JD.com, Inc. (NASDAQ: JD and HKEX: 9618), a leading supply
chain-based technology and service provider, today announced its
unaudited financial results for the three months and the full
year ended December 31, 2022 and dividend for the year ended
December 31, 2022.
Fourth Quarter and Full Year 2022
Highlights
- Net
revenues for the fourth quarter of 2022 were RMB295.4
billion (US$142.8 billion), an increase of 7.1% from the fourth
quarter of 2021. Net service revenues for the fourth quarter of
2022 were RMB57.8 billion (US$8.4 billion), an increase of 40.3%
from the fourth quarter of 2021. Net revenues for
the full year of 2022 were RMB1,046.2 billion (US$151.7 billion),
an increase of 9.9% from the full year of 2021. Net service
revenues for the full year of 2022 were RMB181.2 billion (US$26.3
billion), an increase of 33.3% from the full year of 2021.
- Income
from operations for the fourth quarter of 2022 was RMB4.8
billion (US$0.7 billion), compared to a loss of RMB0.4 billion for
the same period last year.
Non-GAAP2 income from
operations was RMB7.3 billion (US$1.1 billion) for the
fourth quarter of 2022, as compared to RMB2.8 billion for the
fourth quarter of 2021. Operating margin of JD Retail before
unallocated items for the fourth quarter of 2022 was 3.0%, compared
to 2.1% for the fourth quarter of 2021. Income from
operations for the full year of 2022 was RMB19.7 billion
(US$2.9 billion), compared to RMB4.1 billion for the full year of
2021. Non-GAAP income from operations for the full
year of 2022 was RMB27.6 billion (US$4.0 billion), compared to
RMB13.4 billion for the full year of 2021. Operating margin of JD
Retail before unallocated items for the year of 2022 was 3.7%,
compared to 3.1% for the year of 2021.
- Net
income attributable to ordinary shareholders for the
fourth quarter of 2022 was RMB3.0 billion (US$0.4 billion),
compared to a net loss of RMB5.2 billion for the same period last
year. Non-GAAP net income attributable to ordinary
shareholders for the fourth quarter of 2022 was RMB7.7
billion (US$1.1 billion), as compared to RMB3.6 billion for the
same period last year. Net income attributable to ordinary
shareholders for the full year of 2022 was RMB10.4 billion
(US$1.5 billion), compared to a net loss of RMB3.6 billion for the
full year of 2021. Non-GAAP net income attributable to
ordinary shareholders for the full year of 2022 was
RMB28.2 billion (US$4.1 billion), compared to RMB17.2 billion for
the full year of 2021.
- Diluted
net income per ADS for the fourth quarter of 2022 was
RMB1.91 (US$0.28), compared to a diluted net loss per ADS of
RMB3.33 for the fourth quarter of 2021. Non-GAAP diluted
net income per ADS for the fourth quarter of 2022 was
RMB4.81 (US$0.70), compared to RMB2.21 for the same period last
year. Diluted net income per ADS for the full year
of 2022 was RMB6.42 (US$0.93), compared to a diluted net loss per
ADS of RMB2.29 for the full year of 2021. Non-GAAP diluted
net income per ADS for the full year of 2022 was RMB17.73
(US$2.57), compared to RMB10.75 for the full year of 2021.
-
Operating cash flow for the full year of 2022 was
RMB57.8 billion (US$8.4 billion), compared to RMB42.3 billion for
the full year of 2021. Free cash flow, which
excludes the impact from JD Baitiao receivables included in the
operating cash flow, for the full year of 2022 was RMB35.6 billion
(US$5.2 billion), compared to RMB26.2 billion for the full year of
2021.
______________
1 The U.S. dollar (US$) 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 December 30, 2022, which was RMB6.8972
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.
"While 2022 posed many challenges for JD.com and
China as a whole, we delivered solid operational results and
surpassed 1 trillion RMB in annual revenue for the first time,"
said Lei Xu, CEO of JD.com. "During the pandemic, our steadfast
commitment to helping society further established JD.com as a
highly trusted brand. Looking ahead, amidst ever-evolving
opportunities and challenges we will stay focused on lowering
costs, increasing efficiency and constantly improving user
experience. I am confident that JD.com will play an even larger
role in China's economic development while delivering strong
returns for our shareholders in the years ahead."
"We achieved profitable growth and strong cash
flow for the quarter and full-year," said Sandy Xu, Chief Financial
Officer of JD.com. "While we explore new growth opportunities, we
will continue our focus on financial discipline and
technology-driven operational efficiency to build a solid
foundation for JD.com’s future high-quality growth. Reflecting our
healthy profitability and balance sheet and commitment to
shareholder value, we are also pleased to continue to return value
to shareholders in the form of a cash dividend."
Business Highlights
Environment, Social and
Governance
- In January 2023,
JD.com was listed in the Bloomberg Gender-Equality Index (“GEI”)
for the first time, becoming the only China-based company in the
industry included in the index. This is a high recognition of
JD.com's progress in diversity and inclusion. The GEI provides
world-leading depth and breadth of gender-related data points that
are made available to the investment community, designed to
highlight companies that are promoting transparency in
gender-related disclosure and gender equality in the
workplace.
- In December,
more than 1,000 volunteered JD couriers from throughout China
arrived in Beijing to help ensure daily essential supplies in face
of the COVID resurgence. Furthermore, as part of the efforts to
improve the efficiency of last-mile delivery, JD Logistics also
deployed nearly 100 autonomous vehicles to connect communities with
delivery stations and provide contactless services. Particularly,
the autonomous vehicles also supported JD Health’s nighttime
medication delivery.
- In the fourth
quarter, hydrogen energy trucks of JD Logistics were put into
operation at Amway’s production base in Guangzhou, which
contributed to “zero carbon” emissions for transportations along
Amway’s supply chain. In addition, JD Logistics reached agreements
with a globally well-known automaker to jointly deploy a fleet of
new energy van trucks, achieving “100% electrified” transportation
within and in-between its production bases in China.
