JD.com (JD) is one of our favorite Chinese e-commerce growth plays. In fact, we said plainly the name could soar. We have been following the story for quite some time. Most recently we discussed an important move the company made as moved to push a blockchain accelerator. A key move indeed that you should be aware of. That said, for the longer-term, we need to keep an eye on performance. The company has just reported earnings, and JD is trading with volatility. In the present column, we discuss the results and our take going forward.
Top line
We were very pleased with the top line. Net revenues for the fourth quarter of 2017 were RMB110.2 billion (US $16.9 billion), an increase of 38.7% from the fourth quarter of 2016. Revenues from services and others for the fourth quarter of 2017 were RMB10.0 billion (US $1.5 billion), an increase of 54.7% from the fourth quarter of 2016.
Things were strong for the year as well. Net revenues for the full year of 2017 were RMB362.3 billion (US $55.7 billion), an increase of 40.3% from the full year of 2016. Revenues from services and others increased by 49.9% in 2017. This is stellar growth, but did the company turn a profit?
Profit metrics
Profit also rose versus last year, which is a very promising sign. Gross profit for the fourth quarter of 2017 was RMB14.4 billion (US $2.2 billion), compared to RMB10.8 billion in the fourth quarter of 2016.
For the year, gross profit for the full year of 2017 was RMB50.8 billion (US $7.8 billion), an increase of 43.7% from the full year of 2016. Adjusted gross profit for the full year of 2017 was RMB50.0 billion (US $7.7 billion), an increase of 44.7% from the full year of 2016.
However, there are still GAAP losses. Net loss from continuing operations in Q4 2017 was RMB909.2 million (US $139.7 million), a decrease of 27.9% from RMB1,261.4 million net loss for the same period last year. Adjusted net income from continuing operations attributable to ordinary shareholders5 for the fourth quarter of 2017 was RMB449.3 million (US$69.1 million), compared to RMB779.7 million for the same period last year.
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