JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618
(RMB counter)), a leading supply chain-based technology and service
provider, today announced its unaudited financial results for the
three months ended September 30, 2023.
Third Quarter 2023
Highlights
- Net
revenues for the third quarter of 2023 were RMB247.7
billion (US$134.0 billion), an increase of 1.7% from the third
quarter of 2022.
- Income
from operations for the third quarter of 2023 was RMB9.3
billion (US$1.3 billion), compared to RMB8.7 billion for the same
period last year. Non-GAAP2
income from operations was RMB11.1 billion (US$1.5
billion) for the third quarter of 2023, as compared to RMB9.9
billion for the third quarter of 2022. Operating margin of JD
Retail before unallocated items for the third quarter of 2023 was
5.2%, maintained the same level as the third quarter of 2022.
- Net
income attributable to the company’s ordinary shareholders
for the third quarter of 2023 was RMB7.9 billion (US$1.1 billion),
compared to RMB6.0 billion for the same period last year.
Non-GAAP net income attributable to the company’s ordinary
shareholders for the third quarter of 2023 was RMB10.6
billion (US$1.5 billion), as compared to RMB10.0 billion for the
same period last year.
- Diluted
net income per ADS for the third quarter of 2023 was
RMB5.00 (US$0.69), compared to RMB3.57 for the third quarter of
2022. Non-GAAP diluted net income per ADS for the
third quarter of 2023 was RMB6.70 (US$0.92), compared to RMB6.27
for the same period last year.
-
Operating cash flow for the twelve months ended
September 30, 2023 was RMB58.4 billion (US$8.0 billion), compared
to RMB45.8 billion for the twelve months ended September 30, 2022.
Free cash flow, which excludes the impact from JD
Baitiao receivables included in the operating cash flow, for the
twelve months ended September 30, 2023 was RMB39.4 billion (US$5.4
billion), compared to RMB25.8 billion for the twelve months ended
September 30, 2022.
“We reported steady top-line performance for the
quarter with record profitability driven by our proactive efforts
on enhancing price competitiveness and platform ecosystem, as well
as our supply chain advantages,” said Sandy Xu, Chief Executive
Officer of JD.com. “We continue to be encouraged by the progress we
are making, as evidenced by further expanded merchant base and
improved user shopping behavior. With our clear strategy to deliver
value for users and business partners, and a value proposition that
is optimized for the future, I am confident that JD.com is well
positioned for long-term sustainable growth.”
“JD’s record profitability for the quarter and
healthy cash flow reflects our successful business evolvement and
supply chain strengths,” said Ian Su Shan, Chief Financial Officer
of JD.com. “We also see our core categories of home appliance and
electronics continued to expand market share, while general
merchandise gradually ramped up momentum in the quarter, as we
relentlessly focus on user experience. More importantly, China’s
consumers are increasingly seeing JD as the place to shop for a
great selection of quality products with the lowest prices and best
service. Looking ahead, we will continue to manage for high-quality
growth while investing in user experience and building a superior
ecosystem to drive sustainable growth for our merchants and
suppliers.”
Business Highlights
Environment, Social and
Governance
- In the 2023
Standard & Poor’s Global Corporate Sustainability Assessment
(“CSA”), JD.com showcased outstanding ESG performance with a
meaningful increase of 65% in the CSA score compared to the prior
year, ranking at an industry-leading level in China’s retail
sector. This achievement is mainly attributable to JD.com’s great
attention and unremitting efforts on ESG initiatives, including
establishing its board diversity policy and onboarding more female
directors, publishing a code of conduct for suppliers, enhancing
supply chain management, strengthening occupational health and
safety, and reinforcing its business ethics regime and training,
among others.
- In the third
quarter, JD.com dedicated itself to disaster relief to support
those affected by floods in Beijing, Hebei province and other
areas. JD Foundation donated RMB30 million worth of essential
supplies to the affected areas. Meanwhile, JD.com fully leveraged
its supply chain capabilities to ensure the efficient delivery of
necessities to help local enterprises and residents resume their
normal operations and daily lives. JD.com also provided tailored
services and exemption policies for businesses in the affected
areas.
- In the third
quarter, JD.com collaborated with Gree, Midea, Haier, Kingkoil,
Jomoo and other home appliances and home goods brands to launch the
Green Trade-in Alliance to accelerate the promotion and adoption of
trade-in programs and to inspire more consumers to embrace a
greener lifestyle. According to an assessment issued in August by
the Beijing Green Exchange, a professional market platform for
trading various environmental equities, from July 2022 to June
2023, JD.com cumulatively reduced carbon emissions of approximately
154,800 tons through trade-in services of eight home appliances and
home goods categories. The reduction is equivalent to saving about
60,000 tons of coal consumption or planting 20 million additional
trees for the earth.
- Driven by JD.com’s
unwavering commitment and unremitting efforts to creating more jobs
and making contribution to the society, the company’s total
expenditure for human resources, including both its own employees
and external personnel who work for the company, amounted to
RMB25.9 billion and RMB76.3 billion for the three months and the
nine months ended September 30, 2023, respectively.
JD Retail
- During the third
quarter, JD.com continued to make progress and achieved promising
preliminary results in its strategies of building a differentiated
platform ecosystem and improving price competitiveness, both of
which are realizing the company’s operating philosophy since its
foundation, namely, to achieve a high-quality sustainable growth
and value creation through relentless pursuit of “lower cost,
higher efficiency, and superior customer experience.” The company
witnessed accelerated expansion of onboarded and active merchants,
both reaching historical highs, along with continued year-on-year
growth in both 3P orders and 3P active customers in the quarter. In
addition, the company’s customer engagement further improved with
growing user order frequency, and its Net Promoter Score (NPS) also
increased year-on-year and sequentially in the quarter.
- In August, JD.com
announced the reduction of the threshold for free shipping services
for its 1P merchandise, with support of JD Logistics’s
capabilities. Under the new initiative, JD PLUS members now enjoy
unlimited free shipping when they purchase 1P merchandise, and
non-JD PLUS members’ free shipping minimum order value is lowered
to RMB59 from RMB99. As always, customers of JD.com will continue
to enjoy premium logistics services with same and next-day delivery
options.
- In the third
quarter, JD.com established a strategic partnership with the
leading Italian luxury brand GUCCI, which launched its official
flagship store on JD’s platform. DE BEERS, a high-end diamond
jewelry brand from London, also opened its official flagship store
on JD’s platform during the quarter. In addition, French luxury
fashion group SMCP officially onboarded JD’s platform, with its
fashion brands SANDRO, MAJE, and CLAUDIE PIERLOT opening flagship
stores on JD’s platform. JD.com also welcomed leading beauty and
cosmetics brands such as VALENTINO BEAUTY and URBAN DECAY in the
quarter. JD.com remains committed to providing consumers with
higher-quality and diversified products through continuous
expansion in its collaborative brand lineups, merchandise selection
and new product launch in the fashion field.