JD Retail
- During 2022
Singles’ Day Grand Promotion, JD.com launched eight new home
appliance and electronics city-level flagship stores and two JD
MALLs in different cities, providing top-notch shopping experience
and services with parity in product prices and models across both
online and offline channels. To date, the company has opened such
flagship stores and JD MALLs in nearly 60 cities across China to
complement tens of thousands of JD Home Appliance Stores in
counties, townships and villages, enabling more consumers to shop
home appliance and electronics offline with JD.com.
- In February
2023, Tiffany & Co., a world well-known luxury jewelry brand,
partnered with JD.com and launched its official flagship store on
the platform, making JD.com the first e-commerce partner of Tiffany
& Co. in China. As the brand steps to a new chapter of
digitalization, the flagship store on JD.com not only helps deepen
its presence in the Chinese market, but also further enriches
consumers' online shopping experience.
- In the fourth
quarter, JD Daojia (JDDJ) and “The J Shop,” an upgrade of JD.com’s
fashion and lifestyle business, established strategic partnerships
with fashion, sports and other brands, such as HLA and Decathlon.
There have been 754 HLA stores and 170 Decathlon stores nationwide
launched on JDDJ and Shop Now, JD.com’s one-hour delivery service.
The collaborations provide consumers on-demand shopping experience
of “online ordering, offline shipping, and delivery as fast as
within an hour,” and further accelerate the digitalization of
offline retail in China.
- In order to help
boost economic and social development, employment, and
entrepreneurship, JD.com launched an initiative named “Spring Dawn”
in January 2023 that provides greater support to different types of
merchants on the platform, including individual owners,
self-employed businesses and enterprises. The initiative includes
12 supportive measures that aim to lower costs and increase sales
for merchants, such as further streamlining store-launch process
for individual owners, which takes as little as ten minutes,
zero-cost trial operations, and RMB2,100 worth of gift packages for
newly opened stores, among others.
JD Health
- In response to
the COVID outbreak in China in December, JD Health partnered with
more than 30 pharmaceutical companies to ensure stability in
supplies and prices of key medicines and pandemic prevention
products. JD Health Internet Hospital also launched an online
“anti-Covid clinic,” which improved accessibility to health
consultation services and alleviated pressure on offline medical
institutions. In addition, JD Health closely collaborated with the
Ministry of Industry and Information Technology to ensure the
provision of medicines and essentials that are in shortage in
remote areas, of which the proportion of orders from counties and
townships exceeded 80%.
- In October, to
further improve the standard and quality of hearing aid fitting
services in China, JD Health launched the “JD Health Hearing
Center,” providing one-stop offline services including hearing aid
selection, fitting, adjustment, evaluation, and use and maintenance
guidance and tips, as well as free hearing tests and consultation
services.
- In November, JD
Health unveiled “JD Pet Health,” a strategic brand upgrade of its
pet health business. The business consists of two core components,
JDH Pet Pharmacy and JDH Pet Hospital. JD Health is committed to
building an online and offline integrated platform for pet health
that provides both veterinary services and medical products.
JD Logistics
- The recent
Spring Festival holiday marked the 11th consecutive year of JD
Logistics providing uninterrupted delivery services to consumers
throughout China during the festive period, which covered 366
cities and approximately 1,700 districts and counties this year. JD
Logistics was the first company in the industry that launched such
services.
- In the fourth
quarter, JD Airlines further expanded its all-cargo routes. As of
December 31, 2022, it operates the routes of Shenzhen-Hangzhou,
Nantong-Beijing, and Shenzhen-Wuxi, better serving customer demands
particularly in the consumption and manufacturing industries.
- As of December
31, 2022, JD Logistics operated over 1,500 warehouses. Including
warehouse space managed through the Open Warehouse Platform, JD
Logistics’s warehouse network had an aggregate gross floor area of
over 30 million square meters3.
______________
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.
JD Industrials
- In 2022, JD
Industrials further leveraged its intelligent supply chain
capabilities to serve more enterprise customers, ensuring resilient
supplies in support of their operations. Among them, JD Industrials
provided services to over 100,000 industrial manufacturing plants
in the fields of automobile, mechanical equipment, electronic
product assembly and others. It also supported over 16,000
construction projects in the year.
JD Property
- The warehousing
real estate investment trust (REIT), jointly established by JD.com,
JD Property and Harvest Fund, became the first of its kind in the
private sector in China that received formal approval from China's
Securities Regulatory Commission in December 2022 and was listed on
the Shanghai Stock Exchange in February 2023. The listing raised
over RMB 1.7 billion. The investment portfolio of this REIT
consists of three logistics parks in the northern, central and
southwest regions of China with an aggregate gross floor area of
over 350,000 square meters. The REIT creates a new source of
financing for JD.com and JD Property.
Dada
- In November, in
support of the launch of the new vivo X90 smart phone, JDDJ and
Shop Now partnered with vivo authorized experience stores to raise
inventories and ensure within-hours delivery for pre-sales orders.
Since the inception of the partnership in 2020, there have been
over 3,300 vivo authorized stores launched on JDDJ and Shop Now as
of the end of November 2022, covering more than 30 provinces and
cities in China.
Fourth Quarter 2022 Financial
Results
Net Revenues. For the
fourth quarter of 2022, JD.com reported net revenues of RMB295.4
billion (US$42.8 billion), representing a 7.1% increase from the
same period of 2021. Net product revenues increased by 1.2%, while
net service revenues increased by 40.3% for the fourth quarter of
2022, as compared to the same period of 2021.
Cost of
Revenues. Cost of revenues increased by
6.3% to RMB253.9 billion (US$36.8 billion) for the fourth quarter
of 2022 from RMB238.8 billion for the fourth quarter of 2021.
