SHANGHAI, May 31, 2018 /PRNewswire/ -- JMU Limited (the "Company" or "JMU") (NASDAQ: JMU), a leading B2B online e-commerce platform that provides integrated services to suppliers and customers in the foodservice industry in China, today announced its financial results for the three months ended March 31, 2018.

First Quarter 2018 Highlights  

  • Revenues in the first quarter of 2018 were $29.5 million, representing an increase of 50.1% from $19.7 million in the first quarter of 2017.
  • Gross profit was $225 thousand in the first quarter of 2018, improved from $106 thousand in the first quarter of 2017.
  • B2B online platform recorded gross billing of RMB2.2 billion (US$344.2 million) in the first quarter of 2018, measured in terms of gross merchandise value ("GMV"), increasing 5.2% from gross billing of RMB2.1 billion (US$298.1 million) in the first quarter of 2017.
  • Active customer accounts were 33,025 as of March 31, 2018, decreasing 1.6% from 33,559 as of March 31, 2017.
  • Third-party sellers on the Company's online marketplace decreased to 15,710 compared to 16,789 as of March 31, 2017.

Ms. Xiaoxia Zhu, Chairperson and Chief Executive Officer commented, "We are pleased to deliver revenue and gross profit growth in the first quarter of 2018 compared to the same period of 2017. This demonstrates solid execution of our business, which aims to maintain strength in our existing market while also capturing new market opportunities that can contribute to our development."

"Through our strategic partnerships and development of Ready-to-Cook and Ready-to-Eat products, we are able to expand our portfolio of products and services that fulfill a wide range of customer demands. We look forward to continuing to build our company's market position and maintaining operational efficiency as we scale the business." Ms. Zhu concluded.

First Quarter 2018 Financial Performance  

Revenues were $29.5 million for the first quarter of 2018, representing an increase of 50.1% from $19.7 million in the first quarter of 2017. The growth of revenue in the first quarter of 2018 was mainly due to the increase in order volumes.

Cost of revenues was $29.3 million for the first quarter of 2018, increasing 49.8% from $19.6 million in the first quarter of 2017, which was generally in line with the growth of the Company's revenues.

Gross profit for the first quarter of 2018 was $225.0 thousand, representing a 112.3% increase from $105.9 thousand in the first quarter of 2017.

Selling and marketing expenses in the first quarter of 2018 decreased 58.0% to $1.6 million from $3.9 million in the first quarter of 2017. As a percentage of total revenue, selling and marketing expense was 5.5% and 19.7% in the first quarter of 2018 and the same period of 2017, respectively.

General and administrative expenses in the first quarter of 2018 were $1.2 million, representing a decrease of 32.8% compared to $1.8 million in the first quarter of 2017. As a percentage of total revenues, general and administrative expenses were 4.2% and 9.3% in the first quarter of 2018 and the same period 2017, respectively. The decrease was primarily a result of the Company's improvement in management and operational efficiency.

Loss from operations in the first quarter of 2018 was $2.6 million, a 53.0% decrease from a loss from operations of $5.6 million in the first quarter of 2017.

Net loss attributable to the Company in the first quarter of 2018 was $2.7 million, representing a decrease of 46.3% compared to $5.1 million in the first quarter of 2017. Non-GAAP net loss attributable to the Company, which excludes amortization of acquired intangible assets, impairment loss, share-based compensation, and related provision for income tax benefits, was $2.3 million in the first quarter of 2018 compared to $3.0 million in the same period of 2017. For the quarters ended March 31, 2018 and March 31, 2017, the Company's weighted average number of ordinary shares used in computing loss per ordinary share was 1,476,257,423 and 1,475,946,602, respectively.

As of March 31, 2018, the Company's cash and cash equivalents were $1.5 million, decreasing 68.5% compared to $4.9 million as of December 31, 2017. Total shareholders' equity was $104.8 million as compared to $103.6 million as of December 31, 2017.

Non-GAAP Measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use various non-GAAP financial measures that are adjusted from results based on U.S. GAAP to exclude amortization of acquired intangible assets, impairment loss, share-based compensation and related provision for income tax benefits.

Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.

Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP financial results. In addition, our calculation of this non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.

Our non-GAAP information (including non-GAAP loss from operations and net loss attributable to the Company) which is adjusted from results based on U.S. GAAP to exclude amortization of acquired intangible assets, impairment loss , share-based compensation and income tax benefits. A limitation of using these non-GAAP financial measures is that amortization of acquired intangible assets, impairment loss , share-based compensation and related provision for income tax benefits have been and may continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for these limitations by providing reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures. Please see the reconciliation tables at the end of this earnings release.

About JMU Limited

JMU Limited currently operates China's leading B2B online e-commerce platform that provides integrated services to suppliers and customers in the catering industry. With the help of Internet and cloud technologies, JMU has the vision to reshape the procurement and distribution pattern and build a fair business ecosystem in the catering industry in China. JMU is further promoting the use of its platform for small- and medium-sized restaurants and restaurant chains in China.

Through cooperation with national and local industry associations and reputable restaurant groups across China, JMU has formed a leading industrial alliance and has great resource leverage in China's catering industry. JMU works closely with suppliers and customers in the catering industry, providing one-stop procurement services, as well as other value-added services. For more information, please visit: http://ir.ccjmu.com.