- In the third
quarter, JD.com announced to open three city-level home appliances
and electronics flagship stores in Shanghai, and launched two JD
MALLs in Ningbo and Wuhan, respectively. These efforts aim to bring
consumers a new one-stop shopping experience for home appliances
and home goods, and further invigorate “home scenario” consumption
market by fostering stronger synergies across the home appliances,
home goods, and home furnishings industries. In addition, JD.com
continued to strengthen its omni-channel strategy in 3C and
electronics category, promoting the launch of 47 JD Home and JD
Computer and Digital stores in the quarter.
JD Health
- In the third
quarter, JD Health continued to expand its healthcare service
offerings, providing users with a more comprehensive and online and
offline integrated experience. Its polyclinic center in Yizhuang,
Beijing officially commenced operations. Leveraging JD Health’s
digital capabilities, the polyclinic center integrates online and
offline services, offering users a completely paperless experience
with online medical examination report access and interpretation,
follow-up consultations and other professional medical advice.
JD Logistics
- In the third
quarter, a JD Airlines all-cargo aircraft smoothly landed at Tan
Son Nhat Airport in Ho Chi Minh City, Vietnam from Shenzhen
Airport, and returned with full cargo. This marked the inauguration
of JD Airlines’ new international all-cargo route between Shenzhen
and Ho Chi Minh City, a step further in its expansion of
international air cargo network.
- As of September 30,
2023, JD Logistics operated over 1,600 warehouses. Including
warehouse space managed through the Open Warehouse Platform, JD
Logistics’s warehouse network had an aggregate gross floor area of
over 32 million square meters.3
Dada
- In the third
quarter, JD.com released a “Three-kilometer Model” for its
on-demand retail services. This model is built upon three core
capabilities of digitalization, local supply chain integration and
instant delivery, and provides users within 3 to 5 kilometers with
a seamless experience of “online ordering, offline shipping, and
one-hour delivery”. In addition, a “Five-year Action Plan” was also
launched, under which JD.com’s on-demand retail services will
facilitate the digital transformation of over 2 million local small
and medium-sized offline stores, create over 10 million flexible
employment opportunities and collaborate with ecosystem partners to
generate over RMB1 trillion worth of consumption in the next five
years.
- In the third
quarter, JD Daojia (JDDJ), one of China’s largest local on-demand
retail platforms for retailers and brand owners, upgraded its
service and launched its delivery fee waiver campaign, covering
orders over RMB59 in more than 2,200 counties and cities across
China. The campaign provides consumers with a more affordable and
seamless on-demand shopping experience across all categories.
Third Quarter 2023 Financial
Results
Net Revenues. For the
third quarter of 2023, JD.com reported net revenues of RMB247.7
billion (US$34.0 billion), representing a 1.7% increase from the
same period of 2022. Net product revenues decreased by 0.9%, while
net service revenues increased by 12.7% for the third quarter of
2023, as compared to the same period of 2022.
Cost of
Revenues. Cost of revenues increased
by 0.8% to RMB208.9 billion (US$28.6 billion) for the third quarter
of 2023 from RMB207.3 billion for the third quarter of 2022.
Fulfillment
Expenses. Fulfillment expenses,
which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by 6.1%
to RMB15.2 billion (US$2.1 billion) for the third quarter of 2023
from RMB14.4 billion for the third quarter of 2022. Fulfillment
expenses as a percentage of net revenues was 6.1% for the third
quarter of 2023, compared to 5.9% for the same period last year.
The increase was in relation to the adoption of lower threshold for
free shipping services.
Marketing
Expenses. Marketing expenses
increased by 4.6% to RMB8.0 billion (US$1.1 billion) for the third
quarter of 2023 from RMB7.6 billion for the third quarter of 2022,
marketing expenses as a percentage of net revenues was 3.2% for the
third quarter of 2023, compared to 3.1% for the same period last
year. The increase was mainly due to the increased spending in
promotion activities.
Research and Development
Expenses. Research and development
expenses decreased by 7.8% to RMB3.8 billion (US$0.5 billion) for
the third quarter of 2023 from RMB4.1 billion for the third quarter
of 2022. Research and development expenses as a percentage of net
revenues was 1.5% for the third quarter of 2023, compared to 1.7%
for the same period last year.
General and Administrative
Expenses. General and administrative
expenses decreased by 5.6% to RMB2.5 billion (US$0.3 billion) for
the third quarter of 2023 from RMB2.6 billion for the third quarter
of 2022. General and administrative expenses as a percentage of net
revenues was 1.0% for the third quarter of 2023, compared to 1.1%
for the same period last year.
Income from Operations and Non-GAAP
Income from Operations. Income from operations for
the third quarter of 2023 increased by 6.6% to RMB9.3 billion
(US$1.3 billion) from RMB8.7 billion for the same period last year.
Operating margin for the third quarter of 2023 was 3.8%, compared
to 3.6% for the third quarter of 2022. Non-GAAP income from
operations increased by 11.8% to RMB11.1 billion (US$1.5 billion)
for the third quarter of 2023 from RMB9.9 billion for the third
quarter of 2022. Non-GAAP operating margin for the third quarter of
2023 was 4.5%, compared to 4.1% for the third quarter of 2022.
Operating margin of JD Retail before unallocated items for the
third quarter of 2023 was 5.2%, maintained the same level as the
third quarter of 2022.
Non-GAAP EBITDA. Non-GAAP
EBITDA increased by 12.4% to RMB12.9 billion (US$1.8 billion) for
the third quarter of 2023 from RMB11.5 billion for the third
quarter of 2022. Non-GAAP EBITDA margin for the third quarter of
2023 was 5.2%, compared to 4.7% for the third quarter of 2022.
Others, net. Other
non-operating income was RMB1.8 billion (US$0.2 billion) for the
third quarter of 2023, as compared to a loss of RMB0.8 billion for
the third quarter of 2022. The change was primarily due to the
decrease in net losses arising from fair value change of investment
securities.
