s largest Internet company by
revenue. The company strives to offer consumers the best online
shopping experience. Through its content-rich and user-friendly
website jd.com and mobile applications, JD.com offers a wide
selection of authentic products at competitive prices and delivers
products in a speedy and reliable manner. The company believes it
has the largest fulfillment infrastructure of any e-commerce
company in China. As of September 30, 2016, JD.com operated 7
fulfillment centers and 254 warehouses, and in total of 6,780
delivery stations and pickup stations in 2,646 counties and
districts across China, staffed by its own employees. JD.com is 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 gross
profit, non-GAAP income/(loss) from operations, non-GAAP operating
margin, non-GAAP net income/(loss), 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 gross profit as the difference of net revenues and
cost of revenue excluding revenue from business cooperation
arrangements with equity investees. 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) as net income/(loss) excluding
share-based compensation, amortization of intangible assets
resulting from assets and business acquisitions, revenue from
business cooperation arrangements with equity investees, gain on
disposals of investments and business, income from non-compete
agreement, reconciling items on the share of equity method
investments, impairment of goodwill, intangible assets and
investments. 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 on disposals of
investments and business, income from non-compete agreement,
reconciling items on the share of equity method investments, net
income attributable to mezzanine classified non-controlling
interest shareholders, impairment of goodwill, intangible assets
and investments. The company defines free cash flow as operating
cash flow adding back JD Finance net originations/(repayments)
included in operating cash flow and less capital expenditures,
which include purchase of property, equipment and software, cash
paid for construction in progress, purchase of office building,
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 gross profit,
non-GAAP income/(loss) from operations, non-GAAP net income/(loss),
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 Finance
net originations/(repayments) included in 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.
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) |
|
|
|
|
|
|
|
As of |
|
|
December 31,2015 |
September 30,2016 |
September 30,2016 |
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
|
Current
assets |
|
|
|
|
Cash and cash equivalents |
|
17,863,868 |
24,834,595 |
3,724,165 |
Restricted cash |
|
2,114,913 |
3,829,218 |
574,225 |
Short-term investments |
|
2,780,482 |
6,737,059 |
1,010,281 |
Investment securities |
|
- |
108,000 |
16,196 |
Accounts receivable, net(1)(2)
(including JD Baitiao of RMB6.7 billion and RMB12.2 billion as of
December 31, 2015 and September 30, 2016, respectively) |
|
8,193,665 |
14,763,482 |
2,213,913 |
Advance to suppliers(1) |
|
927,177 |
1,718,411 |
257,691 |
Inventories, net |
|
20,539,543 |
22,602,658 |
3,389,467 |
Loan receivables(1) (2) |
|
3,698,488 |
9,791,386 |
1,468,304 |
Other investments(3) |
|
- |
5,485,034 |
822,529 |
Prepayments and other current
assets |
|
1,486,441 |
1,948,847 |
292,250 |
Amount due from related
parties |
|
863,516 |
1,403,029 |
210,396 |
Total current
assets |
|
58,468,093 |
93,221,719 |
13,979,417 |
Non-current
assets |
|
|
|
|
Property, equipment and software,
net |
|
6,233,106 |
7,075,552 |
1,061,041 |
Construction in progress |
|
1,266,992 |
1,732,341 |
259,780 |
Intangible assets, net |
|
5,263,983 |
8,912,322 |
