The interpretation of the Jingdong in 2014 earnings why should there be a huge loss of 5 billion yua


DoNews March 4th news (reporter Zhou Qinyan) Jingdong (Nasdaq:JD) yesterday released the 2014 fiscal year fourth quarter and full year earnings.

reported fourth quarter net revenues of 34 billion 700 million yuan ($5 billion 600 million), an increase of 73%. Net loss of 454 million 300 thousand yuan (about $73 million 200 thousand), while the net loss of 110 million yuan a year earlier. 2014 Jingdong net income of 115 billion yuan (about $18 billion 500 million), an increase of 66%. Compared to the same period last year, a net loss of 50 million yuan, net loss in fiscal year 2014 was $5 billion (about $800 million).

after the earnings release, Jingdong chairman and CEO Liu Qiangdong, chief financial officer Huang Xuande and Jingdong mall CEO Shen Haoyu attended the conference call with analysts, on earnings for the interpretation, and answer analyst questions.

: from the huge loss of 5 billion equity incentive and Tencent

according to the results, the Jingdong in 2014 fourth quarter revenue of 34 billion 700 million yuan, up 73% over the same period last year; net loss of 454 million 300 thousand yuan, the same period last year net loss of 110 million yuan; Jingdong 2014 annual revenue of 115 billion yuan, a year-on-year increase of 66%, net loss of 4 billion 996 million yuan last year, net loss of 49 million 899 thousand yuan.

data show that despite rapid growth in revenue, but the loss of the same period has been increasing.


report also showed that Jingdong 2014 annual revenue cost of 101 billion 600 million yuan, compared with the previous fiscal year of 62 billion 500 million yuan increase of 63%; among them, the distribution cost is 8 billion 100 million yuan, compared with the previous fiscal year of 4 billion 100 million yuan increase of 96%; marketing costs 4 billion yuan, compared with the previous fiscal year of 1 billion 600 million yuan increase of 152%; the technology and content costs 1 billion 800 million yuan, compared with the previous fiscal year of 1 billion yuan increase of 91%; general and administrative expenses were 5 billion 300 million yuan, last year was 800 million yuan, an increase of 562.5% over the previous year.

but the cost increase is not due to the huge loss of Jingdong. The main reason for the loss is the cost of equity incentive, as well as the amortization of intangible assets arising from the acquisition of assets and business acquisitions of strategic cooperation with Tencent. The annual loss of 4 billion 941 million yuan is mainly from the following two aspects of expenditure:

is listed on the eve of the board of directors of Jingdong to Jingdong chairman Liu Qiangdong accounted for 4% of the shares of Jingdong stock option awards, amortization of $3 billion 600 million. Jingdong listing prospectus shows that in the first quarter of 2014, the company has a $3 billion 670 million equity compensation expense, mainly to give Jingdong CEO Liu Qiangdong 93 million 780 thousand and 970 shares of restricted shares. If the removal of Liu Qiangdong won the "grand prize", the year 2014, Jingdong will significantly reduce losses to 1 billion 26 million yuan. >

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