Net Income Attributable
to the Company’s Ordinary Shareholders and
Non-GAAP Net Income Attributable to the Company’s
Ordinary Shareholders. Net income
attributable to the company’s ordinary shareholders for the third
quarter of 2023 increased by 33.1% to RMB7.9 billion (US$1.1
billion) from RMB6.0 billion for the same period last year. Net
margin attributable to the company’s ordinary shareholders for the
third quarter of 2023 was 3.2%, compared to 2.4% for the third
quarter of 2022. Non-GAAP net income attributable to the company’s
ordinary shareholders for the third quarter of 2023 increased by
5.9% to RMB10.6 billion (US$1.5 billion) from RMB10.0 billion for
the same period last year. Non-GAAP net margin attributable to the
company’s ordinary shareholders for the third quarter of 2023 was
4.3%, compared to 4.1% for the third quarter of 2022.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for the third quarter
of 2023 increased by 40.3% to RMB5.00 (US$0.69) from RMB3.57 for
the third quarter of 2022. Non-GAAP diluted net income per ADS for
the third quarter of 2023 increased by 6.9% to RMB6.70 (US$0.92)
from RMB6.27 for the third quarter of 2022.
Cash Flow and Working Capital
As of September 30, 2023, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB250.3 billion (US$34.3 billion), compared to RMB226.2
billion as of December 31, 2022. For the third quarter of 2023,
free cash flow of the company was as follows:
|
|
|
For the three months ended |
|
|
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
|
|
RMB |
RMB |
US$ |
|
|
|
(In millions) |
|
|
|
|
|
Net cash provided by operating activities |
|
9,151 |
|
15,004 |
|
2,056 |
|
| Less: Impact from JD Baitiao
receivables included in the operating cash flow |
|
(1,506 |
) |
(1,747 |
) |
(239 |
) |
| Less: Capital expenditures,
net of related sales proceeds |
|
|
|
|
|
Capital expenditures for development properties |
|
(3,784 |
) |
(3,013 |
) |
(413 |
) |
|
Other capital expenditures* |
|
(1,522 |
) |
(1,980 |
) |
(271 |
) |
| Free cash flow |
|
2,339 |
|
8,264 |
|
1,133 |
|
|
|
|
|
|
|
* Including capital expenditures related to the
company’s headquarters in Beijing and all other CAPEX.
Net cash provided by investing activities was
RMB15.0 billion (US$2.1 billion) for the third quarter of 2023,
consisting primarily of the decrease in short-term investments,
partially offset by the cash paid for capital expenditures.
Net cash used in financing activities was RMB4.5
billion (US$0.6 billion) for the third quarter of 2023, consisting
primarily of repayments of bank loans.
For the twelve months ended September 30, 2023,
free cash flow of the company was as follows:
|
|
|
For the twelve months ended |
|
|
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
|
|
RMB |
RMB |
US$ |
|
|
|
(In millions) |
|
|
|
|
|
Net cash provided by operating activities |
|
45,805 |
|
58,394 |
|
8,004 |
|
| (Less)/Add: Impact from JD
Baitiao receivables included in the operating cash flow |
|
(137 |
) |
451 |
|
62 |
|
| Less: Capital expenditures,
net of related sales proceeds |
|
|
|
|
|
Capital expenditures for development properties |
|
(15,274 |
) |
(13,618 |
) |
(1,867 |
) |
|
Other capital expenditures |
|
(4,551 |
) |
(5,831 |
) |
(799 |
) |
| Free cash flow |
|
25,843 |
|
39,396 |
|
5,400 |
|
| |
|
|
|
|
Supplemental Information
The company reports four segments, JD Retail, JD
Logistics, Dada and New businesses. JD Retail, including JD Health
and JD Industrials, among other components, mainly engage in online
retail, online marketplace and marketing services in China. JD
Logistics includes both internal and external logistics businesses.
Dada is a local on-demand delivery and retail platform in China.
New businesses mainly include JD Property, Jingxi and overseas
businesses.
The table below sets forth the segment operating
results:
|
|
For the three months ended |
|
For the nine months ended |
|
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
(In millions, except percentage data) |
| Net revenues: |
|
|
|
|
|
|
|
|
JD Retail |
211,923 |
|
212,059 |
|
29,065 |
|
|
671,004 |
|
677,697 |
|
92,886 |
|
|
JD Logistics |
35,771 |
|
41,663 |
|
5,710 |
|
|
94,394 |
|
119,424 |
|
16,368 |
|
|
Dada |
2,380 |
|
2,867 |
|
393 |
|
|
5,349 |
|
8,254 |
|
1,131 |
|
|
New businesses |
4,997 |
|
3,818 |
|
523 |
|
|
17,018 |
|
11,584 |
|
1,588 |
|
|
Inter-segment eliminations * |
(11,536 |
) |
(12,709 |
) |
(1,741 |
) |
|
(36,975 |
) |
(38,374 |
) |
(5,259 |
) |
| Total consolidated net
revenues |
243,535 |
|
247,698 |
|
33,950 |
|
|
750,790 |
|
778,585 |
|
106,714 |
|
|
|
|
|
|
|
|
|
|
| Operating income/(loss): |
|
|
|
|
|
|
|
|
JD Retail |
10,926 |
|
11,001 |
|
1,508 |
|
|
26,990 |
|
28,988 |
|
3,973 |
|
|
JD Logistics |
253 |
|
288 |
|
39 |
|
|
(372 |
) |
(325 |
) |
(45 |
) |
|
Dada |
(300 |
) |
(52 |
) |
(7 |
) |
|
(915 |
) |
(298 |
) |
(41 |
) |
|
New businesses |
276 |
|
(140 |
) |
(20 |
) |
|
(4,143 |
) |
764 |
|
105 |
|
|
Including: gain on sale of development properties |
1,229 |
|
— |
|
— |
|
|
1,229 |
|
1,481 |
|
203 |
|
| Total segment
operating income |
11,155 |
|
11,097 |
|
1,520 |
|
|
21,560 |
|
29,129 |
|
3,992 |
|
| Unallocated items** |
(2,427 |
) |
(1,794 |
) |
(245 |
) |
|
(6,665 |
) |
(5,129 |
) |
(703 |
) |
| Total consolidated
operating income |
8,728 |
|
9,303 |
|
1,275 |
|
|
14,895 |
|
24,000 |
|
3,289 |
|
|
|
|
|
|
|
|
|
|
| Operating margin: |
|
|
|
|
|
|
|
|
JD Retail |
5.2 |
% |
5.2 |
% |
5.2 |
% |
|
4.0 |
% |
4.3 |
% |
4.3 |
% |
|
JD Logistics |
0.7 |
% |
0.7 |
% |
0.7 |
% |
|
(0.4 |
)% |
(0.3 |
)% |
(0.3 |
)% |
|
Dada |
(12.6 |
)% |
(1.8 |
)% |
(1.8 |
)% |
|
(17.1 |
)% |
(3.6 |
)% |
(3.6 |
)% |
|
New businesses |
5.5 |
% |
(3.7 |
)% |
(3.7 |
)% |
|
(24.3 |
)% |
6.6 |
% |
6.6 |
% |
* The inter-segment eliminations mainly consist
of revenues from supply chain solutions and logistics services
provided by JD Logistics to JD Retail, on-demand delivery and
retail services provided by Dada to JD Retail and JD Logistics, and
property leasing services provided by JD Property to JD
Logistics.
