JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading
technology driven e-commerce company transforming to become the
leading supply chain-based technology and service provider, today
announced its unaudited financial results for the quarter ended
March 31, 2021.
First Quarter 2021
Highlights
- Net
revenues for the first quarter of 2021 were RMB203.2
billion (US$131.0 billion), an increase of 39.0% from the first
quarter of 2020. Net service revenues for the first quarter of 2021
were RMB27.9 billion (US$4.3 billion), an increase of 73.1% from
the first quarter of 2020.
- Income
from operations for the first quarter of 2021 was RMB1.7
billion (US$0.3 billion), compared to RMB2.3 billion for the same
period last year. Non-GAAP2
income from operations for the first quarter of
2021 was RMB3.5 billion (US$0.5 billion), compared to RMB3.3
billion for the first quarter of 2020. Operating margin of JD
Retail before unallocated items for the first quarter of 2021 was
4.0%, compared to 3.7%3 for the first quarter of
2020.
- Net
income attributable to ordinary
shareholders for the first quarter of 2021 was RMB3.6
billion (US$0.6 billion), compared to RMB1.1 billion for the same
period last year. Non-GAAP net income
attributable to ordinary shareholders for the
first quarter of 2021 was RMB4.0 billion (US$0.6 billion), compared
to RMB3.0 billion for the same period last year.
- Diluted
net income per ADS for the first quarter of 2021 was
RMB2.25 (US$0.34), compared to RMB0.72 for the first quarter of
2020. Non-GAAP diluted net income per ADS for the
first quarter of 2021 was RMB2.47 (US$0.38), compared to RMB1.98
for the same period last year.
- Annual
active customer accounts4 increased by
29.0% to 499.8 million in the twelve months ended March 31, 2021
from 387.4 million in the twelve months ended March 31, 2020.
“As we mark JD.com’s 18th anniversary, we are
pleased to deliver another strong quarter of growth to kick off
2021,” said Richard Liu, Chairman and Chief Executive Officer of
JD.com. “Since our establishment, JD’s focus on customers has set
us apart and today we are proud that 500 million active users rely
on JD’s broad selection of quality products and best-in-class
customer services to support every aspect of their lives. JD is
also increasingly the partner of choice for millions of businesses
who benefit from our advanced supply-chain infrastructure to reduce
costs and boost operating efficiency.”
“As our strong growth momentum from last year
continued into the first quarter of 2021, we are also encouraged by
the diversification of our revenue streams with an increasing
contribution from service revenues.” said Sandy Xu, Chief Financial
Officer of JD.com. “JD Retail’s operating margin further expanded
during the quarter, as we continue to drive stronger operating
leverage through technology and innovation.”
Business Highlights
Environment, Social and
Governance
- JD.com released
its first ESG report on April 19th highlighting the company’s
long-term approach to ESG initiatives and corporate social
responsibility. The report details JD.com’s vision of leveraging
the digital supply chain to boost the real economy, improve
efficiency and enhance environmentally friendly initiatives
including green supply chain, green data centers and poverty
alleviation.
- As part of its
commitment to poverty alleviation, JD.com helped impoverished
counties to market more than 3 million local commodities online.
JD.com will focus on rural digitalization to promote the
sustainable development of rural areas in the future. With over 80%
of JD.com front-line employees originally from rural areas, JD.com
provides sustainable employment opportunities and social insurance
and housing fund for hundreds of thousands of employees throughout
rural China.
JD Retail
- JD.com and Louis
Vuitton launched an innovative cooperation in April. The
ground-breaking cooperation model connects Louis Vuitton directly
with JD.com’s high-quality customers, providing them with access to
the brand while further enhancing the luxury shopping experience on
JD.com.
- In the first
quarter, JD.com has started new partnerships with a wide spectrum
of luxury brands. John Lobb, the luxury shoes and boots brand
under Hermès Group, recently launched flagship stores on JD.com.
Some brands went further to partner with JD.com in supply chain
services. Italian brand Marni not only launched a flagship store on
JD.com, but also adopted a customized one-stop solution offered by
JD.com, covering marketing, technology, and supply chain
management. With this service, customers can purchase directly from
Marni’s inventory with the products delivered by JD Logistics.
- In response to
local authorities’ appeals to limit travel during this year’s
Spring Festival, JD Retail collaborated with JD Logistics to
provide non-stop delivery during Spring Festival for the ninth
consecutive year and launched a series of initiatives for the JD
New Year Shopping Festival. JD City-wide Shopping collaborated with
JD Daojia (JDDJ) to coordinate inventory, logistics and employee
resources in order to provide uninterrupted services during the
Spring Festival holiday. Through cooperation with well-known chain
retailers, JD.com provided residents in more than 1,400 counties,
districts and cities across the country with one-hour delivery
service for products across all categories. JD.com also upgraded
the hassle-free shopping experience on its third-party platform,
offering delivery time and price guarantees, free pickup for
returns, as well as flash refunds.
