Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Document Period End Date | Dec. 31, 2017 |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Registrant Name | Jumei International Holding Ltd |
Entity Central Index Key | 1,597,680 |
Current Fiscal Year End Date | --12-31 |
Trading Symbol | JMEI |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 149,884,681 |
Class A ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 92,992,483 |
Class B ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 56,892,198 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 401,147 | $ 61,655 | ¥ 2,301,471 |
Short-term investments | 1,972,277 | 303,133 | 700,000 |
Loans receivable, net | 73,330 | 11,271 | 0 |
Accounts receivable, net | 22,334 | 3,433 | 28,868 |
Inventories | 603,091 | 92,693 | 646,116 |
Advances to suppliers | 19,173 | 2,947 | 20,704 |
Prepayments and other current assets | 294,695 | 45,294 | 197,867 |
Total current assets | 3,386,047 | 520,426 | 3,895,026 |
Non-current assets: | |||
Long-term investments | 554,591 | 85,239 | 515,699 |
Investment security | 88,933 | 13,669 | 79,298 |
Loans receivable, net | 0 | 0 | 73,330 |
Property, equipment and software, net | 516,582 | 79,397 | 53,602 |
Construction in process | 4,229 | 650 | 5,645 |
Land use right, net | 80,846 | 12,426 | 82,527 |
Intangible assets, net | 26,630 | 4,093 | 0 |
Goodwill | 120,510 | 18,522 | 15,291 |
Film production | 69,238 | 10,642 | 0 |
Deferred tax assets | 5,587 | 859 | 1,327 |
Other non-current assets | 114,040 | 17,528 | 24,356 |
Total non-current assets | 1,581,186 | 243,025 | 851,075 |
Total assets | 4,967,233 | 763,451 | 4,746,101 |
Current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 111,067 and RMB114,550 as of December 31, 2016 and 2017, respectively. Note 1) | |||
Accounts payable | 578,881 | 88,972 | 605,131 |
Advances from customers | 50,061 | 7,694 | 65,855 |
Tax payable | 49,819 | 7,657 | 79,780 |
Accrued expenses and other current liabilities | 343,238 | 52,755 | 105,955 |
Total current liabilities | 1,021,999 | 157,078 | 856,721 |
Non-current liabilities: | |||
Other non-current liabilities | 3,311 | 511 | 2,248 |
Total non-current liabilities | 3,311 | 511 | 2,248 |
Total liabilities | 1,025,310 | 157,589 | 858,969 |
Commitments and contingencies(Note 19) | |||
Mezzanine Equity: | |||
Redeemable non-controlling interests | 66,696 | 10,251 | 0 |
Total mezzanine Equity | 66,696 | 10,251 | 0 |
Shareholders’ equity: | |||
Ordinary shares (US$0.00025 par value, 1,000,000,000 shares authorized (including 840,000,000 Class A, 60,000,000 Class B and 100,000,000 discretionary) as of December 31, 2016 and 2017; 90,901,446 Class A ordinary shares issued and outstanding, 58,804,840 Class B ordinary shares issued and outstanding as of December 31, 2016; 94,628,746 Class A ordinary shares issued and 92,992,483 outstanding, 56,892,198 Class B ordinary shares issued and outstanding as of December 31, 2017) | 244 | 38 | 244 |
Additional paid-in capital | 2,953,009 | 453,869 | 2,921,539 |
Statutory reserves | 42,573 | 6,543 | 37,806 |
Retained earnings | 740,180 | 113,763 | 781,925 |
Accumulated other comprehensive income | 139,221 | 21,398 | 145,618 |
Total shareholders' equity | 3,875,227 | 595,611 | 3,887,132 |
Total liabilities and shareholders’ equity | ¥ 4,967,233 | $ 763,451 | ¥ 4,746,101 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares |
Current liabilities without recourse to the primary beneficiary | ¥ 1,021,999 | $ 157,078 | ¥ 856,721 | |
Ordinary shares, par value | $ / shares | $ 0.00025 | $ 0.00025 | ||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Class A ordinary shares | ||||
Ordinary shares, shares authorized | 840,000,000 | 840,000,000 | 840,000,000 | 840,000,000 |
Ordinary shares, shares issued | 94,628,746 | 94,628,746 | 90,901,446 | 90,901,446 |
Ordinary shares, shares outstanding | 92,992,483 | 92,992,483 | 90,901,446 | 90,901,446 |
Class B ordinary shares | ||||
Ordinary shares, shares authorized | 60,000,000 | 60,000,000 | 60,000,000 | 60,000,000 |
Ordinary shares, shares issued | 56,892,198 | 56,892,198 | 58,804,840 | 58,804,840 |
Ordinary shares, shares outstanding | 56,892,198 | 56,892,198 | 58,804,840 | 58,804,840 |
Discretionary shares | ||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
VIEs | ||||
Current liabilities without recourse to the primary beneficiary | ¥ 114,550 | ¥ 111,067 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Merchandise sales | ¥ 5,634,156 | $ 865,954 | ¥ 6,174,721 | ¥ 7,113,278 |
Marketplace and other services | 182,676 | 28,077 | 102,462 | 229,681 |
Total net revenues | 5,816,832 | 894,031 | 6,277,183 | 7,342,959 |
Cost of revenues | (4,527,284) | (695,831) | (4,524,897) | (5,225,669) |
Gross profit | 1,289,548 | 198,200 | 1,752,286 | 2,117,290 |
Operating expenses: | ||||
Fulfillment expenses | (580,792) | (89,266) | (769,651) | (948,954) |
Marketing expenses | (401,756) | (61,749) | (427,827) | (655,314) |
Technology and content expenses | (200,342) | (30,792) | (216,310) | (169,694) |
General and administrative expenses | (144,883) | (22,268) | (206,243) | (191,918) |
Total operating expenses | (1,327,773) | (204,075) | (1,620,031) | (1,965,880) |
Income/(loss) from operations | (38,225) | (5,875) | 132,255 | 151,410 |
Other income/(expenses): | ||||
Interest income | 65,515 | 10,069 | 85,597 | 114,123 |
Others, net | (45,393) | (6,977) | 76,271 | (59,289) |
Share of income from equity method investment | 4,903 | 754 | 2,452 | 0 |
Impairment of investment security, net of tax of nil | 0 | 0 | (114,789) | 0 |
Income/(loss) before tax | (13,200) | (2,029) | 181,786 | 206,244 |
Income tax expenses | (23,778) | (3,655) | (31,604) | (71,403) |
Net income/(loss) | (36,978) | (5,684) | 150,182 | 134,841 |
Net income attributable to noncontrolling interests | 0 | 0 | (7,958) | (11,925) |
Net income/(loss) attributable to Jumei International Holding Limited’s ordinary shareholders | (36,978) | (5,684) | 142,224 | 122,916 |
Net income/(loss) | (36,978) | (5,684) | 150,182 | 134,841 |
Fair value change - investment security, net of tax | 14,411 | 2,215 | (68,309) | (46,480) |
Reclassification of unrealized loss into the statement of income | 0 | 0 | 114,789 | 0 |
Foreign currency translation adjustment, net of nil tax | (20,808) | (3,198) | 31,604 | 130,668 |
Total comprehensive income/(loss) | (43,375) | (6,667) | 228,266 | 219,029 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | (8,600) | (12,032) |
Comprehensive income/(loss) attribute to Jumei International Holding Limited | ¥ (43,375) | $ (6,667) | ¥ 219,666 | ¥ 206,997 |
Net income/(loss) per share attributable to Jumei International Holding Limited’s ordinary shareholders | ||||
- Basic | (per share) | ¥ (0.25) | $ (0.04) | ¥ 0.95 | ¥ 0.84 |
- Diluted | (per share) | ¥ (0.25) | $ (0.04) | ¥ 0.95 | ¥ 0.82 |
Weighted average shares outstanding used in computing net income per share attributable to Jumei International Holding Limited’s ordinary shareholders | ||||
- Basic | 149,790,335 | 149,790,335 | 149,477,388 | 145,901,672 |
- Diluted | 149,790,335 | 149,790,335 | 150,069,205 | 149,758,825 |
ADS | ||||
Net income/(loss) per share attributable to Jumei International Holding Limited’s ordinary shareholders | ||||
- Basic | (per share) | ¥ (0.25) | $ (0.04) | ¥ 0.95 | ¥ 0.84 |
- Diluted | (per share) | ¥ (0.25) | $ (0.04) | ¥ 0.95 | ¥ 0.82 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Foreign currency translation adjustment, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Class Ashares | Ordinary sharesCommon Class ACNY (¥)shares | Ordinary sharesCommon Class BCNY (¥)shares | Treasury StockCNY (¥) | Additional Paid-in CapitalCNY (¥) | Statutory reservesCNY (¥) | Retained EarningsCNY (¥) | Accumulated other comprehensive income/ (loss)CNY (¥) | Noncontrolling InterestCNY (¥) |
Balance at Dec. 31, 2014 | ¥ 3,369,733 | ¥ 137 | ¥ 100 | ¥ 0 | ¥ 2,829,220 | ¥ 2,826 | ¥ 551,765 | ¥ (15,905) | ¥ 1,590 | ||
Balance (in shares) at Dec. 31, 2014 | shares | 86,400,288 | 58,804,840 | |||||||||
Net income/(loss) | 134,841 | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 122,916 | 0 | 11,925 | ||
Share-based compensation | 46,361 | 0 | 0 | 0 | 46,361 | 0 | 0 | 0 | 0 | ||
Exercises of share options | 9,779 | ¥ 2 | ¥ 0 | 0 | 9,777 | 0 | 0 | 0 | 0 | ||
Exercises of share options (in shares) | shares | 1,439,468 | 0 | |||||||||
Repurchase of shares | (890) | ¥ 0 | ¥ 0 | (890) | 0 | 0 | 0 | 0 | 0 | ||
Repurchase of shares (in shares) | shares | (10,000) | (10,000) | 0 | ||||||||
Net change in unrealized gain on investment security | (46,480) | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 0 | (46,480) | 0 | ||
Reclassification of unrealized loss into the statement of income | 0 | ||||||||||
Appropriations to statutory reserves | 0 | 0 | 0 | 0 | 0 | 14,734 | (14,734) | 0 | 0 | ||
Foreign currency translation adjustments, net of nil tax | 130,668 | 0 | 0 | 0 | 0 | 0 | 0 | 130,561 | 107 | ||
Balance at Dec. 31, 2015 | 3,644,012 | ¥ 139 | ¥ 100 | (890) | 2,885,358 | 17,560 | 659,947 | 68,176 | 13,622 | ||
Balance (in shares) at Dec. 31, 2015 | shares | 87,829,756 | 58,804,840 | |||||||||
Net income/(loss) | 150,182 | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 142,224 | 0 | 7,958 | ||
Share-based compensation | 34,673 | 0 | 0 | 0 | 34,673 | 0 | 0 | 0 | 0 | ||
Exercises of share options | 2,403 | ¥ 5 | ¥ 0 | 0 | 2,398 | 0 | 0 | 0 | 0 | ||
Exercises of share options (in shares) | shares | 3,071,690 | 0 | |||||||||
Net change in unrealized gain on investment security | (68,309) | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 0 | (68,309) | 0 | ||
Reclassification of unrealized loss into the statement of income | 114,789 | 114,789 | |||||||||
Appropriations to statutory reserves | 0 | 0 | 0 | 0 | 0 | 20,246 | (20,246) | 0 | 0 | ||
Disposal of a majority owned subsidiary | (22,222) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (22,222) | ||
Cancellation of treasury shares | 0 | 0 | 0 | 890 | (890) | 0 | 0 | 0 | 0 | ||
Foreign currency translation adjustments, net of nil tax | 31,604 | 0 | 0 | 0 | 0 | 0 | 0 | 30,962 | 642 | ||
Balance at Dec. 31, 2016 | 3,887,132 | ¥ 144 | ¥ 100 | 0 | 2,921,539 | 37,806 | 781,925 | 145,618 | 0 | ||
Balance (in shares) at Dec. 31, 2016 | shares | 90,901,446 | 58,804,840 | |||||||||
Net income/(loss) | (36,978) | $ (5,684) | ¥ 0 | ¥ 0 | 0 | 0 | 0 | (36,978) | 0 | 0 | |
Conversion of Class B ordinary shares to Class A ordinary shares | 0 | ¥ 3 | ¥ (3) | 0 | 0 | 0 | 0 | 0 | 0 | ||
Conversion of Class B ordinary shares to Class A ordinary shares (in shares) | shares | 1,912,642 | (1,912,642) | |||||||||
Share-based compensation | 19,390 | ¥ 0 | ¥ 0 | 0 | 19,390 | 0 | 0 | 0 | 0 | ||
Exercises of share options | 1,362 | ¥ 0 | ¥ 0 | 0 | 1,362 | 0 | 0 | 0 | 0 | ||
Exercises of share options (in shares) | shares | 178,395 | 0 | |||||||||
Net change in unrealized gain on investment security | 14,411 | 2,215 | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 0 | 14,411 | 0 | |
Reclassification of unrealized loss into the statement of income | 0 | 0 | |||||||||
Appropriations to statutory reserves | 0 | 0 | 0 | 0 | 0 | 4,767 | (4,767) | 0 | 0 | ||
Acquisition of redeemable noncontrolling interests | 10,718 | 0 | 0 | 0 | 10,718 | 0 | 0 | 0 | 0 | ||
Foreign currency translation adjustments, net of nil tax | (20,808) | (3,198) | 0 | 0 | 0 | 0 | 0 | 0 | (20,808) | 0 | |
Balance at Dec. 31, 2017 | ¥ 3,875,227 | $ 595,611 | ¥ 147 | ¥ 97 | ¥ 0 | ¥ 2,953,009 | ¥ 42,573 | ¥ 740,180 | ¥ 139,221 | ¥ 0 | |
Balance (in shares) at Dec. 31, 2017 | shares | 92,992,483 | 56,892,198 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||
Foreign currency translation adjustment, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash flows from operating activities: | ||||
Net income/(loss) | ¥ (36,978) | $ (5,684) | ¥ 150,182 | ¥ 134,841 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||
Share-based compensation | 23,710 | 3,644 | 34,673 | 46,361 |
Impairment of investments | 1,900 | 292 | 114,789 | 0 |
Accounts receivable write off | 0 | 0 | 0 | 17,157 |
Advances to suppliers write off | 0 | 0 | 27,378 | 19,688 |
Loans receivable write off | 0 | 0 | 1,667 | 1,400 |
Provision for/(reversal) of inventory write-down | 11,022 | 1,694 | (3,264) | 20,544 |
Depreciation and amortization expenses | 58,242 | 8,952 | 30,833 | 29,925 |
Deferred tax income | (7,605) | (1,169) | 2,580 | 7,873 |
Foreign exchange (gain)/loss | 87,753 | 13,487 | (27,953) | 78,101 |
Interest income of loans receivable | (7,344) | (1,129) | (10,439) | (7,145) |
Call option write-down | 0 | 0 | 0 | 16,000 |
Gain from the disposal of a majority owned subsidiary | 0 | 0 | (7,308) | 0 |
Gain from the disposal of long-term investment | 0 | 0 | (7,348) | 0 |
Share of income from equity method investment | (4,903) | (754) | (2,452) | 0 |
Loss from disposal and write-off of property, equipment and software | 41,195 | 6,331 | 1,881 | 1,404 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 6,534 | 1,004 | 15,099 | (66,249) |
Inventories | 32,003 | 4,919 | 307,155 | (340,076) |
Advance to suppliers | 18,148 | 2,789 | 43,444 | (54,585) |
Prepayments and other assets | (236,427) | (36,338) | (79,514) | 84,925 |
Accounts payable | (66,190) | (10,173) | (455,925) | 131,635 |
Advance from customers | (15,430) | (2,372) | (38,847) | 35,510 |
Tax payable | (29,290) | (4,502) | (18,379) | 17,872 |
Accrued expenses and other liabilities | 171,184 | 26,310 | 5,266 | (23,684) |
Purchase of equipment (Notes 2v,11) | (418,781) | (64,365) | 0 | 0 |
Film production | (69,238) | (10,642) | 0 | 0 |
Net cash provided by/(used in) operating activities | (440,495) | (67,706) | 83,518 | 151,497 |
Cash flows used in investing activities: | ||||
Purchase of short-term investments | (5,559,000) | (854,403) | (3,422,000) | (2,781,500) |
Maturity of short-term investments | 4,345,182 | 667,842 | 3,085,000 | 4,952,547 |
Repayment of loans from suppliers | 0 | 0 | 0 | 10,500 |
Purchase of property, equipment and software | (9,392) | (1,444) | (29,381) | (36,527) |
Purchase of land use rights | 0 | 0 | (84,068) | 0 |
Purchase of intangible assets | (10,000) | (1,537) | 0 | 0 |
Cash paid for construction in process | (78,848) | (12,119) | (16,726) | 0 |
Repayment of convertible loan | 0 | 0 | 186,000 | 0 |
Proceeds from the convertible loan issuer | 0 | 0 | 372,000 | 0 |
Cash received from disposal of long-term investment | 0 | 0 | 39,751 | 0 |
Cash received from disposal of majority owned subsidiary | 0 | 0 | 5,019 | 0 |
Net cash acquired from business acquisition | 45,466 | 6,988 | 0 | 0 |
Purchase of long-term investments | (42,534) | (6,537) | (502,726) | (30,690) |
Issuances of loans to an equity investee | 0 | 0 | (73,330) | 0 |
Purchase of investment in security | 0 | 0 | 0 | (172,639) |
Purchase of convertible loan | 0 | 0 | 0 | (558,000) |
Net cash provided by/(used in) investing activities | (1,309,126) | (201,210) | (440,461) | 1,383,691 |
Cash flows from financing activities: | ||||
Repurchase of ordinary shares | 0 | 0 | 0 | (890) |
Proceeds from exercises of share options | 1,362 | 209 | 2,403 | 9,779 |
Purchase of redeemable noncontrolling interests | (92,610) | (14,234) | 0 | 0 |
Proceeds from short-term bank loans | 0 | 0 | 11,066 | 7,507 |
Proceeds from long-term bank loans | 0 | 0 | 0 | 3,579 |
Payback of short-term borrowing | 0 | 0 | 0 | (15,420) |
Payback of long-term borrowing | 0 | 0 | (184) | (138) |
Net cash provided by/(used in) financing activities | (91,248) | (14,025) | 13,285 | 4,417 |
Effect of exchange rate changes on cash and cash equivalents | (59,455) | (9,132) | 80,842 | 12,555 |
Net increase/(decrease) in cash and cash equivalents | (1,900,324) | (292,073) | (262,816) | 1,552,160 |
Cash and cash equivalents at the beginning of the year | 2,301,471 | 353,728 | 2,564,287 | 1,012,127 |
Cash and cash equivalents at the end of the year | 401,147 | 61,655 | 2,301,471 | 2,564,287 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income taxes | 36,987 | 5,685 | 47,705 | 71,867 |
Cash paid for interest | 0 | 0 | 661 | 548 |
Supplemental disclosures of non-cash information: | ||||
Purchase of property and equipment and construction in process included in accrued expenses and other liabilities | ¥ 38,012 | $ 5,842 | ¥ 0 | ¥ 0 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Principal Activities | |
Organization and Principal Activities | 1. Organization and Principal Activities Jumei International Holding Limited (the "Company"), through its consolidated subsidiaries and variable interest entities ("VIEs") and VIEs’ subsidiaries (collectively referred to as the "Group") is primarily engaged in the operation to sell or to facilitate third party merchants to sell beauty products, apparel and other lifestyle products in the People's Republic of China (the "PRC" or "China") on its website Jumei.com, Jumeiglobal.com and through its mobile application. The Group generates merchandise sales as principal for the direct sales of beauty products to customers. Additionally, the Group generates marketplace services revenue as a service provider for other vendors charging third-party merchant fees for the sale of beauty products, apparel and other life style products, through the Group’s internet platform. The Group’s primary subsidiaries and VIE as of December 31, 2017 are set out below: Direct subsidiaries Equity Place and date of incorporation Jumei Hongkong Limited (“Jumei Hongkong”) 100% Hong Kong, September 6, 2010 Jumei Hongkong Holding Limited (“Jumei Hongkong Holding”) 100% Hong Kong, March 25, 2014 Beijing Silvia Technology Service Co., Ltd. (“Beijing Jumei”) 100% China, March 4, 2011 Shanghai Jumeiyoupin Technology Co., Ltd. (“Shanghai Jumei”) (Formerly known as Shanghai Paddy Commerce and Trade Co., Ltd.) 100% China, June 19, 2012 Chengdu Jumeiyoupin Science and Technology Co., Ltd. (“Chengdu Jumei”) 100% China, July 19, 2012 Tianjin Cyril Information Technology Co., Ltd. (“Tianjin Cyril”) 100% China, March 22, 2013 Tianjin Qianmei International Trading Co., Ltd. (“Tianjin Qianmei”) 100% China, March 25, 2013 Tianjin Jumeiyoupin Technology Co., Ltd. (“Tianjin Jumei”) (Formerly known as Tianjin Venus Technology Co., Ltd.) 100% China, December 30, 2013 Zhengzhou Venus Information Technology Co., Ltd. (“Zhengzhou Venus”) 100% China, August 26, 2014 Suzhou Jumeiyoupin Technology Co., Ltd. (“Suzhou Jumei”) 100% China, October 15, 2014 Shenzhen Jiedian Technology Co., Ltd. (“Jiedian”) 82.07% China, November 24, 2015 VIE Equity Place and date of incorporation Reemake Media Co., Ltd. (“Reemake Media”) 100% China, August 5, 2009 Prior to April 2011, the Group carried out its operations through Reemake Media, a PRC entity incorporated in August 2009 by the Group’s founders (the “Founders”). In August 2010, the Company was incorporated by Reemake Media’s shareholders under the laws of the Cayman Islands as the holding company of the Group in order to facilitate international financing. In September 2010, the Company established a wholly-owned Hong Kong subsidiary, Jumei Hongkong Limited to be the intermediate holding company. In March 2011, Jumei Hongkong Limited established a wholly-owned PRC subsidiary, Jumeiyoupin (Beijing) Science and Technology Services Co., Ltd., or Beijing Jumei, which was a wholly foreign owned enterprise (“WOFE”) and subsequently was renamed as Beijing Silvia Technology Service Co., Ltd. Through Beijing Jumei, the Group obtained control over Reemake Media in April 2011 by entering into a series of contractual arrangements with Reemake Media and the shareholders of Reemake Media. The above series of transactions were accounted for as a reorganization of the Group (“Reorganization”) which was in a manner similar to a pooling of interest with assets and liabilities at their historical amounts in the Group's consolidated financial statements. l Variable interest entities In order to comply with the PRC laws and regulations which prohibit foreign control of companies involved in provision of internet content, the Group operates its website and provides online sales in the PRC through its VIE, Reemake Media. The equity interests of Reemake Media are legally held by certain shareholders of the Company (“Nominee Shareholders”). The Company obtained control over Reemake Media through Beijing Jumei in April 2011 by entering into a series of contractual arrangements with Reemake Media and the Nominee Shareholders of Reemake Media. These Contractual Agreements include Shareholders’ Voting Rights Agreement, Exclusive Consulting and Service Agreement, Exclusive Purchase Option Agreement and Equity Pledge Agreement (“Contractual Agreements”). As a result of these contractual Arrangements, the Group maintains the ability to exercise effective control over Reemake Media, receive