** Unallocated items include share-based
compensation, amortization of intangible assets resulting from
assets and business acquisitions, effects of business cooperation
arrangements, and impairment of goodwill and intangible assets,
which are not allocated to segments.
The tables below set forth the revenue
information:
|
|
For the three months ended |
|
|
|
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
YoY%change |
|
|
|
RMB |
RMB |
US$ |
|
|
|
|
(In millions, except percentage data) |
|
|
Electronics and home appliances revenues |
119,284 |
119,316 |
16,354 |
0.0 |
% |
|
| General merchandise
revenues |
77,743 |
75,988 |
10,415 |
(2.3 |
)% |
|
| Net product revenues |
197,027 |
195,304 |
26,769 |
(0.9 |
)% |
|
|
|
|
|
|
|
|
| Marketplace and marketing
revenues |
18,954 |
19,529 |
2,677 |
3.0 |
% |
|
| Logistics and other service
revenues |
27,554 |
32,865 |
4,504 |
19.3 |
% |
|
| Net service revenues |
46,508 |
52,394 |
7,181 |
12.7 |
% |
|
|
|
|
|
|
|
|
|
Total net revenues |
243,535 |
247,698 |
33,950 |
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
For the nine months ended |
|
|
|
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
YoY%change |
|
|
|
RMB |
RMB |
US$ |
|
|
|
|
(In millions, except percentage data) |
|
| Electronics and home
appliances revenues |
374,270 |
388,446 |
53,241 |
3.8 |
% |
|
| General merchandise
revenues |
253,193 |
236,277 |
32,384 |
(6.7 |
)% |
|
| Net product revenues |
627,463 |
624,723 |
85,625 |
(0.4 |
)% |
|
| |
|
|
|
|
|
| Marketplace and marketing
revenues |
57,372 |
61,100 |
8,374 |
6.5 |
% |
|
| Logistics and other service
revenues |
65,955 |
92,762 |
12,715 |
40.6 |
% |
|
| Net service revenues |
123,327 |
153,862 |
21,089 |
24.8 |
% |
|
| |
|
|
|
|
|
| Total net revenues |
750,790 |
778,585 |
106,714 |
3.7 |
% |
|
|
|
|
|
|
|
|
Adoption of 2023 Share Incentive Plan
As a renewal of the existing share incentive
plan (the “Existing Plan”), the company’s board of directors and
the compensation committee have approved the adoption of a 2023
Share Incentive Plan (the “2023 Plan”). Under the 2023 Plan, the
maximum aggregate number of Class A ordinary shares that may be
issued pursuant to the awards includes the unused balance of
223,666,717 shares as of October 31, 2023 under the Existing Plan
and the same mechanism of an annual increase by 1% of the total
number of ordinary shares outstanding of the company on the last
day of the immediately preceding fiscal year commencing with the
fiscal year ending on December 31, 2024. The 2023 Plan will become
effective on December 21, 2023 and will expire on the tenth
anniversary of its effective date.
Conference Call
JD.com’s management will hold a conference call
at 7:00 am, Eastern Time on November 15, 2023, (8:00 pm,
Beijing/Hong Kong Time on November 15, 2023) to discuss its
financial results for the three months ended September 30,
2023.
Please register in advance of the conference
using the link provided below and dial in 15 minutes prior to the
call, using participant dial-in numbers, the Passcode and unique
access PIN which would be provided upon registering. You will be
automatically linked to the live call after completion of this
process, unless required to provide the conference ID below due to
regional restrictions.
PRE-REGISTER LINK:
https://s1.c-conf.com/diamondpass/10034774-g1uv9e.html
CONFERENCE ID: 10034774
A telephone replay will be available for one
week until November 22, 2023. The dial-in details are as
follows:
|
US: |
+1-855-883-1031 |
|
International: |
+61-7-3107-6325 |
|
Hong Kong: |
800-930-639 |
|
Mainland China: |
400-120-9216 |
|
Passcode: |
10034774 |
Additionally, a live and archived webcast of the conference call
will also be available on the JD.com’s investor relations website
at http://ir.jd.com.
About JD.com
JD.com is a leading supply chain-based
technology and service provider. The company’s cutting-edge retail
infrastructure seeks to enable consumers to buy whatever they want,
whenever and wherever they want it. The company has opened its
technology and infrastructure to partners, brands and other
sectors, as part of its Retail as a Service offering to help drive
productivity and innovation across a range of industries.
Non-GAAP Measures
In evaluating the business, the company
considers and uses non-GAAP measures, such as non-GAAP
income/(loss) from operations, non-GAAP operating margin, non-GAAP
net income/(loss) attributable to the company’s ordinary
shareholders, non-GAAP net margin to the company’s ordinary
shareholders, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA
margin, non-GAAP net income/(loss) per share and non-GAAP net
income/(loss) per ADS, as supplemental measures to review and
assess operating performance. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). The company
defines non-GAAP income/(loss) from operations as income/(loss)
from operations excluding share-based compensation, amortization of
intangible assets resulting from assets and business acquisitions,
effects of business cooperation arrangements, gain on sale of
development properties and impairment of goodwill and intangible
assets. The company defines non-GAAP net income/(loss) attributable
to the company’s ordinary shareholders as net income/(loss)
attributable to the company’s ordinary shareholders excluding
share-based compensation, amortization of intangible assets
resulting from assets and business acquisitions, effects of
business cooperation arrangements and non-compete agreements,
gain/(loss) on disposals/deemed disposals of investments and
others, reconciling items on the share of equity method
investments, loss/(gain) from fair value change of long-term
investments, impairment of goodwill, intangible assets and
investments, gain in relation to sale of development properties and
tax effects on non-GAAP adjustments. The company defines free cash
flow as operating cash flow adjusting the impact from JD Baitiao
receivables included in the operating cash flow and capital
expenditures, net of the proceeds from sale of development
properties. Capital expenditures include purchase of property,
equipment and software, cash paid for construction in progress,
purchase of intangible assets and land use rights. The company
defines non-GAAP EBITDA as non-GAAP income/(loss) from operations
plus depreciation and amortization excluding amortization of
intangible assets resulting from assets and business acquisitions.
