Page 3 - Research and product development expenses

 

 

  • Research and product development expenses were RMB106.0 million (US$16.4 million) in the fourth quarter of 2015, representing a year-over-year increase of 173.8%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses of RMB1.1 million (US$0.2 million) and amortization of acquired intangible assets of RMB0.4 million (US$61.6 thousand), were RMB104.5 million (US$16.1 million) in the fourth quarter of 2015, representing an increase of 173.2% from the corresponding period in 2014. The increase was primarily due to investments for the implementation of additional product categories such as online financial services, accommodation reservation, and transportation ticketing, increase in direct procurement related personnel at regional service centers, improvement of online technology, and the rise in technology and product development personnel related expenses.

 

  • Sales and marketing expenses were RMB394.8 million (US$60.9 million) in the fourth quarter of 2015, representing a year-over-year increase of 175.9%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses of RMB0.3 million (US$46.7 thousand) and amortization of acquired intangible assets of RMB36.8 million (US$5.7 million), were RMB357.7 million (US$55.2 million) in the fourth quarter of 2015, representing a year-over-year increase of 150.2% from the corresponding period in 2014. The increase was primarily due to branding campaigns, advertisements for our mobile business development, expansion of our VIP customer service center, and amortization of acquired intangible assets from the previously announced transaction with JD.com.

 

  • General and administrative expenses were RMB146.6 million (US$22.6 million) in the fourth quarter of 2015, representing a year-over-year increase of 147.5%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB20.5 million (US$3.2 million), were RMB126.1 million (US$19.5 million) for the fourth quarter of 2015, representing a year-over-year increase of 157.5% from the corresponding period in 2014. The increase was primarily due to an increase in the headcount of our administrative personnel as a result of our business expansion, such as regional service center expansion and product category expansion.

Loss from operations was RMB561.4 million (US$86.7 million) in the fourth quarter of 2015, compared to a loss from operations of RMB176.5 million in the corresponding period in 2014. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB501.8 million (US$77.5 million) in the fourth quarter of 2015.

 

Net loss was RMB549.5 million (US$84.8 million) in the fourth quarter of 2015, compared to a net loss of RMB168.0 million in the fourth quarter of 2014. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB489.8 million (US$75.6 million) in the fourth quarter of 2015.

 

Net loss attributable to ordinary shareholders was RMB547.0 million (US$84.4 million) in the fourth quarter of 2015, compared to a net loss attributable to ordinary shareholders of RMB168.0 million in the corresponding period in 2014. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB487.3 million (US$75.2 million) in the fourth quarter of 2015.

 

As of December 31, 2015, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.7 billion (US$566.0 million).