substantially all of the economic benefits and have an exclusive option to purchase all or part of the equity interests in Reemake Media when and to the extent permitted by PRC law at the minimum price possible. The Group concluded that Reemake Media is VIE of the Group, of which the WFOE is the primary beneficiary. As such, the Group consolidated the financial results of Reemake Media in the Group’s consolidated financial statements. Refer to Note 2(a) to the consolidated financial statements for the principles of consolidation. The following is a summary of the Contractual Agreements: l Shareholders' Voting Rights Agreement On April 8, 2011, Beijing Jumei, Reemake Media and the shareholders of Reemake Media entered into a shareholders’ voting rights agreement. Pursuant to the shareholders’ voting rights agreement, each of the shareholders of Reemake Media appointed Beijing Jumei’s designated person as their attorney-in-fact to exercise all shareholder rights, including, but not limited to, attending the shareholders’ meeting, voting all matters of Reemake Media requiring shareholder approval, appointing or removing directors and executive officers, and disposing of all or part of the shareholder’s equity interests in Reemake Media. Through this agreement, Beijing Jumei has the power to direct the activities that most significantly impact Reemake Media including appointing key management, setting up budgets and policies, transferring profits or assets out of Reemake Media, and setting the price for the services provided to Reemake Media. The shareholders’ voting rights agreement will remain in force for an unlimited term, unless all the parties to the agreement mutually agree to terminate the agreement in writing. l Exclusive Consulting and Service Agreement Under the exclusive consulting and services agreement between Beijing Jumei and Reemake Media, dated April 8, 2011, Beijing Jumei has the exclusive right to provide to Reemake Media consulting and services related to all technologies needed for Reemake Media’s business. Beijing Jumei owns the exclusive intellectual property rights created as a result of the performance of this agreement. Reemake Media agrees to pay Beijing Jumei an annual service fee. In addition, Beijing Jumei may provide other technology services specified by Reemake Media from time to time, and charge Reemake Media for the services. This agreement will remain effective for an unlimited term, unless Beijing Jumei and Reemake Media mutually agree to terminate the agreement in writing, or the agreement is required to be terminated by applicable PRC laws. Reemake Media is not permitted to terminate the agreement in any event unless required by applicable laws. l Exclusive Purchase Option Agreement On April 8, 2011, Beijing Jumei, Reemake Media and the shareholders of Reemake Media entered into an exclusive purchase option agreement. Pursuant to the exclusive purchase option agreement, each of the shareholders of Reemake Media irrevocably granted Beijing Jumei an exclusive option to purchase, or have its designated person, to purchase, at its discretion, to the extent permitted under PRC law, all or part of the shareholders’ equity interests in Reemake Media. The purchase price was set equal the amount that the shareholders contributed to Reemake Media as registered capital for the equity interests to be purchased, or be the lowest price permitted by applicable PRC law. In addition, Reemake Media granted Beijing Jumei an exclusive option to purchase, or have its designated person, to purchase, at its discretion, to the extent permitted under PRC law, all or part of Reemake Media’s assets at the lowest price permitted by applicable PRC law. Without the prior written consent of Beijing Jumei, Reemake Media may not increase or decrease the registered capital, dispose of its assets, terminate any material contract or enter into any contract that is in conflict with its material contracts, appoint or remove any management members, distribute dividends to the shareholders, guarantee its continuance, amend its articles of association or provide any loans to any third parties. The shareholders of Reemake Media agree that, without the prior written consent of Beijing Jumei, they will not transfer or otherwise dispose of their equity interests in Reemake Media or create or allow any encumbrance on the equity interests. l Equity Pledge Agreement On April 8, 2011, Beijing Jumei, Reemake Media and the shareholders of Reemake Media entered into an equity pledge agreements, as amended on August 6, 2011. Pursuant to the equity pledge agreements, each of the shareholders of Reemake Media pledged all of their equity interests in Reemake Media to guarantee their and Reemake Media’s performance of their obligations under the contractual arrangements including, but not limited to, the exclusive consulting and services agreement, exclusive purchase option agreement and shareholders’ voting rights agreement. If Reemake Media or its shareholders breach their contractual obligations under these agreements, Beijing Jumei, as pledgee, will have the right to dispose of the pledged equity interests or to transfer the pledged equity interests to any person designated by Beijing Jumei. The shareholders of Reemake Media agree that, during the term of the equity pledge agreements, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests, and they also agree that Beijing Jumei’s rights relating to the equity pledges shall not be prejudiced by the legal actions of the shareholders, their successors or their designates. During the term of the equity pledge agreements, Beijing Jumei has the right to receive all of the dividends and profits distributed on the pledged equity interests. The equity pledges will become effective on the date when the pledge of equity interests contemplated in these agreements are registered with the relevant administration for industry and commerce in accordance with the PRC Property Rights Law and will remain effective until Reemake Media and its shareholders discharge all their obligations under the contractual arrangements. The Group has completed the registration of the equity pledges with the relevant office of the administration for industry and commerce in accordance with the PRC Property Rights Law. On January 24, 2014, the Shareholders' Voting Rights Agreement, the Exclusive Purchase Option Agreement and the Equity Pledge Agreements relating to Reemake Media were amended and restated to reflect the change of Nominee Shareholders' holding in the VIE entity. No other material terms or conditions of these agreements were changed or altered. There was no impact to the Group’s effective control over Reemake Media and the Group continued to consolidate Reemake Media. On April 20, 2017, the Contractual Arrangements with Reemake Media and its shareholders through Beijing Jumei were terminated, and simultaneously Chengdu Jumei entered into Contractual Arrangements with Reemake Media and its shareholders. It was also resolved that Jumei Hongkong through Chengdu Jumei held the irrevocable proxy to exercise all the voting rights of the shareholders of Reemake Media since the Shareholders' Voting Rights Agreement was in existence. As a result, Jumei Hongkong has the power to direct the activities of Reemake Media that most significantly impact Reemake Media’s economic performance and is the primary beneficiary of Reemake Media. No other material terms or conditions of these agreements were changed or altered. There was no impact to the Group’s effective control over Reemake Media and the Group continued to consolidate Reemake Media. There are other VIEs and VIEs’ subsidiaries whose financial statements amounts and balances are immaterial to the Group’s consolidated financial statements. l Risks in relation to the VIEs structure It is possible that the Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote, on January 19, 2015, the Ministry of Commerce of the PRC, or (the “MOFCOM”) released on its Website for public comment a proposed PRC law (the “Draft FIE Law”) that appears to include VIEs within the scope of entities that could be considered to be foreign invested enterprises (or “FIEs”) that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control.” If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach the Group’s VIE arrangements, and as a result the Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of foreign invested enterprises entities where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law is silent as to what type of enforcement action might be taken against existing VIEs that operate in restricted or prohibited industries and are not controlled by entities organized under PRC law or individuals who are PRC citizens. If a finding were made by PRC authorities, under existing law and regulations or under the Draft FIE Law if it becomes effective, that the Group’s operation of certain of its operations and businesses through VIEs, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a severe adverse impact on the Group’s cash flows, financial position and operating performance. As of December 31, 2016 2017 RMB RMB Total assets 567,839 638,145 Less: loans receivable (73,330) (73,330) Total assets excluding loans receivable 494,509 564,815 Total liabilities 525,230 576,772 Less: inter-company payable (414,163) (462,222) Total liabilities excluding inter-company payable 111,067 114,550 For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Total net revenue 869,959 531,945 311,443 Net (loss)/gain (44,150) (23,466) 8,780 For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Net cash provided by/(used in) operating activities 53,880 (132,616) (62,672) Net cash (used in)/provided by investing activities (568,638) 60,174 (1,553) Net cash provided by financing activities 551,800 29,000 69,600 Net increase/(decrease) in cash and cash equivalents 37,042 (43,442) 5,375 Cash and cash equivalents at the beginning of the year 10,549 47,591 4,149 Cash and cash equivalents at the end of the year 47,591 4,149 9,524 In accordance with the contractual arrangements, Beijing Jumei, Tianjin Jumei, Suzhou Jumei and Chengdu Jumei (“WFOEs”) have the power to direct activities that most significantly impact Reemake Media and other VIEs and VIEs’ subsidiaries, including appointing key management, setting up budgets and policies, and transferring profit or assets out of VIEs and VIEs’ subsidiaries at its discretion . Therefore, WFOEs consider that they have the right to receive benefits from VIEs and VIEs’ subsidiaries and there is no asset in VIEs and VIEs’ subsidiaries that can be used only to settle obligations of VIEs and VIEs’ subsidiaries except for registered capital of VIEs and VIEs’ subsidiaries amounting to 8,157 8,157 . As VIEs and VIEs’ subsidiaries are incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of WFOEs for all the liabilities of VIEs and VIEs’ subsidiaries, VIEs and VIEs’ subsidiaries The Group has determined that the contractual arrangements among the WFOEs VIEs and VIEs’ subsidiaries The Group’s ability to control VIEs and VIEs’ subsidiaries VIEs and VIEs’ subsidiaries If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the PRC government could: l revoke the Group's business and operating licenses; l require the Group to discontinue or restrict operations; l restrict the Group's right to collect revenues; l block the Group's websites; l require the Group to restructure the operations in such a way as to compel the Group to establish a new enterprise, re-apply for the necessary licenses or relocate our businesses, staff and assets; l impose additional conditions or requirements with which the Group may not be able to comply; or l take other regulatory or enforcement actions against the Group that could be harmful to the Group's business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties causes the Group to lose the right to direct the activities of VIEs and VIEs’ subsidiaries or the right to receive their economic benefits, the Group would no longer be able to consolidate VIEs and VIEs’ subsidiaries. The Group believes the likelihood of loss in respect of the Group’s current ownership structure or the contractual arrangements with the VIE and its subsidiary is remote. There is no VIE where the Group has variable interest but is not the primary beneficiary. Currently there is no contractual arrangement that could require the Group to provide additional financial support to VIE. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Principal Accounting Policies | |
Principal Accounting Policies | 2. Principal Accounting Policies (a) Basis of presentation and principles of consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary and has control through contracts. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, exercise effective control over, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ materially from those estimates. Significant accounting estimates and assumptions reflected in the Group’s consolidated financial statements mainly include consolidation of VIEs, gross versus net revenue recognition, sales returns, rebates and subsidy, share-based compensation, uncertain tax positions, realization of deferred tax, fair value of assets and liabilities acquired in business acquisition, assessment for impairment of long-lived assets and goodwill, inventory valuation for excess and obsolete inventories, lower of cost and market of inventories, useful lives of long-lived assets and intangible assets and fair value of financial instruments. Changes in facts and circumstances may result in revised estimates. (c) Convenience translation Translations of balances in the Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows from RMB into US$ as of and for the years ended December 31, 2017 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.5063, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2017. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2017, or at any other rate. (d) Foreign currency translation Effective July 1, 2015, the Group changed its reporting currency from United States dollars ("USD") to Chinese Renminbi ("RMB"). The functional currency of the Company and its subsidiary incorporated in Hong Kong named Jumei Hongkong is United States dollar (“USD”), the functional currency of another subsidiary incorporated in Hong Kong named Jumei Hongkong Holding was changed from USD to RMB from January 1, 2016, while the functional currency of the other entities in the Group is RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the periods. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the consolidated statements of changes in shareholders’ equity. Total foreign currency translation adjustments, net of nil tax gains were RMB130,668 and RMB31,604 for the year ended December 31, 2015 and 2016, respectively, net of nil tax losses were RMB20,808 for the year ended December 31, 2017. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are included in the consolidated statements of comprehensive loss. Total exchange losses were RMB78,101 for the year ended December 31, 2015, total exchange gains were RMB27,953 for the year ended December 31, 2016, and total exchange losses were RMB87,753 for the year ended December 31, 2017, respectively. (e) Fair value Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, short-term investments, accounts receivable, net, loans receivable, net, and certain other current assets, accounts payable, certain other current liabilities, long-term investments and investment security. Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, loans receivable, net, certain other current assets, accounts payable, certain other current liabilities, approximate their fair value due to the short term maturities of these instruments. The Group adopted ASC 820, Fair Value Measurements and Disclosure ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Include other inputs that are directly or indirectly observable in the marketplace. Level 3 Unobservable inputs that are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. (f) Cash and cash equivalents Cash and cash equivalents represent cash on hand and time deposits as well as highly liquid investments placed with banks, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less and are readily convertible to known amounts of cash. (g) Short-term investments Short-term investments include investments in financial instruments with a variable interest rate indexed to performance of underlying assets. The Group carries these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income interest income, net. Fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Please see Note 5 for additional information. (h) Loans receivable, net The Group's loans receivable consist of a loan receivable from a venture capital fund with annual interest rate of 4.35% and up to 10% based on different conditions. Loan receivable is carried at amortized cost. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. (i) Accounts receivable, net Accounts receivable, net is carried at realizable value. The Group considers many factors in assessing the collectability of its receivables, such as, the age of the amounts due, the customer’s payment history and credit-worthiness. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable, net balances are written off after all collection efforts have been exhausted. Allowance for doubtful accounts for the years ended December 31, 2015, 2016 and 2017 were RMB17,157, nil and nil, respectively. (j) Inventories Inventories consisting of products available for sell, are stated at the lower of cost or market. Cost of inventory is determined using the weighted average cost method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive income. (k) Long-term investments Long-term investments are comprised of investments in privately-held companies and limited partnerships, which are accounted for under the cost method or equity method. Cost method investments In accordance with ASC 325-20, “Investments-Other: Cost Method Investments”, the Group accounts for its investment using the cost method of accounting when the Group does not have significant influence over the investments’ business and operations. The Group carries such investment at cost and recognizes as income any dividends received from a distribution of investee’s earnings. The Group reviews the investment for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. Equity method investments In accordance with ASC 323 “Investment-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. In accordance with ASC 323 “Investment-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. In accordance with ASC 323 “Investment-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation in the investee’s Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. For the investment in limited partnerships, where the Group holds less than a 20% equity or voting interest, the Group’s influence over the partnership operating and financial policies is more than minor, thus, as subject to equity method as well. Under the equity method of accounting, the affiliated company’s accounts are not reflected within the Group’s consolidated balance sheets and statements of comprehensive income; however, the Group’s share of the earnings or losses of the affiliated company is reflected in the caption “share income from equity method investments” in the consolidated statements of comprehensive income. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. (l) Investment security The Group invests in marketable equity security to meet business objectives. In accordance with ASC 320, “Investment Debt and Equity Securities” this marketable security is stated at fair value, classified and accounted for as available-for-sale securities in investment security. The treatment of a decline in the fair value of an individual security is based on whether the decline is other-than-temporary. The Group assesses its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited to, its ability and intent to hold the individual security, severity of the impairment, expected duration of the impairment and forecasted recovery of fair value. Investments classified as available-for-sale securities are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders’ equity. If the Group determines a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to fair value as a new cost basis and the amount of the write-down is accounted for as an unrealized loss charged in the consolidated statement of comprehensive income. (m) Business combination The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations (n) Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and impairment. Property, equipment and software are depreciated over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Classification Estimated useful lives Equipment 3-10 years Servers 3-5 years Office furniture, vehicles &; logistics equipment 3-5 years Portable power banks and charging boxes 3-5 years Leasehold improvement Shorter of expected lives of leasehold improvements and lease term Software 10 years Building 20 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. (o) Construction in progress Direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. As of December 31, 2016 and 2017 the balances of construction in progress were RMB5,645 and RMB4,229 which were primarily relating to the construction of logistic warehouses. (p) Land use rights, net Land use rights represent amounts paid for the Group's lease for the use right of land located in Suzhou City in China. Land use rights are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives which are generally 50 years and represent the shorter of the estimated usage periods or the terms of the agreements. (q) Intangible assets, net The Group performs valuation of the intangible assets arising from business acquisition to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the assets estimated economic useful lives as follows: Estimated average useful lives Domain names and non-compete agreements 2 years Customer relationship 5 years Patent 10 years Trademark 2-3 years User base 2-3 years Amortization expenses for the years ended December 31, 2015, 2016 and 2017 were RMB111, nil and RMB5,670, respectively. (r) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business acquisition. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Commencing in September 2011, in accordance with the FASB revised guidance on “Testing of Goodwill for Impairment,” a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the implied fair value of the reporting unit’s goodwill and the carrying amount of goodwill will be recorded. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Goodwill was allocated to one and two reporting units as of December 31, 2016 and 2017, respectively (Note 13). (s) Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying value of the asset, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over its fair value. (t) Film production The Group entered into a film production collaborative arrangement with a third party. In accordance with ASC 926, Entertainment Films (“ASC 926”), film production costs includes cash expenditures made to acquire a proportionate share of certain rights to films including profit sharing, distribution and/or other rights. Film production costs also include direct production costs, production overhead and acquisition costs and is stated at the lower of unamortized cost or estimated fair value. Pursuant to ASC 926, film production costs will be amortized once the film has been released. As of December 31, 2017, the film was still being developed and had not been released. The Group reviews unamortized film production costs for impairment whenever events or circumstances indicate that the fair value of the produced content may be less than its unamortized cost. No impairment losses were recorded for the year ended December 31, 2017. (u) Leases Each lease is classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property’s estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the leaser at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The Group had no capital lease for any of the periods presented. (v) Revenue recognition Revenue comes primarily from merchandise sales and marketplace services. The Group generates revenues from merchandise sales when the Group acts as principal for the direct sales of beauty products to customers. The Group generates revenues from marketplace services when the Group acts as the service provider for other vendors and charges third-party merchant fees for the sales of their products, which include beauty products, apparel and other life style products. The Group collects cash from customers before or upon deliveries of products mainly through banks, third party online payment platforms or delivery companies. Cash collected from customers before product delivery is recognized as advances from customers first and then recognized as revenue upon deliveries and acceptances by customers. Revenues from merchandise sales and marketplace services are recognized when the following four criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. The Group recognizes merchandise sales revenues upon acceptance of delivery of products by customers. Marketplace service revenues primarily consist of fees charged to third-party merchants for selling their products through our internet platform and fees for providing fulfillment services. The Group recognizes marketplace service revenues upon acceptances of deliveries by customers for sales that the Group provides fulfillment services or upon shipping by third party merchants for sales for which the Group doesn’t provide fulfillment services. For customer orders and cash collected from customers before delivery, the Group accounts for it in advances from customers. The Group considers several factors in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as service fees. Generally, when the Group is the primary obligor in a transaction, is subject to substantial inventory risk, and has latitude in establishing prices, revenues are recorded at the gross sales price. If the Group does not have substantial inventory risk or latitude in establishing prices and amounts earned are determined using a predetermined service rate, the Group records the net amounts as marketplace service fees earned. Sales allowances, which reduce revenues, are estimated using management’s best estimate based on historical experience. Revenues are recorded net of value-added taxes, business taxes and surcharges. The Group acquired Jiedian (Note 4), one of the leading players in the portable power bank sharing business. Jiedian facilitates master power charging boxes in highly frequented points of interest, such as restaurants, bars, gyms, airports, train stations, shopping malls, beauty salons, hospitals and parks. Each charging box contains multiple portable power banks. Revenue from the provision of portable power bank charging services is generally recognized upon completion of the services. (w) Discount coupons and prepaid cards The Group periodically provides discount coupons to its customers for use in purchases that require a minimum transaction value. Coupons may also be granted to customers to incentivize a current purchase or a future purchase. Discounts for purchases are treated as a reduction of revenue for the related transaction. The right to purchase discounted products in the future is not considered an element of an arrangement within the scope of the multiple-element arrangements guidance in ASC 605, Revenue Recognition, as the right does not represent a significant and incremental customer discount. Discounts for future purchases, when accepted by the customer, are treated as a reduction of revenue when the future transaction is recognized. The Group also sells prepaid cards with discount. The discount is treated as a reduction of revenue when the prepaid card is used. The prepaid cards have no expiration date. Cash receipts from the sale of prepaid cards are initially recorded as advances from customers which is a current liability on the Group’s consolidated balance sheets. (x) Customer loyalty program Customers may earn loyalty program points from the purchases from the Group. Customers may redeem the loyalty points for certain promotional products or discount coupons to be used on future purchases. The Group accrues for the estimated incremental cost of redeeming the benefits at the time the benefits are earned by the customer. Estimated incremental costs have been insignificant since the inception of the respective loyalty programs. (y) Cost of revenues Cost of revenue consists primarily of cost of merchandise sold and inventory write-downs, depreciation of portable power bank and charging box, and amortization of acquired intangible assets. The cost of revenues does not include shipping and handling expenses, payroll, bonus and benefits of logistic staff or logistic centers rental expenses and amortization of acquired intangible assets, therefore our cost of revenues may not be comparable to other companies which include such expenses in their cost of revenues. (z) Rebates and subsidies The Group periodically receives consideration from certain vendors, representing rebates for products purchased and subsidies for the sales of the vendors' products over a period of time. The rebates are not sufficiently separable from the Group’s purchase of the vendors’ merchandizes and they do not represent a reimbursement of costs incurred by the Group to sell vendors’ merchandizes. The Group accounts for the rebates received from its vendors as a reduction to the price it pays for the merchandizes purchased and therefore the Group records such amounts as a reduction of cost of revenues when recognized in the consolidated statements of comprehensive income. Rebates are earned when meeting minimum purchase thresholds specified in the contracts. When rebates can be reasonably estimated based on the Group’s past experience and current forecasts, a portion of the rebate is recognized as the Group makes progress towards the purchase threshold. Subsidies are calculated based on the volume of products sold through the Group and are recorded as a reduction of cost of revenues when the sales have been completed and the amount is determinable. (aa) Fulfillment expenses Fulfillment expenses represent those costs incurred in shipping and operating and staffing the Group’s fulfillment and customer service centers, including costs attributable to receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; collecting payments from customers and responding to inquiries from customers. Fulfillment also includes amounts payable to third parties that assist the Group in payment collections, fulfillment and customer service operations. The shipping costs included in fulfillment expenses were RMB338,097, RMB311,394, and RMB242,396 for the years ended December 31, 2015, 2016, and 2017, respectively. (ab) Marketing expenses Marketing expenses mainly consist of advertising costs, promotion expenses, payroll and related expenses for employees engaged in marketing activities. Advertising costs, which primarily spend on online and offline advertisements, are expensed when the services are received. The advertising expenses were RMB599,713, RMB365,914, and RMB 319,284 for the years ended December 31, 2015, 2016, and 2017, respectively. (ac) Technology and content expenses Technology and content expenses mainly consist of payroll and related costs for employees involved in application development, category expansion, editorial content production and system support, as well as server charges and costs associated with telecommunications. (ad) General and administrative expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, including accounting, finance, tax, legal, procurement, business development and human resources, professional fees and other general corporate costs as well as costs associated with the use by these functions of facilities and equipment, such depreciation and rent expenses. (ae) Share-based compensation All stock-based awards granted to the Founders, employees and directors, including Founders’ share, stock options and restricted share units (“RSUs”) are measured at the grant date based on the fair value of the award and are recognized as expenses using straight line method, net of estimated forfeitures, over the requisite service period, which is generally the vesting period. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. The Group adopted Accounting Standard Update (“ASU”) ASU 2016-09CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting on January 1, 2017 and elected to account for forfeitures as they occur. There was no cumulative-effect adjustment to retained earnings given that the historical estimated forfeiture rates approximated actual forfeiture rates. The Binomial option pricing model is used to measure the fair value of stock options. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, exercise multiples, expected forfeiture rate, risk-free interest rates, contract life and expected dividends. The Group recognizes the estimated compensation cost of service-based restricted share units based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost over a vesting term of generally four years and starting January 1, 2017, accounts for forfeitures as they occur. The fair value of liabilities incurred in share-based payment transactions with employees are remeasured at the end of each reporting period through settlement. Changes in the fair value of a liability incurred under a share-based payment arrangement that occur during the requisite service period are recognized as compensation costs over that period. (af) Employee benefits The Company’s subsidiaries, the VIEs and the VIEs’ subsidiaries in China participate in a government mandated, multi-employer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor laws require the entities incorporated in China to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the consolidated statements of comprehensive income amounted to RMB46,387, RMB66,131 and RMB65,302 for the years ended December 31, 2015, 2016 and 2017, respectively. (ag) Government grant Generally, a government grant is recognized as other income when the grant is received and the requirements associated with receipt of the grant have been complied with. If the government grant is tied to the acquisition of long-lived assets, the grant is recognized as deduction of the carrying value of the long lived assets, when the conditions specified in the grant have been met. For the years ended December 31, 2015, 2016 and 2017, the Group received government grants of RMB44,904, RMB21,663 and RMB37,048, respectively, which were included in Others, net under Other income/ (expenses) in the consolidated statements of comprehensive income. (ah) In |
Risks and concentration
Risks and concentration | 12 Months Ended |
Dec. 31, 2017 | |
Risks and concentration | |
Risks and concentration | 3. Risks and concentration Concentration of credit risk Assets that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, short-term investments, accounts receivable, net, loans receivable, net and other receivables. The Group expects that there is no significant credit risk associated with cash and cash equivalents and short-term investments, which were held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. Concentration of customers and suppliers There are no customers or suppliers from whom revenue or purchases individually represent greater than 10% of the total revenues or the total purchases for the periods presented. Foreign currency risk The Group’s operating transactions and its assets and liabilities are mainly denominated in RMB. The accounts payable generated by Jumei Global are denominated in Hong Kong dollars, U.S. dollars, Australian dollars, Japanese Yen, and Korean Won. The Group do not believe that the Group currently has any significant direct foreign exchange risk and have not used any derivative financial instruments to hedge exposure to such risk. The Group’s cash and cash equivalents and short-term investments denominated in RMB that are subject to such government controls amounted to RMB 861,400 2,070,641 |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business combination | 4. Business combination Acquisition of Jiedian In May, 2017, the Group entered into a purchase agreement (“Acquisition Agreement”) and acquired a majority interest in Jiedian for cash consideration of RMB 300 46.1 RMB US$ Total purchase price comprised of: -Cash consideration 300,000 46,109 Total 300,000 46,109 Jiedian RMB US$ Cash and cash equivalents 345,466 53,097 Prepayments and other current assets 17,049 2,620 Property and equipment, net 8,617 1,324 Intangible assets: Trademark 20,200 3,105 User base 2,100 323 Goodwill 105,219 16,172 Accounts Payable (80) (12) Accrued expenses and other current liabilities (26,026) (4,000) Deferred tax liabilities (3,345) (514) Total fair value of Jiedian 469,200 72,115 Fair value of redeemable noncontrolling interests (169,200) (26,006) Total fair value of purchase price consideration 300,000 46,109 The Group recognized a noncontrolling interest of RMB 169,200 26,006 Pursuant to the Acquisition Agreement, the non-controlling interests are subject to redemption by the Group if (i) Jiedian does not complete an initial public offering on a qualified exchange (“Jiedian Qualified IPO”) within certain years from the Acquisition Date; and (ii) there is a material breach by the Group of the Acquisition Agreement, shareholders agreement, and memorandum and articles of association (as defined in the Acquisition Agreement). Therefore, the non-controlling interests have been classified as mezzanine equity as they may be redeemed at the option of the non-controlling interest holders (“Holders”) on or after an agreed upon date outside the sole control of the Group. The contingent redemption option of the non-controlling interests did not qualify for bifurcation accounting because the underlying ordinary shares were neither publicly traded nor readily convertible into cash. There were no other embedded derivatives that are required to be bifurcated. The Group concluded that the non-controlling interests are not redeemable currently. The Group also concluded that it is not probable that the non-controlling interests will become redeemable because the likelihood of a Jiedian Qualified IPO not occurring and the occurrence of a material breach as defined in the Acquisition Agreement, are both remote. Therefore, no adjustment will be made to the initial carrying amount of the non-controlling interests until it is probable that they will become redeemable. In May, July and September 2017, the Group acquired additional equity interests in Jiedian from the Holders for a total cash consideration of RMB 92,610 14,234 10,718 1,647 82.07 The actual results of operation after the acquisition date have been included in Note 21 because it represents a majority of the New Businesses segment. |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair value measurement | |
Fair value measurement | 5. Fair value measurement As of December 31, 2016 and 2017, information about inputs into the fair value measurements of the Group’s assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair value measurement at reporting date using Description December 31, 2016 Quoted Prices in Active Significant Other Significant RMB RMB Short-term investments with variable interest rates 700,000 - 700,000 - Investment security 79,298 79,298 - - Total 779,298 79,298 700,000 - Fair value measurement at reporting date using Description December 31, 2017 Quoted Prices in Active Significant Other Significant RMB RMB Short-term investments with variable interest rates 1,972,277 - 1,972,277 - Investment security 88,933 88,933 - - Total 2,061,210 88,933 1,972,277 - The Group values its investment security using quoted prices for the underlying security in active market, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 1. |
Loans receivable, net
Loans receivable, net | 12 Months Ended |
Dec. 31, 2017 | |
Loans receivable, net | |
Loans receivable, net | 6. Loans receivable, net The following is a summary of loans receivable: As of December 31, 2016 2017 RMB RMB Loans receivable - current portion - 73,330 Loans receivable - non-current portion 73,330 - In August 2016, the Group entered into definitive agreements for investing approximately RMB 100,000 26,670 73,330 4.35 10 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Inventories | 7. Inventories The following is a summary of Inventories: As of December 31, 2016 2017 RMB RMB General merchandise 673,477 640,538 Packing materials and others 3,146 4,082 Less: Inventory write down (30,507) (41,529) Total 646,116 603,091 |
Prepayment and other current as
Prepayment and other current assets | 12 Months Ended |
Dec. 31, 2017 | |
Prepayment and other current assets | |
