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
the full year ended December 31, 2019.
Fourth Quarter and Full Year 2019
Highlights
- Net revenues for
the fourth quarter of 2019 were RMB170.7 billion (US$124.5
billion), an increase of 26.6% from the fourth quarter of 2018. Net
service revenues for the fourth quarter of 2019 were RMB21.0
billion (US$3.0 billion), an increase of 43.6% from the fourth
quarter of 2018. Net revenues for the full year of
2019 were RMB576.9 billion (US$82.9 billion), an increase of 24.9%
from the full year of 2018. Net service revenues for the full year
of 2019 were RMB66.2 billion (US$9.5 billion), an increase of 44.1%
from the full year of 2018.
- Income from
operations for the fourth quarter of 2019 was RMB529.5
million (US$76.1 million), compared to loss from operations of
RMB938.9 million for the same period last year.
Non-GAAP2 income from operations
for the fourth quarter of 2019 was RMB704.0 million (US$101.1
million), compared to RMB313.0 million for the fourth quarter of
2018. Income from operations for the full year of
2019 was RMB9.0 billion (US$1.3 billion), compared to loss from
operations of RMB2.6 billion for the same period last year.
Non-GAAP income from operations for full year of
2019 increased by 364% to RMB8.9 billion (US$1.3 billion) with a
non-GAAP operating margin of 1.5%, as compared to RMB1.9 billion
for the full year of 2018 with a non-GAAP operating margin of
0.4%.
- Net income
attributable to ordinary shareholders for the
fourth quarter of 2019 was RMB3.6 billion (US$0.5 billion),
compared to a net loss attributable to ordinary shareholders of
RMB4.8 billion for the same period last year. Non-GAAP net
income attributable to ordinary
shareholders for the fourth quarter of 2019 was RMB810.7
million (US$116.5 million), compared to RMB749.9 million for the
same period last year. Net income
attributable to ordinary shareholders for the full
year of 2019 was RMB12.2 billion (US$1.8 billion), compared to a
net loss attributable to ordinary shareholders of RMB2.5 billion
for the full year of 2018. Non-GAAP net income
attributable to ordinary shareholders for the full
year of 2019 increased by 211% to RMB10.7 billion (US$1.5 billion),
compared to RMB3.5 billion for the full year of 2018.
- Diluted net income per
ADS for the fourth quarter of 2019 was RMB2.44 (US$0.35),
compared to diluted net loss per ADS of RMB3.32 for the fourth
quarter of 2018. Non-GAAP diluted net income per
ADS for the fourth quarter of 2019 was RMB0.54 (US$0.08),
compared to RMB0.51 for the same quarter last year. Diluted
net income per ADS for the full year of 2019 was RMB8.21
(US$1.18), compared to diluted net loss per ADS of RMB1.73 for the
full year of 2018. Non-GAAP diluted net income per
ADS for the full year of 2019 was RMB7.25 (US$1.04), as
compared to RMB2.35 for the full year of 2018.
- Operating cash
flow for the full year of 2019 increased to RMB24.8
billion (US$3.6 billion) from RMB20.9 billion for the full year of
2018. Free cash flow, which excludes the impact
from JD Baitiao receivables included in the operating cash flow,
for the full year of 2019 increased to inflow of RMB19.5 billion
(US$2.8 billion), compared to outflow of RMB7.9 billion for the
full year of 2018.
- Annual active customer
accounts3 increased by 18.6% to 362.0 million in 2019 from
305.3 million in 2018. Mobile monthly active users4 in December
2019 increased by 41% as compared to December 2018.
“We achieved robust top-line growth for the
fourth quarter as Chinese consumers increasingly associate the JD
brand with trust and reliability,” said Richard Liu, Chairman and
Chief Executive Officer of JD.com. “We also saw strong customer
growth, especially in China’s lower-tier cities, driven by
innovative marketing, superior product selection and better
customer service.”
Richard Liu continued, “Since late January,
we’ve spared no effort in the fight against COVID-19 in China. Our
leading supply chain and logistics network have been called upon to
address unmet needs across China. We’ve been ensuring consumers’
livelihoods while partnering with public institutions to ensure
access to emergency supplies. In Hubei, the epicenter of the
outbreak, we have been providing medical supplies and facilitating
relief organizations to maintain continuous supply to hospitals, in
addition to rolling out a suite of innovations across our business
to help the country. All of us at JD will continue working around
the clock to help Chinese consumers, merchants and communities get
through this challenging time.”
“We are pleased to conclude 2019 with another
strong set of results in the fourth quarter,” said Sidney Huang,
Chief Financial Officer of JD.com. “The year 2019 sets a new
milestone in our corporate history with record earnings and
excellent cash flow on an annual basis as our continued investments
in infrastructure and technology began to yield solid financial
results. Our vertically integrated ecommerce model, resilient
self-built logistics network and high level of consumer trust allow
us to continue serving consumers effectively now and in the long
term.”
Business Highlights
Environment, Social and
Governance
- Following the coronavirus outbreak,
JD reacted swiftly to ensure the smooth transportation and supply
of key medical resources and daily necessities nationwide by
leveraging its in-house delivery team and its capabilities in areas
including supply chain, logistics infrastructure and related
technologies. JD Retail promptly donated over one million face
masks, as well as a significant amount of drugs and medical supply
items on January 24th, 2020, to help residents in Hubei, the
epicenter province. JD Logistics, one of three logistics companies
recommended to offer logistics solutions in Wuhan, the epicenter of
the outbreak, has made emergency medicine deliveries for local
pharma companies, prioritized orders from hospitals and medical
institutions and established an express route for transporting
relief supplies from throughout China to Wuhan. Cooperating with
over 30,000 doctors, JD Health launched 24/7 free online medical
consultation and psychological counselling services. JD Health also
invited leading medical specialists to hold livestreaming sessions,
providing the public with clinical disease information and
preventative measures. In addition, JD has rolled out a series of
measures to subsidize and support coronavirus-hit merchants on its
platform, including fee reductions and waivers as well as
financing, logistics, marketing and technology support. JD has also
introduced additional preferential policies for merchants in Hubei
province.
JD Retail
- In the fourth quarter, JD.com made
further progress in its Consumer to Manufacturer (C2M) initiative,
which helps brands to provide tailored products on JD’s platforms
by leveraging the company’s big data capabilities and consumer
insights. During the Singles Day Shopping Festival in 2019, JD saw
increasing popularity with its C2M products. Sales of tailored
personal computers increased by over 490%, and sales of customized
refrigerators and washing machines also increased
substantially.