1,336,481 |
Land use rights, net |
|
1,928,192 |
2,194,913 |
329,146 |
Goodwill |
|
29,050 |
6,541,668 |
980,980 |
Investment in equity investees |
|
8,864,249 |
15,925,428 |
2,388,157 |
Investment securities |
|
1,005,831 |
1,575,255 |
236,223 |
Other investments(3) |
|
- |
4,907,817 |
735,970 |
Other non-current assets(1) |
|
2,106,673 |
2,122,962 |
318,357 |
Total non-current
assets |
|
26,698,076 |
50,988,258 |
7,646,135 |
Total
assets |
|
85,166,169 |
144,209,977 |
21,625,552 |
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance
Sheets |
(In thousands) |
|
|
|
|
|
|
|
As of |
|
|
December 31,
2015 |
September 30,
2016 |
September 30,
2016 |
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
|
Current
liabilities |
|
|
|
|
Short-term borrowing |
|
|
3,040,209 |
|
|
5,916,778 |
|
|
887,273 |
|
Nonrecourse securitization
debt |
|
|
579,843 |
|
|
7,793,675 |
|
|
1,168,730 |
|
Accounts payable(1) (net of
supplier financing of RMB4.7 billion and RMB6.2 billion as of
December 31, 2015 and September 30, 2016, respectively) |
|
|
29,819,341 |
|
|
41,475,284 |
|
|
6,219,582 |
|
Advances from customers |
|
|
7,173,885 |
|
|
9,981,379 |
|
|
1,496,795 |
|
Deferred revenues |
|
|
1,028,350 |
|
|
1,279,136 |
|
|
191,818 |
|
Taxes payable |
|
|
103,211 |
|
|
355,041 |
|
|
53,242 |
|
Amount due to related parties |
|
|
104,726 |
|
|
132,447 |
|
|
19,862 |
|
Accrued expenses and other current
liabilities(3) |
|
|
7,178,065 |
|
|
20,848,167 |
|
|
3,126,365 |
|
Deferred tax liabilities |
|
|
1,228 |
|
|
914,378 |
|
|
137,119 |
|
Total current
liabilities |
|
|
49,028,858 |
|
|
88,696,285 |
|
|
13,300,786 |
|
Non-current
liabilities |
|
|
|
|
Deferred revenues |
|
|
2,705,164 |
|
|
2,518,551 |
|
|
377,679 |
|
Nonrecourse securitization
debt |
|
|
2,753,699 |
|
|
3,662,925 |
|
|
549,288 |
|
Unsecured senior notes |
|
|
- |
|
|
6,572,524 |
|
|
985,608 |
|
Other non-current liabilities |
|
|
- |
|
|
444,089 |
|
|
66,595 |
|
Total non-current
liabilities |
|
|
5,458,863 |
|
|
13,198,089 |
|
|
1,979,170 |
|
Total
liabilities |
|
|
54,487,721 |
|
|
101,894,374 |
|
|
15,279,956 |
|
|
|
|
|
|
Redeemable
non-controlling interests |
|
|
- |
|
|
6,920,472 |
|
|
1,037,785 |
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
Ordinary shares (US$0.00002 par
value, 100,000,000 shares authorized, 2,938,709 shares issued and
2,841,009 shares outstanding as of September 30, 2016) |
|
|
358 |
|
|
377 |
|
|
57 |
|
Additional paid-in capital |
|
|
48,393,126 |
|
|
58,663,556 |
|
|
8,797,114 |
|
Statutory reserves |
|
|
55,560 |
|
|
55,560 |
|
|
8,332 |
|
Treasury stock |
|
|
(3 |
) |
|
(4,367,347 |
) |
|
(654,922 |
) |
Accumulated deficit |
|
|
(18,690,910 |
) |
|
(20,466,393 |
) |
|
(3,069,115 |
) |
Accumulated other comprehensive
income |
|
|
782,484 |
|
|
1,378,390 |
|
|
206,702 |
|
Total JD.com Inc. shareholders’
equity |
|
|
30,540,615 |
|
|
35,264,143 |
|
|
5,288,168 |
|
Non-controlling interests |
|
|
137,833 |
|
|
130,988 |
|
|
19,643 |
|
Total shareholders’
equity |
|
|
30,678,448 |
|
|
35,395,131 |
|
|
5,307,811 |
|
Total liabilities, redeemable
non-controlling |
|
|
85,166,169 |
|
|
144,209,977 |
|
|
21,625,552 |
|
interests and shareholders’
equity |
|
(1) As of September 30, 2016 and December 31,
2015, the balances of consumer financing, supply chain financing
and business financing that affected the balances of accounts
receivable, advance to suppliers, loan receivables, other
non-current assets and accounts payable were as follows:
The balances of consumer financing and business
financing of RMB11.9 billion (US$1.8 billion), RMB0.3 billion
(US$0.1 billion) as of September 30, 2016 and RMB6.4 billion,
RMB0.3 billion as of December 31, 2015, respectively were included
in the accounts receivable.