Fulfillment
Expenses. Fulfillment expenses, which
primarily include procurement, warehousing, delivery, customer
service and payment processing expenses, increased by 3.3% to
RMB16.9 billion (US$2.4 billion) for the fourth quarter of 2022
from RMB16.3 billion for the fourth quarter of 2021. Fulfillment
expenses as a percentage of net revenues was 5.7% for the fourth
quarter of 2022, compared to 5.9% for the same period last
year.
Marketing
Expenses. Marketing expenses decreased by
10.3% to RMB12.0 billion (US$1.7 billion) for the fourth quarter of
2022 from RMB13.4 billion for the fourth quarter of 2021.
Research and Development
Expenses. Research and development
expenses increased by 6.4% to RMB4.4 billion (US$0.6 billion) for
the fourth quarter of 2022 from RMB4.1 billion for the fourth
quarter of 2021.
General and Administrative
Expenses. General and administrative
expenses decreased by 2.5% to RMB3.6 billion (US$0.5 billion) for
the fourth quarter of 2022 from RMB3.7 billion for the fourth
quarter of 2021.
Income/(Loss) from Operations and
Non-GAAP Income from Operations. Income from
operations for the fourth quarter of 2022 was RMB4.8 billion
(US$0.7 billion), compared to a loss of RMB0.4 billion for the same
period last year. Non-GAAP income from operations was RMB7.3
billion (US$1.1 billion) for the fourth quarter of 2022, as
compared to RMB2.8 billion for the fourth quarter of 2021.
Operating margin of JD Retail before unallocated items for the
fourth quarter of 2022 was 3.0%, compared to 2.1% for the fourth
quarter of 2021.
Non-GAAP EBITDA. Non-GAAP
EBITDA increased by 113.8% to RMB8.9 billion (US$1.3 billion) for
the fourth quarter of 2022 from RMB4.2 billion for the fourth
quarter of 2021.
Share of Results of Equity
Investees. Share of results of equity investees was
an income of RMB113.0 million (US$16.0 million) for the fourth
quarter of 2022, as compared to a loss of RMB4.3 billion for the
fourth quarter of 2021. The loss for the fourth quarter of 2021 was
primarily due to non-cash impairment from certain equity
investees.
Net Income/(Loss)
Attributable to Ordinary Shareholders and
Non-GAAP Net Income Attributable to Ordinary
Shareholders. Net income attributable to
ordinary shareholders for the fourth quarter of 2022 was RMB3.0
billion (US$0.4 billion), compared to a net loss of RMB5.2 billion
for the same period last year. Non-GAAP net income attributable to
ordinary shareholders for the fourth quarter of 2022 was RMB7.7
billion (US$1.1 billion), as compared to RMB3.6 billion for the
same period last year.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for the fourth quarter of
2022 was RMB1.91 (US$0.28), compared to a diluted net loss per ADS
of RMB3.33 for the fourth quarter of 2021. Non-GAAP diluted net
income per ADS for the fourth quarter of 2022 was RMB4.81
(US$0.70), compared to RMB2.21 for the fourth quarter of 2021.
Cash Flow and Working Capital
As of December 31, 2022, the company’s cash and
cash equivalents, restricted cash and short-term investments
totaled RMB226.2 billion (US$32.8 billion), compared to RMB191.3
billion as of December 31, 2021. For the fourth quarter of 2022,
free cash flow of the company was as follows:
|
|
For the three months ended |
|
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
|
RMB |
RMB |
US$ |
|
|
(In millions) |
|
|
|
Net cash provided by operating activities |
|
6,472 |
|
18,486 |
|
2,680 |
|
Add: Impact from JD Baitiao
receivables included in the operating cash flow |
|
1,301 |
|
1,194 |
|
173 |
|
Less: Capital expenditures,
net of related sales proceeds |
|
|
|
|
Capital expenditures for development properties |
|
(3,867 |
) |
(6,097 |
) |
(884 |
) |
Other capital expenditures* |
|
(1,614 |
) |
(1,539 |
) |
(223 |
) |
Free cash flow |
|
2,292 |
|
12,044 |
|
1,746 |
|
|
|
|
|
|
* Including capital expenditures related to the
company’s headquarters in Beijing and all other CAPEX.
Net cash used in investing activities was
RMB17.9 billion (US$2.6 billion) for the fourth quarter of 2022,
consisting primarily of the increase in short-term investments and
cash paid for capital expenditures.
Net cash used in financing activities was RMB4.2
billion (US$0.6 billion) for the fourth quarter of 2022, consisting
primarily of the net repayment of bank loans.
Full Year 2022 Financial Results
Net Revenues. For the full year
of 2022, JD.com reported net revenues of RMB1,046.2 billion
(US$151.7 billion), representing a 9.9% increase from the full year
of 2021. Net product revenues increased by 6.1%, while net service
revenues increased by 33.3% for the full year of 2022, as compared
to the full year of 2021.
Cost of
Revenues. Cost of revenues increased by
9.3% to RMB899.2 billion (US$130.4 billion) for the full year of
2022 from RMB822.5 billion for the full year of 2021.
Fulfillment
Expenses. Fulfillment expenses, which
primarily include procurement, warehousing, delivery, customer
service and payment processing expenses, increased by 6.7% to
RMB63.0 billion (US$9.1 billion) for the full year of 2022 from
RMB59.1 billion for the full year of 2021. Fulfillment expenses as
a percentage of net revenues was 6.0% for the full year of 2022,
compared to 6.2% for the full year of 2021.
Marketing
Expenses. Marketing expenses were RMB37.8
billion (US$5.5 billion) for the full year of 2022, as compared to
RMB38.7 billion for the full year of 2021.