Non-GAAP basic net income/(loss) per share is calculated by
dividing non-GAAP net income/(loss) attributable to the company’s
ordinary shareholders by the weighted average number of ordinary
shares outstanding during the periods. Non-GAAP diluted net
income/(loss) per share is calculated by dividing non-GAAP net
income/(loss) attributable to the company’s ordinary shareholders
by the weighted average number of ordinary shares and dilutive
potential ordinary shares outstanding during the periods, including
the dilutive effect of share-based awards as determined under the
treasury stock method. Non-GAAP net income/(loss) per ADS is equal
to non-GAAP net income/(loss) per share multiplied by two.
The company presents these non-GAAP financial
measures because they are used by management to evaluate operating
performance and formulate business plans. Non-GAAP income/(loss)
from operations, non-GAAP net income/(loss) attributable to the
company’s ordinary shareholders and non-GAAP EBITDA reflect the
company’s ongoing business operations in a manner that allows more
meaningful period-to-period comparisons. Free cash flow enables
management to assess liquidity and cash flow while taking into
account the impact from JD Baitiao receivables included in the
operating cash flow and the demands that the expansion of
fulfillment infrastructure and technology platform has placed on
financial resources. The company believes that the use of the
non-GAAP financial measures facilitates investors to understand and
evaluate the company’s current operating performance and future
prospects in the same manner as management does, if they so choose.
The company also believes that the non-GAAP financial measures
provide useful information to both management and investors by
excluding certain expenses, gain/loss and other items that are not
expected to result in future cash payments or that are
non-recurring in nature or may not be indicative of the company’s
core operating results and business outlook.
The non-GAAP financial measures have limitations
as analytical tools. The company’s non-GAAP financial measures do
not reflect all items of income and expense that affect the
company’s operations or not represent the residual cash flow
available for discretionary expenditures. Further, these non-GAAP
measures may differ from the non-GAAP information used by other
companies, including peer companies, and therefore their
comparability may be limited. The company compensates for these
limitations by reconciling the non-GAAP financial measures to the
nearest U.S. GAAP performance measure, all of which should be
considered when evaluating performance. The company encourages you
to review the company’s financial information in its entirety and
not rely on a single financial measure.
CONTACTS:
Investor RelationsSean Zhang+86
(10) 8912-6804IR@JD.com
Media Relations+86 (10)
8911-6155Press@JD.com
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “future,”
“intends,” “plans,” “believes,” “estimates,” “confident” and
similar statements. Among other things, the quotations from
management in this announcement, as well as JD.com’s strategic and
operational plans, contain forward-looking statements. JD.com may
also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission
(the “SEC”), in announcements made on the website of the Hong Kong
Stock Exchange, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about JD.com’s
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: JD.com’s
growth strategies; its future business development, results of
operations and financial condition; its ability to attract and
retain new customers and to increase revenues generated from repeat
customers; its expectations regarding demand for and market
acceptance of its products and services; trends and competition in
China’s e-commerce market; changes in its revenues and certain cost
or expense items; the expected growth of the Chinese e-commerce
market; laws, regulations and governmental policies relating to the
industries in which JD.com or its business partners operate;
potential changes in laws, regulations and governmental policies or
changes in the interpretation and implementation of laws,
regulations and governmental policies that could adversely affect
the industries in which JD.com or its business partners operate,
including, among others, initiatives to enhance supervision of
companies listed on an overseas exchange and tighten scrutiny over
data privacy and data security; risks associated with JD.com’s
acquisitions, investments and alliances, including fluctuation in
the market value of JD.com’s investment portfolio; natural
disasters and geopolitical events; change in tax rates and
financial risks; intensity of competition; and general market and
economic conditions in China and globally. Further information
regarding these and other risks is included in JD.com’s filings
with the SEC and the announcements on the website of the Hong Kong
Stock Exchange. All information provided herein is as of the date
of this announcement, and JD.com undertakes no obligation to update
any forward-looking statement, except as required under applicable
law.
|
JD.com, Inc. |
|
Unaudited Interim Condensed Consolidated Balance Sheets |
|
(In millions, except otherwise noted) |
| |
|
|
| |
|
As of |
|
|
|
December 31,2022 |
September 30,2023 |
September 30,2023 |
| |
|
RMB |
RMB |
US$ |
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
78,861 |
115,971 |
15,895 |
|
Restricted cash |
|
6,254 |
7,897 |
1,082 |
|
Short-term investments |
|
141,095 |
126,382 |
17,322 |
|
Accounts receivable, net (including JD Baitiao of RMB3.1 billion
and RMB2.1 billion as of December 31, 2022 and September 30, 2023,
respectively)(1) |
|
20,576 |
20,705 |
2,838 |
|
Advance to suppliers |
|
3,838 |
3,388 |
464 |
|
Inventories, net |
|
77,949 |
64,638 |
8,859 |
|
Prepayments and other current assets |
|
15,156 |
13,995 |
1,918 |
|
Amount due from related parties |
|
6,142 |
4,632 |
635 |
|
Assets held for sale |
|
1,203 |
— |
— |
|
Total current assets |
|
351,074 |
357,608 |
49,013 |
|
Non-current assets |
|
|
|
|
|
Property, equipment and software, net |
|
55,080 |
66,649 |
9,135 |
|
Construction in progress |
|
11,161 |
9,760 |
1,338 |
|
Intangible assets, net |
|
9,139 |
8,156 |
1,118 |
|
Land use rights, net |
|
33,848 |
37,975 |
5,205 |
|
Operating lease right-of-use assets |
|
22,267 |
22,764 |
3,120 |
|
Goodwill |
|
23,123 |
23,123 |
3,169 |
|
Investment in equity investees |
|
57,641 |
57,893 |
7,935 |
|
Investment securities |
|
11,611 |
4,793 |
657 |
|
Deferred tax assets |
|
1,536 |
1,533 |
210 |
|
Other non-current assets |
|
18,770 |
27,139 |
3,721 |
|
Total non-current assets |
|
244,176 |
259,785 |
35,608 |
|
Total assets |
|
595,250 |
617,393 |
84,621 |
|
JD.com, Inc. |
|
Unaudited Interim Condensed Consolidated Balance Sheets |
|
(In millions, except otherwise noted) |
| |
|
|
| |
|
As of |
|
|
|
December 31,2022 |
September 30,2023 |
September 30,2023 |
| |
|
RMB |
RMB |
US$ |
|
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Short-term debts |
|
12,146 |
13,740 |
1,883 |
|
Accounts payable |
|
160,607 |
153,563 |
21,048 |
|
Advance from customers |
|
33,713 |
33,065 |
4,532 |
|
Deferred revenues |
|
3,351 |
2,275 |
312 |
|
Taxes payable |
|
5,926 |
9,206 |
1,262 |
|
Amount due to related parties |
|
488 |
159 |
22 |
|
Accrued expenses and other current liabilities |
|
42,570 |
42,333 |
5,802 |
|
Operating lease liabilities |
|
7,688 |
8,097 |
1,110 |
|
Liabilities held for sale |
|
72 |
— |
— |
|
Total current liabilities |
|
266,561 |
262,438 |
35,971 |
|
Non-current liabilities |
|
|
|
|
|
Deferred revenues |
|
1,107 |
1,026 |
141 |
|
Unsecured senior notes |
|
10,224 |
10,550 |
1,446 |
|
Deferred tax liabilities |
|
6,511 |
8,131 |
1,114 |
|
Long-term borrowings |
|
20,009 |
22,191 |
3,042 |
|
Operating lease liabilities |
|
14,978 |
15,280 |
2,094 |
|
Other non-current liabilities |
|
1,737 |
1,493 |
205 |
|
Total non-current liabilities |
|
54,566 |
58,671 |
8,042 |
|
Total liabilities |
|
321,127 |
321,109 |
44,013 |
|
|
|
|
|
|
|
MEZZANINE EQUITY |
|
590 |
603 |
83 |
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000 million shares authorized, 3,183 million shares issued and
3,147 million shares outstanding as of September 30, 2023) |
|
213,366 |
230,094 |
31,536 |
|
Non-controlling interests |
|
60,167 |
65,587 |
8,989 |
|
Total shareholders’ equity |
|
273,533 |
295,681 |
40,525 |
|
Total liabilities, mezzanine equity and shareholders’
equity |
|
595,250 |
617,393 |
84,621 |
|
|
|
|
|
|
| (1) JD Technology
performs credit risk assessment services for JD Baitiao business
and absorbs the credit risk of the underlying Baitiao receivables.