- As part of the company’s
omnichannel strategy, on November 11, JD.com launched JD E-SPACE, a
50,000 square-meter experience store in Chongqing. The super store
provides customers a unique and immersive experience in which they
can fully interact with innovative electronics and smart products
from over 1,000 brands. In-store customers can purchase products
online through the JD platform and enjoy fast direct-to-door
delivery. In the fourth quarter, 7FRESH, JD’s offline fresh food
supermarket brand, launched two new omnichannel store formats:
7FRESH LIFE and SEVEN FUN, in Beijing. 7FRESH LIFE is a 24/7 fresh
food supermarket that provides in-store purchase and online order
delivery options of groceries as well as meal solutions for
customers in the surrounding local community. SEVEN FUN is a
lifestyle space located in Beijing’s business district and provides
various meal and leisure options for local professionals.
JD Logistics
- In the fourth quarter, JD Logistics
launched its largest Asia No.1 warehouse in Dongguan, located near
Shenzhen, greatly improving product availability in the
Guangdong-Hong Kong-Macao Greater Bay Area and helping enterprise
customers lower logistics costs. As of the end of 2019, JD has
established Asia No.1 mega warehouses in 17 cities across China,
forming the largest smart warehouse cluster in Asia. In the fourth
quarter, two ultra-large sorting centers began operations in JD’s
Chengdu and Wuhan Asia No.1 warehouses, each able to handle over
one million daily orders, greatly enhancing JD Logistics’ ability
to serve consumers in southwest and central China.
- In the fourth quarter, JD Logistics
formed a partnership with Mannings, Hong Kong's largest health and
beauty products chain store. JD Logistics will provide Mannings
with comprehensive logistics solutions including international
transportation, customs clearance, sorting and delivery. JD
Logistics' strong network and international supply chain
capabilities will help Mannings to deliver high-quality products to
customers in China in a highly effective and transparent
manner.
- As of December 31, 2019, JD
Logistics operated over 700 warehouses, which covered an aggregate
gross floor area of approximately 16.9 million square meters,
including warehouse space managed under the JD Logistics Open
Warehouse Platform.
Equity Investees Update
- JD.com joint venture, DADA Group,
formerly known as Dada-JD Daojia, China’s leading on-demand
logistics and omnichannel e-commerce platform, saw robust growth
during the 2019 Singles Day Shopping Festival, with sales on the JD
Daojia platform almost doubling year over year and sales surging
5.7 times in the third and fourth tier cities compared to last year
as consumers welcomed the convenience of its one-hour shopping
delivery service. To date, JD Daojia has formed partnerships with
over 70 first-tier international and domestic FMCG brands, and Dada
Now, its logistics network covers over 2,400 counties and cities
across the country, adding important supplementary capacity to JD
Logistics’ infrastructure. In response to the coronavirus outbreak,
JD Daojia has partnered with over 50 supermarket chains as well as
nearly 30 community grocery chains to meet the enormous demand for
to-door delivery of fresh produce. DADA Group has also launched a
fast track allowing retailers and brands to join the platform
within 24 hours, helping merchants to offer on-demand fulfillment
solutions in the current capacity-constrained environment.
Operational Metrics Update
- As of December 31, 2019, JD.com had
over 270,000 merchants on its online marketplace, and over 220,000
employees excluding part-time and interns.
Fourth Quarter 2019 Financial
Results
Net Revenues. For the
fourth quarter of 2019, JD.com reported net revenues of RMB170.7
billion (US$24.5 billion), representing a 26.6% increase from the
same period in 2018. Net product revenues increased by 24.5%, while
net service revenues increased by 43.6% for the fourth quarter of
2019, as compared to the same period of 2018.
Cost of
Revenues. Cost of
revenues increased by 26.8% to RMB146.7 billion (US$21.1 billion)
for the fourth quarter of 2019 from RMB115.7 billion for the fourth
quarter of 2018. This increase was primarily due to the growth of
the company’s online direct sales business and the logistics
services provided to third parties.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by
24.1% to RMB11.0 billion (US$1.6 billion) for the fourth quarter of
2019 from RMB8.9 billion for the fourth quarter of 2018.
Fulfillment expenses as a percentage of net revenues decreased to
6.4% for the fourth quarter of 2019, compared to 6.6% in the same
period last year, mainly due to economies of scale from enhanced
logistics capacity utilization and staff productivity.
Marketing
Expenses. Marketing expenses
increased by 29.5% to RMB8.2 billion (US$1.2 billion) for the
fourth quarter of 2019 from RMB6.4 billion for the fourth quarter
of 2018.
Research and Development
Expenses. Research and development
expenses increased to RMB3.6 billion (US$0.5 billion) for the
fourth quarter of 2019 from RMB3.5 billion for the fourth quarter
of 2018.
General and Administrative
Expenses. General and
administrative expenses increased to RMB1.5 billion (US$0.2
billion) for the fourth quarter of 2019 from RMB1.4 billion for the
fourth quarter of 2018.
Gain on Sale of Development
Properties. Gain on sale of development properties
for the fourth quarter of 2019 was RMB0.8 billion (US$0.1 billion),
which was part of the gain on sale of development properties to the
Core Fund in relation to the previously disclosed February 2019
transaction.
Income/(Loss) from Operations and
Non-GAAP Income from Operations. Income from
operations for the fourth quarter of 2019 was RMB529.5 million
(US$76.1 million), compared to loss from operations of RMB938.9
million for the same period last year. Non-GAAP income from
operations for the fourth quarter of 2019 was RMB704.0 million
(US$101.1 million), compared to RMB313.0 million for the fourth
quarter of 2018. Operating margin of JD Retail before unallocated
items for the fourth quarter of 2019 was 1.4%, compared to 1.1% for
the fourth quarter of 2018.
Non-GAAP EBITDA for the fourth
quarter of 2019 was RMB2.0 billion (US$0.3 billion) with a non-GAAP
EBITDA margin of 1.2%, as compared to RMB1.5 billion with a
non-GAAP EBITDA margin of 1.1% for the fourth quarter of 2018.
Others, net. Others are other
non-operating income/(loss) including gains/(losses) from fair
value change of long-term investments, gains from business and
investment disposals, impairment of investments, government
incentives, foreign exchange gains/(losses) and others. In the
fourth quarter of 2019, other non-operating income was RMB3.6
billion (US$0.5 billion), compared with a loss of RMB4.0 billion
for the fourth quarter of 2018. The substantial increase was
primarily due to the increase of the fair value change of long-term
investments, which had a gain of RMB4.2 billion (US$0.6 billion)
for the fourth quarter of 2019, compared with a loss of RMB4.1
billion for the same period of last year.