The balances of supply chain financing of RMB1.1
billion (US$0.2 billion) as of September 30, 2016, and RMB0.2
billion as of December 31, 2015, respectively were included in
advance to suppliers.
The balances of consumer financing and supply
chain financing provided in the marketplace business of RMB7.0
billion (US$1.0 billion), RMB2.8 billion (US$0.4 billion) as of
September 30, 2016 and RMB2.6 billion, RMB1.1 billion as of
December 31, 2015, respectively were included in loan
receivables.
The balances of consumer financing of RMB0.8
billion (US$0.1 billion) as of September 30, 2016 and RMB1.0
billion as of December 31, 2015, respectively were included in
other non-current assets.
The balances of supply chain financing of RMB6.2
billion (US$0.9 billion) as of September 30, 2016 and RMB4.7
billion as of December 31, 2015, respectively were net off in the
accounts payable.
(2) As JD Finance business has changed from
supporting the overall JD platform to an independently operated and
self-funded business, accounts receivables from consumers in
marketplace resulted from JD Baitiao provided by JD finance are
mainly for investment purpose and are reclassified to loan
receivables. Accounts receivable balance of RMB1.3 billion as of
December 31, 2015 has been reclassified to conform to the current
period financial statement presentation.
(3) Other investments represent the investments
purchased by JD Finance to support its offering of financial
products to individual investors. The balances of accrued expenses
and other current liabilities include payable to the individual
investors who purchased financial products from the Company of nil
and RMB10.3 billion (US$1.6 billion) as of December 31, 2015 and
September 30, 2016, respectively.
JD.com, Inc. |
|
Unaudited Interim Condensed Consolidated Statements of
Operations and Non-GAAP Net Income Per ADS |
|
(In thousands, except per share data) |
|
|
|
For the three months
ended |
|
|
|
September
30,2015 |
September
30,2016 |
September
30,2016 |
|
|
RMB |
RMB |
US$ |
|
Net
revenues |
|
|
|
|
|
Online direct sales |
|
|
40,641,371 |
|
|
55,172,944 |
|
|
8,273,666 |
|
|
Services and others |
|
|
3,468,779 |
|
|
5,552,837 |
|
|
832,697 |
|
|
Total net
revenues |
|
|
44,110,150 |
|
|
60,725,781 |
|
|
9,106,363 |
|
|
|
|
|
|
|
|
Operating
expenses(4)(5) |
|
|
|
|
|
Cost of revenues |
|
|
(38,015,664 |
) |
|
(51,077,961 |
) |
|
(7,659,588 |
) |
|
Fulfillment |
|
|
(3,459,117 |
) |
|
(5,122,940 |
) |
|
(768,230 |
) |
|
Marketing |
|
|
(1,662,719 |
) |
|
(2,192,641 |
) |
|
(328,806 |
) |
|
Technology and content |
|
|
(884,742 |
) |
|
(1,462,600 |
) |
|
(219,330 |
) |
|
General and administrative |
|
|
(755,146 |
) |
|
(1,285,817 |
) |
|
(192,820 |
) |
|
Total operating
expenses |
|
|
(44,777,388 |
) |
|
(61,141,959 |
) |
|
(9,168,774 |
) |
|
Loss from
operations |
|
|
(667,238 |
) |
|
(416,178 |
) |
|
(62,411 |
) |
|
Other
income/(expenses) |
|
|
|
|
|
Share of results of equity
investees |
|
|
(68,526 |
) |
|
(469,603 |
) |
|
(70,421 |
) |
|
Interest income |
|
|
70,055 |
|
|
139,417 |
|
|
20,907 |
|
|
Interest expense |
|
|
(17,480 |
) |
|
(71,731 |
) |
|
(10,757 |
) |
|
Others, net |
|
|
148,290 |
|
|
12,812 |
|
|
1,921 |
|
|
Loss before tax |
|
|
(534,899 |
) |
|
(805,283 |
) |
|
(120,761 |
) |
|
Income tax benefits/(expenses) |
|
|
17 |
|
|
(2,658 |
) |
|
(399 |
) |
|
Net
loss |
|
|
(534,882 |
) |