- During the first
quarter, JD Home entered into strategic cooperation with Honor,
Xiaomi, OPPO, OnePlus, realme, and other cellphone brands to
collaborate on innovative omni-channel marketing initiatives,
including in retail chain stores. JD Home has already achieved
National Key Account (NKA) status with many major cellphone brands,
supporting their omni-channel retail channels and the offline
shopping experience. JD Home provides brands with additional
channels to connect with customers and accelerate growth through
omni-channel sales, user services, and event marketing.
- JD.com’s recent
announcement that it will increase its stake in Dada Group (Dada)
marks a tighter collaboration under the omni-channel strategy. Dada
will have the full support of JD.com and
strategically undertake JD’s local on-demand retail and
delivery businesses. Through this alignment, JD.com and Dada will
be able to provide JD.com’s nearly 500 million annual active
customers with superior customer services and enriched coverage in
on-demand retail and delivery, and will accelerate the digital
transformation of real economy enterprises.
JD Health
- In February, JD
Health announced the launch of the Rare Diseases Care Project,
under which it established JD Pharmacy Rare Diseases Care Center
and a dedicated fund for patients with rare diseases. In
collaboration with partners from all relevant fields, the Project
leverages JD Health’s supply chain capabilities and comprehensive
healthcare offerings to create a one-stop solution for rare disease
patients in China providing financial assistance as well as ongoing
support for diagnosis, treatment and access to medication.
JD Logistics
- On April 17, JD
Logistics and Tencent Smart Retail jointly announced the launch of
JD-Tencent Cloud Warehouse. Integrated with JD Logistics cloud
warehouse technologies, logistics platform and supply chain
capabilities, as well as Tencent Smart Retail's smart retailing
analysis technology, JD-Tencent Cloud Warehouse provides integrated
solutions including business leads, branding and marketing as well
as logistics services to merchants and warehousing companies,
supporting areas including private traffic operations, traffic
promotions, supply chains and logistics. Following its launch in
2017 to serve third-party warehouses and merchants, JD Cloud
Warehouse can now leverage this partnership to serve new business
models including social and live-streaming e-commerce, further
opening JD Logistics’s integrated supply chain capabilities for
diverse commercial use cases.
- As of March 31,
2021, JD Logistics operated over 1,000 warehouses, which covered an
aggregate gross floor area of over 21 million square meters,
including warehouse space of cloud warehouses managed under the JD
Logistics Open Warehouse Platform.
Other Highlights
- In May, Jingdong
Digits Technology Holding Co., Ltd. (“JD Digits”) was officially
renamed as Jingdong Technology Holding Co., Ltd. (“JD Technology”).
During the quarter ended March 31, 2021, JD.com, through a
subsidiary, transferred JD Cloud & AI business and certain
assets to JD Technology, in exchange for issuance of ordinary
shares of JD Technology. Through this transaction, JD.com’s equity
interest in JD Technology increased to approximately 42%. The
company deconsolidated the operating results of JD Cloud & AI
business upon the completion date of the transaction, which was
March 31, 2021. JD.com will continue to focus on its core
competences and synergistic businesses to better serve customers,
and JD Technology will be better positioned to deliver a suite of
cutting-edge technology services to its business partners.
Operational Metrics Update
- As of March 31,
2021, JD.com had over 310,000 employees excluding part-time and
interns.
First Quarter 2021 Financial Results
Net Revenues. For
the first quarter of 2021, JD.com reported net revenues of RMB203.2
billion (US$31.0 billion), representing a 39.0% increase from the
same period in 2020. Net product revenues increased by 34.7%, while
net service revenues increased by 73.1% for the first quarter of
2021, as compared to the same period of 2020.
Cost of
Revenues. Cost of revenues increased by
40.7% to RMB174.1 billion (US$26.6 billion) for the first quarter
of 2021 from RMB123.7 billion for the first quarter of 2020.
Fulfillment
Expenses. Fulfillment expenses, which
primarily include procurement, warehousing, delivery, customer
service and payment processing expenses, increased by 32.7% to
RMB13.8 billion (US$2.1 billion) for the first quarter of 2021 from
RMB10.4 billion for the first quarter of 2020.
Marketing
Expenses. Marketing expenses increased by
56.6% to RMB7.0 billion (US$1.1 billion) for the first quarter of
2021 from RMB4.5 billion for the first quarter of 2020.