Net Income/(Loss)
Attributable to Ordinary Shareholders and
Non-GAAP Net Income Attributable to Ordinary
Shareholders. Net income
attributable to ordinary shareholders for the fourth quarter of
2019 was RMB3.6 billion (US$0.5 billion), compared to net loss
attributable to ordinary shareholders of RMB4.8 billion for the
same period last year. Non-GAAP net income attributable to ordinary
shareholders for the fourth quarter of 2019 was RMB810.7 million
(US$116.5 million), compared to RMB749.9 million for the same
period last year.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for
the fourth quarter of 2019 was RMB2.44 (US$0.35), compared to
diluted net loss per ADS of RMB3.32 for the fourth quarter of 2018.
Non-GAAP diluted net income per ADS for the fourth quarter of 2019
was RMB0.54 (US$0.08), as compared to RMB0.51 for the fourth
quarter of 2018.
Cash Flow and Working
Capital
As of December 31, 2019, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB64.5 billion (US$9.3 billion), compared to RMB39.5
billion as of December 31, 2018. For the fourth quarter of 2019,
free cash flow of the company was as follows:
|
|
For the three months ended |
|
|
December
31,2018 |
December
31,2019 |
December
31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Net cash provided by operating activities |
|
6,028,130 |
|
3,701 |
|
532 |
|
Less: Impact from the decreasing JD Baitiao receivables
included in the operating cash flow |
|
(5,793,961 |
) |
(311,718 |
) |
(44,775 |
) |
Add/(less): Capital expenditures |
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds* |
|
(2,515,276 |
) |
1,055,277 |
|
151,581 |
|
Other capital expenditures** |
|
(1,720,252 |
) |
(903,487 |
) |
(129,778 |
) |
Free cash
flow |
|
(4,001,359 |
) |
(156,227 |
) |
(22,440 |
) |
|
|
|
|
|
|
|
|
* Including logistics facilities and other real
estate properties developed by the company’s property management
group (“JD Property”), which may be sold under various equity
structures. In the fourth quarter of 2019, approximately RMB2.5
billion proceeds from the sale of development properties were
included in this line. ** Including capital
expenditures related to the company’s headquarters in Beijing and
all other CAPEX.
Net cash provided by investing activities was
RMB2.5 billion (US$0.4 billion) for the fourth quarter of 2019,
consisting primarily of the loans repaid by JD Digits. In addition,
cash paid for capital expenditures in the fourth quarter of 2019
was RMB2.3 billion, offset by the proceeds from sale of development
properties to the Core Fund of RMB2.5 billion.
Net cash provided by financing activities was
RMB3.1 billion (US$0.4 billion) for the fourth quarter of 2019,
consisting primarily of cash received in the second closing of JD
Health’s Series A financing.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Full Year 2019 Financial Results
Net Revenues. For the
full year of 2019, JD.com reported net revenues of RMB576.9 billion
(US$82.9 billion), representing a 24.9% increase from the full year
of 2018. Net product revenues increased by 22.7%, while net service
revenues increased by 44.1% for the full year of 2019, as compared
to the full year of 2018.
Cost of
Revenues. Cost of
revenues increased by 24.3% to RMB492.5 billion (US$70.7 billion)
for the full year of 2019 from RMB396.1 billion for the full year
of 2018. This increase was primarily due to the growth of the
company’s online direct sales business and the logistics services
provided to third parties.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by
15.5% to RMB37.0 billion (US$5.3 billion) for the full year of 2019
from RMB32.0 billion for the full year of 2018. Fulfillment
expenses as a percentage of net revenues was 6.4% for the full year
of 2019, compared to 6.9% for the full year of 2018.
Fulfilled Gross
Margin5. Fulfilled gross margin for
the full year of 2019 was 8.2%, as compared to 7.3% for the full
year of 2018.
Marketing
Expenses. Marketing expenses
increased by 15.6% to RMB22.2 billion (US$3.2 billion) for the full
year of 2019 from RMB19.2 billion for the full year of 2018.
Research and Development
Expenses. Research and development
expenses increased by 20.4% to RMB14.6 billion (US$2.1 billion) for
the full year of 2019 from RMB12.1 billion for the full year of
2018.
General and Administrative
Expenses. General and
administrative expenses increased by 6.4% to RMB5.5 billion (US$0.8
billion) for the full year of 2019 from RMB5.2 billion for the full
year of 2018.
Gain on Sale of Development
Properties. Gain on sale of development properties
for the full year of 2019 was RMB3.9 billion (US$0.6 billion),
consisting primarily of the gain on sale of development properties
to the Core Fund.
Income/(Loss) from Operations and
Non-GAAP Income from Operations. Income from
operations for the full year of 2019 was RMB9.0 billion (US$1.3
billion), compared to loss from operations of RMB2.6 billion for
the full year of 2018. Non-GAAP income from operations for the full
year of 2019 increased by 364% to RMB8.9 billion (US$1.3 billion)
with a non-GAAP operating margin of 1.5%, as compared to RMB1.9
billion for the full year of 2018 with a non-GAAP operating margin
of 0.4%. Operating margin of JD Retail before unallocated items for
the full year of 2019 was 2.5%, compared to 1.6% for the full year
of 2018.
Non-GAAP EBITDA for the full
year of 2019 increased by 144% to RMB13.8 billion (US$2.0 billion)
with a non-GAAP EBITDA margin of 2.4%, from RMB5.7 billion with a
non-GAAP EBITDA margin of 1.2% for the full year of 2018.
Others, net. Other
non-operating income for the full year of 2019 was RMB5.4 billion
(US$0.8 billion), compared with RMB0.1 billion for the full year of
2018. The 2019 income was primarily attributable to gains from fair
value change of long-term investments of RMB3.5 billion (US$0.5
billion) as well as various government incentives and gain on
investment disposals.
Net Income/(Loss) Attributable to
Ordinary Shareholders and Non-GAAP Net Income Attributable to
Ordinary Shareholders. Net income attributable to
ordinary shareholders for the full year of 2019 was RMB12.2 billion
(US$1.8 billion), compared to net loss attributable to ordinary
shareholders of RMB2.5 billion for the full year of 2018. Non-GAAP
net income attributable to ordinary shareholders for the full year
of 2019 increased by 211% to RMB10.7 billion (US$1.5 billion),
compared to RMB3.5 billion for the full year of 2018.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for
the full year of 2019 was RMB8.21 (US$1.18), compared to diluted
net loss per ADS of RMB1.73 for the full year of 2018. Non-GAAP
diluted net income per ADS for the full year of 2019 was RMB7.25
(US$1.04) as compared to RMB2.35 for the full year of 2018.