|
(807,941 |
) |
|
(121,160 |
) |
|
Net loss attributable to
non-controlling interests shareholders |
|
|
(4,080 |
) |
|
(20,161 |
) |
|
(3,023 |
) |
|
Net income attributable to
mezzanine classified non-controlling interests shareholders |
|
|
- |
|
|
133,810 |
|
|
20,066 |
|
|
Net
loss attributable
to ordinary shareholders |
|
|
(530,802 |
) |
|
(921,590 |
) |
|
(138,203 |
) |
|
|
|
|
|
|
|
Non-GAAP
net income |
|
|
22,956 |
|
|
268,996 |
|
|
40,336 |
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to
ordinary shareholders |
|
|
27,036 |
|
|
289,157 |
|
|
43,359 |
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operationsand Non-GAAP Net Income Per ADS |
(In thousands, except per share data) |
|
|
|
|
|
|
For the three months ended |
|
|
|
September 30,2015 |
September
30,2016 |
September
30,2016 |
|
|
RMB |
RMB |
US$ |
|
Net loss per
share: |
|
|
|
|
|
Basic |
|
|
(0.19 |
) |
|
(0.32 |
) |
|
(0.05 |
) |
|
Diluted |
|
|
(0.19 |
) |
|
(0.32 |
) |
|
(0.05 |
) |
|
Net loss per
ADS: |
|
|
|
|
|
Basic |
|
|
(0.39 |
) |
|
(0.64 |
) |
|
(0.10 |
) |
|
Diluted |
|
|
(0.39 |
) |
|
(0.64 |
) |
|
(0.10 |
) |
|
Non-GAAP
net income per
ADS(6): |
|
|
|
|
|
Basic |
|
|
0.02 |
|
|
0.20 |
|
|
0.03 |
|
|
Diluted |
|
|
0.02 |
|
|
0.20 |
|
|
0.03 |
|
|
Weighted average number of
shares: |
|
|
Basic |
|
|
2,735,737 |
|
|
2,879,201 |
|
|
2,879,201 |
|
|
Diluted |
|
|
2,735,737 |
|
|
2,879,201 |
|
|
2,879,201 |
|
|
Diluted (non-GAAP) |
|
|
2,774,696 |
|
|
2,914,658 |
|
|
2,914,658 |
|
|
|
|
|
|
|
|
(4)
Includes share-based compensation expenses as follows: |
|
Fulfillment |
|
|
(47,665 |
) |
|
(103,731 |
) |
|
(15,555 |
) |
|
Marketing |
|
|
(11,183 |
) |
|
(24,991 |
) |
|
(3,748 |
) |
|
Technology and content |
|
|
(55,220 |
) |
|
(144,849 |
) |
|
(21,721 |
) |
|
General and administrative |
|
|
(194,180 |
) |
|
(328,433 |
) |
|
(49,251 |
) |
|
|
|
|
|
|
|
(5)
Includes amortization of intangible assets resulting from assets
and business acquisitions as follows: |
|
Fulfillment |
|
|
(5,405 |
) |
|
(44,996 |
) |
|
(6,748 |
) |
|
Marketing |
|
|
(309,156 |
) |
|
(307,759 |
) |
|
(46,151 |
) |
|
Technology and content |
|
|
(5,987 |
) |
|
(20,923 |
) |
|
(3,138 |
) |
|
General and administrative |
|
|
(45,445 |
) |
|
(77,314 |
) |
|
(11,594 |
) |
|
|
|
(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 Interim Condensed Consolidated Statements of
Cash Flows |
(In thousands) |
|
|
|
|
For the three months ended |
|
|
September 30,2015 |
September
30,2016 |
September 30,
2016 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Net cash provided
by/(used in) operating activities |
|
|
(1,402,110 |
) |
|
6,590,470 |
|
|
988,299 |
|
Net cash provided
by/(used in) investing activities |
|
|
2,862,540 |
|
|
(21,025,692 |
) |
|
(3,152,987 |
) |
Net cash provided by
financing activities |
|
|
2,158,301 |
|
|
2,859,851 |
|
|
428,860 |
|
Effect of exchange rate
changes on cash and cash |
|
|
|
|
|
|
|
|
|
|
equivalents |
|
|
166,067 |
|
|
28,329 |
|
|
4,248 |
|
Net increase/(decrease)
in cash and cash equivalents |
|
|
3,784,798 |
|
|
(11,547,042 |
) |
|
(1,731,580 |
) |
Cash and cash
equivalents at beginning of period |
|
|
17,536,783 |
|
|
36,381,637 |
|
|
5,455,745 |
|
Cash and cash
equivalents at end of period |
|
|
21,321,581 |
|
|
24,834,595 |
|
|
3,724,165 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by/(used in) operating
activities |