Safe Harbor Statement 

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "aim", "anticipate", "believe", "estimate", "expect", "going forward", "intend", "ought to", "plan", "project", "potential", "seek", "may", "might", "can", "could", "will", "would", "shall", "should", "is likely to" and the negative form of these words and other similar expressions. Among other things, statements that are not historical facts, including statements about JMU's beliefs and expectations, the business outlook and quotations from management in this announcement, as well as JMU's strategic and operational plans, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: The general economic and business conditions in China may deteriorate. The growth of Internet and mobile user population in China might not be as strong as expected. JMU's plan to enhance customer experience, upgrade infrastructure and increase service offerings might not be well received. JMU might not be able to implement all of its strategic plans as expected. Competition in China may intensify further. All information provided in this press release is as of the date of this press release and are based on assumptions that we believe to be reasonable as of this date, and JMU does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact:

Freda Feng, IR Director
JMU Limited
fengxiaohong@ccjmu.com 
Tel: +86-21-6015-1166 ext.8904

Bill Zima
ICR Inc.
bill.zima@icrinc.com 
Tel: +1(203)-682-8200

 

JMU LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars in thousands, except for number of shares and per share (or ADS) data)


Three Months Ended

March 31,
2017


March 31,
2018





Related parties 

3,142


3,648

Third parties 

16,540


25,899

Total Revenues

19,682


29,547

Cost of revenues

(19,576)


(29,322)

Gross profit 

106


225





Operating expenses:




Selling and marketing

(3,868)


(1,626)

General and administrative 

(1,833)


(1,232)

Impairment loss

-


-

Total operating expenses

(5,701)


(2,858)

Loss from operations

(5,595)


(2,633)

Interest expense

(17)


(221)

Other income, net

35


61

Loss before provision for income taxes

(5,577)


(2,793)

Income tax benefits

497


64

Net loss

(5,080)


(2,729)





Net loss per ordinary share




Basic

(0.00)


(0.00)

Diluted

(0.00)


(0.00)

Weighted average shares used in calculating net loss per
ordinary share




Basic

1,475,946,602


1,476,257,423

Diluted

1,475,946,602


1,476,257,423

 

 

JMU LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(US dollars in thousands)


Three Months Ended

March 31,
2017


March 31,
2018









Net loss

(5,080)


(2,729)

Other comprehensive income, net of tax of $nil:




     Change in cumulative foreign currency translation adjustment

2,150


3,887

Comprehensive (loss)/income

(2,930)


1,158

 

 

JMU LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)





December 31,
2017


March 31,
2018

ASSETS:





Current assets:





Cash and cash equivalents


4,912


1,545

Accounts receivable, net


3,296


8,376

Inventories


539


589

Prepaid expenses and other current assets, net


2,246


2,092

Amounts due from related parties


3,063


6,641

Total current assets


14,056


19,243

Non-current assets:





Property and equipment, net


1,795


1,741

Acquired intangible assets, net


10,264


10,319

Investment


768


797

Goodwill


108,940


112,999

Deferred tax assets


157


146

Other non-current assets


162


152

Total non-current assets


122,086


126,154

TOTAL ASSETS


136,142


145,397

LIABILITIES AND SHAREHOLDER'S EQUITY:





Current liabilities:





Short-term bank borrowings 


7,685


7,971

Accounts and notes payable


3,981


9,127

Accrued expenses and other current liabilities 


9,292


7,756

Advance from customers 


1,244


933

Amounts due to related parties


604


2,253

Total current liabilities


22,806


28,040

Non-current liabilities:





Other non-current liabilities 


1,534


1,619

Deferred tax liabilities 


2,565


2,580

Amount due to related parties 


5,686


8,322

Total non-current liabilities


9,785


12,521

TOTAL LIABILITIES


32,591


40,561

Commitments and contingencies





Shareholders' equity:





Ordinary shares 


15


15

Additional paid-in capital


634,071


634,198

Accumulated deficit


(513,903)


(516,632)

Accumulated other comprehensive loss


(16,632)


(12,745)

Total shareholders' equity


103,551


104,836

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


136,142


145,397

 

 

JMU LIMITED
Reconciliation of Non-GAAP financial measures
to comparable GAAP measures
(US dollars in thousands)








Three Months Ended



March 31,
2017


March 31,
2018

Loss from operations


5,595


2,633

Net loss attributable to JMU Ltd.


5,080


2,729






Amortization of acquired intangible assets

a

2,050


324

Provision for income tax benefits

b

(497)


(64)

Share-based compensation

c

534


125

Impairment loss

d

-


-






Non-GAAP loss from operation(a)(c)(d)


3,011


2,184

Non-GAAP net loss attributable to JMU Ltd.(a)(b)(c)(d)


2,993


2,344






Note:

(a) Adjustment to exclude amortization of acquired intangible assets

(b) Adjustment to exclude income tax benefits

(c) Adjustment to exclude share-based compensation

(d) Adjustment to exclude impairment loss

 

 

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SOURCE JMU Ltd


Source: JMU Ltd