Research and Development
Expenses. Research and development
expenses increased by 15.1% to RMB4.5 billion (US$0.7 billion) for
the first quarter of 2021 from RMB3.9 billion for the first quarter
of 2020.
General and Administrative
Expenses. General and
administrative expenses increased by 56.8% to RMB2.2 billion
(US$0.3 billion) for the first quarter of 2021 from RMB1.4 billion
for the first quarter of 2020. The increase was primarily due to
the increase in share-based compensation expenses in relation to JD
Health’s and JD Logistics’s share incentive plans.
Income from Operations and Non-GAAP
Income from Operations. Income from operations for the
first quarter of 2021 was RMB1.7 billion (US$0.3 billion), compared
to RMB2.3 billion for the same period last year. Non-GAAP income
from operations for the first quarter of 2021 was RMB3.5 billion
(US$0.5 billion), compared to non-GAAP income from operations of
RMB3.3 billion for the first quarter of 2020. Operating margin of
JD Retail before unallocated items for the first quarter of 2021
was 4.0%, compared to 3.7% for the first quarter of 2020.
Non-GAAP EBITDA for the first
quarter of 2021 was RMB4.9 billion (US$0.8 billion), compared to
RMB4.5 billion for the first quarter of 2020.
Share of Results of Equity
Investees. In the first quarter of 2021, share
of results of equity investees was an income of RMB0.7 billion
(US$0.1 billion), which was mainly contributed by JD Technology. In
the first quarter of 2020, share of results of equity investees was
a loss of RMB1.1 billion, which was mainly resulted from Jiangsu
Five Star, Dada and Yixin.
Net Income
Attributable to Ordinary Shareholders and
Non-GAAP Net Income Attributable to Ordinary
Shareholders. Net income attributable to
ordinary shareholders for the first quarter of 2021 was RMB3.6
billion (US$0.6 billion), compared to RMB1.1 billion for the same
period last year. Non-GAAP net income attributable to ordinary
shareholders for the first quarter of 2021 was RMB4.0 billion
(US$0.6 billion), compared to RMB3.0 billion for the same period
last year.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for the first quarter of
2021 was RMB2.25 (US$0.34), compared to RMB0.72 for the first
quarter of 2020. Non-GAAP diluted net income per ADS for the first
quarter of 2021 was RMB2.47 (US$0.38), compared to RMB1.98 for the
first quarter of 2020.
Cash Flow and Working
Capital
As of March 31, 2021, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB138.8 billion (US$21.2 billion), compared to RMB151.1
billion as of December 31, 2020. For the first quarter of 2021,
free cash flow of the company was as follows:
|
|
For the three months ended |
|
|
March 31, 2020 |
March 31, 2021 |
March 31, 2021 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Net cash used in operating activities |
|
(1,542,477 |
) |
(7,508,774 |
) |
(1,146,063 |
) |
Add: Impact from JD Baitiao receivables included in the operating
cash flow |
|
575,728 |
|
1,225,200 |
|
187,002 |
|
Less: Capital expenditures |
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds* |
|
(1,431,545 |
) |
(1,622,634 |
) |
(247,663 |
) |
Other capital expenditures** |
|
(576,183 |
) |
(1,836,385 |
) |
(280,287 |
) |
Free cash flow |
|
(2,974,477 |
) |
(9,742,593 |
) |
(1,487,011 |
) |
|
|
|
|
|
|
|
|
* In the first quarter of 2021, approximately
RMB0.8 billion proceeds from the sale of development properties
were included in this line, compared to approximately RMB0.2
billion proceeds in the first quarter of 2020.
** Including capital expenditures related to the
company’s headquarters in Beijing and all other CAPEX.
Net cash used in investing activities was RMB7.6
billion (US$1.2 billion) for the first quarter of 2021, consisting
primarily of increase in short-term investments of RMB2.7 billion,
cash paid for investments in equity investees and purchases of
investment securities of RMB5.9 billion and cash paid for capital
expenditures of RMB4.2 billion, partially offset by cash received
from disposal of investment securities of RMB6.8 billion, and
proceeds from sale of development properties of RMB0.8 billion.
Net cash used in financing activities was RMB0.6
billion (US$0.1 billion) for the first quarter of 2021, consisting
primarily of cash paid for repurchase of ordinary shares of RMB4.1
billion, and repayment of short-term debts of RMB1.0 billion,
offset by proceeds from JD Property’s series A preferred share
financing of RMB2.4 billion, and proceeds from short-term debts of
RMB2.0 billion.
Between January 1, 2021 and May 18, 2021, the
company repurchased approximately 10.1 million ADSs for
approximately US$0.8 billion from the open market under the US$2.0
billion repurchase program authorized by the Board of Directors in
March 2020.