Prepayment and other current assets | 8. Prepayment and other current assets The following is a summary of prepayments and other current assets: As of December 31, 2016 2017 RMB RMB Third-party platform funds receivable (i) - 91,747 VAT prepayments - 62,496 Supplier rebates receivables 71,547 49,909 Receivable from a third party 29,500 - Interest receivable 27,997 8,928 Prepaid taxes related with overseas purchase 15,367 31,470 Prepaid vendors deposits 10,709 16,427 Prepaid advertising fees 9,361 16,775 Prepaid rental fees 7,895 9,656 Rebate receivable from third-party online payment platforms 10,664 - Receivables related to employee share options exercise 469 - Other receivables 14,358 7,287 Total 197,867 294,695 (i) This balance represents cash deposits from Jiedian customers that use its portable power banks, held by third-party on-line payment service providers. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2017 | |
Long-term investments | |
Long-term investments | 9. Long-term investments Cost Method Equity Method Total RMB RMB RMB Balance at December 31, 2016 486,437 29,262 515,699 Additions 35,889 - 35,889 Share of income - 4,903 4,903 Impairment (1,900) - (1,900) Balance at December 31, 2017 520,426 34,165 554,591 (i) Equity method investment In August 2016, the Group together with other third parties, set up a management company as a General Partner (“GP”) and obtained 14% equity interests in GP with cash consideration of RMB 140 26,670 (ii) Cost method investments On January 22, 2016, the Group purchased 2,000,000 104,056 15,000 On April 25, 2016, the Group disposed of its controlling interests in a majority owned subsidiary incorporated in Korea to the non-controlling interests of the subsidiary and a third party investor recognized a disposal gain of RMB 7,308 On July 22, 2015, the Group made a convertible loan investment of RMB 558,000 186,000 On April 30, 2017, the Group invested in common shares of one online retailer incorporated in China for cash consideration of RMB 1,900 292 On May 18, 2017, the Group invested in common shares representing 5% and 20% of two entities, respectively, engaged in the portable power bank business incorporated in China for cash consideration of RMB 20,000 3,074 . On December 7, 2017, the Group acquired 5.0 20,634 3,171 investment is accounted for under the cost method as the shares invested by the Group were not considered as in-substance common stock and the shares do not have readily determinable fair value. The Group performs the impairment assessment of its investments under the cost method and equity method whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. The Group recognized nil and RMB 1,900 292 |
Investment security
Investment security | 12 Months Ended |
Dec. 31, 2017 | |
Investment security | |
Investment security | 10. Investment security As of December 31, 2016 2017 RMB RMB Balance at the beginning of the year 135,952 79,298 Recognition of unrealized (loss)/gain (68,309) 14,411 Foreign currency transaction adjustments, net of nil tax 11,655 (4,776) Balance at the end of the year 79,298 88,933 On May 6, 2015, the Group entered into a share purchase agreement to acquire 2 in IT’S HANBUL CO.,LTD. (“IT’S HANBUL”, formerly known as 172,639 IT’S HANBUL listed on the Korea Composite Stock Price Index (“KOSPI”) market on December 28, 2015. Therefore the investment is reclassified as available-for-sale securities and is measured at fair value with unrealized gains or losses, if any, recorded in the accumulated other comprehensive income in shareholders’ equity. The decline in value of the investment, amounted to RMB 114,789 for the period from May 2015 to December 2016, was considered other than temporary due to the duration and severity of the decline. The impairment was therefore recognized by reclassifying the unrealized loss of RMB 114,789 |
Property, equipment and softwar
Property, equipment and software, net | 12 Months Ended |
Dec. 31, 2017 | |
Property, equipment and software, net | |
Property, equipment and software, net | 11. Property, equipment and software, net The following is a summary of property, equipment and software, net: As of December 31, 2016 2017 RMB RMB Equipment 41,535 44,370 Leasehold improvements 32,731 28,299 Servers 36,135 36,896 Office furniture, vehicles and logistics equipment 19,612 20,999 Portable power banks and charging boxes - 383,031 Software 8,909 9,157 Building - 118,276 Total 138,922 641,028 Less: Accumulated depreciation (85,320) (124,446) Net book value 53,602 516,582 Depreciation expenses for the years ended December 31, 2015, 2016 and 2017 were RMB 29,814 29,292 50,891 |
Land use rights, net
Land use rights, net | 12 Months Ended |
Dec. 31, 2017 | |
Land Use Rights, Net | |
Land use rights, net | 12. Land Use Rights, Net As of December 31, 2016 2017 RMB RMB Cost: Land use rights 84,068 84,068 Less: Accumulated amortization (1,541) (3,222) Land use rights, net 82,527 80,846 The lease period of the land use rights are from May 2016 to January 2066. Amortization expenses for land use rights for the years ended December 31, 2016 and 2017 were RMB 1,541 1,681 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 13. Goodwill E-Commerce Jiedian Total RMB RMB RMB Balance at January 1, 2016 and December 31, 2016 15,291 - 15,291 Goodwill acquired (Note 4) - 105,219 105,219 Balance at December 31, 2017 15,291 105,219 120,510 For the years ended December 31, 2016 and 2017, the Group performed a qualitative assessment for the E-Commerce reporting unit based on the requirements of ASC 350-20. The Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more likely than not that the fair values of the E-Commerce reporting unit was less than its respective carrying amount. Therefore, further impairment testing on goodwill was unnecessary as of December 31, 2016 and 2017, respectively. For the year ended December 31, 2017, the Group performed a quantitative assessment for the Jiedian reporting unit by estimating the fair value of the reporting units based on an income approach. The fair value of the Jiedian reporting unit exceeded its respective carrying value and therefore, goodwill related to this reporting unit was not impaired. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accrued expenses and other current liabilities | |
Accrued expenses and other current liabilities | 14. Accrued expenses and other current liabilities The following is a summary of accrued expenses and other current liabilities: As of December 31, 2016 2017 RMB RMB Deposits from service providers 38,320 36,731 Customer deposits and funds payable (Note 2v) - 193,261 Payroll and welfare benefits accruals 29,941 35,223 Server custody and bandwidth fee accruals 11,530 5,221 Professional fees payable 7,861 4,576 Rentals 4,257 584 Payables related to employee share options exercise 340 4,432 Accrual for purchase of property and equipment - 38,012 Others 13,706 25,198 Total 105,955 343,238 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2017 | |
Taxation | |
Taxation | 15. Taxation (a) Value-Added Tax (VAT) Under the PRC Provisional Regulations on Value-Added Tax, the Group’s revenue are subject to VAT at the rate of 17 6 (b) Income Taxes For the year ended December 31, 2017, loss before tax of RMB 13,200 58,791 71,991 The following table sets forth current and deferred portion of income tax expenses/ (benefits) of the Group: For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Current tax provision 63,527 29,024 31,383 Deferred tax provision 7,876 2,580 (7,605) Income tax expenses 71,403 31,604 23,778 Cayman Islands (“Cayman”) Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Entities incorporated in Hong Kong are subject to Hong Kong profit tax at a rate of 16.5 PRC Entities incorporated in the PRC are subject to Corporate Income Tax (“CIT”) at a rate of 25 The CIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25 In April 2008 with subsequent amendments and updates, the State Administration of Taxation, the Ministry of Science and Technology and the Ministry of Finance jointly issued the Administrative Rules for the certification of High and New Technology Enterprises (“HNTE”) specifying the criteria and procedures. Reemake Media was granted as a HNTE in December 2012 and extended in September 2015, is entitled to the preferential CIT rate of 15% from 2015 through 2018. Tianjin Cyril was granted as a HNTE in October 2014, is entitled to the preferential enterprise income tax rate of 15% from 2014 through 2017. The HNTE status of Tianjin Cyril was renewed in October 2017, and therefore, Tianjin Cyril is entitled to the preferential enterprise income tax rate of 15% from 2017 until 2019. According to the Notice on the Corporate Income Tax regarding Deepening Implementation of Grand Development of the Western Region issued by the State Administration of Taxation, enterprises located in the western region of the PRC with principal revenue of over 70% generated from encouraged category of western region of the PRC are entitled to a preferential income tax rate of 15 15 Reconciliation of the differences between statutory tax rate and the effective tax rate Substantially all of the Group’s income before tax is from the operations in the PRC. The following table sets forth reconciliation between the statutory CIT rate and the effective tax rate: For the Years Ended December 31, 2015 2016 2017 Statutory income tax rates 25 % 25 % (25) % Effect of preferential tax (14) % (5) % (65) % Change in valuation allowance 19 % (10) % 161 % Permanent differences 3 % 7 % 59 % Effect of withholding tax 2 % - - Effect on tax rates in different tax jurisdiction (1) % 1 % 51 % Effective tax rate 34 % 18 % 181 % The permanent differences in 2015 and 2016 were mainly attributable to non-tax deductible share based compensation expenses and impairment of investment security. The permanent differences in 2017 were mainly attributable to non-tax deductible share based compensation expenses, exchange loss and research and development super-deduction. The aggregate amount of the preferential tax rate were RMB 29,226 10,022 8,605 0.20 0.11 0.06 Deferred tax assets The following table sets forth the significant components of the Group’s aggregate deferred tax balances: As of December 31, 2016 2017 RMB RMB Deferred tax assets: Net operating loss carry forwards 15,123 48,337 Excess advertising expenses carry forwards 10,787 7,717 Accrued payroll and other expenses 2,585 - Others 3,028 10,560 Less: valuation allowance (30,196) (58,432) Total deferred tax assets, net 1,327 8,182 Deferred tax liability : Intangible assets acquired - 2,595 A valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. The Group has incurred net accumulated operating losses for income tax purposes since its inception. The Group believes that it is more likely than not that most of these net accumulated operating losses and other deferred tax assets will not be utilized in the future. Therefore, the Group had provided valuation allowances of RMB 30,196 258,537 Movement of valuation allowance As of December 31, 2016 2017 RMB RMB Balance at beginning of the year (58,568) (30,196) Current period deduction/(addition) 28,372 (28,236) Balance at the end of the year (30,196) (58,432) Uncertainty tax position The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized tax benefits associated with the tax positions. As of December 31, 2016 and 2017, the Group did not have any significant unrecognized tax benefit. The Group does not anticipate any significant increase to our liability for unrecognized tax benefit within the next 12 months. Interest and penalties related to income tax matters, if any, is included in income tax expense. In general, the PRC tax authority has up to five years to conduct examinations of the Group’s PRC entities’ tax filings. Accordingly, the Group’s PRC entities’ tax years 2012 through 2017 remain open to examination by the PRC taxing authorities. Withholding tax on undistributed dividends The CIT Law and its relevant regulations impose a withholding income tax of 10 Under U.S. GAAP, undistributed earnings are presumed to be transferred to the parent company and are subject to the withholding taxes. The presumption may be overcome if the Company has sufficient evidence to demonstrate that the undistributed dividends will be re-invested and the remittance of the dividends will be postponed indefinitely. The Group intends to re-invest all earnings generated from its entities in the PRC indefinitely or be subject to a significant withholding tax should its policy change to allow for earnings distribution offshore. As of December 31, 2017, the Group did not record any withholding tax on the earnings of its entities in the PRC as the Company intends to re-invest its earnings amounting RMB 1,400,720 140,072 |
Ordinary shares
Ordinary shares | 12 Months Ended |
Dec. 31, 2017 | |
Ordinary shares | |
Ordinary shares | 16. Ordinary shares On December 31, 2013, all the shareholders of the Company adopted a resolution and all the directors of the Company also approved to implement a dual class voting structure (the “Dual Class Structure”). The Dual Class Structure was implemented immediately upon the completion of the IPO of the Company on May 16, 2014. Holders of ordinary shares have the right to receive notice of, attend, speak and vote at general meetings of the Company, and shall, at all times, vote together as one class on all matters submitted to a vote for Members’ consent. Each Class A Ordinary Share shall be entitled to one (1) vote on all matters subject to the vote at general meetings of the Company, and each Class B Ordinary Share shall be entitled to ten (10) votes on all matters subject to the vote at general meetings of the Company. All of the Company’s shares held, directly or indirectly, by Mr. Leo Ou Chen and Mr. Yusen Dai, and their respective affiliates (including shares held by Super ROI Global Holding Limited, Pinnacle High-Tech Limited, or any other company, trust, nominee or agent, if any) was immediately and automatically converted and re-designated into Class B ordinary shares on a one to one basis. Except for the Company’s shares held, directly or indirectly, by Mr. Leo Ou Chen and Mr. Yusen Dai, and their respective affiliates, all of other outstanding ordinary shares prior to IPO were designated as Class A Ordinary Shares and all of outstanding preference shares were automatically converted into Class A Ordinary Shares on a one-for-one basis immediately upon the completion of the IPO. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. The Company believes that the incremental value for the super voting right is minimal as there was no change in control. Upon completion of the Company's IPO on May 16, 2014, the Company's shares were divided into Class A ordinary shares and Class B ordinary shares, at par value of US$ 0.00025 840,000,000 60,000,000 100,000,000 92,992,483 56,892,198 On December 15, 2014, the Company announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to RMB 612,000 12 10,000 890 10,000 During the year ended December 31, 2017, 1,912,642 |
Share based compensation
Share based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share based compensation | |
Share based compensation | 17. Share based compensation Share Incentive Plan In March 2011, Board of directors of the Company approved “2011 Global Share Plan” (the “2011 Plan”). According to the Plan, 10,401,229 Under the 2011 Plan, these options have exercise prices ranging from nil to US$ 15.00 On April 10, 2014, the Company adopted the 2014 share incentive plan (the “2014 Plan”). The maximum aggregate number of shares which may be issued pursuant to all awards under the 2014 Plan shall initially be 6,300,000 1.5 Service-based share options The Company granted 745,000 ASC 718 Compensation Stock Compensation Share-based compensation expenses related to service-based share options of RMB 38,416 28,655 9,980 15,873 1.79 Number of Weighted Weighted Average Weighted Average Aggregate US$ In years US$ US$ Outstanding as of December 31, 2015 5,546,983 3.15 6.60 3.36 38,994 Forfeited (723,023) 7.32 8.11 Exercised (3,071,690) 0.15 0.59 14,928 Outstanding as of December 31, 2016 1,752,270 6.70 6.73 6.27 4,289 Granted 1,100,000 2.34 1.49 Forfeited (35,983) 13.71 8.64 Exercised (178,395) 0.95 5.49 351 Outstanding as of December 31, 2017 2,637,892 5.18 7.42 4.30 2,420 Vested and expected to vest as of December 31, 2017 2,637,892 5.18 7.42 2,420 Exercisable as of December 31, 2017 1,042,470 6.39 5.49 1,380 The weighted average grant date fair value of options vested during 2015, 2016 and 2017 was US$ 5.76 6.33 6.00 No option expired during the years ended December 31, 2015, 2016 and 2017. For the years ended December 31, 2015 2016 2017 Risk-free interest rates (%) (1) 2.52% NA 2.33%~2.41% Exercise multiples~(2)~ 2.2 times NA 2.5 times Expected dividend yield~(3)~ 0% NA 0% Expected volatility (%)~(4)~ 46% NA 63%~65% Contract life 10 years NA 10 years 1. The risk-free interest rate is based on the implied yield rates of China government bonds denominated in US$ for a term consistent with the expected life of the awards in effect at the time of grant if such rates are available. 2. The expected exercise multiple is the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it was estimated by referencing to Valuing Employee Stock Options (published by John Wiley &; Sons. Inc. 2004 edition), a well-accepted academic publication. 3. The dividend yield was estimated based on the Company’s expected dividend policy over the expected life of the options. 4. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of similar U.S. and Hong Kong public companies for a period equal to the expected life preceding the grant date. Restricted Share Units Summary of Service-Based Restricted Share Units Restricted Shares Number of Shares Weighted-Average US$ Unvested as of December 31, 2015 290,448 17.33 Granted 100,000 4.08 Vested (84,107) 18.55 Forfeited (65,075) 16.04 Unvested as of December 31, 2016 241,266 11.77 Granted 575,000 3.75 Vested (131,782) 8.48 Forfeited (47,909) 15.64 Unvested as of December 31, 2017 636,575 4.92 For the years ended December 31, 2015, 2016 and 2017, total share-based compensation expenses recognized by the Company for the RSUs granted were RMB 7,945 9,615 9,410 As of December 31, 2017, there were RMB 13,972 3.09 Jiedian equity incentive plan (“Jiedian Plan”) Jiedian also has an equity incentive plan granting share-based awards. Jiedian granted awards equivalent to approximately 2.1 9,871 4,320 5,551 2.01 |
Earnings_(losses) per share
Earnings/(losses) per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share | |
Earnings/(losses) per share | Earnings/(losses) per share Immediately prior to the completion of the IPO, the Company adopted Dual Class Structure. Holders of Class A ordinary shares and Class B ordinary shares have the same rights, except for voting rights and conversion rights. Holders of Class A ordinary shares are entitled to one vote per share in all shareholders' meetings, while holders of Class B ordinary shares are entitled to ten votes per share. Each Class B ordinary share is convertible into one Class A ordinary share at any time at the discretion of the Class B shareholders thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. The Class A and Class B ordinary shares have the same rights except for voting rights. Therefore, the two-class method of computing earnings per share is not applicable. The following table sets forth the computation of basic and diluted net income/(losses) per share attributable to Jumei’s ordinary shareholders for the periods indicated: For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Numerator: Net income/(losses) attributable to Jumei International Holding Limited 122,916 142,224 (36,978) Numerator for basic and diluted income/(losses) per share attributable to Jumei’s ordinary shareholders 122,916 142,224 (36,978) Denominator: Weighted average number of ordinary shares basic 145,901,672 149,477,388 149,790,335 Dilutive effect of share options 3,848,667 573,230 - Dilutive effect of RSUs 8,486 18,587 - Weighted average number of ordinary shares diluted 149,758,825 150,069,205 149,790,335 Net income/(losses) per share attributable to Jumei’s ordinary shareholders - Basic 0.84 0.95 (0.25) - Diluted 0.82 0.95 (0.25) Potentially dilutive securities that were not included in the calculation of dilutive net income per share because where their inclusion would have been anti-dilutive included share options of 1,098,037 2,016,482 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and contingencies | |
