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Related party transactions | 12 Months Ended
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Dec. 31, 2017
Related party transactions |
Related party transactions | 28. Related party transactions The table below sets forth the major related parties and their relationships with the Group as of December 31, 2017:
Name of related parties |  | Relationship with the Group
Tencent and its subsidiaries (“Tencent Group”) |  | A shareholder of the Group
Shanghai Icson and its subsidiaries (“Shanghai Icson Group”) |  | An investee of the Group and has been fully acquired since April 2016
Lexin and its subsidiaries (“Lexin Group”) |  | An investee of the Group
Bitauto and its subsidiaries (“Bitauto Group”) |  | An investee of the Group
Tuniu and its subsidiaries (“Tuniu Group”) |  | An investee of the Group
Dada and its subsidiaries (“Dada Group”) |  | An investee of the Group
JD Finance |  | An entity and its subsidiaries controlled by the Founder
Yixin and its subsidiaries (“Yixin Group”) |  | An investee of the Group
(a)The Group entered into the following transactions with the major related parties:
|  | For the year ended December 31, |
Transactions |  | 2015 |  | 2016 |  | 2017 |
|  | RMB |  | RMB |  | RMB |
Revenues: |  |  |  |  |  |  |
Services and sales of goods to Lexin Group |  | 1,016,286 |  | 667,495 |  | 543,304 |
Commission service revenue from cooperation on advertising business with Tencent Group |  | 139,602 |  | 184,241 |  | 260,572 |
Services to Tencent Group |  | 111 |  | 52 |  | 31,505 |
Services and sales of goods to Dada Group |  | — |  | 124,092 |  | 38,165 |
Services to Shanghai Icson Group |  | 6 |  | — |  | — |
Traffic support, marketing and promotion services provided to Bitauto Group |  | 445,526 |  | 610,722 |  | 609,055 |
Traffic support, marketing and promotion services provided to Tuniu Group |  | 49,200 |  | 132,405 |  | 132,042 |
Traffic support, marketing and promotion services provided to Dada Group |  | — |  | 41,409 |  | 62,195 |
Services and sales of goods to JD Finance |  | 69,359 |  | 191,524 |  | 181,307 |
Traffic support, marketing and promotion services provided to JD Finance |  | 169,122 |  | 101,114 |  | 90,506 |
Operating expenses: |  |  |  |  |  |  |
Services and purchases from Shanghai Icson Group |  | 168,875 |  | 20,871 |  | — |
Services and purchases from Tencent Group |  | 195,805 |  | 244,644 |  | 674,727 |
Services from Dada Group |  | — |  | 136,515 |  | 694,207 |
Payment and other services from JD Finance |  | 986,246 |  | 1,669,840 |  | 2,936,416 |
Other income: |  |  |  |  |  |  |
Income from non-compete agreement with Dada Group |  | — |  | 53,186 |  | 80,447 |
Interest income from loans provided to JD Finance |  | 111,724 |  | 533,180 |  | 871,014 |
Revenues from related parties, excluding those from the major related parties as stated above, represented approximately 0.07%, 0.02% and 0.01% of total net revenues of the Group for the years ended December 31, 2015, 2016, and 2017, respectively. Transactions with related parties included in operating expenses, excluding those with the major related parties as stated above, represented 0.02%, 0.03% and 0.07% of total operating expenses of the Group for the years ended December 31, 2015, 2016, and 2017, respectively. (b)The Group had the following balances with the major related parties:
|  | As of December 31, |
|  | 2016 |  | 2017 |
|  | RMB |  | RMB |
Due from Tencent Group |  | 962,002 |  | 595,105 |
Due from Lexin Group |  | 95,021 |  | — |
Due from Dada Group |  | 88,971 |  | — |
Due from JD Finance |  | 9,560,426 |  | 12,076,035 |
Total |  | 10,706,420 |  | 12,671,140 |
Due to Tencent Group |  | (85,092 | ) | — |
Due to Lexin Group |  | — |  | (1,367 | )
Due to Tuniu Group |  | (12,311 | ) | (5,451 | )
Due to Dada Group |  | — |  | (7,378 | )
Total |  | (97,403 | ) | (14,196 | )
Deferred revenues in relation to traffic support, marketing and promotion services to be provided to Bitauto Group |  | (1,989,020 | ) | (1,379,965 | )
Deferred revenues in relation to traffic support, marketing and promotion services to be provided to Tuniu Group |  | (478,610 | ) | (346,568 | )
Deferred revenues in relation to traffic support, marketing and promotion services to be provided to Dada Group |  | (393,549 | ) | (331,354 | )
Total |  | (2,861,179 | ) | (2,057,887 | )
Other liabilities in relation to non-compete obligation to Dada Group |  | (523,296 | ) | (415,082 | )
Total |  | (523,296 | ) | (415,082 | )
As of December 31, 2016 and 2017, the balances with major related parties primarily consisted of outstanding loans the Group provided to JD Finance, and the interest rate of the loans were based on the market rate. As of December 31, 2016 and 2017, the Group recorded amount due from related parties other than the major related parties as stated above of RMB264,055 and RMB21,621, which represented approximately 1.46% and 0.12% of the Group’s total accounts receivable, net and prepayments and other current assets, respectively. As of December 31, 2016 and 2017, the Group recorded amount due to related parties other than the major related parties and deferred revenues in relation to traffic support, marketing and promotion services to be provided to related parties as stated above of RMB97,004 and RMB69,329, which represented approximately 0.14% and 0.07% of the Group’s total accounts payable, advance from customers, accrued expenses and other current liabilities, deferred revenues and other non-current liabilities, respectively. On October 27, 2017, to provide a temporary bridging finance to Yixin Group, the Group entered into an entrusted loan agreement with Yixin Group and an independent third-party PRC commercial bank whereby the Group lent a total of RMB1 billion to Yixin Group. The bridge loan was on normal commercial terms and Yixin Group repaid the loan and associated interest before December 31, 2017. Based on a series of agreements signed on January 1, 2016, JD Finance will perform the credit risk assessment and other related services in relation to consumer financing business and obtain the rewards from such services, thus JD Finance will purchase the consumer financing receivables past due over certain agreed period of time from the Group at carrying values without recourse and also agree to bear other cost in direct relation to the consumer financing business to absorb the risks. In connection with the agreements, the total amount of over-due consumer financing receivable related to the consumer financing business transferred from the Group to JD Finance were nil, RMB423,356 and RMB497,239 for the years ended December 31, 2015, 2016 and 2017, respectively. In connection with the consumer financing business, JD Finance charged the Group RMB233,051, RMB553,612, and RMB793,218, for the years ended December 31, 2015, 2016, and 2017 for payment processing services provided to the Group, which are included in “payment and other services from JD Finance” stated above. In 2017, the Group also transferred certain financial assets to JD Finance with or without recourse at fair value. The accounts receivables transferred with recourse was RMB167,897, which was not derecognized, while the accounts receivables transferred without recourse was RMB1,583,968, and was derecognized. Mr. Richard Qiangdong Liu, the Group’s Chairman of the Board and Chief Executive Officer, has purchased his own aircraft for both business and personal use. The use of the aircraft in connection with the performance of his duty as employee is free of charge to the Company, and the Company has agreed to assume the cost of maintenance, crew and operations of the aircraft relating to the use of the aircraft. Such maintenance and incidental costs were insignificant for the years ended December 31, 2016 and 2017. The Group believes that the terms of the agreements with the related parties are comparable to the terms in arm’s-length transactions with third-party customers and vendors.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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