For the twelve months ended March 31, 2021, free
cash flow of the company was as follows:
|
|
For the twelve months ended |
|
|
March 31, 2020 |
March 31, 2021 |
March 31, 2021 |
|
|
RMB |
RMB |
US$ |
|
|
(In thousands) |
|
|
|
Net cash provided by operating activities |
|
19,915,492 |
|
36,578,020 |
|
5,582,896 |
|
Add/(Less): Impact from JD Baitiao receivables included in the
operating cash flow |
|
(1,497,038 |
) |
697,410 |
|
106,446 |
|
Less: Capital expenditures |
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds |
|
(101,822 |
) |
(3,724,755 |
) |
(568,509 |
) |
Other capital expenditures |
|
(3,118,203 |
) |
(5,396,546 |
) |
(823,674 |
) |
Free cash flow |
|
15,198,429 |
|
28,154,129 |
|
4,297,159 |
|
|
|
|
|
|
|
|
|
Supplemental Information
Beginning with the first quarter of 2021, the
company implemented certain segment reporting changes to better
reflect its recently optimized organizational structure and
business developments. The major changes in segment information
mainly include: (1) Reported the results of JD Logistics as a new
standalone segment. JD Logistics published its prospectus in Hong
Kong on May 17, 2021 and expects to list on the Main Board of the
Hong Kong Stock Exchange on May 28, 2021. There is no assurance
that the listing of JD Logistics will take place or as to when it
may take place. (2) Moved the results of Jingxi and the internal
business of JD Property from JD Retail to New businesses. The
changes relate to the realignment of JD Retail in connection with
the recent establishment of the new Jingxi business group and the
closing of JD Property’s series A preferred share financing. As a
result, the company now reports three segments, JD Retail, JD
Logistics and New businesses. New businesses mainly include JD
Property, Jingxi, overseas businesses and technology initiatives.
These changes have no impact on the company’s previously reported
consolidated balance sheets, statements of operations, or
statements of cash flows.
The table below sets forth the segment operating
results, with prior period segment information retrospectively
revised to conform to current period presentation:
|
For the three months ended |
|
March 31, 2020 |
March 31, 2021 |
March 31, 2021 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
Net revenues: |
|
|
|
JD Retail |
137,356,074 |
|
185,796,239 |
|
28,358,045 |
|
JD Logistics |
13,656,913 |
|
22,411,019 |
|
3,420,590 |
|
New businesses |
3,309,375 |
|
5,154,277 |
|
786,696 |
|
Inter-segment* |
(8,440,135 |
) |
(10,321,120 |
) |
(1,575,311 |
) |
Total segment net revenues |
145,882,227 |
|
203,040,415 |
|
30,990,020 |
|
Unallocated items** |
322,982 |
|
135,754 |
|
20,720 |
|
Total consolidated net revenues |
146,205,209 |
|
203,176,169 |
|
31,010,740 |
|
|
|
|
|
Operating income/(loss): |
|
|
|
JD Retail*** |
5,061,433 |
|
7,340,103 |
|
1,120,319 |
|
JD Logistics |
(421,385 |
) |
(1,473,582 |
) |
(224,913 |
) |
New businesses |
(1,384,165 |
) |
(2,281,486 |
) |
(348,223 |
) |
Including: gain on sale of
development properties |
- |
|
82,762 |
|
12,632 |
|
Total segment operating income |
3,255,883 |
|
3,585,035 |
|
547,183 |
|
Unallocated items** |
(935,434 |
) |
(1,925,291 |
) |
(293,857 |
) |
Total consolidated operating income |
2,320,449 |
|
1,659,744 |
|
253,326 |
|
|
|
|
|
|
|
|
* The inter-segment eliminations mainly consist
of revenues from supply chain solutions and logistics services
provided by JD Logistics to JD Retail, 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.
*** Under the new segment information, the net
revenues of JD Retail for the three months ended June 30, September
30 and December 31, 2020 were RMB189.5 billion, RMB161.1 billion
and RMB206.0 billion, respectively, and operating margin of JD
Retail for the three months ended June 30, September 30 and
December 31, 2020 were 2.6%, 4.2% and 1.9%, respectively.
The table below sets forth the revenue
information:
|
For the three months ended |
|
March 31, 2020 |
March 31, 2021 |
March 31, 2021 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
|
|
Electronics and home appliances revenues |
77,630,952 |
104,005,726 |
15,874,374 |
General merchandise
revenues |
52,462,186 |
71,276,078 |
10,878,854 |
Net product revenues |
130,093,138 |
175,281,804 |
26,753,228 |
|
|
|
|
Marketplace and marketing
revenues |
9,526,815 |
14,119,827 |
2,155,107 |
Logistics and other service
revenues |
6,585,256 |
13,774,538 |
2,102,405 |
Net service revenues |
16,112,071 |
27,894,365 |
4,257,512 |
|
|
|
|
Total net revenues |
146,205,209 |
203,176,169 |
31,010,740 |
|
|
|
|
Conference Call
JD.com’s management will hold a conference call
at 7:30 am, Eastern Time on May 19, 2021, (7:30 pm, Beijing/Hong
Kong Time on May 19, 2021) to discuss the first quarter 2021
financial results.