Commitments and contingencies | Commitments and contingencies (a) Commitments The Group leases its facilities and offices under non-cancelable operating lease agreements. The rental expenses were RMB 99,081 95,688 74,390 Operating lease RMB 2018 60,443 2019 46,913 2020 31,043 2021 15,772 2022 and thereafter - Total 154,171 Other than those shown above, the Group did not have any significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2017. (b) Contingencies The Group is involved in certain proceedings as of December 31, 2017. There is considerable uncertainty regarding the timing or ultimate resolution of such matters, which includes eventual loss, fine, penalty or business impact, if any, and therefore, an estimate for the reasonably possible loss or a range of reasonably possible losses cannot be made. However, the Group believes that such matters, individually and in the aggregate, when finally resolved, are reasonably likely not to have a material adverse effect on the Group’s consolidated results of operations, financial position and cash flows. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions | |
Related party transactions | 20. Related party transactions The table below sets forth the major related parties and their relationships with the Group as of : Name of related parties Relationship with the Group Beijing Jushangminghui Commerce and Trade Co., Ltd. A company controlled by a beneficial owner of the Company and his immediate family member Beijing Fanbosha Commerce and Trade Co., Ltd. A company controlled by a beneficial owner of the Company and his immediate family member Venture capital fund An investee of the Group accounted for as equity method During the years ended December 31, 2015, 2016 and 2017, significant related party transactions were as follows: (a) The Group entered into the following transactions with related parties: For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Interest income of loans receivable: Venture capital fund - 1,584 7,344 (b) The Group had the following balances with the related parties. As of December 31, 2015 2016 2017 RMB RMB RMB Loan receivable from a venture capital fund - 73,330 73,330 Interest receivable from a venture capital fund - 1,584 8,928 |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment reporting | 21. Segment reporting The Group has determined that it operates in two operating segments: (1) E-commerce, (2) New Businesses. E-commerce represents e-commerce business. The New businesses segment mainly includes film production, Jiedian and other technology initiatives business. The Group derives the results of the segments directly from its internal management reporting system. The CODM measures the performance of each segment based on metrics of revenue and earnings from operations and uses these results to evaluate the performance of, and to allocate resources to, each of the segments. The Group currently does not allocate assets, share-based compensation expenses and certain operating expenses to its segments, as the CODM does not use such information to allocate resources to or evaluate the performance of the operating segments. As most of the Group’s long-lived assets are located in the PRC and most of the Group’s revenues are derived from the PRC, no geographical information is presented. For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Net revenues: E-commerce 7,342,959 6,277,183 5,768,243 New business - - 73,732 Inter-segment* - - (25,143) Total consolidated net revenues 7,342,959 6,277,183 5,816,832 Operating income/(loss): E-commerce 151,410 132,255 95,012 New business - - (133,237) Inter-segment* - - - Total segment operating income/(loss) 151,410 132,255 (38,225) Total consolidated operating loss 151,410 132,255 (38,225) Total other income 54,834 49,531 25,025 Income/(loss) before tax 206,244 181,786 (13,200) (*) The inter-segment eliminations mainly consist of revenues related to research and development services and warehouse services provided by E-commerce to New-business. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2017 | |
Restricted net assets | |
Restricted net assets | 22. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries, the VIEs and VIEs’ subsidiaries incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries, the VIEs and VIEs’ subsidiaries incorporated in the PRC are required to annually appropriate 10 50 The Company performed a test on the restricted net assets of consolidated subsidiaries, VIEs and the subsidiary of the VIEs (the "Restricted Net Assets") in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), "General Notes to Financial Statements" and concluded that the Restricted Net Assets did not exceed 25% of the consolidated net assets of the Company as of December 31, 2017. |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Principal Accounting Policies | |
Basis of presentation and principles of consolidation | (a) Basis of presentation and principles of consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary and has control through contracts. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, exercise effective control over, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. |
Use of estimates | (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ materially from those estimates. Significant accounting estimates and assumptions reflected in the Group’s consolidated financial statements mainly include consolidation of VIEs, gross versus net revenue recognition, sales returns, rebates and subsidy, share-based compensation, uncertain tax positions, realization of deferred tax, fair value of assets and liabilities acquired in business acquisition, assessment for impairment of long-lived assets and goodwill, inventory valuation for excess and obsolete inventories, lower of cost and market of inventories, useful lives of long-lived assets and intangible assets and fair value of financial instruments. Changes in facts and circumstances may result in revised estimates. |
Convenience Translation | (c) Convenience translation Translations of balances in the Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows from RMB into US$ as of and for the years ended December 31, 2017 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB 6.5063 |
Foreign currency translation | (d) Foreign currency translation Effective July 1, 2015, the Group changed its reporting currency from United States dollars ("USD") to Chinese Renminbi ("RMB"). The functional currency of the Company and its subsidiary incorporated in Hong Kong named Jumei Hongkong is United States dollar (“USD”), the functional currency of another subsidiary incorporated in Hong Kong named Jumei Hongkong Holding was changed from USD to RMB from January 1, 2016, while the functional currency of the other entities in the Group is RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the periods. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the consolidated statements of changes in shareholders’ equity. Total foreign currency translation adjustments, net of nil tax gains were RMB 130,668 31,604 20,808 Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are included in the consolidated statements of comprehensive loss. Total exchange losses were RMB 78,101 27,953 87,753 |
Fair value | (e) Fair value Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, short-term investments, accounts receivable, net, loans receivable, net, and certain other current assets, accounts payable, certain other current liabilities, long-term investments and investment security. Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, loans receivable, net, certain other current assets, accounts payable, certain other current liabilities, approximate their fair value due to the short term maturities of these instruments. The Group adopted ASC 820, Fair Value Measurements and Disclosure ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Include other inputs that are directly or indirectly observable in the marketplace. Level 3 Unobservable inputs that are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents represent cash on hand and time deposits as well as highly liquid investments placed with banks, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less and are readily convertible to known amounts of cash. |
Short-term investments | (g) Short-term investments Short-term investments include investments in financial instruments with a variable interest rate indexed to performance of underlying assets. The Group carries these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income interest income, net. Fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Please see Note 5 for additional information. |
Loans receivable, net | (h) Loans receivable, net The Group's loans receivable consist of a loan receivable from a venture capital fund with annual interest rate of 4.35 10 Loan receivable is carried at amortized cost. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. |
Accounts receivable, net | (i) Accounts receivable, net Accounts receivable, net is carried at realizable value. The Group considers many factors in assessing the collectability of its receivables, such as, the age of the amounts due, the customer’s payment history and credit-worthiness. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable, net balances are written off after all collection efforts have been exhausted. Allowance for doubtful accounts for the years ended December 31, 2015, 2016 and 2017 were RMB17,157, nil and nil, respectively. |
Inventories | (j) Inventories Inventories consisting of products available for sell, are stated at the lower of cost or market. Cost of inventory is determined using the weighted average cost method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive income. |
Long-term investments | (k) Long-term investments Long-term investments are comprised of investments in privately-held companies and limited partnerships, which are accounted for under the cost method or equity method. Cost method investments In accordance with ASC 325-20, “Investments-Other: Cost Method Investments”, the Group accounts for its investment using the cost method of accounting when the Group does not have significant influence over the investments’ business and operations. The Group carries such investment at cost and recognizes as income any dividends received from a distribution of investee’s earnings. The Group reviews the investment for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. Equity method investments In accordance with ASC 323 “Investment-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. In accordance with ASC 323 “Investment-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. In accordance with ASC 323 “Investment-Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation in the investee’s Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. For the investment in limited partnerships, where the Group holds less than a 20% equity or voting interest, the Group’s influence over the partnership operating and financial policies is more than minor, thus, as subject to equity method as well. Under the equity method of accounting, the affiliated company’s accounts are not reflected within the Group’s consolidated balance sheets and statements of comprehensive income; however, the Group’s share of the earnings or losses of the affiliated company is reflected in the caption “share income from equity method investments” in the consolidated statements of comprehensive income. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. |
Investment security | (l) Investment security The Group invests in marketable equity security to meet business objectives. In accordance with ASC 320, “Investment Debt and Equity Securities” this marketable security is stated at fair value, classified and accounted for as available-for-sale securities in investment security. The treatment of a decline in the fair value of an individual security is based on whether the decline is other-than-temporary. The Group assesses its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited to, its ability and intent to hold the individual security, severity of the impairment, expected duration of the impairment and forecasted recovery of fair value. Investments classified as available-for-sale securities are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders’ equity. If the Group determines a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to fair value as a new cost basis and the amount of the write-down is accounted for as an unrealized loss charged in the consolidated statement of comprehensive income. |
Business Combinations | (m) Business combination The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations |
Property, equipment and software, net | (n) Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and impairment. Property, equipment and software are depreciated over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Classification Estimated useful lives Equipment 3 - 10 Servers 3-5 years Office furniture, vehicles &; logistics equipment 3-5 years Portable power banks and charging boxes 3 5 Leasehold improvement Shorter of expected lives of leasehold improvements and lease term Software 10 years Building 20 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income |
Construction in progress | (o) Construction in progress Direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. As of December 31, 2016 and 2017 the balances of construction in progress were RMB 5,645 4,229 |
Land use rights, net | (p) Land use rights, net Land use rights represent amounts paid for the Group's lease for the use right of land located in Suzhou City in China. Land use rights are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives which are generally 50 |
Intangible assets, net | (q) Intangible assets, net The Group performs valuation of the intangible assets arising from business acquisition to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the assets estimated economic useful lives as follows: Estimated average useful lives Domain names and non-compete agreements 2 years Customer relationship Patent 5 years 10 Trademark 2 - 3 User base 2 - 3 Amortization expenses for the years ended December 31, 2015, 2016 and 2017 were RMB 111 5,670 |
Goodwill | (r) Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business acquisition. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Commencing in September 2011, in accordance with the FASB revised guidance on “Testing of Goodwill for Impairment,” a company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the company decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of each reporting unit exceeds its fair value, an impairment loss equal to the difference between the implied fair value of the reporting unit’s goodwill and the carrying amount of goodwill will be recorded. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Goodwill was allocated to one and two reporting units as of December 31, 2016 and 2017, respectively (Note 13). |
Impairment of long-lived assets | (s) Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying value of the asset, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over its fair value. |
Film Costs | (t) Film production The Group entered into a film production collaborative arrangement with a third party. In accordance with ASC 926, Entertainment Films (“ASC 926”), film production costs includes cash expenditures made to acquire a proportionate share of certain rights to films including profit sharing, distribution and/or other rights. Film production costs also include direct production costs, production overhead and acquisition costs and is stated at the lower of unamortized cost or estimated fair value. Pursuant to ASC 926, film production costs will be amortized once the film has been released. As of December 31, 2017, the film was still being developed and had not been released. The Group reviews unamortized film production costs for impairment whenever events or circumstances indicate that the fair value of the produced content may be less than its unamortized cost. No impairment losses were recorded for the year ended December 31, 2017. |
Leases | (u) Leases Each lease is classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property’s estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the leaser at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The Group had no capital lease for any of the periods presented. |
Revenue recognition | (v) Revenue recognition Revenue comes primarily from merchandise sales and marketplace services. The Group generates revenues from merchandise sales when the Group acts as principal for the direct sales of beauty products to customers. The Group generates revenues from marketplace services when the Group acts as the service provider for other vendors and charges third-party merchant fees for the sales of their products, which include beauty products, apparel and other life style products. The Group collects cash from customers before or upon deliveries of products mainly through banks, third party online payment platforms or delivery companies. Cash collected from customers before product delivery is recognized as advances from customers first and then recognized as revenue upon deliveries and acceptances by customers. Revenues from merchandise sales and marketplace services are recognized when the following four criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. The Group recognizes merchandise sales revenues upon acceptance of delivery of products by customers. Marketplace service revenues primarily consist of fees charged to third-party merchants for selling their products through our internet platform and fees for providing fulfillment services. The Group recognizes marketplace service revenues upon acceptances of deliveries by customers for sales that the Group provides fulfillment services or upon shipping by third party merchants for sales for which the Group doesn’t provide fulfillment services. For customer orders and cash collected from customers before delivery, the Group accounts for it in advances from customers. The Group considers several factors in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as service fees. Generally, when the Group is the primary obligor in a transaction, is subject to substantial inventory risk, and has latitude in establishing prices, revenues are recorded at the gross sales price. If the Group does not have substantial inventory risk or latitude in establishing prices and amounts earned are determined using a predetermined service rate, the Group records the net amounts as marketplace service fees earned. Sales allowances, which reduce revenues, are estimated using management’s best estimate based on historical experience. Revenues are recorded net of value-added taxes, business taxes and surcharges. The Group acquired Jiedian (Note 4), one of the leading players in the portable power bank sharing business. Jiedian facilitates master power charging boxes in highly frequented points of interest, such as restaurants, bars, gyms, airports, train stations, shopping malls, beauty salons, hospitals and parks. Each charging box contains multiple portable power banks. Revenue from the provision of portable power bank charging services is generally recognized upon completion of the services. |
Discount coupons and prepaid cards | Discount coupons and prepaid cards The Group periodically provides discount coupons to its customers for use in purchases that require a minimum transaction value. Coupons may also be granted to customers to incentivize a current purchase or a future purchase. Discounts for purchases are treated as a reduction of revenue for the related transaction. The right to purchase discounted products in the future is not considered an element of an arrangement within the scope of the multiple-element arrangements guidance in ASC 605, Revenue Recognition, as the right does not represent a significant and incremental customer discount. Discounts for future purchases, when accepted by the customer, are treated as a reduction of revenue when the future transaction is recognized. The Group also sells prepaid cards with discount. The discount is treated as a reduction of revenue when the prepaid card is used. The prepaid cards have no expiration date. Cash receipts from the sale of prepaid cards are initially recorded as advances from customers which is a current liability on the Group’s consolidated balance sheets. |
Customer loyalty program | (x) Customer loyalty program Customers may earn loyalty program points from the purchases from the Group. Customers may redeem the loyalty points for certain promotional products or discount coupons to be used on future purchases. The Group accrues for the estimated incremental cost of redeeming the benefits at the time the benefits are earned by the customer. Estimated incremental costs have been insignificant since the inception of the respective loyalty programs. |