Research and Development
Expenses. Research and development
expenses were RMB16.9 billion (US$2.4 billion) for the full year of
2022, as compared to RMB16.3 billion for the full year of 2021.
General and Administrative
Expenses. General and administrative
expenses decreased by 4.4% to RMB11.1 billion (US$1.6 billion) for
the full year of 2022 from RMB11.6 billion for the full year of
2021.
Income from Operations and Non-GAAP
Income from Operations. Income from operations for the
full year of 2022 was RMB19.7 billion (US$2.9 billion), compared to
RMB4.1 billion for the full year of 2021. Non-GAAP income from
operations for the full year of 2022 was RMB27.6 billion (US$4.0
billion), compared to RMB13.4 billion for the full year of 2021.
Operating margin of JD Retail before unallocated items for the full
year of 2022 was 3.7%, compared to 3.1% for the full year of
2021.
Non-GAAP EBITDA. Non-GAAP
EBITDA for the full year of 2022 increased by 79.6% to RMB33.6
billion (US$4.9 billion) from RMB18.7 billion for the full year of
2021.
Share of Results of Equity
Investees. Share of results of equity investees was a
loss of RMB2.2 billion (US$0.3 billion) for the full year of 2022,
as compared to a loss of RMB4.9 billion for the full year of 2021.
The loss for the full year of 2022 was primarily due to non-cash
impairment in certain equity investees.
Net Income/(Loss)
Attributable to Ordinary Shareholders and
Non-GAAP Net Income Attributable to Ordinary
Shareholders. Net income attributable to
ordinary shareholders for the full year of 2022 was RMB10.4 billion
(US$1.5 billion), compared to a net loss of RMB3.6 billion for the
full year of 2021. Non-GAAP net income attributable to ordinary
shareholders for the full year of 2022 was RMB28.2 billion (US$4.1
billion), compared to RMB17.2 billion for the full year of
2021.
Diluted EPS and Non-GAAP Diluted
EPS. Diluted net income per ADS for the full year of 2022
was RMB6.42 (US$0.93), compared to a diluted net loss per ADS of
RMB2.29 for the full year of 2021. Non-GAAP diluted net income per
ADS for the full year of 2022 was RMB17.73 (US$2.57), compared to
RMB10.75 for the full year of 2021.Cash Flow and Working
Capital
For the full year of 2022, free cash flow of the
company was as follows:
|
|
For the year ended |
|
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
|
RMB |
RMB |
US$ |
|
|
(In millions) |
|
|
|
Net cash provided by operating activities |
|
42,301 |
|
57,819 |
|
8,383 |
|
Add/(Less): Impact from JD
Baitiao receivables included in the operating cash flow |
|
2,492 |
|
(244 |
) |
(35 |
) |
Less: Capital expenditures,
net of related sales proceeds |
|
|
|
|
Capital expenditures for development properties |
|
(13,510 |
) |
(17,504 |
) |
(2,538 |
) |
Other capital expenditures |
|
(5,055 |
) |
(4,476 |
) |
(649 |
) |
Free cash flow |
|
26,228 |
|
35,595 |
|
5,161 |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities was
RMB54.0 billion (US$7.8 billion) for the full year of 2022,
consisting primarily of cash paid for capital expenditures,
increase in short-term investments, and net cash paid for the
acquisition of China Logistics Property Holdings Co., Ltd (“CNLP”)
and Deppon.
Net cash provided by financing activities was
RMB1.2 billion (US$0.2 billion) for the full year of 2022,
consisting primarily of net proceeds from bank loans, net proceeds
from JD Property’s non-redeemable series B preferred share
financing and share placement of JD Logistics, partially offset by
cash paid for dividends.
Supplemental Information
The company reports four segments, JD Retail, JD
Logistics, Dada and New businesses. JD Retail, components of which
include JD Health and JD Industrials, among others, mainly consists
of online retail, online marketplace and marketing services in
China. JD Logistics includes both internal and external logistics
businesses. Dada is a local on-demand delivery and retail platform
in China. New businesses mainly include JD Property, Jingxi,
overseas businesses and technology initiatives.
The table below sets forth the segment operating
results:
|
For the three months ended |
For the year ended |
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In millions) |
(In millions) |
Net revenues: |
|
|
|
|
|
|
JD Retail |
249,870 |
|
258,925 |
|
37,541 |
|
866,303 |
|
929,929 |
|
134,827 |
|
JD Logistics |
30,472 |
|
43,008 |
|
6,236 |
|
104,693 |
|
137,402 |
|
19,921 |
|
Dada |
— |
|
2,681 |
|
389 |
|
— |
|
8,030 |
|
1,164 |
|
New businesses |
8,213 |
|
4,761 |
|
690 |
|
26,063 |
|
21,779 |
|
3,158 |
|
Inter-segment eliminations * |
(12,799 |
) |
(13,929 |
) |
(2,020 |
) |
(46,043 |
) |