|
|
(1,402,110 |
) |
|
6,590,470 |
|
|
988,299 |
|
Add: JD Finance net
originations/(repayments) |
|
|
|
|
|
|
|
|
|
|
included in operating cash
flow |
|
|
2,491,995 |
|
|
(176,988 |
) |
|
(26,541 |
) |
Less: Capital expenditures |
|
|
(1,341,474 |
) |
|
(994,742 |
) |
|
(149,170 |
) |
Free cash flow in/(out) |
|
|
(251,589 |
) |
|
5,418,740 |
|
|
812,588 |
|
As JD Finance business has changed from
supporting the overall JD platform to an independently operated and
self-funded business, loans to consumers and merchants in
marketplace business and third parties are made mainly for
investment purpose. Accordingly cash flows resulted from loan
receivables are reclassified from operating activities in cash
flows to investing activities in cash flows. Cash flows resulted
from loan receivables of RMB1.2 billion and RMB3.5 billion for the
three months ended September 30, 2015 and the year ended December
31, 2015 have been reclassified from operating activities to
investing activities in cash flow statements. Free cash flow
remains the same for all the presented and prior periods.
JD.com, Inc. |
|
|
Supplemental Financial Information and Business Metrics |
|
|
|
|
Q1 2015 |
|
Q2 2015 |
|
|
Q3 2015 |
|
Q4 2015 |
|
Q1 2016 |
|
|
Q2 2016 |
|
Q3 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow -
trailing twelve months (“TTM”) (in RMB billions) |
|
2.1 |
|
6.6 |
|
|
5.6 |
|
7.1 |
|
7.7 |
|
|
11.0 |
|
16.7 |
Inventory turnover(7) –
TTM |
|
35.3 |
|
36.4 |
|
|
36.4 |
|
36.9 |
|
37.3 |
|
|
38.5 |
|
37.7 |
Accounts payable
turnover(8) – TTM |
|
41.9 |
|
43.6 |
|
|
44.5 |
|
44.6 |
|
46.3 |
|
|
49.8 |
|
52.1 |
Accounts receivable
turnover(9) – TTM |
|
3.1 |
|
3.2 |
|
|
3.2 |
|
3.2 |
|
3.1 |
|
|
3.1 |
|
3.3 |
GMV(10) (11) excluding
virtual items (in RMB billions) |
|
78.7 |
|
103.3 |
|
|
105.5 |
|
137.0 |
|
125.5 |
|
|
157.1 |
|
155.6 |
Orders fulfilled(10)
(12) excluding virtual items (in millions) |
|
175.6 |
|
240.0 |
|
|
258.1 |
|
353.1 |
|
313.0 |
|
|
373.4 |
|
401.2 |
Annual active customer
accounts(10) (13) (in millions) |
|
97.8 |
|
114.0 |
|
|
126.9 |
|
155.0 |
|
169.1 |
|
|
188.1 |
|
198.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 excluding the impact from
supplier financing.
(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 consumer financing.
(10) Selected operating data for all presented
periods excludes the impact of Paipai.com.
(11) 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 the value from orders placed
on the company’s website and mobile applications as well as orders
placed on third-party mobile applications that are fulfilled by the
company or third-party merchants who are enabled by the company’s
marketplaces. The company’s calculation of GMV includes shipping
charges paid by buyers to sellers and excludes any transactions in
the company’s B2C business with order value exceeding RMB2,000 that
are not ultimately sold or delivered. If the company’s calculation
of GMV includes 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 and shipping
charges paid by buyers to sellers, and excludes products or
services with list prices above RMB100,000 as well as transactions
conducted by buyers who make purchases exceeding RMB1,000,000 in
the aggregate in a single day (similar to the practice of the
company’s major industry peer), the company’s GMV for the third
quarter of 2016 would have been RMB228.6 billion.
