JD.com net revenues surge, loss widens

JD.com, China's online direct sales company in its unaudited financial results for the fourth quarter and full year ended December 31, 2015 said that net revenues for the fourth quarter were 54.6 billion Chinese Yuan (8.3 billion dollars), an increase of 57 percent. Net revenues for the full year were 181.3 billion Chinese Yuan (27.6 billion dollars), an increase of 58 percent.

“JD.com’s strong momentum continued with another period of solid growth in the fourth quarter,” said Richard Liu, CEO of JD.com, adding, “China’s middle class consumers increasingly demand quality brands and authentic products, and we have been very effective at winning over more customers by introducing them to the most reliable and convenient online shopping experience in China.”

Q4 and full year financial highlights

Net revenues from services and others, mainly from the company’s e-commerce platform business increased 101 percent in the fourth quarter and 110 percent in 2015. GMV for the quarter increased 69 percent and 78 percent for the full year. GMV excluding Paipai.com during the quarter increased by 79 percent and 84 percent year-over-year, for 2015.

Net loss attributable to ordinary shareholders for the quarter was 7.6 billion Chinese Yuan (1.1 billion dollars). Non-GAAP net loss attributable to ordinary shareholders was 656.2 million Chinese Yuan (100.1 million dollars) with a non-GAAP net margin of negative 1.2 percent. Non-GAAP net loss attributable to ordinary shareholders for the full year of 2015 was 850.5 million Chinese Yuan (129.8 million dollars) and non-GAAP net margin was negative 0.5 percent.

Annual active customer accounts from core business increased by 71percent to 155 million in the 12 months ended December 31, 2015 from 90.6 million in 2014. Annual active customer accounts from JD Mall, excluding unique customers from JD Finance and O2O, increased by 70 percent to 153.6 million in the 12 months ended December 31, 2015.

Fourth quarter results in detail

Core GMV for the fourth quarter was up 79 percent from the fourth quarter of 2014. Core GMV from the online direct sales and online marketplace businesses increased 63 percent and 103 percent, respectively. Core GMV from general merchandise and others increased 92 percent from the fourth quarter of 2014.

JD.com reported net revenue rise of 57 percent primarily due to the growth in active customer accounts and the number of fulfilled orders in the fourth quarter of 2015. Net revenues from online direct sales increased by 54 percent, while net revenues from services and others increased by 101percent, primarily due to the increased revenues from the Company’s rapidly expanding online marketplace, advertising services and third-party logistics services.

Full year results in detail

Core GMV for the full year of 2015 was up 84 percent and Core GMV from the online direct sales and online marketplace business increased 60 percent and 129 percent. Core GMV from general merchandise and others increased 109 percent from the full year of 2014. Core GMV from general merchandise and others increased to 48.7 percent of total Core GMV.

JD.com reported net revenue rise of 58 percent on the back of growth in active customer accounts and the number of fulfilled orders in the full year of 2015. Net revenues from online direct sales increased by 55 percent, while net revenues from services and others increased by 110 percent.

First quarter 2016 guidance

Net revenues for the first quarter of 2016 are expected to be between 53 billion Chinese Yuan (8 billion dollars) and 55 billion Chinese Yuan (8.3 billion dollars), representing a growth rate between 45 percent and 50 percent compared with the first quarter of 2015.