Cash Flow and Working Capital
For the full year of 2019, free cash flow of the
company was as follows:
|
|
For the year ended |
|
|
December
31,2018 |
December
31,2019 |
December
31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Net cash
provided by operating activities |
|
20,881,422 |
|
24,781,220 |
|
3,559,600 |
|
Less: Impact from the decreasing JD Baitiao receivables
included in the operating cash flow |
|
(7,369,421 |
) |
(4,233,884 |
) |
(608,160 |
) |
Add/(less): Capital expenditures |
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds* |
|
(8,857,569 |
) |
2,420,401 |
|
347,669 |
|
Other capital expenditures** |
|
(12,511,925 |
) |
(3,514,741 |
) |
(504,861 |
) |
Free cash
flow |
|
(7,857,493 |
) |
19,452,996 |
|
2,794,248 |
|
|
|
|
|
|
|
|
|
* Including logistics facilities and other real
estate properties developed by JD Property, which may be sold under
various equity structures. For the year ended December 31, 2019,
approximately RMB7.9 billion proceeds from the sale of development
properties were included in this line.** Including capital
expenditures related to the company’s headquarters in Beijing and
all other CAPEX.
Net cash used in investing activities was
RMB25.3 billion (US$3.6 billion) for the full year of 2019,
consisting primarily of increase in short-term investments of
RMB22.5 billion, prepayments and investments in equity investees
and purchases investment securities of RMB11.3 billion, and cash
paid for capital expenditures of RMB9.0 billion, partially offset
by the proceeds from sale of development properties of RMB7.9
billion, cash received from disposals of equity investment and
investment securities of RMB4.6 billion, and the loans settled by
JD Digits of RMB4.1 billion.
Net cash provided by financing activities was
RMB2.6 billion (US$0.4 billion) for the full year of 2019,
consisting primarily of cash received as part of JD Health’s Series
A financing of RMB6.3 billion, partially offset by repayment of
nonrecourse securitization debt of RMB3.9 billion.
For working capital turnover days, see table
under “Supplemental Financial Information and Business
Metrics.”
Full-Year Supplemental Information
The table below sets forth the full year segment operating
results:
|
|
For the year ended |
|
|
December 31,2018 |
December 31,2019 |
December
31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
Net revenues: |
|
|
|
|
JD Retail |
|
447,502,173 |
|
552,245,141 |
|
79,325,051 |
|
New businesses* |
|
14,665,281 |
|
23,932,278 |
|
3,437,657 |
|
Inter-segment |
|
(1,103,943 |
) |
(435,364 |
) |
(62,536 |
) |
Total segment net revenues |
|
461,063,511 |
|
575,742,055 |
|
82,700,172 |
|
Unallocated items** |
|
956,248 |
|
1,146,429 |
|
164,674 |
|
Total consolidated net revenues |
|
462,019,759 |
|
576,888,484 |
|
82,864,846 |
|
|
|
|
|
|
Operating income/(loss): |
|
|
|
|
JD Retail |
|
7,049,222 |
|
13,775,339 |
|
1,978,704 |
|
New businesses* |
|
(5,136,657 |
) |
(1,022,281 |
) |
(146,841 |
) |
Including: gain on sale of development properties |
|
- |
|
3,884,709 |
|
558,004 |
|
Total segment operating income |
|
1,912,565 |
|
12,753,058 |
|
1,831,863 |
|
Unallocated items** |
|
(4,531,696 |
) |
(3,758,178 |
) |
(539,830 |
) |
Total consolidated operating income/(loss) |
|
(2,619,131 |
) |
8,994,880 |
|
1,292,033 |
|
|
|
|
|
|
|
|
|
* New businesses of the company include
logistics services provided to third parties, overseas business,
technology initiatives, as well as asset management services to
logistics property investors and sale of development properties by
JD Property.
JD Property develops and manages logistics
facilities and other real estate properties. By leveraging its fund
management platform, JD Property can realize development profits
and recycle capital from mature properties to fund new developments
and scale the business.
** Unallocated items include share-based
compensation, amortization of intangible assets resulting from
assets and business acquisitions, effects of business cooperation
arrangements, and impairment of goodwill and intangible assets,
which are not allocated to segments.
The table below sets forth the full year revenue
information:
|
|
For the year ended |
|
|
December
31,2018 |
December 31,2019 |
December
31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Electronics and home appliance revenues |
|
280,059,089 |
328,703,453 |
47,215,297 |
General merchandise revenues |
|
136,049,657 |
182,030,514 |
26,147,047 |
Net product revenues |
|
416,108,746 |
510,733,967 |
73,362,344 |
|
|
|
|
|
Marketplace and advertising revenues |
|
33,531,862 |
42,680,212 |
6,130,629 |
Logistics and other service revenues |
|
12,379,151 |
23,474,305 |
3,371,873 |
Net service revenues |
|
45,911,013 |
66,154,517 |
9,502,502 |
|
|
|
|
|
Total net revenues |
|
462,019,759 |
576,888,484 |
82,864,846 |
|
|
|
|
|
First Quarter 2020
Guidance
Net revenues for the first quarter of 2020 are
expected to grow at least 10% compared with the first quarter of
2019. This forecast reflects JD.com’s current and preliminary
expectation, which is subject to change in light of uncertainties
related to how COVID-19 develops.
Conference Call
JD.com’s management will hold a conference call
at 7:00 am, Eastern Time on March 2, 2020 (8:00 pm, Beijing/Hong
Kong Time on March 2, 2020) to discuss the fourth quarter and full
year 2019 financial results.
Listeners may access the call by dialing the
following numbers:
US Toll Free: |
+1-845-675-0437 or +1-866-519-4004 |
Hong Kong |
+852-3018-6771 or 800-906-601 |
Mainland China |
400-6208-038 or 800-8190-121 |
International |
+65-6713-5090 |
Passcode: |
3837306 |
A telephone replay will be available from 10:00
am, Eastern Time on March 2, 2020 through 8:59 am, Eastern Time on
March 10, 2020. The dial-in details are as follows:
US Toll Free: |
+1-855-452-5696 or +1-646-254-3697 |
International |
+61-2-8199-0299 |
Passcode: |
3837306 |
Additionally, a live and archived webcast of the
conference call will also be available on the company’s investor
relations website at http://ir.jd.com.
About JD.com.