Facilitated by JD Technology, the company periodically securitizes
Baitiao receivables through the transfer of those assets to
securitization plans and derecognizes the related Baitiao
receivables through sales type arrangements. |
|
JD.com, Inc. |
|
Unaudited Interim Condensed Consolidated Statements of
Operations |
|
(In millions, except per share data) |
|
|
| |
For the three months ended |
|
For the nine months ended |
| |
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
| |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
| Net
revenues |
|
|
|
|
|
|
|
|
Net product revenues |
197,027 |
|
195,304 |
|
26,769 |
|
|
627,463 |
|
624,723 |
|
85,625 |
|
|
Net service revenues |
46,508 |
|
52,394 |
|
7,181 |
|
|
123,327 |
|
153,862 |
|
21,089 |
|
| Total net
revenues |
243,535 |
|
247,698 |
|
33,950 |
|
|
750,790 |
|
778,585 |
|
106,714 |
|
|
Cost of revenues |
(207,339 |
) |
(208,947 |
) |
(28,639 |
) |
|
(645,254 |
) |
(662,383 |
) |
(90,787 |
) |
|
Fulfillment |
(14,354 |
) |
(15,225 |
) |
(2,087 |
) |
|
(46,148 |
) |
(47,275 |
) |
(6,480 |
) |
|
Marketing |
(7,605 |
) |
(7,955 |
) |
(1,090 |
) |
|
(25,787 |
) |
(27,023 |
) |
(3,704 |
) |
|
Research and development |
(4,116 |
) |
(3,794 |
) |
(520 |
) |
|
(12,527 |
) |
(12,052 |
) |
(1,652 |
) |
|
General and administrative |
(2,622 |
) |
(2,474 |
) |
(339 |
) |
|
(7,408 |
) |
(7,333 |
) |
(1,005 |
) |
|
Gain on sale of development properties |
1,229 |
|
— |
|
— |
|
|
1,229 |
|
1,481 |
|
203 |
|
| Income from
operations(2)(3) |
8,728 |
|
9,303 |
|
1,275 |
|
|
14,895 |
|
24,000 |
|
3,289 |
|
| Other
income/(expenses) |
|
|
|
|
|
|
|
|
Share of results of equity investees |
377 |
|
427 |
|
59 |
|
|
(2,308 |
) |
513 |
|
70 |
|
|
Interest expense |
(579 |
) |
(710 |
) |
(97 |
) |
|
(1,408 |
) |
(1,954 |
) |
(268 |
) |
|
Others, net(4) |
(816 |
) |
1,782 |
|
243 |
|
|
(1,128 |
) |
5,785 |
|
794 |
|
| Income before
tax |
7,710 |
|
10,802 |
|
1,480 |
|
|
10,051 |
|
28,344 |
|
3,885 |
|
|
Income tax expenses |
(1,751 |
) |
(2,579 |
) |
(353 |
) |
|
(3,581 |
) |
(6,999 |
) |
(959 |
) |
| Net
income |
5,959 |
|
8,223 |
|
1,127 |
|
|
6,470 |
|
21,345 |
|
2,926 |
|
| Net income/(loss) attributable
to non-controlling interests shareholders |
(4 |
) |
287 |
|
39 |
|
|
(886 |
) |
567 |
|
78 |
|
| Net income attributable to
mezzanine equity classified as non-controlling interests
shareholders |
— |
|
— |
|
— |
|
|
8 |
|
— |
|
— |
|
| Net income
attributable to the company’s ordinary shareholders |
5,963 |
|
7,936 |
|
1,088 |
|
|
7,348 |
|
20,778 |
|
2,848 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
1.91 |
|
2.52 |
|
0.35 |
|
|
2.35 |
|
6.61 |
|
0.91 |
|
|
Diluted |
1.78 |
|
2.50 |
|
0.34 |
|
|
2.22 |
|
6.54 |
|
0.90 |
|
| Net income per
ADS: |
|
|
|
|
|
|
|
|
Basic |
3.81 |
|
5.04 |
|
0.69 |
|
|
4.71 |
|
13.22 |
|
1.81 |
|
|
Diluted |
3.57 |
|
5.00 |
|
0.69 |
|
|
4.43 |
|
13.09 |
|
1.79 |
|
|
JD.com, Inc. |
|
Unaudited Interim Condensed Consolidated Statements of
Operations |
|
(In millions, except per share data) |
|
|
| |
|
For the three months ended |
|
For the nine months ended |
| |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
| |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
(2) Includes share-based compensation expenses as follows: |
|
Cost of revenues |
|
(40 |
) |
(35 |
) |
(5 |
) |
|
(100 |
) |
(99 |
) |
(14 |
) |
|
Fulfillment |
|
(257 |
) |
(239 |
) |
(33 |
) |
|
(684 |
) |
(570 |
) |
(78 |
) |
|
Marketing |
|
(174 |
) |
(112 |
) |
(15 |
) |
|
(472 |
) |
(330 |
) |
(45 |
) |
|
Research and development |
|
(416 |
) |
(203 |
) |
(28 |
) |
|
(1,156 |
) |
(690 |
) |
(95 |
) |
|
General and administrative |
|
(1,097 |
) |
(784 |
) |
(107 |
) |
|
(3,000 |
) |
(2,135 |
) |
(292 |
) |
|
Total |
|
(1,984 |
) |
(1,373 |
) |
(188 |
) |
|
(5,412 |
) |
(3,824 |
) |
(524 |
) |
|
|
|
|
|
|
|
|
|
|
|
(3) Includes amortization of business cooperation arrangement and
intangible assets resulting from assets and business acquisitions
as follows: |
|
Fulfillment |
|
(107 |
) |
(103 |
) |
(14 |
) |
|
(287 |
) |
(311 |
) |
(43 |
) |
|
Marketing |
|
(221 |
) |
(220 |
) |
(30 |
) |
|
(657 |
) |
(659 |
) |
(90 |
) |
|
Research and development |
|
(83 |
) |
(66 |
) |
(9 |
) |
|
(181 |
) |
(239 |
) |
(33 |
) |
|
General and administrative |
|
(32 |
) |
(32 |
) |
(4 |
) |
|
(128 |
) |
(96 |
) |
(13 |
) |
|
Total |
|
(443 |
) |
(421 |
) |
(57 |
) |
|
(1,253 |
) |
(1,305 |
) |
(179 |
) |
|
|
|
|
|
|
|
|
|
|
|
(4) Others, net are other non-operating income/(loss), primarily
consist of gains/(losses) from fair value change of long-term
investments, gains/(losses) from business and investment disposals,
impairment of investments, government incentives, foreign exchange
gains/(losses), interest income and gains/(losses) from fair value