Cost of revenues | (y) Cost of revenues Cost of revenue consists primarily of cost of merchandise sold and inventory write-downs, depreciation of portable power bank and charging box, and amortization of acquired intangible assets. The cost of revenues does not include shipping and handling expenses, payroll, bonus and benefits of logistic staff or logistic centers rental expenses and amortization of acquired intangible assets, therefore our cost of revenues may not be comparable to other companies which include such expenses in their cost of revenues. |
Rebates and subsidies | (z) Rebates and subsidies The Group periodically receives consideration from certain vendors, representing rebates for products purchased and subsidies for the sales of the vendors' products over a period of time. The rebates are not sufficiently separable from the Group’s purchase of the vendors’ merchandizes and they do not represent a reimbursement of costs incurred by the Group to sell vendors’ merchandizes. The Group accounts for the rebates received from its vendors as a reduction to the price it pays for the merchandizes purchased and therefore the Group records such amounts as a reduction of cost of revenues when recognized in the consolidated statements of comprehensive income. Rebates are earned when meeting minimum purchase thresholds specified in the contracts. When rebates can be reasonably estimated based on the Group’s past experience and current forecasts, a portion of the rebate is recognized as the Group makes progress towards the purchase threshold. Subsidies are calculated based on the volume of products sold through the Group and are recorded as a reduction of cost of revenues when the sales have been completed and the amount is determinable. |
Fulfillment expenses | (aa) Fulfillment expenses Fulfillment expenses represent those costs incurred in shipping and operating and staffing the Group’s fulfillment and customer service centers, including costs attributable to receiving, inspecting, and warehousing inventories; picking, packaging, and preparing customer orders for shipment; collecting payments from customers and responding to inquiries from customers. Fulfillment also includes amounts payable to third parties that assist the Group in payment collections, fulfillment and customer service operations. The shipping costs included in fulfillment expenses were RMB 338,097 311,394 242,396 |
Marketing expenses | (ab) Marketing expenses Marketing expenses mainly consist of advertising costs, promotion expenses, payroll and related expenses for employees engaged in marketing activities. Advertising costs, which primarily spend on online and offline advertisements, are expensed when the services are received. The advertising expenses were RMB 599,713 365,914 319,284 |
Technology and content expenses | (ac) Technology and content expenses Technology and content expenses mainly consist of payroll and related costs for employees involved in application development, category expansion, editorial content production and system support, as well as server charges and costs associated with telecommunications. |
General and administrative expenses | (ad) General and administrative expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, including accounting, finance, tax, legal, procurement, business development and human resources, professional fees and other general corporate costs as well as costs associated with the use by these functions of facilities and equipment, such depreciation and rent expenses. |
Share-based compensation | (ae) Share-based compensation All stock-based awards granted to the Founders, employees and directors, including Founders’ share, stock options and restricted share units (“RSUs”) are measured at the grant date based on the fair value of the award and are recognized as expenses using straight line method, net of estimated forfeitures, over the requisite service period, which is generally the vesting period. Forfeitures are estimated at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. The Group adopted Accounting Standard Update (“ASU”) ASU 2016-09CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting on January 1, 2017 and elected to account for forfeitures as they occur. There was no cumulative-effect adjustment to retained earnings given that the historical estimated forfeiture rates approximated actual forfeiture rates. The Binomial option pricing model is used to measure the fair value of stock options. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, exercise multiples, expected forfeiture rate, risk-free interest rates, contract life and expected dividends. The Group recognizes the estimated compensation cost of service-based restricted share units based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost over a vesting term of generally four years and starting January 1, 2017, accounts for forfeitures as they occur. The fair value of liabilities incurred in share-based payment transactions with employees are remeasured at the end of each reporting period through settlement. Changes in the fair value of a liability incurred under a share-based payment arrangement that occur during the requisite service period are recognized as compensation costs over that period. |
Employee benefits | (af) Employee benefits The Company’s subsidiaries, the VIEs and the VIEs’ subsidiaries in China participate in a government mandated, multi-employer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor laws require the entities incorporated in China to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the consolidated statements of comprehensive income amounted to RMB 46,387 66,131 65,302 |
Government grant | (ag) Government grant Generally, a government grant is recognized as other income when the grant is received and the requirements associated with receipt of the grant have been complied with. If the government grant is tied to the acquisition of long-lived assets, the grant is recognized as deduction of the carrying value of the long lived assets, when the conditions specified in the grant have been met. For the years ended December 31, 2015, 2016 and 2017, the Group received government grants of RMB 44,904 21,663 37,048 |
Income taxes | (ah) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. The Group adopted ASU 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes on January 1, 2017, which classifies all deferred tax assets and liabilities as noncurrent. There was no impact to the prior period balance sheet as all deferred tax assets were noncurrent in nature as of December 31, 2016. Uncertain tax positions ASC 740, Tax provision In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 |
Comprehensive income | (ai) Comprehensive income Comprehensive income is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income is reported in the consolidated statements of comprehensive income. Accumulated other comprehensive income, as presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments and fair value changes of investment security. |
Earnings per share | (aj) Earnings per share Earnings per share is calculated in accordance with ASC 260, Earnings Per Share |
Statutory reserves | (ak) Statutory reserves The Group’s subsidiaries, VIEs and VIEs’ subsidiaries established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Group’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from its after-tax profit (as determined under generally accepted accounting principles in the PRC (“PRC GAAP”) to reserve funds including general reserve fund, the enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10 In addition, in accordance with the PRC Company Laws, the Group’s VIEs and VIEs’ subsidiaries registered as Chinese domestic company must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10 50 The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to the offsetting of losses or increases the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of employees. All these reserves are not allowed to be transferred to the company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. For the years ended December 31, 2015, 2016 and 2017, profit appropriation to statutory funds for the Group’s entities incorporated in the PRC was approximately RMB 14,734 20,246 4,767 |
Segment reporting | (al) Segment reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Chief Executive Officer. The Group historically had only one single reportable segment because the CODM formerly relied on the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. With the development of the new business initiatives, the CODM started to separately evaluate performance and allocate resources by different business segments, thus the Group changed its reportable segments in 2017. The Group’s principal operations are currently organized into two business segments, the E-commerce segment and the New businesses segment, which are defined based on the products and services provided. E-commerce represents e-commerce business. New businesses mainly includes film production, Jiedian and other technology initiatives business. Accordingly, the Group updated the presentation of its reportable segments in prior periods to conform to the current year’s presentation in accordance with ASC 280 Segment Reporting. |
Recently issued accounting pronouncements | (am) Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is originally effective for the annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU 2015-14, Revenue from Contracts with Customers, defers the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim periods therein. Early adoption is permitted to the original effective date. Based on the contracts outstanding as of December 31, 2017, management expects that the cumulative catch-up adjustment upon adoption will not be material. The new standard will however require more extensive revenue-related disclosures. The Group is in the process of implementing the appropriate changes to its business processes, systems and controls to support recognition and disclosures under the new standard. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. This amendment requires all equity investments to be measured at fair value, with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted only for certain provisions. The most significant impact on the consolidated financial statements of the Group relates to the recognition and measurement of equity investments at fair value in its consolidated statements of comprehensive loss. The Group has elected to use the measurement alternative defined as cost, less impairments, adjusted by observable price changes and will apply the new standard beginning January 1, 2018. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 modifies existing guidance for off-balance sheet treatment of a lessees' operating leases by requiring lessees to recognize lease assets and lease liabilities. Under ASU 2016-02, lessor accounting is largely unchanged. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Group is evaluating this guidance and the impact to the Group, as both lessor and lessee, on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows, ("ASC 230") including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash ("ASU 2016-18"). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs will be effective for the Group's fiscal year beginning January 1, 2018 and subsequent interim periods. Early adoption is permitted. The adoption of ASU 2016-15 and ASU 2016-18 will modify the Group's current disclosures and classifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Group’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Under the new standard, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or liability, as well as the related deferred tax benefit or expense, upon purchase or receipt of the asset. This pronouncement is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Group does not believe this standard will have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying Definition of a Business ("ASU 2017-01"). ASU 2017-01 clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. This update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted for transactions that have not been reported in previously issued (or available to be issued) financial statements. The Group does not believe this standard will have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step two to measure the impairment loss. The guidance is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual and interim goodwill impairment testing dates on or after January 1, 2017. The guidance should be applied on a prospective basis. The Group does not believe this standard will have a material impact on the consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets ("ASU 2017-05"). ASU 2017-05 defines an in-substance nonfinancial asset and clarifies guidance related to partial sales of nonfinancial assets. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Group does not believe this standard will have a material impact on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, CompensationStock Compensation (Topic 718): Scope of Modification Accounting that provides clarification on accounting for modifications in share-based payment awards. This guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The adoption of this guidance is not expected to have an impact on the Group's consolidated financial statements or related disclosures unless there are modifications to the Group's share-based payment awards. |
Organization and Principal Ac32
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Principal Activities | |
Schedule of Subsidiaries and VIEs | The Group’s primary subsidiaries and VIE as of December 31, 2017 are set out below: Direct subsidiaries Equity Place and date of incorporation Jumei Hongkong Limited (“Jumei Hongkong”) 100% Hong Kong, September 6, 2010 Jumei Hongkong Holding Limited (“Jumei Hongkong Holding”) 100% Hong Kong, March 25, 2014 Beijing Silvia Technology Service Co., Ltd. (“Beijing Jumei”) 100% China, March 4, 2011 Shanghai Jumeiyoupin Technology Co., Ltd. (“Shanghai Jumei”) (Formerly known as Shanghai Paddy Commerce and Trade Co., Ltd.) 100% China, June 19, 2012 Chengdu Jumeiyoupin Science and Technology Co., Ltd. (“Chengdu Jumei”) 100% China, July 19, 2012 Tianjin Cyril Information Technology Co., Ltd. (“Tianjin Cyril”) 100% China, March 22, 2013 Tianjin Qianmei International Trading Co., Ltd. (“Tianjin Qianmei”) 100% China, March 25, 2013 Tianjin Jumeiyoupin Technology Co., Ltd. (“Tianjin Jumei”) (Formerly known as Tianjin Venus Technology Co., Ltd.) 100% China, December 30, 2013 Zhengzhou Venus Information Technology Co., Ltd. (“Zhengzhou Venus”) 100% China, August 26, 2014 Suzhou Jumeiyoupin Technology Co., Ltd. (“Suzhou Jumei”) 100% China, October 15, 2014 Shenzhen Jiedian Technology Co., Ltd. (“Jiedian”) 82.07% China, November 24, 2015 VIE Equity Place and date of incorporation Reemake Media Co., Ltd. (“Reemake Media”) 100% China, August 5, 2009 |
Schedule of Information about VIEs | The following are financial statement amounts and balances of the Group's consolidating VIEs and VIEs’ subsidiaries as of December 31, 2016 and 2017 and for the years ended December 31, 2015, 2016 and 2017. As of December 31, 2016 2017 RMB RMB Total assets 567,839 638,145 Less: loans receivable (73,330) (73,330) Total assets excluding loans receivable 494,509 564,815 Total liabilities 525,230 576,772 Less: inter-company payable (414,163) (462,222) Total liabilities excluding inter-company payable 111,067 114,550 For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Total net revenue 869,959 531,945 311,443 Net (loss)/gain (44,150) (23,466) 8,780 For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Net cash provided by/(used in) operating activities 53,880 (132,616) (62,672) Net cash (used in)/provided by investing activities (568,638) 60,174 (1,553) Net cash provided by financing activities 551,800 29,000 69,600 Net increase/(decrease) in cash and cash equivalents 37,042 (43,442) 5,375 Cash and cash equivalents at the beginning of the year 10,549 47,591 4,149 Cash and cash equivalents at the end of the year 47,591 4,149 9,524 |
Principal Accounting Policies33
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Principal Accounting Policies | |
Schedule of Property, Plant and Equipment, Estimated Useful Lives | Classification Estimated useful lives Equipment 3 - 10 Servers 3-5 years Office furniture, vehicles &; logistics equipment 3-5 years Portable power banks and charging boxes 3 5 Leasehold improvement Shorter of expected lives of leasehold improvements and lease term Software 10 years Building 20 years |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Estimated average useful lives Domain names and non-compete agreements 2 years Customer relationship Patent 5 years 10 Trademark 2 - 3 User base 2 - 3 |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | RMB US$ Total purchase price comprised of: -Cash consideration 300,000 46,109 Total 300,000 46,109 |
Schedule of Estimated Fair Values of the Assets Acquired and lLabilities Assumed | Jiedian RMB US$ Cash and cash equivalents 345,466 53,097 Prepayments and other current assets 17,049 2,620 Property and equipment, net 8,617 1,324 Intangible assets: Trademark 20,200 3,105 User base 2,100 323 Goodwill 105,219 16,172 Accounts Payable (80) (12) Accrued expenses and other current liabilities (26,026) (4,000) Deferred tax liabilities (3,345) (514) Total fair value of Jiedian 469,200 72,115 Fair value of redeemable noncontrolling interests (169,200) (26,006) Total fair value of purchase price consideration 300,000 46,109 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair value measurement | |
Schedule of Fair Value Assets Measured on Recurring Basis | Fair value measurement at reporting date using Description December 31, 2016 Quoted Prices in Active Significant Other Significant RMB RMB Short-term investments with variable interest rates 700,000 - 700,000 - Investment security 79,298 79,298 - - Total 779,298 79,298 700,000 - Fair value measurement at reporting date using Description December 31, 2017 Quoted Prices in Active Significant Other Significant RMB RMB Short-term investments with variable interest rates 1,972,277 - 1,972,277 - Investment security 88,933 88,933 - - Total 2,061,210 88,933 1,972,277 - |
Loans receivable, net (Tables)
Loans receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans receivable, net | |
Summary of loans receivable | As of December 31, 2016 2017 RMB RMB Loans receivable - current portion - 73,330 Loans receivable - non-current portion 73,330 - |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Schedule of Inventory | As of December 31, 2016 2017 RMB RMB General merchandise 673,477 640,538 Packing materials and others 3,146 4,082 Less: Inventory write down (30,507) (41,529) Total 646,116 603,091 |
Prepayment and other current 38
Prepayment and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Prepayment and other current assets | |
Schedule of Prepayment and Other Current Assets | As of December 31, 2016 2017 RMB RMB Third-party platform funds receivable (i) - 91,747 VAT prepayments - 62,496 Supplier rebates receivables 71,547 49,909 Receivable from a third party 29,500 - Interest receivable 27,997 8,928 Prepaid taxes related with overseas purchase 15,367 31,470 Prepaid vendors deposits 10,709 16,427 Prepaid advertising fees 9,361 16,775 Prepaid rental fees 7,895 9,656 Rebate receivable from third-party online payment platforms 10,664 - Receivables related to employee share options exercise 469 - Other receivables 14,358 7,287 Total 197,867 294,695 (i) This balance represents cash deposits from Jiedian customers that use its portable power banks, held by third-party on-line payment service providers. |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term investments | |
Schedule of Long-term investments | Cost Method Equity Method Total RMB RMB RMB Balance at December 31, 2016 486,437 29,262 515,699 Additions 35,889 - 35,889 Share of income - 4,903 4,903 Impairment (1,900) - (1,900) Balance at December 31, 2017 520,426 34,165 554,591 |
Investment security (Tables)
Investment security (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investment security | |
Schedule of investment security | As of December 31, 2016 2017 RMB RMB Balance at the beginning of the year 135,952 79,298 Recognition of unrealized (loss)/gain (68,309) 14,411 Foreign currency transaction adjustments, net of nil tax 11,655 (4,776) Balance at the end of the year 79,298 88,933 |
Property, equipment and softw41
Property, equipment and software, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, equipment and software, net | |
Property, equipment and software, net | As of December 31, 2016 2017 RMB RMB Equipment 41,535 44,370 Leasehold improvements 32,731 28,299 Servers 36,135 36,896 Office furniture, vehicles and logistics equipment 19,612 20,999 Portable power banks and charging boxes - 383,031 Software 8,909 9,157 Building - 118,276 Total 138,922 641,028 Less: Accumulated depreciation (85,320) (124,446) Net book value 53,602 516,582 |