Please register in advance of the conference
using the link provided below and dial in 10 minutes prior to the
call, using participant dial-in numbers, Direct Event passcode and
unique registrant ID 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:
http://apac.directeventreg.com/registration/event/9297145
CONFERENCE ID: 9297145
A telephone replay will be available from 10:30
am, Eastern Time on May 19, 2021 through 9:59 am, Eastern Time on
May 27, 2021. The dial-in details are as follows:
US Toll Free: |
+1-855-452-5696 or +1-646-254-3697 |
International |
+61-2-8199-0299 |
Passcode: |
9297145 |
Additionally, a live and archived webcast of the conference call
will also be available on the company’s investor relations website
at http://ir.jd.com.
About JD.com
JD.com is a leading technology driven e-commerce
company transforming to become the 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 ordinary shareholders, non-GAAP
net margin, 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 ordinary shareholders as net income/(loss) attributable to
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, 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 and foreign exchange impact 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 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 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
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 RelationsRuiyu
LiSenior Director of Investor Relations+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 business outlook and
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 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; Chinese
governmental policies relating to JD.com’s industry and general
economic conditions in China. Further information regarding these
and other risks is included in JD.com’s filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, 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 thousands, except per share data and otherwise noted) |
|
|
|
|
|
As of |
|
|
December 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
|
Current
assets |
|
|
|
|
Cash and cash equivalents |
|
86,084,857 |
71,408,394 |
10,899,050 |
Restricted cash |
|
4,434,448 |
3,970,404 |
606,002 |
Short-term investments |
|
60,577,110 |
63,470,268 |
9,687,455 |
Accounts receivable, net (including JD Baitiao of RMB0.8 billion
and RMB2.3 billion as of December 31, 2020 and March 31, 2021,
respectively)(1) |
|
7,111,947 |
7,751,204 |
1,183,065 |
Advance to suppliers |
|
3,767,933 |
3,767,760 |
575,072 |
Inventories, net |
|
58,932,519 |
59,524,389 |
9,085,196 |
Prepayments and other current assets |
|
7,076,590 |
8,309,743 |
1,268,315 |
Amount due from related parties |
|
6,667,262 |
9,241,566 |
1,410,538 |
Assets held for sale(2) |
|
148,592 |
136,110 |
20,774 |
Total current
assets |
|
234,801,258 |
227,579,838 |
34,735,467 |
Non-current
assets |
|
|
|
|
Property, equipment and software, net |
|
22,596,570 |
22,463,058 |
3,428,532 |
Construction in progress |
|
7,906,406 |
7,619,409 |
1,162,949 |
Intangible assets, net |
|
6,462,888 |
6,309,489 |
963,016 |
Land use rights, net |
|
11,124,913 |
11,787,709 |
1,799,156 |
Operating lease right-of-use assets |
|
15,484,082 |
15,625,769 |
2,384,958 |
Goodwill |
|
10,904,409 |
11,627,913 |
1,774,766 |
Investment in equity investees |
|
58,501,329 |
62,297,425 |
9,508,444 |
Investment securities |
|
39,085,150 |
34,155,673 |
5,213,174 |
Deferred tax assets |
|
532,746 |
580,057 |
88,534 |
Other non-current assets |
|
13,315,844 |
13,769,385 |
2,101,619 |
Amount due from related parties |
|
242,527 |
248,214 |
37,885 |
Assets held for sale(2) |
|
1,329,672 |
934,883 |
142,691 |
Total non-current
assets |
|
187,486,536 |
187,418,984 |
28,605,724 |
Total
assets |
|
422,287,794 |
414,998,822 |
63,341,191 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
As of |
|
|
December 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
|
Current
liabilities |
|
|
|
|
Short-term debts |
|
- |
