JD.com

JD.com is the the largest online direct sales company in China in terms of transaction volume with a market share in China of 54.3% in the second quarter of 2014, according to iResearch, a third-party market research firm. JD.com believes they provide consumers an enjoyable online retail experience. Through their content-rich and user-friendly website www.JD.com and mobile applications, JD.com offers a wide selection of authentic products at competitive prices which are delivered in a speedy and reliable manner. JD.com also offer convenient online and in-person payment options and comprehensive customer services. In order to have better control over fulfillment and to ensure customer satisfaction, JD.com has built their own nationwide fulfillment infrastructure and last-mile delivery network, staffed by their own employees, which supports both their online direct sales and their online marketplace businesses. JD.com has established strong relationships with their suppliers as they develop their online direct sales business. Leveraging their strengths, they launched their online marketplace business in 2010, which has allowed us to significantly expand our selection of products and services. JD.com's business has grown rapidly. The number of products they offer through their online direct sales and marketplace has grown from approximately 1.5 million stock keeping units, or SKUs, as of December 31, 2011 to approximately 7.2 million SKUs as of December 31, 2012 to approximately 25.7 million as of December 31, 2013. They had 12.5 million, 29.3 million and 47.4 million active customer accounts and fulfilled approximately 65.9 million, 193.8 million and 323.3 million orders in 2011, 2012 and 2013, respectively. Timely and reliable fulfillment is critical to the success of an online retail business. JD.com believes that they have the largest fulfillment infrastructure of any e-commerce company in China. As of June 30, 2014, JD.com operated 97 warehouses with an aggregate gross floor area of approximately 1.8 million square meters and 1,808 delivery stations and 715 pickup stations. As of June 30, 2014, their self-operated delivery network covered 1,780 counties and districts and their 211 program and next-day delivery program covered 111 and 622 counties and districts, respectively, across China. JD.com has 62,061 full-time employees as of July 31, 2014. JD.com is a technology-driven company and has invested heavily in developing their own highly scalable proprietary technology platform that supports their rapid growth and enables us to provide value-added technology services.