JD.com is a leading technology driven e-commerce
company transforming to become the leading supply chain based
technology and service provider. The company’s cutting-edge retail
infrastructure seeks to enable consumers to buy whatever they want,
whenever and wherever they want it. The company has opened its
technology and infrastructure to partners, brands and other
sectors, as part of its Retail as a Service offering to help drive
productivity and innovation across a range of industries. JD.com is
the largest retailer in China, a member of the NASDAQ100 and a
Fortune Global 500 company.
Non-GAAP Measures
In evaluating the business, the company
considers and uses non-GAAP measures, such as non-GAAP
income/(loss) from operations, non-GAAP operating margin, non-GAAP
net income/(loss) attributable to ordinary shareholders, non-GAAP
net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA
margin, non-GAAP net income/(loss) per share and non-GAAP net
income/(loss) per ADS, as supplemental measures to review and
assess operating performance. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). The company
defines non-GAAP income/(loss) from operations as income/(loss)
from operations excluding share-based compensation, amortization of
intangible assets resulting from assets and business acquisitions,
effects of business cooperation arrangements, gain on sale of
development properties and impairment of goodwill and intangible
assets. The company defines non-GAAP net income/(loss) attributable
to ordinary shareholders as net income/(loss) attributable to
ordinary shareholders excluding share-based compensation,
amortization of intangible assets resulting from assets and
business acquisitions, effects of business cooperation arrangements
and non-compete agreements, gain/(loss) on disposals/deemed
disposals of investments, reconciling items on the share of equity
method investments, loss/(gain) from fair value change of long-term
investments, impairment of goodwill, intangible assets and
investments, gain and foreign exchange impact in relation to sale
of development properties and tax effects on non-GAAP adjustments.
The company defines free cash flow as operating cash flow adjusting
the impact from JD Baitiao receivables included in the operating
cash flow and capital expenditures, net of the proceeds from sale
of development properties. Capital expenditures include purchase of
property, equipment and software, cash paid for construction in
progress, purchase of intangible assets and land use rights. The
company defines non-GAAP EBITDA as non-GAAP income/(loss) from
operations plus depreciation and amortization excluding
amortization of intangible assets resulting from assets and
business acquisitions. Non-GAAP basic net income/(loss) per share
is calculated by dividing non-GAAP net income/(loss) attributable
to ordinary shareholders by the weighted average number of ordinary
shares outstanding during the periods. Non-GAAP diluted net
income/(loss) per share is calculated by dividing non-GAAP net
income/(loss) attributable to ordinary shareholders by the weighted
average number of ordinary shares and dilutive potential ordinary
shares outstanding during the periods, including the dilutive
effect of share-based awards as determined under the treasury stock
method. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net
income/(loss) per share multiplied by two.
The company presents these non-GAAP financial
measures because they are used by management to evaluate operating
performance and formulate business plans. Non-GAAP income/(loss)
from operations, non-GAAP net income/(loss) attributable to
ordinary shareholders and non-GAAP EBITDA reflect the company’s
ongoing business operations in a manner that allows more meaningful
period-to-period comparisons. Free cash flow enables management to
assess liquidity and cash flow while taking into account the impact
from JD Baitiao receivables included in the operating cash flow and
the demands that the expansion of fulfillment infrastructure and
technology platform has placed on financial resources. The company
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.
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
As of |
|
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
34,262,445 |
36,971,420 |
5,310,612 |
Restricted cash |
|
3,239,613 |
2,940,859 |
422,428 |
Short-term investments |
|
2,035,575 |
24,602,777 |
3,533,968 |
Accounts receivable, net (including JD Baitiao of RMB6.3 billion
and RMB1.0 billion as of December 31, 2018 and 2019,
respectively)(1) |
|
11,109,988 |
6,190,588 |
889,222 |
Advance to suppliers |
|
477,109 |
593,130 |
85,198 |
Inventories, net |
|
44,030,084 |
57,932,156 |
8,321,434 |
Prepayments and other current assets |
|
6,564,700 |
5,629,561 |
808,636 |
Amount due from related parties |
|
3,136,265 |
4,234,067 |
608,186 |
Total current
assets |
|
104,855,779 |
139,094,558 |
19,979,684 |
Non-current assets |
|
|
|
|
Property, equipment and software, net |
|
21,082,838 |
20,654,071 |
2,966,772 |
Construction in progress |
|
6,553,712 |
5,806,308 |
834,024 |
Intangible assets, net |
|
5,011,706 |
4,110,034 |
590,369 |
Land use rights, net |
|
10,475,658 |
10,891,742 |
1,564,501 |
Operating lease right-of-use assets(2) |
|
- |
8,643,597 |
1,241,575 |
Goodwill |
|
6,643,669 |
6,643,669 |
954,303 |
Investment in equity investees |
|
31,356,616 |
35,575,807 |
5,110,145 |
Investment securities |
|
15,901,573 |
21,417,104 |
3,076,375 |
Deferred tax assets |
|
103,158 |
80,556 |
11,571 |
Other non-current assets (including JD Baitiao of RMB0.2 billion
and RMB0.4 billion as of December 31, 2018 and 2019,
respectively)(1) |
|
5,283,948 |