1,017,699 |
155,331 |
Accounts payable |
|
106,818,425 |
97,098,678 |
14,820,153 |
Advances from customers |
|
20,998,001 |
21,015,867 |
3,207,648 |
Deferred revenues |
|
3,417,313 |
4,615,646 |
704,485 |
Taxes payable |
|
3,029,416 |
1,772,357 |
270,515 |
Amount due to related parties |
|
585,324 |
361,282 |
55,142 |
Unsecured senior notes |
|
3,259,882 |
3,285,003 |
501,389 |
Accrued expenses and other current liabilities |
|
30,034,571 |
27,205,072 |
4,152,305 |
Operating lease liabilities |
|
5,513,534 |
5,667,129 |
864,973 |
Liabilities held for sale(2) |
|
360,196 |
197,702 |
30,175 |
Total current
liabilities |
|
174,016,662 |
162,236,435 |
24,762,116 |
Non-current
liabilities |
|
|
|
|
Deferred revenues |
|
1,617,844 |
1,603,010 |
244,667 |
Unsecured senior notes |
|
9,594,556 |
9,665,524 |
1,475,247 |
Deferred tax liabilities |
|
1,921,831 |
1,855,965 |
283,276 |
Long-term borrowings |
|
2,936,205 |
2,957,085 |
451,339 |
Operating lease liabilities |
|
10,249,957 |
10,256,310 |
1,565,419 |
Other non-current liabilities |
|
331,623 |
311,792 |
47,589 |
Total non-current
liabilities |
|
26,652,016 |
26,649,686 |
4,067,537 |
Total
liabilities |
|
200,668,678 |
188,886,121 |
28,829,653 |
|
|
|
|
|
(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 asset-backed securitization plans and
derecognizes the related Baitiao receivables through sales type
arrangements. |
(2) The company entered into definitive agreements to transfer
certain logistic facilities and real estate properties to third
parties through the infrastructure asset management and integrated
service platform of JD Property. As of March 31, 2021, the company
classified the related undisposed assets and liabilities as assets
and liabilities held for sale under ASC 360. |
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Balance Sheets |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
|
|
As of |
|
|
December 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
MEZZANINE
EQUITY |
|
|
|
|
Convertible redeemable
non-controlling interests |
|
17,133,208 |
17,603,404 |
2,686,804 |
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000,000 shares authorized, 3,129,794 shares issued and
3,093,912 shares outstanding as of March 31, 2021) |
|
187,543,295 |
188,672,167 |
28,796,997 |
Non-controlling interests |
|
16,942,613 |
19,837,130 |
3,027,737 |
Total shareholders’
equity |
|
204,485,908 |
208,509,297 |
31,824,734 |
Total liabilities, mezzanine equity and shareholders’
equity |
|
422,287,794 |
414,998,822 |
63,341,191 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data and otherwise noted) |
|
For the three months ended |
|
March 31,2020 |
March 31,2021 |
March 31,2021 |
|
RMB |
RMB |
US$ |
Net
revenues |
|
|
|
Net product revenues |
130,093,138 |
|
175,281,804 |
|
26,753,228 |
|
Net service revenues |
16,112,071 |
|
27,894,365 |
|
4,257,512 |
|
Total net
revenues |
146,205,209 |
|
203,176,169 |
|
31,010,740 |
|
Cost of revenues |
(123,669,699 |
) |
(174,054,150 |
) |
(26,565,852 |
) |
Fulfillment |
(10,399,790 |
) |
(13,803,401 |
) |
(2,106,810 |
) |
Marketing |
(4,468,316 |
) |
(6,998,757 |
) |
(1,068,219 |
) |
Research and development |
(3,935,159 |
) |
(4,529,506 |
) |
(691,338 |
) |
General and administrative |
(1,411,796 |
) |
(2,213,373 |
) |
(337,827 |
) |
Gain on sale of development properties |
- |
|
82,762 |
|
12,632 |
|
Income from
operations(3)(4) |
2,320,449 |
|
1,659,744 |
|
253,326 |
|
Other
income/(expenses) |
|
|
|
Share of results of equity investees |
(1,120,220 |
) |
682,329 |
|
104,144 |
|
Interest expense |
(207,100 |
) |
(257,821 |
) |
(39,351 |
) |
Others, net(5) |
390,498 |
|
2,037,735 |
|
311,019 |
|
Income before
tax |
1,383,627 |
|
4,121,987 |
|
629,138 |
|
Income tax expenses |
(326,444 |
) |
(479,489 |
) |
(73,184 |
) |
Net
income |
1,057,183 |
|
3,642,498 |
|
555,954 |
|
Net income/(loss) attributable to non-controlling interests
shareholders |
(16,420 |
) |
22,248 |
|
3,396 |
|
Net income attributable to mezzanine equity classified as
