Jingdong 580 million losses is how tempered?


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jingdong listed after the first results, the media have played chicken blood, whether it’s rose 64% to 28.6 billion yuan net revenue, or doubled to 63 billion compared to the total amount of commodities trading (GMV).

but, the most interesting, is the jingdong this quarter expanded 1957% year-on-year, huge losses as high as 582.5 million yuan.

according to jingdong official explains, “a net loss of year-on-year increase stems mainly from agreement with tencent’s strategy of assets and businesses involved in the acquisition of amortization of intangible assets.”

the fact really?

losses come from?

according to the results, jingdong the net revenue growth of 64% year-on-year; In some ways, in jingdong all expenses, growth rate of more than 64% of the project can be considered to be the cause of the losses.

in jingdong all expenses, big revenue cost is 25.5 billion yuan, increased by 60% year-on-year, is not a loss to expand the culprit.

perform spending spending (procurement, storage, delivery and customer service, etc.) is 2 billion yuan, 978 million yuan rose by 105% than the same period last year, is part of its losses.

marketing spending 1.066 billion yuan, 428 million yuan rose by 149% last year compared to the same; According to jingdong, this part of the growth is mainly due to the cooperation with tencent’s strategy of intangible assets amortization expenses.

spending on technology and content is 420 million yuan, year-on-year growth of 92% last year, 218.2 million yuan; The cause of the growth and the increase of technical personnel after tencent reached cooperation.

general administrative expenses of RMB 455 million, 160 million yuan rose by 184% than the same period last year, growth is the cause of cooperation with tencent as a result of amortization of intangible assets and equity incentive.

relative to the amortization of intangible assets, as a result of working with tencent, jingdong issuing equity incentive for this quarter?

209 million: a neglected number

according to the results of jingdong, 582.5 million yuan of huge losses is the product of under us gaap, in the same period last year net loss was 28.32 million yuan; And not according to us gaap, jingdong second-quarter net loss of 11.84 million yuan, net income of 37.5 million yuan a year earlier.

between 582.53 million and 11.84 million yuan, there is a what kind of contact?

jingdong results show that, when calculating the net profit of accounting for general criteria, is to get rid of a 208.93 million yuan based on equity incentive and based on the assets and business acquisition as a result of intangible assets amortization expense 361.76 million yuan. But relative to the same period of last year’s $62.62 million equity incentive, this quarter’s $208.93 million equity incentive increased by 234%, the absolute value also increased by 146.31 million yuan.

this is not a negligible number.

add: jingdong second-quarter earnings

reported, jingdong net revenue in the second quarter of 2014 to achieve 28.6 billion yuan ($4.6 billion), up 64% from a year earlier. A net loss of 582.5 million yuan ($93.9 million), 28.3 million yuan to expand losses than the same period last year.

jingdong total trade in goods (GMV) in the second quarter to 63 billion yuan ($10.2 billion), up 107% from a year earlier.

jingdong active number of users in the second quarter of 38.1 million, compared with 19.6 million growth of 94% over the same period last year.

jingdong fulfill orders in the second quarter of 163.7 million, compared with 72.6 million growth of 126% over the same period last year. Among them, the mobile terminal orders in accounted for about 24% of total orders.

jingdong CEO liu said, “the jingdong achieved strong quarterly growth, more than our target, market share growth have been achieved. As a direct online market leader in China, we are pleased to see Beijing orthodox become China’s most popular and the most reliable quality goods purchase site, we also have a first-class customer service, based on its own the last kilometer of distribution network is convenient and fast delivery service.”

he said, “in the future, we will focus on through the platform to expand our product/service category, and the optimization of our mobile products and permeate to the rapid growth of underdeveloped city, to strengthen the jingdong market leading position. We believe that these strategic action, plus a Chinese market overall trend of B2C electronic business, will lay a solid foundation for our long-term economic growth.”

“we consistent performance in the second quarter, provide the best customer service and reflect our current efforts to improve operational efficiency.” Jingdong, chief financial officer Sidney huang said, “the strong balance sheets and the support of free cash flow, we will continue to strategic investment in logistics infrastructure, technology and new business projects, to further strengthen our direct sales in China B2C electrical dealer market leading position.”

second quarter results in

Beijing east in the second quarter of the total amount of commodities trading (GMV) to 63 billion yuan ($10.2 billion), up 107% from a year earlier. From the direct online business and fair business GMV 39.2 billion yuan and 23.8 billion yuan respectively, 23.6 billion yuan and 6.9 billion yuan higher than the same period last year. GMV from electronic appliances is 34.8 billion yuan, 20 billion yuan higher than the same period last year; GMV from daily provisions and other goods is 28.2 billion yuan, 10.5 billion yuan higher than the same period last year. Daily provisions and other commodities GMV 44.8%, up from 34.6% during the same period last year.

Beijing east in the second quarter net revenue of 28.6 billion yuan ($4.6 billion), up 64% from a year earlier. GMV and net revenue growth, mainly because of increased active users as well as the growth in orders. Net revenue from online direct marketing business grew by 60% year on year; From service and other business net revenue growth of 186%, year-on-year growth mainly benefit from the rapid expansion of online platform and advertising services, the company’s income increase.

operating cost is RMB 25.5 billion, 60% above the 15.9 billion yuan from a year earlier. This is mainly because the company’s direct selling business growth.

the logistics cost is RMB 2 billion yuan, 105% above the 1 billion yuan from a year earlier.

marketing cost is RMB 1.1 billion yuan, 149% above the 400 million yuan from a year earlier.

technology and content of cost is RMB 420 million yuan, 92% above the 218.2 million yuan from a year earlier.

general management fee of RMB 455.4 million, 184% above the 160.6 million yuan from a year earlier.

Beijing east in the second quarter net loss of 582.5 million yuan ($93.9 million), 28.3 million yuan higher than the same period last year. Its losses mainly because assets related to tencent strategic cooperation with the business acquisition of amortization of intangible assets. Not according to us gaap, jingdong second-quarter net loss of 11.8 million yuan ($1.9 million), and the same period of last year to profit is 37.5 million yuan RMB.

The

the second quarter of jingdong ADS net loss per share were 5.86 yuan ($0.94), 0.57 yuan higher than the same period last year. Not according to us gaap, ADS net loss per share were 0.01 yuan, and in the same period last year for ADS earnings per share 0.04 yuan.

cash flow and working capital

as of June 30, 2014, jingdong holdings of cash and cash equivalents, limited cash and short-term investments totaling 35.2 billion yuan, the above as of December 31, 2013, 14.6 billion yuan.

2014 in the third quarter earnings outlook

jingdong in the third quarter net revenue is expected to be between 28 billion yuan and 29 billion yuan, an increase of 55% to 61%.

source: netease science and technology