Land use rights, net (Tables)
Land use rights, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Land Use Rights, Net | |
Schedule of land use rights, net | As of December 31, 2016 2017 RMB RMB Cost: Land use rights 84,068 84,068 Less: Accumulated amortization (1,541) (3,222) Land use rights, net 82,527 80,846 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | E-Commerce Jiedian Total RMB RMB RMB Balance at January 1, 2016 and December 31, 2016 15,291 - 15,291 Goodwill acquired (Note 4) - 105,219 105,219 Balance at December 31, 2017 15,291 105,219 120,510 |
Accrued expenses and other cu44
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued expenses and other current liabilities | |
Accrued Expenses and Other Current Liabilities | As of December 31, 2016 2017 RMB RMB Deposits from service providers 38,320 36,731 Customer deposits and funds payable (Note 2v) - 193,261 Payroll and welfare benefits accruals 29,941 35,223 Server custody and bandwidth fee accruals 11,530 5,221 Professional fees payable 7,861 4,576 Rentals 4,257 584 Payables related to employee share options exercise 340 4,432 Accrual for purchase of property and equipment - 38,012 Others 13,706 25,198 Total 105,955 343,238 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Taxation | |
Current and Deferred Portion of Income Tax Expenses/(Benefits) | For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Current tax provision 63,527 29,024 31,383 Deferred tax provision 7,876 2,580 (7,605) Income tax expenses 71,403 31,604 23,778 |
Reconciliation between the statutory CIT rate and the effective tax rate | For the Years Ended December 31, 2015 2016 2017 Statutory income tax rates 25 % 25 % (25) % Effect of preferential tax (14) % (5) % (65) % Change in valuation allowance 19 % (10) % 161 % Permanent differences 3 % 7 % 59 % Effect of withholding tax 2 % - - Effect on tax rates in different tax jurisdiction (1) % 1 % 51 % Effective tax rate 34 % 18 % 181 % |
Significant Components of Aggregate Deferred Tax Assets | As of December 31, 2016 2017 RMB RMB Deferred tax assets: Net operating loss carry forwards 15,123 48,337 Excess advertising expenses carry forwards 10,787 7,717 Accrued payroll and other expenses 2,585 - Others 3,028 10,560 Less: valuation allowance (30,196) (58,432) Total deferred tax assets, net 1,327 8,182 Deferred tax liability : Intangible assets acquired - 2,595 |
Movement of Valuation Allowance | As of December 31, 2016 2017 RMB RMB Balance at beginning of the year (58,568) (30,196) Current period deduction/(addition) 28,372 (28,236) Balance at the end of the year (30,196) (58,432) |
Share based compensation (Table
Share based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share based compensation | |
Share Option Activities | The summary of service-based share options activities under the Share Incentive Plan as of December 31, 2017, and changes during the years, is presented below: Number of Weighted Weighted Average Weighted Average Aggregate US$ In years US$ US$ Outstanding as of December 31, 2015 5,546,983 3.15 6.60 3.36 38,994 Forfeited (723,023) 7.32 8.11 Exercised (3,071,690) 0.15 0.59 14,928 Outstanding as of December 31, 2016 1,752,270 6.70 6.73 6.27 4,289 Granted 1,100,000 2.34 1.49 Forfeited (35,983) 13.71 8.64 Exercised (178,395) 0.95 5.49 351 Outstanding as of December 31, 2017 2,637,892 5.18 7.42 4.30 2,420 Vested and expected to vest as of December 31, 2017 2,637,892 5.18 7.42 2,420 Exercisable as of December 31, 2017 1,042,470 6.39 5.49 1,380 |
Fair Value Assumptions | The share-based compensation expenses are measured at the fair value of the award as calculated under the Binomial option-pricing model. Assumptions used in the Binomial option-pricing model are presented below: For the years ended December 31, 2015 2016 2017 Risk-free interest rates (%) (1) 2.52% NA 2.33%~2.41% Exercise multiples~(2)~ 2.2 times NA 2.5 times Expected dividend yield~(3)~ 0% NA 0% Expected volatility (%)~(4)~ 46% NA 63%~65% Contract life 10 years NA 10 years 1. The risk-free interest rate is based on the implied yield rates of China government bonds denominated in US$ for a term consistent with the expected life of the awards in effect at the time of grant if such rates are available. 2. The expected exercise multiple is the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it was estimated by referencing to Valuing Employee Stock Options (published by John Wiley &; Sons. Inc. 2004 edition), a well-accepted academic publication. 3. The dividend yield was estimated based on the Company’s expected dividend policy over the expected life of the options. 4. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of similar U.S. and Hong Kong public companies for a period equal to the expected life preceding the grant date. |
Restricted Share Units Activities | The summary of Service-Based Restricted Share Units (“RSUs”) activities as of December 31, 2017, and changes during the periods, is presented below: Restricted Shares Number of Shares Weighted-Average US$ Unvested as of December 31, 2015 290,448 17.33 Granted 100,000 4.08 Vested (84,107) 18.55 Forfeited (65,075) 16.04 Unvested as of December 31, 2016 241,266 11.77 Granted 575,000 3.75 Vested (131,782) 8.48 Forfeited (47,909) 15.64 Unvested as of December 31, 2017 636,575 4.92 |
Earnings_(losses) per share (Ta
Earnings/(losses) per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share | |
Schedule of Earnings Per Share, Basic and Diluted | For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Numerator: Net income/(losses) attributable to Jumei International Holding Limited 122,916 142,224 (36,978) Numerator for basic and diluted income/(losses) per share attributable to Jumei’s ordinary shareholders 122,916 142,224 (36,978) Denominator: Weighted average number of ordinary shares basic 145,901,672 149,477,388 149,790,335 Dilutive effect of share options 3,848,667 573,230 - Dilutive effect of RSUs 8,486 18,587 - Weighted average number of ordinary shares diluted 149,758,825 150,069,205 149,790,335 Net income/(losses) per share attributable to Jumei’s ordinary shareholders - Basic 0.84 0.95 (0.25) - Diluted 0.82 0.95 (0.25) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Future Minimum Commitment Under Non-Cancelable Agreements | Operating lease RMB 2018 60,443 2019 46,913 2020 31,043 2021 15,772 2022 and thereafter - Total 154,171 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions | |
Schedule of major related parties and their relationships | Name of related parties Relationship with the Group Beijing Jushangminghui Commerce and Trade Co., Ltd. A company controlled by a beneficial owner of the Company and his immediate family member Beijing Fanbosha Commerce and Trade Co., Ltd. A company controlled by a beneficial owner of the Company and his immediate family member Venture capital fund An investee of the Group accounted for as equity method |
Schedule of Related Party Transactions | For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Interest income of loans receivable: Venture capital fund - 1,584 7,344 |
Schedule of Related Party Balances | As of December 31, 2015 2016 2017 RMB RMB RMB Loan receivable from a venture capital fund - 73,330 73,330 Interest receivable from a venture capital fund - 1,584 8,928 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | For the Year Ended December 31, 2015 2016 2017 RMB RMB RMB Net revenues: E-commerce 7,342,959 6,277,183 5,768,243 New business - - 73,732 Inter-segment* - - (25,143) Total consolidated net revenues 7,342,959 6,277,183 5,816,832 Operating income/(loss): E-commerce 151,410 132,255 95,012 New business - - (133,237) Inter-segment* - - - Total segment operating income/(loss) 151,410 132,255 (38,225) Total consolidated operating loss 151,410 132,255 (38,225) Total other income 54,834 49,531 25,025 Income/(loss) before tax 206,244 181,786 (13,200) (*) The inter-segment eliminations mainly consist of revenues related to research and development services and warehouse services provided by E-commerce to New-business. |
Organization and Principal Ac51
Organization and Principal Activities (Significant Majority-Owned Subsidiaries and VIEs) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Reemake Media Co., Ltd. (“Reemake Media”) | |
Variable Interest Entities | |
Equity interest indirectly held | 100.00% |
Jumei Hongkong Limited ("Jumei Hongkong") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Jumei Hongkong Holding Limited ("Jumei Hongkong Holding") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Beijing Silvia Technology Service Co., Ltd. ("Beijing Jumei") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Shanghai Jumeiyoupin Technology Co., Ltd. ("Shanghai Jumei") (Formerly known as Shanghai Paddy Commerce and Trade Co., Ltd.) | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Chengdu Jumeiyoupin Science and Technology Co., Ltd. ("Chengdu Jumei") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Tianjin Cyril Information Technology Co., Ltd. ("Tianjin Cyril") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Tianjin Qianmei International Trading Co., Ltd. ("Tianjin Qianmei") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Tianjin Jumeiyoupin Technology Co., Ltd. ("Tianjin Jumei") (Formerly known as Tianjin Venus Technology Co., Ltd.) | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Zhengzhou Venus Information Technology Co., Ltd. ("Zhengzhou Venus") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Suzhou Jumeiyoupin Technology Co., Ltd. ("Suzhou Jumei") | |
Direct Subsidiaries | |
Equity interest held | 100.00% |
Shenzhen Jiedian Technology Co., Ltd. (“Jiedian”) | |
Direct Subsidiaries | |
Equity interest held | 82.07% |
Organization and Principal Ac52
Organization and Principal Activities (Financial Information of the Company's VIEs) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Variable interest entities | |||||
Total assets | ¥ 4,967,233 | ¥ 4,746,101 | $ 763,451 | ||
Total liabilities | 1,025,310 | 858,969 | $ 157,589 | ||
Total net revenue | 5,816,832 | $ 894,031 | 6,277,183 | ¥ 7,342,959 | |
Net (loss)/gain | (36,978) | (5,684) | 150,182 | 134,841 | |
Net increase/(decrease) in cash and cash equivalents | (1,900,324) | (292,073) | (262,816) | 1,552,160 | |
Cash and cash equivalents at the beginning of the year | 2,301,471 | 353,728 | 2,564,287 | 1,012,127 | |
Cash and cash equivalents at the end of the year | 401,147 | $ 61,655 | 2,301,471 | 2,564,287 | |
VIEs | |||||
Variable interest entities | |||||
Total assets | 638,145 | 567,839 | |||
Less: loans receivable | (73,330) | (73,330) | |||
Total assets excluding loans receivable | 564,815 | 494,509 | |||
Total liabilities | 576,772 | 525,230 | |||
Less: inter-company payable | (462,222) | (414,163) | |||
Total liabilities excluding inter-company payable | 114,550 | 111,067 | |||
Total net revenue | 311,443 | 531,945 | 869,959 | ||
Net (loss)/gain | 8,780 | (23,466) | (44,150) | ||
Net cash provided by/(used in) operating activities | (62,672) | (132,616) | 53,880 | ||
Net cash (used in)/provided by investing activities | (1,553) | 60,174 | (568,638) | ||
Net cash provided by financing activities | 69,600 | 29,000 | 551,800 | ||
Net increase/(decrease) in cash and cash equivalents | 5,375 | (43,442) | 37,042 | ||
Cash and cash equivalents at the beginning of the year | 4,149 | 47,591 | 10,549 | ||
Cash and cash equivalents at the end of the year | 9,524 | 4,149 | ¥ 47,591 | ||
Asset can be used to settle obligations | 0 | ||||
Registered Capital | ¥ 8,157 | ¥ 8,157 |
Principal Accounting Policies53
Principal Accounting Policies (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | Aug. 31, 2016 | |
Foreign currency translation adjustments, net of nil tax | ¥ (20,808) | $ (3,198) | ¥ 31,604 | ¥ 130,668 | ||
Foreign exchange gains/(losses) | (87,753) | $ (13,487) | 27,953 | (78,101) | ||
Allowance for entrusted loans | 0 | |||||
Allowance for doubtful accounts | ¥ 0 | 0 | ||||
Land use rights, estimated useful lives | 50 years | 50 years | ||||
Construction in process | ¥ 4,229 | 5,645 | $ 650 | |||
Amortization expenses | 5,670 | 0 | 111 | |||
Impairment charge | 0 | 0 | 0 | |||
Shipping costs included in fulfillment expenses | 242,396 | 311,394 | 338,097 | |||
Advertising expenses | ¥ 319,284 | 365,914 | 599,713 | |||
Vesting period | 4 years | 4 years | ||||
Employee social benefits included as expenses | ¥ 65,302 | 66,131 | 46,387 | |||
Government grant | 37,048 | 21,663 | 44,904 | |||
Appropriations to statutory reserves | ¥ 0 | 0 | 0 | |||
Foreign Currency Exchange Rate, Translation | 6.5063 | 6.5063 | ||||
Allowance for Doubtful Accounts Receivable, Write-offs | ¥ 0 | $ 0 | 0 | 17,157 | ||
Statutory reserves | ||||||
Foreign currency translation adjustments, net of nil tax | 0 | 0 | 0 | |||
Appropriations to statutory reserves | ¥ 4,767 | ¥ 20,246 | ¥ 14,734 | |||
Minimum | ||||||
Annual rate (as a percentage) | 4.35% | 4.35% | 4.35% | |||
Maximum | ||||||
Annual rate (as a percentage) | 10.00% | 10.00% | 10.00% | |||
Foreign invested enterprise | ||||||
Minimum percentage of after-tax profits required for appropriation to reserve | 10.00% | 10.00% | ||||
Maximum Percentage Of Companys Registered Capital Required to Be Held in Reserve | 50.00% | 50.00% | ||||
Domestic enterprise | ||||||
Minimum percentage of after-tax profits required for appropriation to reserve | 10.00% | 10.00% | ||||
Maximum Percentage Of Companys Registered Capital Required to Be Held in Reserve | 50.00% | 50.00% |
Principal Accounting Policies54
Principal Accounting Policies (Schedules of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Domain names and non-compete agreements | |
Intangible assets, net: | |
Estimated average useful lives | 2 years |
Customer relationship | |
Intangible assets, net: | |
Estimated average useful lives | 5 years |
Trademarks [Member] | Maximum [Member] | |
Intangible assets, net: | |
Estimated average useful lives | 3 years |
Trademarks [Member] | Minimum [Member] | |
Intangible assets, net: | |
Estimated average useful lives | 2 years |
User Base [Member] | Maximum [Member] | |
Intangible assets, net: | |
Estimated average useful lives | 3 years |
User Base [Member] | Minimum [Member] | |
Intangible assets, net: | |
Estimated average useful lives | 2 years |
Patents [Member] | |
Intangible assets, net: | |
Estimated average useful lives | 10 years |
Equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Portable Power Banks And Charging Boxes [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Portable Power Banks And Charging Boxes [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Leasehold improvement | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of expected lives of leasehold improvements and lease term |
Building | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Risks and concentration (Detail
Risks and concentration (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign currency risk | RMB | ||
Concentration of credit risk | ||
Cash and cash equivalents and short-term investments | ¥ 2,070,641 | ¥ 861,400 |
Business combination (Narrative
Business combination (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2017CNY (¥) | May 31, 2017USD ($) | Sep. 30, 2017CNY (¥) | Sep. 30, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | May 31, 2017USD ($) | |
Business Combination, Consideration Transferred | ¥ 300,000 | $ 46,109 | |||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 169,200 | $ 26,006 | |||||
Payments to Acquire Businesses, Gross | ¥ 300,000 | $ 46,109 | |||||
Jiedian [Member] | |||||||
Business Combination, Consideration Transferred | ¥ 92,610 | $ 14,234 | |||||
Adjustments To Additional Paid In Capital, Acquisition of Redeemable Noncontrolling Interests | ¥ 10,718 | $ 1,647 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 82.07% | 82.07% |
Business combination (Details)
Business combination (Details) - 1 months ended May 31, 2017 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Total purchase price comprised of: | ||
-Cash consideration | ¥ 300,000 | $ 46,109 |
Total | ¥ 300,000 | $ 46,109 |
Business combination (Details 1
Business combination (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | May 31, 2017CNY (¥) | May 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Cash and cash equivalents | ¥ 345,466 | $ 53,097 | |||
Prepayments and other current assets | 17,049 | 2,620 | |||
Property and equipment, net | 8,617 | 1,324 | |||
Intangible assets: | |||||
Trademark | 20,200 | 3,105 | |||
User base | 2,100 | 323 | |||
Goodwill | ¥ 120,510 | $ 18,522 | 105,219 | 16,172 | ¥ 15,291 |
Accounts Payable | (80) | (12) | |||
Accrued expenses and other current liabilities | (26,026) | (4,000) | |||
Deferred tax liabilities | (3,345) | (514) | |||
Total fair value of Jiedian | 469,200 | 72,115 | |||
Fair value of redeemable noncontrolling interests | (169,200) | (26,006) | |||
Total fair value of purchase price consideration | ¥ 300,000 | $ 46,109 |
Fair value measurement (Details
Fair value measurement (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment security | ¥ 88,933 | $ 13,669 | ¥ 79,298 | ¥ 135,952 |
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term investments with variable interest rates | 1,972,277 | 700,000 | ||
Investment security | 88,933 | 79,298 | ||
Total | 2,061,210 | 779,298 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term investments with variable interest rates | 0 | 0 | ||
Investment security | 88,933 | 79,298 | ||
Total | 88,933 | 79,298 | ||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term investments with variable interest rates | 1,972,277 | 700,000 | ||
Investment security | 0 | 0 | ||
Total | 1,972,277 | 700,000 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term investments with variable interest rates | 0 | 0 | ||
Investment security | 0 | 0 | ||
Total | ¥ 0 | ¥ 0 |
Loans receivable, net (Summary
Loans receivable, net (Summary of Loans Receivable) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Loans receivable, net | |||
Loans receivable - current portion | ¥ 73,330 | $ 11,271 | ¥ 0 |
Loans receivable - non-current portion | ¥ 0 | $ 0 | ¥ 73,330 |
Loans receivable, net (Narrativ
Loans receivable, net (Narrative) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Aug. 31, 2016 |
Loans receivable, net | ||
Loans receivable | ¥ 73,330 | |
Equity investment | ¥ 26,670 | |
Minimum | ||
Loans receivable, net | ||
Annual rate (as a percentage) | 4.35% | 4.35% |
Maximum | ||
Loans receivable, net | ||
Annual rate (as a percentage) | 10.00% | 10.00% |
Venture capital fund ("Fund") | ||
Loans receivable, net | ||
Investments | ¥ 100,000 |
Loans receivable, net (Schedule
Loans receivable, net (Schedule of Significant Inputs Used to Estimate Fair Value of Call Option) (Details) | Jul. 22, 2015 |
Loans receivable, net | |
Maturity Date | Dec. 31, 2015 |
Inventories (Details)
Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Inventories | |||
General merchandise | ¥ 640,538 | ¥ 673,477 | |
Packing materials and others | 4,082 | 3,146 | |
Less: Inventory write down | (41,529) | (30,507) | |
Total | ¥ 603,091 | $ 92,693 | ¥ 646,116 |
Prepayment and other current 64
Prepayment and other current assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Prepayment and other current assets | ||||
Third-party platform funds receivable | [1] | ¥ 91,747 | ¥ 0 | |
VAT prepayments | 62,496 | 0 | ||
Supplier rebate receivables | 49,909 | 71,547 | ||
Receivable from a third party | 0 | 29,500 | ||
Interest receivable | 8,928 | 27,997 | ||
Prepaid taxes related with overseas purchase | 31,470 | 15,367 | ||
Prepaid vendors deposits | 16,427 | 10,709 | ||
Prepaid advertising fees | 16,775 | 9,361 | ||
Prepaid rental fees | 9,656 | 7,895 | ||
Rebate receivable from third-party online payment platforms | 0 | 10,664 | ||
Receivables related to employee share options exercise | 0 | 469 | ||
Other receivables | 7,287 | 14,358 | ||
Total | ¥ 294,695 | $ 45,294 | ¥ 197,867 | |
[1] | This balance represents cash deposits from Jiedian customers that use its portable power banks, held by third-party on-line payment service providers. |
Long-term investments (Details)
Long-term investments (Details) ¥ in Thousands, $ in Thousands | Dec. 07, 2017CNY (¥) | Dec. 07, 2017USD ($) | Apr. 25, 2016CNY (¥) | May 18, 2017CNY (¥) | May 18, 2017USD ($) | Apr. 30, 2017CNY (¥) | Apr. 30, 2017USD ($) | Aug. 31, 2016CNY (¥) | Jan. 22, 2016CNY (¥)shares | Jan. 22, 2016USD ($)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Investment [Line Items] | ||||||||||||||
Balance at the beginning of the year | ¥ 515,699 | |||||||||||||
