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According to data compiled by Yahoo Finance, 10 Wall Street analysts on average expect JD.com to report a Non-GAAP diluted loss of 12 cents per American Depositary share in the fourth quarter. According to the report, JD.com's diluted loss per ADS in the fourth quarter was $0.07, higher than analysts' expectations.
In addition, the average estimate of 13 Wall Street analysts, Jingdong fourth quarter total revenue of 51.9 billion yuan. Jd.com reported total revenue of 54.6 billion yuan in the fourth quarter, higher than analysts expected.
On average, 22 Wall Street analysts expect JD.com to post a Non-GAAP diluted loss of $0.14 per American Depositary share (ADS) for 2015. According to the financial report, JD.com's diluted loss per ADS for the whole year of 2015 was $0.10, higher than analysts' expectations.
In addition, 31 Wall Street analysts on average expected Jingdong's total revenue in 2015 to be 178.78 billion yuan. According to the financial report, Jingdong's total revenue in 2015 was 181.3 billion yuan, higher than analysts' expectations.
Highlights of fiscal 2015 fourth Quarter and Full Year results
Total transaction volume (GMV) in the fourth quarter of 2015 reached 145.3 billion yuan, an increase of 69% year-on-year. In the fourth quarter of 2015, JD.com's Core GMV (total transaction value excluding Paipai's transaction value) increased 79% year-on-year to 143.2 billion yuan. The total transaction volume for the whole year of 2015 reached 462.7 billion yuan (about 71.4 billion U.S. dollars), an increase of 78 percent year-on-year. The total value of core transactions for the whole year of 2015 increased by 84% year-on-year to 446.5 billion yuan (about $68.9 billion).
Net revenue for the fourth quarter of 2015 was RMB54.6 billion, an increase of 57% year-on-year. Net revenue from services and other items (mainly from e-commerce platform business) in the fourth quarter was 4.7 billion yuan, an increase of 101% year-on-year. Net revenue for the full year of 2015 was 181.3 billion yuan (about 28 billion U.S. dollars), up 58 percent year-on-year. For the full year 2015, net revenue from services and other items (primarily from e-commerce platform business) increased by 110% year-on-year.
Net loss attributable to common shareholders for the fourth quarter of 2015 was $7.6 billion, primarily due to the impairment of Paipai.com and the recognized impairment of certain investments during the quarter. Non-GAAP net loss attributable to common shareholders was $656.2 million and non-GAAP net margin was -1.2%. For the full year 2015, Non-GAAP net loss attributable to common shareholders was RMB850.5 million (approximately US $131.3 million) and non-GAAP net profit margin was -0.5%.
Core business annual active users increased from 90.6 million for the 12-month period ended December 31, 2014 to 155 million for the 12-month period ended December 31, 2015, an increase of 71% over the same period last year. For the 12 months ended December 31, 2015, excluding single users of JD Finance and O2O, the number of annual active users of JD Mall increased to 153.6 million, an increase of 70% over the same period last year.
Orders for the core business in the fourth quarter of 2015 were 417.8 million, an increase of 100% compared to 208.7 million in the fourth quarter of 2014. In the fourth quarter of 2015, the order volume of core business completed through mobile terminal channels accounted for about 61.4% of the total core business order volume, an increase of more than 230%. Orders in the core business for the full year of 2015 were 1,263.1 million, an increase of 94% compared with 651.9 million in 2014.
Qiangdong Liu, Chief Executive Officer of JD Group, said: "China's middle class consumers are increasingly demanding brands and quality, and JD has won the favor of more and more Chinese consumers by providing a trustworthy and convenient e-commerce shopping experience. As we continue to strive to win consumer trust, many leading brands increasingly value JD's high-quality users, reputation for authentic goods and industry-leading logistics network, and our cooperation with these brands will be further deepened."
"In the fourth quarter of 2015, JD.com's core business, Jingdong Mall, continued its strong growth, and net income far exceeded our expectations while controlling operational efficiency." Mr. Xuande Huang, Chief Financial Officer of JD.com, said, "In the coming quarters, we will continue to invest in our fast-growing new businesses while improving the profitability of our core business. As China's middle class grows, we expect continued solid growth in the coming year."
New business development
In February 2016, JD.com held a fashion launch show at New York Fashion Week, demonstrating JD.com's surging strength in China's fashion field. With the increasing fashion and brand awareness of Chinese consumers, JD's grasp of the global trend of quality and fashion has been widely recognized by Chinese consumers.
Jd.com's commitment to authentic goods and efficient logistics has attracted high-quality brands including Procter & Gamble and Rakuten, Japan's leading e-commerce company. In the fourth quarter, P&G upgraded its strategic cooperation with Jingdong Mall, its high-end skin care brand SK-II entered Jingdong's self-operated platform with all its products, and Japan's Rakuten opened an official flagship store on Jingdong's cross-border e-commerce platform Jingdong Global Purchase for trial operation. At present, the main categories include beauty, snacks and health products.
Jd.com signed a strategic cooperation agreement with Li Ning, a popular Chinese sportswear brand, to provide Li Ning with overall logistics solutions for products to stores in specific regions. The combination of the two sides will allow Li Ning to be comprehensively optimized in terms of inventory allocation and operational efficiency.
In January 2016, JD Finance announced that it received investment from investors led by Sequoia Capital China Fund, Harvest Capital and China Taiping, raising a total of 6.65 billion yuan. The funding round values JD Finance at $46.65 billion. The financing transaction was completed on March 1, 2016. Jd Group will still control a majority stake in JD Finance.