6,806,258 |
977,658 |
Amount due from related parties |
|
1,896,200 |
- |
- |
Total non-current assets |
|
104,309,078 |
120,629,146 |
17,327,293 |
Total assets |
|
209,164,857 |
259,723,704 |
37,306,977 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
As of |
|
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Short-term borrowings |
|
147,264 |
- |
- |
Nonrecourse securitization debt(1) |
|
4,397,670 |
- |
- |
Accounts payable |
|
79,985,018 |
90,428,382 |
12,989,224 |
Advances from customers |
|
13,017,603 |
16,078,619 |
2,309,549 |
Deferred revenues |
|
1,980,489 |
3,326,594 |
477,835 |
Taxes payable |
|
825,677 |
2,015,788 |
289,550 |
Amount due to related parties |
|
215,614 |
317,978 |
45,675 |
Accrued expenses and other current liabilities |
|
20,292,680 |
24,656,180 |
3,541,639 |
Operating lease liability(2) |
|
- |
3,193,480 |
458,715 |
Total current liabilities |
|
120,862,015 |
140,017,021 |
20,112,187 |
Non-current liabilities |
|
|
|
|
Deferred revenues |
|
463,153 |
1,942,635 |
279,042 |
Unsecured senior notes |
|
6,786,143 |
6,912,492 |
992,917 |
Deferred tax liabilities |
|
828,473 |
1,338,988 |
192,334 |
Long-term borrowings |
|
3,088,440 |
3,139,290 |
450,931 |
Operating lease liabilities(2) |
|
- |
5,523,164 |
793,353 |
Other non-current liabilities |
|
308,489 |
225,883 |
32,446 |
Total non-current liabilities |
|
11,474,698 |
19,082,452 |
2,741,023 |
Total liabilities |
|
132,336,713 |
159,099,473 |
22,853,210 |
(1) JD
Digits performs credit risk assessment services for JD Baitiao
business and absorbs the credit risk of the underlying Baitiao
receivables. Due to the company’s continuing involvement in the
asset-backed securitization(“ABS”)arrangements prior to October
2017, the company was not able to derecognize the related Baitiao
receivables upon issuance of ABS. Beginning from October 2017, the
company revised certain structural arrangements for the new
issuance of ABS plans, and derecognized the related Baitiao
receivables. |
(2) On
January 1, 2019, the company adopted ASC 842, the new lease
standard, using the optional transition method. |
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
|
|
As of |
|
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
MEZZANINE EQUITY |
|
|
|
|
Convertible redeemable non-controlling
interests |
|
15,961,284 |
15,964,384 |
2,293,140 |
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000,000 shares authorized, 2,973,943 shares issued and
2,924,315 shares outstanding as of December 31, 2019) |
|
59,770,973 |
81,855,970 |
11,757,875 |
Non-controlling interests |
|
1,095,887 |
2,803,877 |
402,752 |
Total shareholders’ equity |
|
60,866,860 |
84,659,847 |
12,160,627 |
Total liabilities, mezzanine equity and shareholders’
equity |
|
209,164,857 |
259,723,704 |
37,306,977 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Operations |
(In thousands, except per share data and otherwise noted) |
|
|
For the three months ended |
|
For the year ended |
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net
revenues |
|
|
|
|
|
|
|
Net product revenues |
120,231,574 |
|
149,712,093 |
|
21,504,797 |
|
|
416,108,746 |
|
510,733,967 |
|
73,362,344 |
|
Net service revenues |
14,600,975 |
|
20,971,945 |
|
3,012,431 |
|
|
45,911,013 |
|
66,154,517 |
|
9,502,502 |
|
Total net
revenues |
134,832,549 |
|
170,684,038 |
|
24,517,228 |
|
|
462,019,759 |
|
576,888,484 |
|
82,864,846 |
|
Cost of revenues |
(115,660,696 |
) |
(146,685,835 |
) |
(21,070,102 |
) |
|
(396,066,126 |
) |
(492,467,391 |
) |
(70,738,515 |
) |
Fulfillment |
(8,860,519 |
) |
(10,994,766 |
) |
(1,579,299 |
) |
|
(32,009,658 |
) |
(36,968,041 |
) |
(5,310,127 |
) |
Marketing |
(6,352,543 |
) |
(8,225,450 |
) |
(1,181,512 |
) |
|
(19,236,740 |
) |
(22,234,045 |
) |
(3,193,721 |
) |
Research and development |
(3,502,059 |
) |
(3,591,058 |
) |
(515,823 |
) |
|
(12,144,383 |
) |
(14,618,677 |
) |
(2,099,842 |
) |
General and administrative |
(1,395,636 |
) |
(1,471,794 |
) |
(211,410 |
) |
|
(5,159,666 |
) |
(5,490,159 |
) |
(788,612 |
) |
Impairment of goodwill and intangible assets |
- |
|
- |
|
- |
|
|
(22,317 |
) |
- |
|
- |
|
Gain on sale of development properties |
- |
|
814,412 |
|
116,983 |
|
|
- |
|
3,884,709 |
|
558,004 |
|
Income/(Loss) from
operations(4)(5) |
(938,904 |
) |
529,547 |
|
76,065 |
|
|
(2,619,131 |
) |
8,994,880 |
|
1,292,033 |
|
Other
income/(expenses) |
|
|
|
|
|
|
|
Share of results of equity investees |
(171,284 |
) |
(518,211 |
) |
(74,436 |
) |
|
(1,113,105 |
) |
(1,738,219 |
) |
(249,680 |
) |
Interest income(3) |
389,887 |
|
594,427 |
|
85,384 |
|
|
2,117,921 |
|
1,785,572 |
|
256,481 |
|
Interest expense(3) |
(144,847 |
) |
(219,772 |
) |
(31,568 |
) |
|
(854,538 |
) |
(725,010 |
) |
(104,141 |
) |
Others, net |
(3,951,371 |
) |
3,646,984 |
|
523,856 |
|
|
95,175 |
|
5,375,309 |
|
772,115 |
|
Income/(Loss) before
tax |
(4,816,519 |
) |
4,032,975 |
|
579,301 |
|
|
(2,373,678 |
) |
13,692,532 |
|
1,966,808 |
|
Income tax expenses |
(60,967 |
) |
(479,137 |
) |
(68,824 |
) |
|
(426,872 |
) |
(1,802,440 |
) |
(258,904 |
) |
Net
income/(loss) |
(4,877,486 |
) |
3,553,838 |
|
510,477 |
|
|
(2,800,550 |
) |
11,890,092 |
|
1,707,904 |
|
Net loss attributable to
non-controlling interests shareholders |
(73,599 |
) |
(80,913 |
) |
(11,622 |
) |
|
(311,409 |
) |
(297,163 |
) |
(42,685 |
) |
Net income attributable to
mezzanine equity classified non-controlling interests
shareholders |
839 |
|
797 |
|
114 |
|
|
2,492 |
|
3,100 |
|
445 |
|
Net income/(loss)
attributable to ordinary shareholders |
(4,804,726 |
) |
3,633,954 |
|
521,985 |
|
|
(2,491,633 |
) |
12,184,155 |
|
1,750,144 |
|
|
|
|
|
|
|
|
|
(3) Interest expenses in relation to the nonrecourse securitization