Additions | 35,889 | |||||||||||||
Share of income | 4,903 | $ 754 | ¥ 2,452 | ¥ 0 | ||||||||||
Impairment | 1,900 | 292 | 114,789 | 0 | ||||||||||
Balance at the end of the year | 554,591 | 85,239 | 515,699 | |||||||||||
Cost method investments | ||||||||||||||
Shares purchased (in shares) | shares | 2,000,000 | 2,000,000 | ||||||||||||
Disposal gain recognized | ¥ 7,308 | 0 | 0 | 7,348 | 0 | |||||||||
Impairments recorded for the investment | 1,900 | 292 | 0 | |||||||||||
Cash consideration for equity method investment | ¥ 20,000 | $ 3,074 | ¥ 1,900 | $ 292 | ¥ 104,056 | $ 15,000 | 42,534 | 6,537 | 502,726 | 30,690 | ||||
Payments to Acquire Loans Receivable | 0 | 0 | 0 | 558,000 | ||||||||||
Proceeds from Collection of Loans Receivable | 0 | $ 0 | 186,000 | ¥ 0 | ||||||||||
Entity One [Member] | ||||||||||||||
Cost method investments | ||||||||||||||
Cost Method Investment, Ownership Percentage | 5.00% | 5.00% | ||||||||||||
Entity Two [Member] | ||||||||||||||
Cost method investments | ||||||||||||||
Cost Method Investment, Ownership Percentage | 20.00% | 20.00% | ||||||||||||
CHINA | ||||||||||||||
Cost method investments | ||||||||||||||
Cash consideration for equity method investment | ¥ 20,634 | $ 3,171 | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | 5.00% | ||||||||||||
General Partner [Member] | ||||||||||||||
Equity method investment | ||||||||||||||
Cash consideration for equity method investment | ¥ 140 | |||||||||||||
Limited partner | ||||||||||||||
Equity method investment | ||||||||||||||
Cash consideration for equity method investment | ¥ 26,670 | |||||||||||||
Cost Method | ||||||||||||||
Investment [Line Items] | ||||||||||||||
Balance at the beginning of the year | 486,437 | |||||||||||||
Additions | 35,889 | |||||||||||||
Share of income | 0 | |||||||||||||
Impairment | (1,900) | |||||||||||||
Balance at the end of the year | 520,426 | 486,437 | ||||||||||||
Equity Method | ||||||||||||||
Investment [Line Items] | ||||||||||||||
Balance at the beginning of the year | 29,262 | |||||||||||||
Additions | 0 | |||||||||||||
Share of income | 4,903 | |||||||||||||
Impairment | 0 | |||||||||||||
Balance at the end of the year | ¥ 34,165 | ¥ 29,262 |
Investment security (Details)
Investment security (Details) ¥ in Thousands, $ in Thousands | May 06, 2015CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016CNY (¥) |
Investment security | ||||||
Balance at the beginning of the year | ¥ 79,298 | ¥ 135,952 | ||||
Purchase on May 6, 2015 | 0 | $ 0 | 0 | ¥ 172,639 | ||
Recognition of unrealized (loss)/gain | 14,411 | (68,309) | ||||
Foreign currency transaction adjustments, net of nil tax | (4,776) | 11,655 | ||||
Balance at the end of the year | 88,933 | 13,669 | 79,298 | 135,952 | ¥ 79,298 | |
Reclassification of unrealized loss of investment security into the statement of income | ¥ 0 | $ 0 | ¥ 114,789 | ¥ 0 | ||
IT'S SKIN | ||||||
Investment security | ||||||
Purchase on May 6, 2015 | ¥ 172,639 | |||||
Percentage of equity stake acquired | 2.00% | |||||
Reclassification of unrealized loss of investment security into the statement of income | ¥ 114,789 |
Property, equipment and softw67
Property, equipment and software, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Property, equipment and software, net | ||||
Total | ¥ 641,028 | ¥ 138,922 | ||
Less: Accumulated depreciation | (124,446) | (85,320) | ||
Net book value | 516,582 | 53,602 | $ 79,397 | |
Depreciation expenses | 50,891 | 29,292 | ¥ 29,814 | |
Equipment | ||||
Property, equipment and software, net | ||||
Total | 44,370 | 41,535 | ||
Leasehold improvements | ||||
Property, equipment and software, net | ||||
Total | 28,299 | 32,731 | ||
Servers | ||||
Property, equipment and software, net | ||||
Total | 36,896 | 36,135 | ||
Office furniture, vehicles and logistics equipment | ||||
Property, equipment and software, net | ||||
Total | 20,999 | 19,612 | ||
Software | ||||
Property, equipment and software, net | ||||
Total | 9,157 | 8,909 | ||
Building [Member] | ||||
Property, equipment and software, net | ||||
Total | 118,276 | 0 | ||
Portable Power Banks And Charging Boxes [Member] | ||||
Property, equipment and software, net | ||||
Total | ¥ 383,031 | ¥ 0 |
Land use rights, net (Details)
Land use rights, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | |
Land Use Rights, Net | |||
Land use rights | ¥ 84,068 | ¥ 84,068 | |
Less: Accumulated amortization | (3,222) | (1,541) | |
Land use rights, net | 80,846 | 82,527 | $ 12,426 |
Amortization expenses | ¥ 1,681 | ¥ 1,541 |
Goodwill (Details)
Goodwill (Details) - 12 months ended Dec. 31, 2017 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Balance at the beginning | ¥ 15,291 | |
Goodwill, Acquired During Period | 105,219 | |
Balance at the end | 120,510 | $ 18,522 |
E Commerce [Member] | ||
Balance at the beginning | 15,291 | |
Goodwill, Acquired During Period | 0 | |
Balance at the end | 15,291 | |
Jiedian [Member] | ||
Balance at the beginning | 0 | |
Goodwill, Acquired During Period | 105,219 | |
Balance at the end | ¥ 105,219 |
Accrued expenses and other cu70
Accrued expenses and other current liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Accrued expenses and other current liabilities | |||
Deposits from service providers and customers | ¥ 36,731 | ¥ 38,320 | |
Customer deposits and funds payable (Note 2v) | 193,261 | 0 | |
Payroll and welfare benefits accruals | 35,223 | 29,941 | |
Server custody and bandwidth fee accruals | 5,221 | 11,530 | |
Professional fees payable | 4,576 | 7,861 | |
Rentals | 584 | 4,257 | |
Payables related to employee share options exercise | 4,432 | 340 | |
Accrual for purchase of property and equipment | 38,012 | 0 | |
Others | 25,198 | 13,706 | |
Total | ¥ 343,238 | $ 52,755 | ¥ 105,955 |
Taxation (Narrative) (Details)
Taxation (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Value-Added Tax, service revenue (as a percent) | 6.00% | 6.00% | ||
Value-Added Tax, merchandize revenue (as a percent) | 17.00% | 17.00% | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ¥ (13,200) | $ (2,029) | ¥ 181,786 | ¥ 206,244 |
Operating Loss Carryforwards | 258,537 | |||
PRC Subsidiaries [Member] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 58,791 | |||
non-PRC subsidiaries [Member] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ¥ 71,991 |
Taxation (Current and Deferred
Taxation (Current and Deferred Portion of Income Tax Expense and Benefit) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Taxation | ||||
Current tax provision | ¥ 31,383 | ¥ 29,024 | ¥ 63,527 | |
Deferred tax provision | (7,605) | 2,580 | 7,876 | |
Income tax expenses | ¥ 23,778 | $ 3,655 | ¥ 31,604 | ¥ 71,403 |
Taxation (Geographic Region) (D
Taxation (Geographic Region) (Details) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
PRC Corporate Income Tax Rate (as a percent) | (25.00%) | 25.00% | 25.00% | 25.00% | |
Hong Kong | |||||
Profit tax rate (as a percent) | 16.50% | ||||
Chengdu Jumeiyoupin Science and Technology Co., Ltd. ("Chengdu Jumei") | PRC western region | |||||
Preferential enterprise income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% |
Taxation (Reconciliation Betwee
Taxation (Reconciliation Between Statutory and Effective Tax Rate) (Details) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxation | ||||
Statutory income tax rates (as a percent) | (25.00%) | 25.00% | 25.00% | 25.00% |
Effect of preferential tax (as a percent) | (65.00%) | (5.00%) | (14.00%) | |
Change in valuation allowance (as a percent) | 161.00% | (10.00%) | 19.00% | |
Permanent differences (as a percent) | 59.00% | 7.00% | 3.00% | |
Effect of withholding tax (as a percent) | 0.00% | 0.00% | 2.00% | |
Effect on tax rates in different tax jurisdiction (as a percent) | 51.00% | 1.00% | (1.00%) | |
Effective tax rate (as a percent) | 181.00% | 18.00% | 34.00% |
Taxation (Aggregate Preferentia
Taxation (Aggregate Preferential Tax) (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Taxation | |||
Aggregate amount of the preferential tax | ¥ 8,605 | ¥ 10,022 | ¥ 29,226 |
Per share effect of the preferential tax | ¥ 0.06 | ¥ 0.11 | ¥ 0.20 |
Taxation (Components of Aggrega
Taxation (Components of Aggregate Deferred Income Tax Assets) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Taxation | |||
Net operating loss carry forwards | ¥ 48,337 | ¥ 15,123 | |
Excess advertising expenses carry forwards | 7,717 | 10,787 | |
Accrued payroll and other expenses | 0 | 2,585 | |
Others | 10,560 | 3,028 | |
Less: valuation allowance | (58,432) | (30,196) | ¥ (58,568) |
Total deferred tax assets, net | 8,182 | 1,327 | |
Deferred tax liability : | |||
Intangible assets acquired | ¥ 2,595 | ¥ 0 |
Taxation (Schedule of Movement
Taxation (Schedule of Movement of Valuation Allowance) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Taxation | ||
Balance at beginning of the year | ¥ (30,196) | ¥ (58,568) |
Current period deduction/(addition) | (28,236) | 28,372 |
Balance at the end of the year | ¥ (58,432) | ¥ (30,196) |
Taxation (Withholding Tax on Un
Taxation (Withholding Tax on Undistributed Dividends) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Withholding Tax Rate | 10.00% |
Unrecognized deferred tax liability for permanently reinvested earnings | ¥ 140,072 |
Foreign Earnings Repatriated | ¥ 1,400,720 |
Ordinary shares (Details)
Ordinary shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 15, 2014CNY (¥) | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2016$ / sharesshares |
Ordinary shares | ||||||
Ordinary shares, par value | $ / shares | $ 0.00025 | $ 0.00025 | ||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | ||||
Share repurchase program, authorized amount | ¥ | ¥ 612,000 | |||||
Share repurchase program, period over which shares will be repurchased | 12 months | |||||
Total consideration of share repurchased | ¥ 0 | $ 0 | ¥ 0 | ¥ 890 | ||
ordinary shares repurchased cancelled | 10,000 | |||||
Series A Common Stock | ||||||
Ordinary shares | ||||||
Conversion of Stock, Shares Converted | 1,912,642 | 1,912,642 | ||||
Class A ordinary shares | ||||||
Ordinary shares | ||||||
Common Stock, Shares Authorized | 840,000,000 | 840,000,000 | ||||
Ordinary shares, shares outstanding | 92,992,483 | 90,901,446 | ||||
Ordinary shares repurchased from the open market | 10,000 | |||||
Class A ordinary shares | IPO [Member] | ||||||
Ordinary shares | ||||||
Ordinary shares, shares outstanding | 92,992,483 | 90,901,446 | ||||
Class B ordinary shares | ||||||
Ordinary shares | ||||||
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 | ||||
Ordinary shares, shares outstanding | 56,892,198 | 58,804,840 | ||||
Class B ordinary shares | IPO [Member] | ||||||
Ordinary shares | ||||||
Ordinary shares, shares outstanding | 56,892,198 | 58,804,840 | ||||
Discretionary shares | ||||||
Ordinary shares | ||||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Share based compensation (Narra
Share based compensation (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥)shares | |
Share based compensation | ||||
Share options granted | shares | 1,100,000 | 1,100,000 | 745,000 | |
Unamortized compensation costs related to unvested awards not yet recognized | ¥ 15,873 | |||
Weighted average recognition period for unamortized share-based compensation cost | 1 year 9 months 14 days | 1 year 9 months 14 days | ||
Share-based Compensation | ¥ 23,710 | $ 3,644 | ¥ 34,673 | ¥ 46,361 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ¥ 5,551 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 14 days | 1 year 9 months 14 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Fair Value | ¥ 9,871 | |||
2011 Global Share Plan | ||||
Share based compensation | ||||
Option exercise prices per ordinary share, maximum (USD per share) | $ / shares | $ 15 | |||
Number of ordinary shares have been reserved to be issued | shares | 10,401,229 | |||
2014 Share Incentive Plan | ||||
Share based compensation | ||||
Annual increase percentage of outstanding share capital | 1.50% | |||
Jiedian equity incentive [Member] | ||||
Share based compensation | ||||
Share based Compensation Percentage Of Share Issued | 2.10% | 2.10% | ||
Share-based Compensation | ¥ 4,320 | |||
Class A ordinary shares | 2014 Share Incentive Plan | ||||
Share based compensation | ||||
Number of ordinary shares have been reserved to be issued | shares | 6,300,000 | |||
Share options | ||||
Share based compensation | ||||
Share-based compensation expenses | ¥ 9,980 | ¥ 28,655 | ¥ 38,416 |
Share based compensation (Chang
Share based compensation (Changes in service-based share options activities) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Options | |||
Outstanding | 1,752,270 | 5,546,983 | |
Granted | 1,100,000 | 745,000 | |
Forfeited | (35,983) | (723,023) | |
Exercised | (178,395) | (3,071,690) | |
Outstanding | 2,637,892 | 1,752,270 | 5,546,983 |
Vested and expected to vest | 2,637,892 | ||
Exercisable | 1,042,470 | ||
Weighted Average Exercise Price | |||
Outstanding | $ 6.7 | $ 3.15 | |
Granted | 2.34 | ||
Forfeited | 13.71 | 7.32 | |
Exercised | 0.95 | 0.15 | |
Outstanding | 5.18 | $ 6.7 | $ 3.15 |
Vested and expected to vest | 5.18 | ||
Exercisable | $ 6.39 | ||
Weighted Average Remaining Contractual Life In years | |||
Outstanding | 7 years 5 months 1 day | 6 years 8 months 23 days | 6 years 7 months 6 days |
Vested and expected to vest | 7 years 5 months 1 day | ||
Exercisable | 5 years 5 months 26 days | ||
Weighted Average fair value at grant date | |||
Outstanding (in dollars per share) | $ 6.27 | $ 3.36 | |
Granted (in dollars per share) | 1.49 | ||
Forfeited (in dollars per share) | 8.64 | 8.11 | |
Exercised (in dollars per share) | 5.49 | 0.59 | |
Outstanding (in dollars per share) | $ 4.30 | $ 6.27 | $ 3.36 |
Aggregate Intrinsic Value | |||
Outstanding | $ 4,289 | $ 38,994 | |
Exercised | 351 | 14,928 | |
Vested and expected to vest | 2,420 | ||
Exercisable | 1,380 | ||
Outstanding | $ 2,420 | $ 4,289 | $ 38,994 |
Share based compensation (Sched
Share based compensation (Schedule of Fair Value Assumptions) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value of options vested (in dollars per share) | $ 6 | $ 6.33 | $ 5.76 | |
Risk-free interest rates (%) | [1] | 2.52% | ||
Exercise multiples | [2] | 2.5 | 2.2 | |
Expected dividend yield | [3] | 0.00% | 0.00% | |
Expected volatility (%) | [4] | 46.00% | ||
Contract life | 10 years | 10 years | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rates (%) | [1] | 2.41% | ||
Expected volatility (%) | [4] | 65.00% | ||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rates (%) | [1] | 2.33% | ||
Expected volatility (%) | [4] | 63.00% | ||
[1] | The risk-free interest rate is based on the implied yield rates of China government bonds denominated in US$ for a term consistent with the expected life of the awards in effect at the time of grant if such rates are available. | |||
[2] | The expected exercise multiple is the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it was estimated by referencing to Valuing Employee Stock Options (published by John Wiley & Sons. Inc. 2004 edition), a well-accepted academic publication. | |||
[3] | The dividend yield was estimated based on the Company’s expected dividend policy over the expected life of the options. | |||
[4] | The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of similar U.S. and Hong Kong public companies for a period equal to the expected life preceding the grant date. |
Share based compensation (Sch83
Share based compensation (Schedule of Restricted Share Activity) (Details) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017CNY (¥)$ / shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016$ / shares | Dec. 31, 2015CNY (¥)shares | |
Weighted-Average Grant-Date Fair Value | |||||
Weighted average recognition period for unamortized share-based compensation cost | 1 year 9 months 14 days | ||||
Service-Based Restricted Share Units (RSUs) | |||||
Number of Shares | |||||
Outstanding, beginning (in shares) | shares | 241,266 | 290,448 | |||
Granted (in shares) | shares | 575,000 | 100,000 | |||
Vested (in shares) | shares | (131,782) | (84,107) | |||
Forfeited (in shares) | shares | (47,909) | (65,075) | |||
Outstanding, ending ( in shares) | shares | 636,575 | 241,266 | 290,448 | ||
Weighted-Average Grant-Date Fair Value | |||||
Outstanding (in dollars per share) | $ / shares | $ 11.77 | $ 17.33 | |||
Granted (in dollars per share) | $ / shares | 3.75 | 4.08 | |||
Vested (in dollars per share) | $ / shares | 8.48 | 18.55 | |||
Forfeited (in dollars per share) | $ / shares | 15.64 | 16.04 | |||
Outstanding (in dollars per share) | $ / shares | $ 4.92 | $ 11.77 | |||
Share-based compensation expenses | ¥ | ¥ 9,410 | ¥ 9,615 | ¥ 7,945 | ||
Unamortized share-based compensation cost, founders' shares | ¥ | ¥ 13,972 | $ 13,972 | |||
Weighted average recognition period for unamortized share-based compensation cost | 3 years 1 month 2 days |
Earnings_(losses) per share (De
Earnings/(losses) per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income/(losses) attributable to Jumei International Holding Limited | ¥ (36,978) | $ (5,684) | ¥ 150,182 | ¥ 134,841 |
Numerator for basic and diluted income/(losses) per share attributable to Jumei’s ordinary shareholders | ¥ (36,978) | $ (5,684) | ¥ 142,224 | ¥ 122,916 |
Denominator: | ||||
Weighted average number of ordinary shares - basic | 149,790,335 | 149,790,335 | 149,477,388 | 145,901,672 |
Weighted average number of ordinary shares - diluted | 149,790,335 | 149,790,335 | 150,069,205 | 149,758,825 |
Net income/(losses) per share attributable to Jumei’s ordinary shareholders | ||||
- Basic | (per share) | ¥ (0.25) | $ (0.04) | ¥ 0.95 | ¥ 0.84 |
- Diluted | (per share) | ¥ (0.25) | $ (0.04) | ¥ 0.95 | ¥ 0.82 |
Share options | ||||
Denominator: | ||||
Dilutive effect of share options | 0 | 0 | 573,230 | 3,848,667 |
Service-Based Restricted Share Units (RSUs) | ||||
Denominator: | ||||
Dilutive effect of share options | 0 | 0 | 18,587 | 8,486 |
Earnings_(losses) per share (An
Earnings/(losses) per share (Antidilutive Securities Excluded From Dilutive Net Loss Per Share) (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share options | ||
Antidilutive securities excluded from computation of EPS | ||
Anti-dilutive securities excluded from calculation of earnings per share | 2,016,482 | 1,098,037 |
Commitments and contingencies86
Commitments and contingencies (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other commitments | |||
Rental expenses under operating leases | ¥ 74,390 | ¥ 95,688 | ¥ 99,081 |
Operating lease | |||
2,018 | 60,443 | ||
2,019 | 46,913 | ||
2,020 | 31,043 | ||
2,021 | 15,772 | ||
2022 and thereafter | 0 | ||
Total | ¥ 154,171 |
Related party transactions (Det
Related party transactions (Details) - Venture capital fund ("Fund") - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related party transactions | |||
Interest income of loans receivable: | ¥ 7,344 | ¥ 1,584 | ¥ 0 |
Loan receivable | 73,330 | 73,330 | 0 |
Interest receivable | ¥ 8,928 | ¥ 1,584 | ¥ 0 |
Segment reporting (Details)
Segment reporting (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
Net revenues: | |||||
Revenues | ¥ 5,816,832 | $ 894,031 | ¥ 6,277,183 | ¥ 7,342,959 | |
Operating income/(loss): | |||||
Operating Expenses | 1,327,773 | 204,075 | 1,620,031 | 1,965,880 | |
Operating Income (Loss) | (38,225) | (5,875) | 132,255 | 151,410 | |
Income/(loss) before tax | (13,200) | $ (2,029) | 181,786 | 206,244 | |
Operating Segments [Member] | |||||
Operating income/(loss): | |||||
Operating Income (Loss) | (38,225) | 132,255 | 151,410 | ||
Total other income | 25,025 | 49,531 | 54,834 | ||
Operating Segments [Member] | E Commerce [Member] | |||||
Net revenues: | |||||
Revenues | 5,768,243 | 6,277,183 | 7,342,959 | ||
Operating income/(loss): | |||||
Operating Expenses | 95,012 | 132,255 | 151,410 | ||
Operating Segments [Member] | New Business [Member] | |||||
Net revenues: | |||||
Revenues | 73,732 | 0 | 0 | ||
Operating income/(loss): | |||||
Operating Expenses | (133,237) | 0 | 0 | ||
Operating Segments [Member] | Inter Segment [Member] | |||||
Net revenues: | |||||
Revenues | [1] | (25,143) | 0 | 0 | |
Operating income/(loss): | |||||
Operating Expenses | [1] | ¥ 0 | ¥ 0 | ¥ 0 | |
[1] | The inter-segment eliminations mainly consist of revenues related to research and development services and warehouse services provided by E-commerce to New-business. |
Restricted net assets (Details)
Restricted net assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Portion of after-tax profit to be allocated to general reserve under PRC law (as a percent) | 10.00% |
Required general reserve/registered capital ratio to de-force compulsory net profit allocation to general reserve (as a percent) | 50.00% |