non-controlling interests shareholders |
782 |
|
2,965 |
|
453 |
|
Net income
attributable to ordinary shareholders |
1,072,821 |
|
3,617,285 |
|
552,105 |
|
|
|
|
|
Net income per
share: |
|
|
|
Basic |
0.37 |
|
1.16 |
|
0.18 |
|
Diluted |
0.36 |
|
1.13 |
|
0.17 |
|
|
|
|
|
Net income per
ADS: |
|
|
|
Basic |
0.73 |
|
2.33 |
|
0.36 |
|
Diluted |
0.72 |
|
2.25 |
|
0.34 |
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of
Operations |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
|
|
For the three months ended |
|
|
March 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
(3) Includes
share-based compensation expenses as follows: |
Cost of revenues |
|
(20,860 |
) |
(21,555 |
) |
(3,290 |
) |
Fulfillment |
|
(131,878 |
) |
(170,988 |
) |
(26,098 |
) |
Marketing |
|
(77,072 |
) |
(120,011 |
) |
(18,317 |
) |
Research and development |
|
(360,599 |
) |
(425,533 |
) |
(64,949 |
) |
General and administrative |
|
(386,105 |
) |
(959,698 |
) |
(146,479 |
) |
|
|
|
|
|
(4) Includes
amortization of business cooperation arrangement and intangible
assets resulting from assets and business acquisitions as
follows: |
Fulfillment |
|
(41,433 |
) |
(52,070 |
) |
(7,947 |
) |
Marketing |
|
(138,949 |
) |
(208,660 |
) |
(31,848 |
) |
Research and development |
|
(24,700 |
) |
(25,216 |
) |
(3,849 |
) |
General and administrative |
|
(76,820 |
) |
(77,314 |
) |
(11,800 |
) |
|
|
|
|
|
(5) Others 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, interest income and foreign exchange
gains/(losses).
JD.com, Inc. |
Unaudited Non-GAAP Net Income Per Share and Per ADS |
(In thousands, except per share data and otherwise noted) |
|
|
|
|
|
|
|
For the three months ended |
|
|
March 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Non-GAAP net income
attributable to ordinary shareholders |
|
2,972,206 |
3,967,537 |
605,564 |
|
|
|
|
|
Weighted average
number of shares: |
|
|
|
|
Basic |
|
2,926,685 |
3,107,346 |
3,107,346 |
Diluted |
|
2,998,786 |
3,207,843 |
3,207,843 |
|
|
|
|
|
Non-GAAP net income per
share: |
|
|
|
|
Basic |
|
1.02 |
1.28 |
0.19 |
Diluted |
|
0.99 |
1.23 |
0.19 |
|
|
|
|
|
Non-GAAP net income
per ADS: |
|
|
|
|
Basic |
|
2.03 |
2.55 |
0.39 |
Diluted |
|
1.98 |
2.47 |
0.38 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Interim Condensed Consolidated Statements of Cash Flows
and Free Cash Flow |
(In thousands) |
|
|
|
For the three months ended |
|
|
March 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Net cash used in operating activities |
|
(1,542,477 |
) |
(7,508,774 |
) |
(1,146,063 |
) |
Net cash used in investing activities |
|
(8,196,352 |
) |
(7,631,392 |
) |
(1,164,778 |
) |
Net cash provided by/(used in) financing activities |
|
15,086,410 |
|
(591,750 |
) |
(90,319 |
) |
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
609,365 |
|
595,265 |
|
90,856 |
|
Net increase/(decrease) in cash, cash equivalents and restricted
cash |
|
5,956,946 |
|
(15,136,651 |
) |
(2,310,304 |
) |
Cash, cash equivalents and restricted cash at beginning of
period(6) |
|
39,912,279 |
|
90,635,223 |
|
13,833,637 |
|
Cash, cash equivalents and restricted cash at end of period(6) |
|
45,869,225 |
|
75,498,572 |
|
11,523,333 |
|
|
|
|
|
|
Net cash used in operating activities |
|
(1,542,477 |
) |
(7,508,774 |
) |
(1,146,063 |
) |
Add: Impact from JD Baitiao receivables included in the operating
cash flow |
|
575,728 |
|
1,225,200 |
|
187,002 |
|
Less: Capital expenditures |
|
|
|
|
Capital expenditures for development properties, net of related
sales proceeds |
|
(1,431,545 |
) |
(1,622,634 |
) |
(247,663 |
) |
Other capital expenditures |
|
(576,183 |
) |
(1,836,385 |
) |
(280,287 |
) |
Free cash flow |
|
(2,974,477 |
) |
(9,742,593 |
) |
(1,487,011 |
) |
|
|
|
|
|
|
|
|
(6) Including cash, cash equivalents and
restricted cash classified as assets held for sale of RMB93.5
million, RMB115.9 million and RMB119.8 million as of March 31,
2020, December 31, 2020 and March 31, 2021, respectively.