debt, which were collected from JD Digits in the same amount as
interest income, were RMB74.7 million and nil for the three months
ended December 31, 2018 and 2019, respectively. For the year ended
December 31, 2018 and 2019, they were RMB527.0 million and RMB37.6
million, respectively. |
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Operations |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
(4) Includes
share-based compensation expenses as follows: |
Cost of revenues |
|
(23,986 |
) |
(24,556 |
) |
(3,527 |
) |
|
(71,983 |
) |
(82,243 |
) |
(11,813 |
) |
Fulfillment |
|
(94,799 |
) |
(136,033 |
) |
(19,540 |
) |
|
(418,895 |
) |
(440,167 |
) |
(63,226 |
) |
Marketing |
|
(52,252 |
) |
(78,419 |
) |
(11,264 |
) |
|
(190,499 |
) |
(258,860 |
) |
(37,183 |
) |
Research and development |
|
(350,810 |
) |
(376,212 |
) |
(54,039 |
) |
|
(1,162,579 |
) |
(1,340,317 |
) |
(192,524 |
) |
General and administrative |
|
(515,200 |
) |
(416,145 |
) |
(59,775 |
) |
|
(1,816,033 |
) |
(1,573,368 |
) |
(226,000 |
) |
(5) Includes
amortization of business cooperation arrangement and intangible
assets resulting from assets and business acquisitions as
follows: |
Fulfillment |
|
(41,897 |
) |
(41,433 |
) |
(5,951 |
) |
|
(167,573 |
) |
(165,223 |
) |
(23,733 |
) |
Marketing |
|
(310,469 |
) |
(140,430 |
) |
(20,171 |
) |
|
(1,231,889 |
) |
(637,374 |
) |
(91,553 |
) |
Research and development |
|
(22,807 |
) |
(24,700 |
) |
(3,548 |
) |
|
(98,402 |
) |
(99,280 |
) |
(14,261 |
) |
General and administrative |
|
(77,314 |
) |
(77,314 |
) |
(11,105 |
) |
|
(307,774 |
) |
(307,776 |
) |
(44,209 |
) |
|
|
|
|
|
|
|
|
|
Net income/(loss) per
share: |
|
|
|
|
|
|
|
|
Basic |
|
(1.66 |
) |
1.24 |
|
0.18 |
|
|
(0.87 |
) |
4.18 |
|
0.60 |
|
Diluted |
|
(1.66 |
) |
1.22 |
|
0.18 |
|
|
(0.87 |
) |
4.11 |
|
0.59 |
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per
ADS: |
|
|
|
|
|
|
|
|
Basic |
|
(3.32 |
) |
2.49 |
|
0.36 |
|
|
(1.73 |
) |
8.37 |
|
1.20 |
|
Diluted |
|
(3.32 |
) |
2.44 |
|
0.35 |
|
|
(1.73 |
) |
8.21 |
|
1.18 |
|
JD.com, Inc. |
Unaudited Non-GAAP Net Income Per ADS |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to ordinary shareholders |
|
749,902 |
810,722 |
116,450 |
|
3,459,772 |
10,749,907 |
1,544,127 |
|
|
|
|
|
|
|
|
|
Weighted average
number of shares: |
|
|
|
|
|
|
|
|
Basic |
|
2,895,114 |
2,923,258 |
2,923,258 |
|
2,877,903 |
2,912,637 |
2,912,637 |
Diluted |
|
2,895,114 |
2,980,261 |
2,980,261 |
|
2,877,903 |
2,967,322 |
2,967,322 |
Diluted (Non-GAAP) |
|
2,937,822 |
2,980,261 |
2,980,261 |
|
2,943,379 |
2,967,322 |
2,967,322 |
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per ADS: |
|
|
|
|
|
|
|
|
Basic |
|
0.52 |
0.55 |
0.08 |
|
2.40 |
7.38 |
1.06 |
Diluted |
|
0.51 |
0.54 |
0.08 |
|
2.35 |
7.25 |
1.04 |
|
|
|
|
|
|
|
|
|
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 31,2018 |
December 31,2019 |
December 31,2019 |
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
6,028,130 |
|
3,701 |
|
532 |
|
|
20,881,422 |
|
24,781,220 |
|
3,559,600 |
|
Net cash provided by/(used in)
investing activities |
|
(2,188,115 |
) |
2,452,444 |
|
352,272 |
|
|
(26,078,992 |
) |
(25,349,357 |
) |
(3,641,208 |
) |
Net cash provided by/(used in)
financing activities |
|
(3,920,878 |
) |
3,087,869 |
|
443,545 |
|
|
11,219,928 |
|
2,572,467 |
|
369,512 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(130,541 |
) |
(390,963 |
) |
(56,160 |
) |
|
1,681,163 |
|
405,891 |
|
58,302 |
|
Net increase/(decrease) in
cash, cash equivalents and restricted cash |
|
(211,404 |
) |
5,153,051 |
|
740,189 |
|
|
7,703,521 |
|
2,410,221 |
|
346,206 |
|
Cash, cash equivalents and
restricted cash at beginning of period/(year) |
|
37,713,462 |
|
34,759,228 |
|
4,992,851 |
|
|
29,798,537 |
|
37,502,058 |
|
5,386,834 |
|
Cash, cash equivalents and
restricted cash at end of period/(year) |
|
37,502,058 |
|
39,912,279 |
|
5,733,040 |
|
|
37,502,058 |
|
39,912,279 |
|
5,733,040 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
6,028,130 |
|
3,701 |
|
532 |
|
|
20,881,422 |
|
24,781,220 |
|
3,559,600 |
|
Less: Impact from JD Baitiao receivables included in the
operating cash flow |
|
(5,793,961 |
) |
(311,718 |
) |
(44,775 |
) |
|
(7,369,421 |
) |
(4,233,884 |
) |
(608,160 |
) |
Add/(Less): Capital expenditures |
|
|
|
|
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds |
|
(2,515,276 |
) |
1,055,277 |
|
151,581 |
|
|
(8,857,569 |
) |
2,420,401 |
|
347,669 |
|
Other capital expenditures |
|
(1,720,252 |
) |
(903,487 |
) |
(129,778 |
) |
|
(12,511,925 |
) |
(3,514,741 |
) |
(504,861 |
) |
Free cash flow |
|
(4,001,359 |
) |
(156,227 |
) |
(22,440 |
) |
|
(7,857,493 |
) |
19,452,996 |
|
2,794,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JD.com, Inc. |
Supplemental Financial Information and Business Metrics |
|
|
Q4 2018 |
Q1 2019 |
Q2 2019 |
Q3 2019 |
Q4 2019 |
|
|
|
|
|
|
|
Free cash flow (in RMB billions) – trailing twelve months
(“TTM”) |
|
(7.9 |
) |
2.2 |
7.4 |
15.6 |
19.5 |
Inventory turnover days(6) – TTM |
|
38.7 |
|
36.5 |
36.3 |
35.1 |
35.8 |
Accounts payable turnover days(7) – TTM |
|
60.2 |
|
57.4 |
59.4 |
56.6 |
54.5 |
Accounts receivable turnover days(8) – TTM |
|
2.7 |
|
3.0 |
3.3 |
3.2 |
3.2 |
Annual active customer accounts (in millions) |
|
305.3 |
|
310.5 |
321.3 |
334.4 |
362.0 |
|
|
For the year ended December 31, |
|
|
2017 |
2018 |
2019 |
|
|
|
|
|
GMV(9) (in RMB billions) |
|
1,294.5 |
1,676.9 |
2,085.4 |
|
|
|
|
|
(6) Inventory turnover days are the quotient of average inventory
to cost of revenues of direct sales business for the last twelve
months and then multiplied by 360 days. (7) Accounts payable
turnover days are the quotient of average accounts payable of