(12) Orders fulfilled are defined as the total
number of orders delivered, including the orders for products and
services sold in the company’s online direct sales business and on
the company’s online marketplaces, net of orders returned.
(13) 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. |
Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
For the
three months ended |
|
|
September
30,2015 |
September
30, 2016 |
September
30, 2016 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Net revenues |
|
|
44,110,150 |
|
|
60,725,781 |
|
|
9,106,363 |
|
Less: Cost of
revenues |
|
|
(38,015,664 |
) |
|
(51,077,961 |
) |
|
(7,659,588 |
) |
Gross profit |
|
|
6,094,486 |
|
|
9,647,820 |
|
|
1,446,775 |
|
Less: Revenue from
business cooperation |
|
|
|
|
|
|
|
|
|
|
arrangements with equity
investees |
|
|
(186,577 |
) |
|
(235,791 |
) |
|
(35,359 |
) |
Non-GAAP gross profit |
|
|
5,907,909 |
|
|
9,412,029 |
|
|
1,411,416 |
|
|
|
|
|
|
Loss from
operations |
|
|
(667,238 |
) |
|
(416,178 |
) |
|
(62,411 |
) |
Reversal of: Revenue
from business cooperation |
|
|
|
|
|
|
|
|
|
|
arrangements with equity
investees |
|
|
(186,577 |
) |
|
(235,791 |
) |
|
(35,359 |
) |
Add: Share-based
compensation |
|
|
308,248 |
|
|
602,004 |
|
|
90,275 |
|
Add: Amortization of
intangible assets resulting |
|
|
|
|
|
|
|
|
|
|
from assets and business
acquisitions |
|
|
365,993 |
|
|
450,992 |
|
|
67,631 |
|
Non-GAAP
income/(loss) from operations |
|
|
(179,574 |
) |
|
401,027 |
|
|
60,136 |
|
Add: Depreciation and
amortization excluding |
|
|
|
|
|
|
|
|
|
|
amortization of intangible assets
resulting from |
|
|
|
|
|
|
|
|
|
|
assets and business
acquisitions |
|
|
281,981 |
|
|
531,316 |
|
|
79,675 |
|
Non-GAAP
EBITDA |
|
|
102,407 |
|
|
932,343 |
|
|
139,811 |
|
|
|
|
|
|
Total net revenues |
|
|
44,110,150 |
|
|
60,725,781 |
|
|
9,106,363 |
|
|
|
|
|
|
Non-GAAP
operating margin |
|
|
-0.4 |
% |
|
0.7 |
% |
|
0.7 |
% |
|
|
|
|
|
Non-GAAP EBITDA
margin |
|
|
0.2 |
% |
|
1.5 |
% |
|
1.5 |
% |
JD.com, Inc. |
Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
|
For the three months ended |
|
|
September 30,2015 |
September 30,
2016 |
September 30,
2016 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Net loss |
|
|
(534,882 |
) |
|
(807,941 |
) |
|
(121,160 |
) |
Add: Share-based
compensation |
|
|
308,248 |
|
|
602,004 |
|
|
90,275 |
|
Add: Amortization of
intangible assets resulting from |
|
|
|
|
|
|
|
|
|
|
assets and business
acquisitions |
|
|
365,993 |
|
|
450,992 |
|
|
67,631 |
|
Add: Reconciling items on the share of equity
method |
|
|
|
|
|
|
|
|
|
|
investments(14) |
|
|
70,174 |
|
|
157,048 |
|
|
23,551 |
|
Add: Impairment of
goodwill, intangible assets and |
|
|
|
|
|
|
|
|
|
|
investments |
|
|
- |
|
|
122,530 |
|
|
18,374 |
|
Reversal of: Revenue from business
cooperation |
|
|
|
|
|
|
|
|
|
|
arrangements with equity
investees |
|
|
(186,577 |
) |
|
(235,791 |
) |
|
(35,359 |
) |
Reversal of: Income from non-compete
agreement |
|
|
- |
|
|
(19,846 |
) |
|
(2,976 |
) |
Non-GAAP net income |
|
|
22,956 |
|
|
268,996 |
|
|
40,336 |
|
|
|
|
|
|
Total net revenues |
|
|
44,110,150 |
|
|
60,725,781 |
|
|
9,106,363 |
|
|
|
|
|
|
Non-GAAP net
margin |
|
|
0.1 |
% |
|
0.4 |
% |
|
0.4 |
% |
|
|
|
|
|
Net loss attributable
to ordinary shareholders |
|
|
(530,802 |
) |
|
(921,590 |
) |
|
(138,203 |
) |
Add: Non-GAAP
adjustments to net loss(15) |
|
|
557,838 |
|
|
1,076,937 |
|
|
161,496 |
|
Add: Net income
attributable to mezzanine classified |
|
|
|
|
|
|
|
|
|
|
non-controlling
interests shareholders |
|
|
- |
|
|
133,810 |
|
|
20,066 |
|
Non-GAAP net
income attributable to
ordinary |
|
|
|
|
|
|
|
|
|
|