JD.com, Inc. |
Supplemental Financial Information and Business Metrics |
|
|
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
|
|
|
|
|
|
|
Free cash flow (in RMB billions) – trailing twelve months
(“TTM”) |
|
15.2 |
22.7 |
30.2 |
34.9 |
28.2 |
Inventory turnover days(7) – TTM |
|
35.4 |
34.8 |
34.3 |
33.3 |
31.2 |
Accounts payable turnover days(8) – TTM |
|
51.7 |
50.8 |
49.2 |
47.1 |
44.2 |
Accounts receivable turnover days(9) – TTM |
|
3.1 |
2.9 |
2.8 |
2.7 |
2.6 |
Annual active customer accounts (in millions) |
|
387.4 |
417.4 |
441.6 |
471.9 |
499.8 |
|
|
|
|
|
|
|
(7) 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.(8) 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. (9) 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 thousands, except percentage data) |
|
|
For the three months ended |
|
|
March 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Income from operations |
|
2,320,449 |
|
1,659,744 |
|
253,326 |
|
Add: Share-based compensation |
|
976,514 |
|
1,697,785 |
|
259,133 |
|
Add: Amortization of intangible assets resulting from assets and
business acquisitions |
|
147,161 |
|
230,561 |
|
35,191 |
|
Reversal of: Effects of business cooperation arrangements |
|
(188,241 |
) |
(3,055 |
) |
(467 |
) |
Reversal of: Gain on sale of development properties |
|
- |
|
(82,762 |
) |
(12,632 |
) |
Non-GAAP income from operations |
|
3,255,883 |
|
3,502,273 |
|
534,551 |
|
Add: Depreciation and other amortization |
|
1,258,464 |
|
1,437,530 |
|
219,409 |
|
Non-GAAP EBITDA |
|
4,514,347 |
|
4,939,803 |
|
753,960 |
|
|
|
|
|
|
Total net revenues |
|
146,205,209 |
|
203,176,169 |
|
31,010,740 |
|
|
|
|
|
|
Non-GAAP operating margin |
|
2.2 |
% |
1.7 |
% |
1.7 |
% |
|
|
|
|
|
Non-GAAP EBITDA margin |
|
3.1 |
% |
2.4 |
% |
2.4 |
% |
|
|
|
|
|
|
|
|
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP Results |
(In thousands, except percentage data) |
|
|
|
|
|
|
|
For the three months ended |
|
|
March 31,2020 |
March 31,2021 |
March 31,2021 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
Net income attributable to ordinary shareholders |
|
1,072,821 |
|
3,617,285 |
|
552,105 |
|
Add: Share-based compensation |
|
976,514 |
|
1,697,785 |
|
259,133 |
|
Add: Amortization of intangible assets resulting from assets and
business acquisitions |
|
147,161 |
|
230,561 |
|
35,191 |
|
Reversal of: Reconciling items on the share of equity method
investments(10) |
|
(74,487 |
) |
(646,949 |
) |
(98,744 |
) |
Add: Impairment of goodwill, intangible assets, and
investments |
|
421,749 |
|
40,999 |
|
6,258 |
|
Add/(Reversal of): Loss from fair value change of long-term
investments |
|
669,703 |
|
(822,943 |
) |
(125,606 |
) |
Reversal of: Gain and foreign exchange impact in relation to sale
of development properties |
|
- |
|
(82,762 |
) |
(12,632 |
) |
Reversal of: Gain on disposals/deemed disposals of investments |
|
(15,000 |
) |
- |
|
- |
|
Reversal of: Effects of business cooperation arrangements and
non-compete agreements |
|
(209,022 |
) |
(22,364 |
) |
(3,414 |
) |
Reversal of: Tax effects on non-GAAP adjustments |
|
(17,233 |
) |
(44,075 |
) |
(6,727 |
) |
Non-GAAP net income attributable to ordinary
shareholders |
|
2,972,206 |
|
3,967,537 |
|
605,564 |
|
|
|
|
|
|
Total net revenues |
|
146,205,209 |
|
203,176,169 |
|
31,010,740 |
|
|
|
|
|
|
Non-GAAP net margin |
|
2.0 |
% |
2.0 |
% |
2.0 |
% |
|
|
|
|
|
(10) 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$) amounts disclosed in this press release,
except for those transaction amounts that were actually settled in
U.S. dollars, are presented solely for the convenience of the
readers. The conversion of Renminbi (RMB) into US$ in this press
release 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 March 31, 2021, which was RMB6.5518 to
US$1.00. The percentages stated in this press release 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 press release.3 Operating margin of JD Retail
before unallocated items for the first quarter of 2020 was
retrospectively adjusted to conform to current period presentation
of segment information.4 Annual active customer accounts are
customer accounts that made at least one purchase during the twelve
months ended on the respective dates, whether through online retail
or online marketplace.
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