(50,904 |
) |
(7,380 |
) |
Total segment net revenues |
275,756 |
|
295,446 |
|
42,836 |
|
951,016 |
|
1,046,236 |
|
151,690 |
|
Unallocated items** |
152 |
|
— |
|
— |
|
576 |
|
— |
|
— |
|
Total consolidated net revenues |
275,908 |
|
295,446 |
|
42,836 |
|
951,592 |
|
1,046,236 |
|
151,690 |
|
|
|
|
|
|
|
|
Operating income/(loss): |
|
|
|
|
|
|
JD Retail |
5,344 |
|
7,862 |
|
1,140 |
|
26,613 |
|
34,852 |
|
5,053 |
|
JD Logistics |
731 |
|
900 |
|
130 |
|
(1,827 |
) |
528 |
|
77 |
|
Dada |
— |
|
(207 |
) |
(30 |
) |
— |
|
(1,122 |
) |
(163 |
) |
New businesses |
(3,226 |
) |
(1,153 |
) |
(165 |
) |
(10,600 |
) |
(5,295 |
) |
(768 |
) |
Including: gain on sale of
development properties |
18 |
|
150 |
|
22 |
|
767 |
|
1,379 |
|
200 |
|
Total segment operating income |
2,849 |
|
7,402 |
|
1,075 |
|
14,186 |
|
28,963 |
|
4,199 |
|
Unallocated items** |
(3,241 |
) |
(2,574 |
) |
(374 |
) |
(10,045 |
) |
(9,240 |
) |
(1,339 |
) |
Total consolidated operating income/(loss) |
(392 |
) |
4,828 |
|
701 |
|
4,141 |
|
19,723 |
|
2,860 |
|
|
|
|
|
|
|
|
* 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 table below sets forth the revenue
information:
|
For the three months ended |
For the year ended |
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In millions) |
(In millions) |
Electronics and home
appliances revenues |
140,931 |
141,675 |
20,541 |
492,592 |
515,945 |
74,805 |
General merchandise
revenues |
93,744 |
95,924 |
13,908 |
323,063 |
349,117 |
50,617 |
Net product revenues |
234,675 |
237,599 |
34,449 |
815,655 |
865,062 |
125,422 |
|
|
|
|
|
|
|
Marketplace and marketing
revenues |
22,238 |
24,598 |
3,566 |
72,118 |
81,970 |
11,885 |
Logistics and other service
revenues |
18,995 |
33,249 |
4,821 |
63,819 |
99,204 |
14,383 |
Net service revenues |
41,233 |
57,847 |
8,387 |
135,937 |
181,174 |
26,268 |
|
|
|
|
|
|
|
Total net revenues |
275,908 |
295,446 |
42,836 |
951,592 |
1,046,236 |
151,690 |
|
|
|
|
|
|
|
Recent Development
Dividend Payment
The company announced that its board of
directors (the “Board”) approved a cash dividend of US$0.31 per
ordinary share, or US$0.62 per ADS, to holders of ordinary shares
and holders of ADSs, respectively, as of the close of business on
April 6, 2023 Beijing/Hong Kong Time and New York Time,
respectively, payable in U.S. dollars. The aggregate amount of the
dividend will be approximately US$1.0 billion. The payment date is
expected to be on or around April 27, 2023 and on or around May 4,
2023 for holders of ordinary shares and holders of ADSs,
respectively.
In addition, the company plans to adopt an
annual dividend policy, under which the company may choose to
declare and distribute a cash dividend each year, starting from
2023, at an amount determined in relation to the company’s
financial performance in the previous fiscal year, among other
factors. The determination to make dividend distributions in any
particular year will be made at the discretion of the Board based
upon factors such as the company’s results of operations, cash
flow, financial condition, capital requirements and other
considerations that the Board deems relevant.
Establishment of ESG Committee and
Change in Committees Composition
On March 8, 2023, the Board resolved to
establish an environmental, social and governance committee, or the
ESG Committee, to supervise ESG-related matters of the company,
demonstrating the company’s unremitting commitment to ESG. The ESG
Committee consists of Mr. Richard Qiangdong Liu, Professor Dingbo
Xu and Ms. Carol Yun Yau Li, with Mr. Liu serving as the
chairperson, effective immediately. Meanwhile, the functions and
responsibilities in relation to corporate governance will be
shifted to the ESG Committee from the nominating and corporate
governance committee of the Board, which will be renamed as the
nomination committee. In light of his new committee membership,
Professor Dingbo Xu will retire from the compensation committee of
the Board, effective immediately.
JD Industrials’ Series B
Transaction
Recently in March 2023, JD Industrials, the
leading industrial supply chain technology and service provider in
China and a subsidiary of the company, has entered into definitive
transaction agreements in connection with its series B preferred
shares with a group of investors. The company will remain the
majority shareholder of JD Industrials after the completion of the
transactions.
Conference Call
JD.com’s management will hold a conference call
at 7:00 am, Eastern Time on March 9, 2023, (8:00 pm, Beijing/Hong
Kong Time on March 9, 2023) to discuss the fourth quarter and full
year of 2022 financial results.