Jd.com Group's O2O platform JD Home and China's leading supermarket chain Yonghui supermarket jointly announced the landing of business cooperation between the two sides. As of February 29, 2016, JD Home cooperated with 56 Yonghui supermarket stores in 5 cities to provide two-hour delivery service for customers' orders in Yonghui supermarket. At present, JD Home offers O2O services to consumers in 12 major cities in China.
In the fourth quarter, JD.com continued to enhance its leading position in self-built logistics in China's e-commerce sector. As of December 31, 2015, JD operated 213 large warehouses across the country, covering 50 cities across the country with a total area of approximately 4 million square meters, including six self-built Asia No. 1 warehouses. Jd.com operates 5,367 delivery stations and pick-up points, and more than 85% of its self-operated orders achieved same-day and next-day delivery in 2015.
As of December 31, 2015, there were approximately 99,000 merchants on JD's third-party platform. As of December 31, 2015, JD had a total of 105,963 permanent employees.
Fourth Quarter 2015 Financial results
Core transaction volume and net income
Core transactions in the fourth quarter of 2015 totaled 143.2 billion yuan (approximately $22.1 billion), an increase of 79% year-on-year. In the fourth quarter of 2015, the total value of core transactions on online proprietary and third-party platforms was 78.7 billion yuan and 64.5 billion yuan, respectively, an increase of 63% and 103% over the fourth quarter of 2014. Core transactions for electronics and home appliances in the fourth quarter of 2015 totaled RMB70.1 billion, up 66% from the fourth quarter of 2014, while core transactions for general merchandise and other categories totaled RMB73.1 billion, up 92% from the fourth quarter of 2014. In the fourth quarter of 2015, total core transactions of commodities and other categories of commodities increased to 51.0% of total core transactions, compared to 47.4% in the fourth quarter of 2014.
In the fourth quarter of 2015, JD.com's net revenue was 54.6 billion yuan (about $8.4 billion), an increase of 57% year-on-year. The increase in total core transactions and net income in the quarter was mainly due to the increase in the number of active users and completed orders of JD.com in the fourth quarter of 2015. In the fourth quarter of 2015, JD.com's net revenue from its online self-operated business increased by 54% year-on-year, and net revenue from services and other items increased by 101% year-on-year, mainly driven by the rapid expansion of JD.com's third-party open platform business, advertising services and logistics services provided to third-party merchants.
Net loss attributable to common shareholders and Non-GAAP net profit attributable to common shareholders /(net loss)
Net loss attributable to common shareholders for the fourth quarter of 2015 was 7.6 billion yuan (approximately $1.2 billion), compared to a net loss of 500 million yuan in the same quarter last year. The increase in net loss attributable to common shareholders was primarily due to the impairment of goodwill and intangible assets related to the cessation of operations of the company on December 31, 2015, as well as the impairment of certain investments recognized during the quarter. Non-GAAP net loss attributable to common shareholders in the fourth quarter of 2015 was RMB656.2 million (approximately US $101.3 million), compared with non-GAAP net income attributable to common shareholders of RMB83.8 million in the fourth quarter of last year.
Net loss per American Depositary Share and Non-GAAP Net profit /(net loss) per American Depositary Share
The net loss per American Depositary share in the fourth quarter of 2015 was 5.57 yuan (approximately $0.86), compared to a net loss per American Depositary share of 0.33 yuan in the fourth quarter of 2014. Non-GAAP net loss per American Depositary share was RMB0.48 (approximately US $0.07) in the fourth quarter of 2015, compared with net income per American Depositary share of RMB0.06 in the fourth quarter of 2014.
Full year 2015 financial results
Core transaction volume and net income
The total value of core transactions for the whole year of 2015 was 446.5 billion yuan (about US $68.9 billion), an increase of 84% year-on-year. The total core transactions of online self-operated and third-party platforms for the whole year of 2015 were 255.6 billion yuan and 190.9 billion yuan, respectively, an increase of 60% and 129% over the whole year of 2014. The total core transaction volume of electronic and home appliance products for the whole year of 2015 was 228.9 billion yuan, an increase of 65% over 2014, while the total core transaction volume of daily necessities and other categories of goods for the whole year of 2015 was 217.6 billion yuan, an increase of 109% over 2014. Compared with 42.8% in 2014, the total core transactions of daily commodities and other categories of commodities in 2015 increased to 48.7% of the total core transactions.
For the whole of 2015, JD.com's net revenue was 181.3 billion yuan (about 28 billion U.S. dollars), up 58 percent year on year. The increase in total core transactions and net income for the year was mainly due to the increase in the number of active users and completed orders of JD throughout 2015. For the full year of 2015, JD.com's net income from its online self-operated business increased by 55% year-on-year, and net income from services and other items increased by 110% year-on-year, mainly driven by the rapid expansion of JD.com's third-party open platform business, advertising services and logistics services provided to third-party merchants.
Net loss attributable to common shareholders and Non-GAAP net profit attributable to common shareholders /(net loss)
Net loss attributable to common shareholders for the full year 2015 was 9.4 billion yuan (approximately $1.4 billion), compared to a net loss of 5 billion yuan last year. Non-GAAP net loss attributable to common shareholders for the full year 2015 was RMB850.5 million (approximately US $131.3 million), compared with net income attributable to common shareholders of RMB362.7 million last year.
Net loss per American Depositary Share and Non-GAAP Net profit /(net loss) per American Depositary Share
The net loss per American Depositary share for the full year 2015 was RMB6.86 (approximately US $1.06), compared with a net loss per American Depositary share of RMB10.71 for the full year 2014. Non-GAAP net loss per American Depositary share for the full year 2015 was RMB0.62 (approximately US $0.10), compared with net income per American Depositary share of RMB0.30 for the full year 2014.