direct sales business to cost of revenues of direct sales business
for the last twelve months and then multiplied by 360 days. (8)
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. (9) Gross Merchandise Volume (GMV) is 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 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. The calculation of 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. Therefore, it should not be used
as a financial metric. |
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 31,2018 |
December 31,2019 |
December 31,2019 |
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Income/(Loss) from operations |
|
(938,904 |
) |
529,547 |
|
76,065 |
|
|
(2,619,131 |
) |
8,994,880 |
|
1,292,033 |
|
Add: Share-based
compensation |
|
1,037,047 |
|
1,031,365 |
|
148,145 |
|
|
3,659,989 |
|
3,694,955 |
|
530,746 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
452,487 |
|
147,655 |
|
21,208 |
|
|
1,805,638 |
|
885,385 |
|
127,178 |
|
Reversal of: Effects of
business cooperation arrangements |
|
(237,651 |
) |
(190,139 |
) |
(27,312 |
) |
|
(956,248 |
) |
(822,161 |
) |
(118,096 |
) |
Reversal of: Gain on sale of
development properties |
|
- |
|
(814,412 |
) |
(116,983 |
) |
|
- |
|
(3,884,709 |
) |
(558,004 |
) |
Add: Impairment of goodwill
and intangible assets |
|
- |
|
- |
|
- |
|
|
22,317 |
|
- |
|
- |
|
Non-GAAP income from
operations |
|
312,979 |
|
704,016 |
|
101,123 |
|
|
1,912,565 |
|
8,868,350 |
|
1,273,857 |
|
Add: Depreciation and other
amortization |
|
1,162,228 |
|
1,261,687 |
|
181,231 |
|
|
3,754,396 |
|
4,942,671 |
|
709,970 |
|
Non-GAAP
EBITDA |
|
1,475,207 |
|
1,965,703 |
|
282,354 |
|
|
5,666,961 |
|
13,811,021 |
|
1,983,827 |
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
134,832,549 |
|
170,684,038 |
|
24,517,228 |
|
|
462,019,759 |
|
576,888,484 |
|
82,864,846 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
margin |
|
0.2 |
% |
0.4 |
% |
0.4 |
% |
|
0.4 |
% |
1.5 |
% |
1.5 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
margin |
|
1.1 |
% |
1.2 |
% |
1.2 |
% |
|
1.2 |
% |
2.4 |
% |
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 31,2018 |
December 31,2019 |
December 31,2019 |
|
December 31,2018 |
December 31,2019 |
December 31,2019 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable to ordinary shareholders |
|
(4,804,726 |
) |
3,633,954 |
|
521,985 |
|
|
(2,491,633 |
) |
12,184,155 |
|
1,750,144 |
|
Add: Share-based
compensation |
|
1,037,047 |
|
1,031,365 |
|
148,145 |
|
|
3,659,989 |
|
3,694,955 |
|
530,746 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
452,487 |
|
147,655 |
|
21,208 |
|
|
1,805,638 |
|
885,385 |
|
127,178 |
|
Add/(Reversal of): Reconciling items on the share of equity
method investments(10) |
|
(41,246 |
) |
155,358 |
|
22,316 |
|
|
581,785 |
|
456,468 |
|
65,568 |
|
Add: Impairment of goodwill, intangible assets, and
investments |
|
194,111 |
|
1,000,056 |
|
143,649 |
|
|
615,455 |
|
2,750,769 |
|
395,123 |
|
Add/(Reversal of): Loss/(Gain) from fair value change of
long-term investments, net of tax |
|
4,064,650 |
|
(4,210,355 |
) |
(604,780 |
) |
|
1,512,979 |
|
(3,495,710 |
) |
(502,127 |
) |
Reversal of: Gain and foreign exchange impact in relation to
sale of development properties |
|
- |
|
(814,412 |
) |
(116,983 |
) |
|
- |
|
(3,997,416 |
) |
(574,193 |
) |
Add/(Reversal of): Loss/(Gain) on disposals/deemed disposals of
investments |
|
107,557 |
|
(8,891 |
) |
(1,277 |
) |
|
(1,320,266 |
) |
(1,236,726 |
) |
(177,645 |
) |
Reversal of: Effects of business cooperation arrangements and
non-compete agreements |
|
(258,245 |
) |
(211,077 |
) |
(30,320 |
) |
|
(1,035,020 |
) |
(904,284 |
) |
(129,892 |
) |
Add/(Reversal of): Tax effects on non-GAAP adjustments |
|
(1,733 |
) |
87,069 |
|
12,507 |
|
|
130,845 |
|
412,311 |
|
59,225 |
|
Non-GAAP net income attributable to ordinary
shareholders |
|
749,902 |
|
810,722 |
|
116,450 |
|
|
3,459,772 |
|
10,749,907 |
|
1,544,127 |
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
134,832,549 |
|
170,684,038 |
|
24,517,228 |
|
|
462,019,759 |
|
576,888,484 |
|
82,864,846 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
margin |
|
0.6 |
% |
0.5 |
% |
0.5 |
% |
|
0.7 |
% |
1.9 |
% |
1.9 |
% |
|
|
|
|
|
|
|
|
|
(10) 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. |
1 The U.S. dollar (US$) amounts disclosed in
this press release, except for those transaction amounts that were
actually settled in U.S. dollars, are presented solely for the
convenience of the readers. The conversion of Renminbi (RMB) into
US$ in this press release is based on the exchange rate set forth
in the H.10 statistical release of the Board of Governors of the
Federal Reserve System as of December 31, 2019, which was RMB6.9618
to US$1.00. The percentages stated in this press release are
calculated based on the RMB amounts.2 See the sections entitled
“Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and
Non-GAAP Results” for more information about the non-GAAP measures
referred to in this press release.3 Annual active customer accounts
are customer accounts that made at least one purchase during the
twelve months ended on the respective dates, whether through online
direct sales or online marketplaces.4 Mobile monthly active users
in a given month are the number of unique mobile devices that were
used to visit JD mobile app at least once during that month.5
Fulfilled gross margin is calculated by dividing fulfilled gross
profit by net revenues. Fulfilled gross profit is defined as the
difference between net revenues and the total amount of cost of
revenues and fulfillment expenses.
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