shareholders |
|
|
27,036 |
|
|
289,157 |
|
|
43,359 |
|
|
|
|
|
|
(14) For the third quarter of 2016, the reconciling items on
the share of equity method investments included the impact of
share-based compensation of RMB12.5 million, amortization of
intangible assets resulting from assets and business acquisitions
of RMB72.7 million, share of amortization of equity investments’
intangibles not on their books of RMB29.8 million, and net income
attributable to mezzanine equity holder of RMB42.0 million. Earning
from equity method investments in publicly listed companies and
certain privately held companies is recorded one quarter in
arrears. (15) See the table above about the reconciliation of
net loss to non-GAAP net income for more information of these
non-GAAP adjustments. |
[1] The U.S. dollar (US$) amounts disclosed in
this press release, except for those transaction amounts that were
actually settled in U.S. dollars, are presented solely for the
convenience of the reader. The conversion of Renminbi (RMB) into
US$ in this press release is based on the noon buying rate in The
City of New York for cable transfers in RMB per US$ as certified
for customs purposes by the Federal Reserve Bank of New York as of
September 30, 2016, which was RMB6.6685 to US$1.00. The percentages
stated in this press release are calculated based on the RMB
amounts.
[2] Non-GAAP gross profit is defined as the
difference of net revenues and cost of revenue excluding revenue
from business cooperation arrangements with equity investees. See
“Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
[3] 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. See
“Reconciliation of GAAP and Non-GAAP Results” at the end of this
press release.
[4] Non-GAAP operating margin is calculated by
dividing non-GAAP income/(loss) from operations by net revenues.
See “Reconciliation of GAAP and Non-GAAP Results” at the end of
this press release. Non-GAAP operating margin of JD Mall is defined
to exclude impact of the company’s new businesses and impact of
Paipai.com from non-GAAP operating margin of the company for
comparative periods. New businesses of the company include JD
Finance, O2O, technology initiatives as well as overseas business
(collectively, “New Businesses”).
[5] Free cash flow, a non-GAAP measurement of
liquidity, is defined as operating cash flow adding back JD Finance
net originations included in operating cash flow and less capital
expenditures, which include purchase of property, equipment and
software, cash paid for construction in progress, purchase of
office building, intangible assets and land use rights.
[6] JD Finance net originations primarily
include “Jingbaobei,” “Jingxiaodai” and “JD Baitiao” that the
company provides to suppliers, merchants and customers,
respectively.
[7] Virtual items primarily include prepaid
phone cards, prepaid game cards, group buying coupons and online
travel products.
[8] 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 “Reconciliation of
GAAP and Non-GAAP Results” at the end of this press release.
[9] Non-GAAP net income/(loss) is defined to
exclude share-based compensation, amortization of intangible assets
resulting from acquisitions, and certain other non-cash gain or
loss items from net income/(loss), and non-GAAP net margin is
calculated by dividing non-GAAP net income/(loss) by net revenues.
See “Reconciliation of GAAP and Non-GAAP Results” at the end of
this press release.
CONTACTS:
Investor Relations
Ruiyu Li
Director of Investor Relations
+86 (10) 8912-6805
IR@JD.com
Media
Josh Gartner
VP, International Corporate Affairs
Press@JD.com
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