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/10028786-gdt5ed.html
CONFERENCE ID: 10028786
A telephone replay will be available for one
week until March 16, 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: |
10028786 |
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 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 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 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 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 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 announcements made on the
website of the HKEX, 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; impact of the
COVID-19 pandemic; 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 Condensed Consolidated Balance Sheets |
(In millions, except otherwise noted) |
|
|
|
|
|
As of |
|
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
|
RMB |
RMB |
US$ |
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
70,767 |
78,861 |
11,434 |
Restricted cash |
|
5,926 |
6,254 |
907 |
Short-term investments |
|
114,564 |
141,095 |
20,457 |
Accounts receivable, net (including JD Baitiao of RMB2.5 billion
and RMB3.1 billion as of December 31, 2021 and 2022,
respectively)(1) |
|
11,900 |
20,576 |
2,983 |
Advance to suppliers |
|
3,959 |
3,838 |
556 |
Inventories, net |
|
75,601 |
77,949 |
11,302 |
Prepayments and other current assets |
|
11,455 |
15,156 |
2,197 |
Amount due from related parties |
|
5,500 |
6,142 |
891 |
Assets held for sale |
|
— |
1,203 |
174 |
Total current assets |
|
299,672 |
351,074 |
50,901 |
Non-current assets |
|
|
|
|
Property, equipment and software, net |
|
32,944 |
55,080 |
7,986 |
Construction in progress |
|
5,817 |
11,161 |
1,618 |
Intangible assets, net |
|
5,837 |
9,139 |
1,325 |
Land use rights, net |
|
14,328 |
33,848 |
4,907 |
Operating lease right-of-use assets |
|
19,987 |
22,267 |
3,228 |
Goodwill |
|
12,433 |
23,123 |
3,353 |
Investment in equity investees |
|
63,222 |
57,641 |
8,357 |
Investment securities |
|
19,088 |
11,611 |
1,683 |
Deferred tax assets |
|
1,111 |
1,536 |
223 |
Other non-current assets |
|
21,804 |
18,770 |
2,722 |
Amount due from related parties |
|
264 |
— |
— |
Total non-current assets |
|
196,835 |
244,176 |
35,402 |
Total assets |
|
496,507 |
595,250 |
86,303 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Balance Sheets |
(In millions, except otherwise noted) |
|
|
|
|
|
As of |
|
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
|
RMB |
RMB |
US$ |
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Short-term debts |
|
4,368 |
12,146 |
1,761 |
Accounts payable |
|
140,484 |
160,607 |
23,286 |
Advance from customers |
|
29,106 |
33,713 |
4,888 |
Deferred revenues |
|
3,458 |
3,351 |
486 |
Taxes payable |
|
2,568 |
5,926 |
859 |
Amount due to related parties |
|
519 |
488 |
71 |
Accrued expenses and other current liabilities |
|
34,468 |
42,570 |
6,172 |
Operating lease liabilities |
|
6,665 |
7,688 |
1,115 |
Liabilities held for sale |
|
— |
72 |
10 |
Total current liabilities |
|
221,636 |
266,561 |
38,648 |
Non-current liabilities |
|
|
|
|
Deferred revenues |
|
1,297 |
1,107 |
160 |
Unsecured senior notes |
|
9,386 |
10,224 |
1,482 |
Deferred tax liabilities |
|
1,897 |
6,511 |
944 |
Long-term borrowings |
|
— |
20,009 |
2,901 |
Operating lease liabilities |
|
13,721 |
14,978 |
2,172 |
Other non-current liabilities |
|
1,786 |
1,737 |
251 |
Total non-current liabilities |
|
28,087 |
54,566 |
7,910 |
Total liabilities |
|
249,723 |
321,127 |
46,558 |
(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 Condensed Consolidated Balance Sheets |
(In millions, except otherwise noted) |
|
|
|
|
|
As of |
|
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
MEZZANINE
EQUITY |
|
1,212 |
590 |
86 |
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value,
100,000 million shares authorized, 3,180 million shares issued and
3,136 million shares outstanding as of December 31, 2022) |
|
208,911 |
213,366 |
30,936 |
Non-controlling interests |
|
36,661 |
60,167 |
8,723 |
Total shareholders’ equity |
|
245,572 |
273,533 |
39,659 |
Total liabilities,
mezzanine equity and shareholders’ equity |
|
496,507 |
595,250 |
86,303 |
|
|
|
|
|
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Operations |
(In millions, except per share data) |
|
|
For the three months ended |
|
For the year ended |
|
December31,2021 |
December31,2022 |
December31,2022 |
|
December31,2021 |
December31,2022 |
December31,2022 |
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
Net
revenues |
|
|
|
|
|
|
|
Net product revenues |
234,675 |
|
237,599 |
|
34,449 |
|
|
815,655 |
|
865,062 |
|
125,422 |
|
Net service revenues |
41,233 |
|
57,847 |
|
8,387 |
|
|
135,937 |
|
181,174 |
|
26,268 |
|
Total net
revenues |
275,908 |
|
295,446 |
|
42,836 |
|
|
951,592 |
|
1,046,236 |
|
151,690 |
|
Cost of revenues |
(238,785 |
) |
(253,909 |
) |
(36,813 |
) |
|
(822,526 |
) |
(899,163 |
) |
(130,366 |
) |
Fulfillment |
(16,327 |
) |
(16,863 |
) |
(2,445 |
) |
|
(59,055 |
) |
(63,011 |
) |
(9,136 |
) |
Marketing |
(13,363 |
) |
(11,985 |
) |
(1,738 |
) |
|
(38,743 |
) |
(37,772 |
) |
(5,476 |