change of short-term investments. |
|
JD.com, Inc. |
|
Unaudited Non-GAAP Net Income Per Share and Per ADS |
|
(In millions, except per share data) |
|
|
| |
|
For the three months ended |
|
For the nine months ended |
|
|
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
| |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income
attributable to the company’s ordinary shareholders |
|
10,040 |
10,637 |
1,458 |
|
20,561 |
26,785 |
3,670 |
| |
|
|
|
|
|
|
|
|
| Weighted average
number of shares: |
|
|
|
|
|
|
|
|
| Basic |
|
3,129 |
3,147 |
3,147 |
|
3,122 |
3,143 |
3,143 |
| Diluted |
|
3,181 |
3,170 |
3,170 |
|
3,182 |
3,172 |
3,172 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income per
share: |
|
|
|
|
|
|
|
|
| Basic |
|
3.21 |
3.38 |
0.46 |
|
6.59 |
8.52 |
1.17 |
| Diluted |
|
3.14 |
3.35 |
0.46 |
|
6.43 |
8.43 |
1.16 |
| |
|
|
|
|
|
|
|
|
| Non-GAAP net income
per ADS: |
|
|
|
|
|
|
|
|
| Basic |
|
6.42 |
6.76 |
0.93 |
|
13.17 |
17.04 |
2.34 |
| Diluted |
|
6.27 |
6.70 |
0.92 |
|
12.86 |
16.87 |
2.31 |
|
JD.com, Inc. |
|
Unaudited Interim Condensed Consolidated Statements of Cash Flows
and Free Cash Flow |
|
(In millions) |
|
|
| |
|
For the three months ended |
|
For the nine months ended |
| |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
| |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
9,151 |
|
15,004 |
|
2,056 |
|
|
39,333 |
|
39,908 |
|
5,470 |
|
| Net cash provided by/(used in)
investing activities |
|
(9,754 |
) |
14,964 |
|
2,051 |
|
|
(36,118 |
) |
3,529 |
|
484 |
|
| Net cash provided by/(used in)
financing activities |
|
4,029 |
|
(4,486 |
) |
(615 |
) |
|
5,415 |
|
(5,063 |
) |
(694 |
) |
| Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
1,799 |
|
(763 |
) |
(104 |
) |
|
4,466 |
|
338 |
|
45 |
|
| Net increase in cash, cash
equivalents and restricted cash |
|
5,225 |
|
24,719 |
|
3,388 |
|
|
13,096 |
|
38,712 |
|
5,305 |
|
| Cash, cash equivalents and
restricted cash at beginning of period, including cash and cash
equivalents classified within assets held for sale |
|
84,564 |
|
99,149 |
|
13,589 |
|
|
76,693 |
|
85,156 |
|
11,672 |
|
| Less: cash, cash equivalents,
and restricted cash classified within assets held for sale at
beginning of period |
|
— |
|
— |
|
— |
|
|
— |
|
(41 |
) |
(6 |
) |
| Cash, cash equivalents, and
restricted cash at beginning of period |
|
84,564 |
|
99,149 |
|
13,589 |
|
|
76,693 |
|
85,115 |
|
11,666 |
|
| Cash, cash equivalents and
restricted cash at end of period |
|
89,789 |
|
123,868 |
|
16,977 |
|
|
89,789 |
|
123,868 |
|
16,977 |
|
| |
|
|
|
|
|
|
|
|
| Net cash provided by operating
activities |
|
9,151 |
|
15,004 |
|
2,056 |
|
|
39,333 |
|
39,908 |
|
5,470 |
|
| Less: Impact from JD Baitiao
receivables included in the operating cash flow |
|
(1,506 |
) |
(1,747 |
) |
(239 |
) |
|
(1,438 |
) |
(743 |
) |
(102 |
) |
| Less: Capital expenditures,
net of related sales proceeds |
|
|
|
|
|
|
|
|
|
Capital expenditures for development properties |
|
(3,784 |
) |
(3,013 |
) |
(413 |
) |
|
(11,407 |
) |
(7,521 |
) |
(1,031 |
) |
|
Other capital expenditures |
|
(1,522 |
) |
(1,980 |
) |
(271 |
) |
|
(2,937 |
) |
(4,292 |
) |
(588 |
) |
| Free cash flow |
|
2,339 |
|
8,264 |
|
1,133 |
|
|
23,551 |
|
27,352 |
|
3,749 |
|
|
JD.com, Inc. |
|
Supplemental Financial Information and Business Metrics |
|
(In RMB billions, except turnover days data) |
|
|
|
|
|
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
| Cash flow and turnover
days |
|
|
|
|
|
|
| Operating cash flow – trailing
twelve months (“TTM”) |
|
45.8 |
57.8 |
39.7 |
52.5 |
58.4 |
|
Free cash flow – TTM |
|
25.8 |
35.6 |
19.0 |
33.5 |
39.4 |
|
Inventory turnover days(5)– TTM |
|
31.7 |
33.2 |
32.4 |
31.7 |
30.8 |
|
Accounts payable turnover days(6)– TTM |
|
50.4 |
52.5 |
51.3 |
52.8 |
52.6 |
|
Accounts receivable turnover days(7)– TTM |
|
4.0 |
4.5 |
4.8 |
5.0 |
5.4 |
| |
|
(5) TTM inventory turnover days are the quotient of average
inventory over the immediately preceding five quarters, up to and
including the last quarter of the period, to cost of revenues of
retail business for the last twelve months, and then multiplied by
360 days. |
|
(6) TTM accounts payable turnover days are the quotient of average
accounts payable for retail business over the immediately preceding
five quarters, up to and including the last quarter of the period,
to cost of revenues of retail business for the last twelve months,
and then multiplied by 360 days. |
|
(7) TTM accounts receivable turnover days are the quotient of
average accounts receivable over the immediately preceding five
quarters, up to and including the last quarter of the period, to
total net revenues for the last twelve months and then multiplied
