JMU Limited (the "Company" or "JMU") (NASDAQ: JMU), a leading B2B online e-commerce platform that provides integrated services to suppliers and customers in the foodservice industry in China, today announced its financial results for the three months ended September 30, 2017. 

Third Quarter 2017 Highlights 

Revenues in the third quarter of 2017 were $27.1 million, an increase of 36.9% from $19.8 million in the third quarter of 2016. 
Gross profit was $150.6 thousand in the third quarter of 2017, improving from a gross loss of $145.0 thousand in the third quarter of 2016. 
B2B online platform recorded gross billing of RMB 5,391 million (US$810 million) in the third quarter of 2017, measured in terms of gross merchandise value ("GMV"), increasing 68.8% from gross billing of RMB 3,194 million (US$479 million) in the third quarter of 2016. 
Active customer accounts were 33,198 as of September 30, 2017, as compared to 33,214 as of September 30, 2016. 
Third-party sellers on the Companys JMU online marketplace increased 13.6% to 16,012 as of September 30, 2017, compared to 14,094 as of September 30, 2016.
Ms. Xiaoxia Zhu, Co-chairperson and Chief Executive Officer commented, "We are pleased to deliver top-line results and maintain steady growth momentum of our online marketplace in the third quarter of 2017. We are also actively seeking new growth opportunities beyond our online direct sales model to add to our core competency and broaden client engagement and retention. Our goal is to provide clients with more value-added supply chain solutions through advanced technology and research. In the third quarter, a major focus of our R&D efforts was on ready-to-cook, ready-to-eat products and OEM manufacturing improvements. Our previously announced partnerships with Nippon ACCESS and TANSH both play an essential role in fulfilling our goals to build a supply chain eco-system spanning raw material purchases to packaged food delivery. Looking ahead, we will continue to focus on our source supplier expansion to create more organic growth as well as selecively partner with well-known brands to develop our packaged food product line and supply chain solutions."

Third Quarter 2017 Financial Performance 

Revenues were $27.1 million for the third quarter of 2017, an increase of 36.9% from $19.8 million in the third quarter of 2016. The growth of revenue in the third quarter 2017 was mainly due to the ongoing increase in sales from online direct sales. 

Cost of revenues was $27.0 million in third quarter 2017, an increase of 35.1% from $20.0 million in the third quarter of 2016, which was generally in line with revenue growth.

Gross profit for the third quarter of 2017 was $150.6 thousand, as compared to gross loss of $145.0 thousand in third quarter 2016. The improvement was mainly attributable to JMUs new pricing strategy and higher discounts in purchasing price from suppliers due to sizable trading volume.

Operating expenses were $5.0 million in the third quarter of 2017, a decrease of 35.6% from $7.8 million in the prior year period. The decrease in operating expenses was mainly due to $2.2 million decrease in volume-based rebates accrued in the third quarter of 2017.

Loss from operations in third quarter 2017 was $4.9 million, a decrease of 38.7% from $7.9 million in third quarter 2016.

Net loss attributable to the Company in the third quarter of 2017 was $4.5 million, as compared with $7.4 million in the third quarter of 2016. Non-GAAP net loss attributable to the Company, which excludes amortization of acquired intangible assets, impairment of goodwill, share-based compensation and related provision for income tax benefits, was $2.6 million in the third quarter of 2017 compared to $5.1 million in the third quarter of 2016. For the quarter ended September 30, 2017 and 2016, the Companys weighted average number of ordinary shares used in computing loss per ordinary share was 1,476,144,194 and 1,476,208,670, respectively.

As of September 30, 2017, the Companys cash and cash equivalents was $2.7 million, an increase of 4.9% as compared to $2.6 million as of December 31, 2016. Total shareholders equity remained stable at $245.4 million, compared to $248.4 million at the end of 2016.