) |
Research and development |
(4,105 |
) |
(4,366 |
) |
(633 |
) |
|
(16,332 |
) |
(16,893 |
) |
(2,449 |
) |
General and administrative |
(3,738 |
) |
(3,645 |
) |
(528 |
) |
|
(11,562 |
) |
(11,053 |
) |
(1,603 |
) |
Gain on sale of development properties |
18 |
|
150 |
|
22 |
|
|
767 |
|
1,379 |
|
200 |
|
Income/(Loss) from
operations(2)(3) |
(392 |
) |
4,828 |
|
701 |
|
|
4,141 |
|
19,723 |
|
2,860 |
|
Other
income/(expenses) |
|
|
|
|
|
|
|
Share of results of equity investees |
(4,272 |
) |
113 |
|
16 |
|
|
(4,918 |
) |
(2,195 |
) |
(318 |
) |
Interest expense |
(446 |
) |
(698 |
) |
(101 |
) |
|
(1,213 |
) |
(2,106 |
) |
(305 |
) |
Others, net(4) |
(22 |
) |
(427 |
) |
(62 |
) |
|
(590 |
) |
(1,555 |
) |
(225 |
) |
Income/(Loss) before
tax |
(5,132 |
) |
3,816 |
|
554 |
|
|
(2,580 |
) |
13,867 |
|
2,012 |
|
Income tax expenses |
(186 |
) |
(595 |
) |
(86 |
) |
|
(1,887 |
) |
(4,176 |
) |
(605 |
) |
Net
income/(loss) |
(5,318 |
) |
3,221 |
|
468 |
|
|
(4,467 |
) |
9,691 |
|
1,407 |
|
Net income/(loss) attributable to non-controlling interests
shareholders |
(158 |
) |
189 |
|
27 |
|
|
(923 |
) |
(697 |
) |
(101 |
) |
Net income attributable to mezzanine equity classified as
non-controlling interests shareholders |
5 |
|
— |
|
— |
|
|
16 |
|
8 |
|
1 |
|
Net income/(loss)
attributable to ordinary shareholders |
(5,165 |
) |
3,032 |
|
441 |
|
|
(3,560 |
) |
10,380 |
|
1,507 |
|
|
|
|
|
|
|
|
|
Net income/(loss) per
share: |
|
|
|
|
|
|
|
Basic |
(1.66 |
) |
0.97 |
|
0.14 |
|
|
(1.15 |
) |
3.32 |
|
0.48 |
|
Diluted |
(1.66 |
) |
0.95 |
|
0.14 |
|
|
(1.15 |
) |
3.21 |
|
0.47 |
|
Net
income/(loss) per
ADS: |
|
|
|
|
|
|
|
Basic |
(3.32 |
) |
1.93 |
|
0.28 |
|
|
(2.29 |
) |
6.64 |
|
0.96 |
|
Diluted |
(3.33 |
) |
1.91 |
|
0.28 |
|
|
(2.29 |
) |
6.42 |
|
0.93 |
|
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Operations |
(In millions, except per share data) |
|
|
|
For the three months ended |
|
For the year ended |
|
|
December31,2021 |
December31,2022 |
December31,2022 |
|
December31,2021 |
December31,2022 |
December31,2022 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
(2) Includes share-based compensation expenses as follows: |
Cost of revenues |
|
(33 |
) |
(43 |
) |
(6 |
) |
|
(102 |
) |
(143 |
) |
(21 |
) |
Fulfillment |
|
(276 |
) |
(246 |
) |
(36 |
) |
|
(882 |
) |
(930 |
) |
(135 |
) |
Marketing |
|
(173 |
) |
(159 |
) |
(23 |
) |
|
(586 |
) |
(631 |
) |
(91 |
) |
Research and development |
|
(430 |
) |
(401 |
) |
(58 |
) |
|
(1,781 |
) |
(1,557 |
) |
(226 |
) |
General and administrative |
|
(2,104 |
) |
(1,287 |
) |
(187 |
) |
|
(5,783 |
) |
(4,287 |
) |
(622 |
) |
|
|
|
|
|
|
|
|
|
(3) Includes amortization of business cooperation arrangement and
intangible assets resulting from assets and business acquisitions
as follows: |
Fulfillment |
|
(56 |
) |
(105 |
) |
(15 |
) |
|
(220 |
) |
(392 |
) |
(57 |
) |
Marketing |
|
(217 |
) |
(211 |
) |
(31 |
) |
|
(854 |
) |
(868 |
) |
(126 |
) |
Research and development |
|
(27 |
) |
(90 |
) |
(13 |
) |
|
(104 |
) |
(271 |
) |
(39 |
) |
General and administrative |
|
(78 |
) |
(32 |
) |
(5 |
) |
|
(309 |
) |
(161 |
) |
(22 |
) |
|
|
|
|
|
|
|
|
|
(4) 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, 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 year ended |
|
|
December31,2021 |
December31,2022 |
December31,2022 |
|
December31,2021 |
December31,2022 |
December31,2022 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to ordinary shareholders |
|
3,565 |
7,659 |
1,111 |
|
17,207 |
28,220 |
4,094 |
|
|
|
|
|
|
|
|
|
Weighted average
number of shares: |
|
|
|
|
|
|
|
|
Basic |
|
3,111 |
3,136 |
3,136 |
|
3,107 |
3,126 |
3,126 |
Diluted |
|
3,111 |
3,178 |
3,178 |
|
3,107 |
3,181 |
3,181 |
Diluted (Non-GAAP) |
|
3,193 |
3,178 |
3,178 |
|
3,194 |
3,181 |
3,181 |
|
|
|
|
|
|
|
|
|
Non-GAAP net income per
share: |
|
|
|
|
|
|
|
|
Basic |
|
1.15 |
2.44 |
0.35 |
|
5.54 |
9.03 |
1.31 |
Diluted |
|
1.11 |
2.41 |
0.35 |
|
5.38 |
8.86 |
1.29 |
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per ADS: |
|
|
|
|
|
|
|
|
Basic |
|
2.29 |
4.88 |
0.71 |
|
11.07 |
18.06 |
2.62 |
Diluted |
|
2.21 |
4.81 |
0.70 |
|
10.75 |
17.73 |
2.57 |
JD.com, Inc. |
Unaudited Condensed Consolidated Statements of Cash Flows and Free
Cash Flow |
(In millions) |
|
|
|
For the three months ended |
|
For the year ended |
|
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
6,472 |
|
18,486 |
|
2,680 |
|
|
42,301 |
|
57,819 |
|
8,383 |
|
Net cash used in investing
activities |
|
(18,785 |
) |
(17,908 |
) |
(2,596 |
) |
|
(74,248 |
) |
(54,026 |
) |
(7,833 |
) |
Net cash (used in)/provided by
financing activities |
|
(3,426 |
) |
(4,235 |
) |
(614 |
) |
|
19,503 |
|
1,180 |
|
171 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(1,438 |
) |
(976 |
) |
(142 |
) |
|
(1,498 |
) |
3,490 |
|
506 |
|
Net (decrease)/increase in
cash, cash equivalents and restricted cash |
|
(17,177 |
) |
(4,633 |
) |
(672 |
) |
|
(13,942 |
) |
8,463 |
|
1,227 |
|
Cash, cash equivalents and
restricted cash at beginning of period, including cash and cash
equivalents classified within assets held for sale |
|
93,870 |
|
89,789 |
|
13,018 |