by 360 days. Presented are the accounts receivable turnover days
excluding the impact from JD Baitiao. |
|
JD.com, Inc. |
|
Unaudited Reconciliation of GAAP and Non-GAAP Results |
|
(In millions, except percentage data) |
| |
| |
|
For the three months ended |
|
For the nine months ended |
| |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
| |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
8,728 |
|
9,303 |
|
1,275 |
|
|
14,895 |
|
24,000 |
|
3,289 |
|
| Add: Share-based
compensation |
|
1,984 |
|
1,373 |
|
188 |
|
|
5,412 |
|
3,824 |
|
524 |
|
| Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
330 |
|
309 |
|
42 |
|
|
879 |
|
972 |
|
133 |
|
| Add: Effects of business
cooperation arrangements |
|
113 |
|
112 |
|
15 |
|
|
374 |
|
333 |
|
46 |
|
| Reversal of: Gain on sale of
development properties |
|
(1,229 |
) |
— |
|
— |
|
|
(1,229 |
) |
(1,481 |
) |
(203 |
) |
| Non-GAAP income from
operations |
|
9,926 |
|
11,097 |
|
1,520 |
|
|
20,331 |
|
27,648 |
|
3,789 |
|
| Add: Depreciation and other
amortization |
|
1,537 |
|
1,792 |
|
246 |
|
|
4,373 |
|
5,143 |
|
705 |
|
|
Non-GAAP EBITDA |
|
11,463 |
|
12,889 |
|
1,766 |
|
|
24,704 |
|
32,791 |
|
4,494 |
|
| |
|
|
|
|
|
|
|
|
|
Total net revenues |
|
243,535 |
|
247,698 |
|
33,950 |
|
|
750,790 |
|
778,585 |
|
106,714 |
|
| |
|
|
|
|
|
|
|
|
| Non-GAAP operating
margin |
|
4.1 |
% |
4.5 |
% |
4.5 |
% |
|
2.7 |
% |
3.6 |
% |
3.6 |
% |
| |
|
|
|
|
|
|
|
|
| Non-GAAP EBITDA
margin |
|
4.7 |
% |
5.2 |
% |
5.2 |
% |
|
3.3 |
% |
4.2 |
% |
4.2 |
% |
|
JD.com, Inc. |
|
Unaudited Reconciliation of GAAP and Non-GAAP Results |
|
(In millions, except percentage data) |
|
|
| |
|
For the three months ended |
|
For the nine months ended |
| |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
September 30,2023 |
| |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the company’s ordinary shareholders |
|
5,963 |
|
7,936 |
|
1,088 |
|
|
7,348 |
|
20,778 |
|
2,848 |
|
| Add: Share-based
compensation |
|
1,668 |
|
1,078 |
|
148 |
|
|
4,575 |
|
3,073 |
|
421 |
|
| Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
221 |
|
144 |
|
20 |
|
|
620 |
|
525 |
|
72 |
|
| Add: Reconciling items on the
share of equity method investments(8) |
|
81 |
|
301 |
|
41 |
|
|
911 |
|
1,002 |
|
137 |
|
| Add: Impairment of goodwill,
intangible assets, and investments |
|
361 |
|
384 |
|
53 |
|
|
1,618 |
|
1,772 |
|
243 |
|
| Add: Loss from fair value
change of long-term investments |
|
2,779 |
|
783 |
|
107 |
|
|
2,944 |
|
395 |
|
54 |
|
| Reversal of: Gain on sale of
development properties |
|
(1,010 |
) |
— |
|
— |
|
|
(1,010 |
) |
(1,120 |
) |
(154 |
) |
| (Reversal of) /Add: Net
(gain)/loss on disposals/deemed disposals of investments and
others |
|
(27 |
) |
(5 |
) |
(1 |
) |
|
3,491 |
|
(55 |
) |
(8 |
) |
| Add: Effects of business
cooperation arrangements and non-compete agreements |
|
113 |
|
112 |
|
15 |
|
|
363 |
|
333 |
|
46 |
|
| (Reversal of)/Add: Tax effects
on non-GAAP adjustments |
|
(109 |
) |
(96 |
) |
(13 |
) |
|
(299 |
) |
82 |
|
11 |
|
| Non-GAAP net income
attributable to the company’s ordinary shareholders |
|
10,040 |
|
10,637 |
|
1,458 |
|
|
20,561 |
|
26,785 |
|
3,670 |
|
| |
|
|
|
|
|
|
|
|
| Total net revenues |
|
243,535 |
|
247,698 |
|
33,950 |
|
|
750,790 |
|
778,585 |
|
106,714 |
|
| |
|
|
|
|
|
|
|
|
| Non-GAAP net margin to
the company’s ordinary shareholders |
|
4.1 |
% |
4.3 |
% |
4.3 |
% |
|
2.7 |
% |
3.4 |
% |
3.4 |
% |
|
|
|
(8) To exclude the GAAP to non-GAAP reconciling items on the share
of equity method investments, and share of amortization of
intangibles not on their books. |
_____________________________
1 The U.S. dollar (US$) amounts disclosed in
this announcement, except for those transaction amounts that were
actually settled in U.S. dollars, are presented solely for the
convenience of the readers. The conversion of Renminbi (RMB) into
US$ in this announcement is based on the exchange rate set forth in
the H.10 statistical release of the Board of Governors of the
Federal Reserve System as of September 29, 2023, which was
RMB7.2960 to US$1.00. The percentages stated in this announcement
are calculated based on the RMB amounts.2 See the sections entitled
“Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and
Non-GAAP Results” for more information about the non-GAAP measures
referred to in this announcement.3 The numbers also include
warehouses managed by Deppon Logistics Co., Ltd. (“Deppon”,
Shanghai Stock Exchange code: 603056) and its subsidiaries
(collectively, “Deppon Group”). In the third quarter of 2022, JD
Logistics completed the acquisition of the controlling interest in
Deppon and began to consolidate its financial results.
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