Executive Summary

• JD.com reported 1Q17 revenues of ¥76.23 billion, up 41% year over year, and beating the consensus estimate of ¥73.60 billion. Non-GAAP diluted earnings per ADS was ¥1.01, compared to a net loss per ADS of ¥0.15 for 1Q16.
• Total gross merchandise volume (GMV) reached ¥184.1 billion in 1Q17, an increase of 42% year over year. General merchandise contributed 50% of total GMV, up from 48% in the year-ago period.
• On March 1, JD.com announced the establishment of JD Logistics, a new business group under the JD.com umbrella. The move allows the logistics arm to be run more autonomously, and together with its strong logistics capability, should help it to better serve third-party business partners.
• JD.com anticipates the reorganization of JD Finance to be completed within 2Q17. It will receive approximately ¥14.3 billion in cash and profit-sharing rights for 40% of the future pretax profit of JD Finance once the deal is closed.