|
|
90,635 |
|
76,693 |
|
11,119 |
|
Less: cash, cash equivalents,
and restricted cash classified within assets held for sale at
beginning of period |
|
— |
|
— |
|
— |
|
|
(116 |
) |
— |
|
— |
|
Cash, cash equivalents, and
restricted cash at beginning of period |
|
93,870 |
|
89,789 |
|
13,018 |
|
|
90,519 |
|
76,693 |
|
11,119 |
|
Cash, cash equivalents, and
restricted cash at end of period, including cash and cash
equivalents classified within assets held for sale |
|
76,693 |
|
85,156 |
|
12,346 |
|
|
76,693 |
|
85,156 |
|
12,346 |
|
Less: cash, cash equivalents,
and restricted cash classified within assets held for sale at end
of period |
|
— |
|
(41 |
) |
(5 |
) |
|
— |
|
(41 |
) |
(5 |
) |
Cash, cash equivalents and
restricted cash at end of period |
|
76,693 |
|
85,115 |
|
12,341 |
|
|
76,693 |
|
85,115 |
|
12,341 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
6,472 |
|
18,486 |
|
2,680 |
|
|
42,301 |
|
57,819 |
|
8,383 |
|
Add/(Less): Impact from JD
Baitiao receivables included in the operating cash flow |
|
1,301 |
|
1,194 |
|
173 |
|
|
2,492 |
|
(244 |
) |
(35 |
) |
Less: Capital expenditures,
net of related sales proceeds |
|
|
|
|
|
|
|
|
Capital expenditures for development properties |
|
(3,867 |
) |
(6,097 |
) |
(884 |
) |
|
(13,510 |
) |
(17,504 |
) |
(2,538 |
) |
Other capital expenditures |
|
(1,614 |
) |
(1,539 |
) |
(223 |
) |
|
(5,055 |
) |
(4,476 |
) |
(649 |
) |
Free cash flow |
|
2,292 |
|
12,044 |
|
1,746 |
|
|
26,228 |
|
35,595 |
|
5,161 |
|
JD.com, Inc. |
Supplemental Financial Information and Business Metrics |
|
|
|
Q4 2021 |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
|
|
|
|
|
|
|
Free cash flow (in RMB billions) – trailing twelve months
(“TTM”) |
|
26.2 |
27.2 |
27.7 |
25.8 |
35.6 |
Inventory turnover days(5) – TTM |
|
30.3 |
30.2 |
31.5 |
31.7 |
33.2 |
Accounts payable turnover days(6) – TTM |
|
45.3 |
45.0 |
49.4 |
50.4 |
52.5 |
Accounts receivable turnover days(7) – TTM |
|
2.9 |
3.2 |
3.6 |
4.0 |
4.5 |
|
GMV(8) increased by 5.6% for the full year of 2022, as compared
to the full year of 2021.
(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.(8) Gross Merchandise Volume (GMV) is the total value of
all orders for products and services placed in the company’s online
retail business and on the company’s online marketplaces,
regardless of whether the goods are sold or delivered or whether
the goods are returned. GMV includes the value from orders placed
on the company’s mobile apps and websites as well as orders placed
on third-party mobile apps and websites that are fulfilled by the
company or by the company’s third-party merchants. The calculation
of GMV includes shipping charges paid by buyers to sellers and for
prudent consideration excludes certain transactions over certain
amounts. The company believes that GMV only provides a measure of
the overall volume of transactions that flow through the company’s
platform in a given period. Therefore, it should not be used as a
financial metric or industry and peer comparisons. |
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP Results |
(In millions, except percentage data) |
|
|
|
For the three months ended |
|
For the year ended |
|
|
December31,2021 |
December31,2022 |
December31,2022 |
|
December31,2021 |
December31,2022 |
December31,2022 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Income/(Loss) from operations |
|
(392 |
) |
4,828 |
|
701 |
|
|
4,141 |
|
19,723 |
|
2,860 |
|
Add: Share-based
compensation |
|
3,016 |
|
2,136 |
|
310 |
|
|
9,134 |
|
7,548 |
|
1,095 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
238 |
|
338 |
|
50 |
|
|
940 |
|
1,217 |
|
176 |
|
(Reversal of)/Add: Effects of
business cooperation arrangements |
|
(13 |
) |
100 |
|
14 |
|
|
(29 |
) |
475 |
|
68 |
|
Reversal of: Gain on sale of
development properties |
|
(18 |
) |
(150 |
) |
(22 |
) |
|
(767 |
) |
(1,379 |
) |
(200 |
) |
Non-GAAP income from
operations |
|
2,831 |
|
7,252 |
|
1,053 |
|
|
13,419 |
|
27,584 |
|
3,999 |
|
Add: Depreciation and other
amortization |
|
1,331 |
|
1,646 |
|
238 |
|
|
5,293 |
|
6,018 |
|
874 |
|
Non-GAAP EBITDA |
|
4,162 |
|
8,898 |
|
1,291 |
|
|
18,712 |
|
33,602 |
|
4,873 |
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
275,908 |
|
295,446 |
|
42,836 |
|
|
951,592 |
|
1,046,236 |
|
151,690 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
margin |
|
1.0 |
% |
2.5 |
% |
2.5 |
% |
|
1.4 |
% |
2.6 |
% |
2.6 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA margin |
|
1.5 |
% |
3.0 |
% |
3.0 |
% |
|
2.0 |
% |
3.2 |
% |
3.2 |
% |
JD.com, Inc. |
Unaudited Reconciliation of GAAP and Non-GAAP Results |
(In millions, except percentage data) |
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
December 31,2021 |
December 31,2022 |
December 31,2022 |
|
|
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable to ordinary shareholders |
|
(5,165 |
) |
3,032 |
|
441 |
|
|
(3,560 |
) |
10,380 |
|
1,507 |
|
Add: Share-based
compensation |
|
2,564 |
|
1,813 |
|
263 |
|
|
8,293 |
|
6,388 |
|
926 |
|
Add: Amortization of
intangible assets resulting from assets and business
acquisitions |
|
193 |
|
225 |
|
33 |
|
|
853 |
|
845 |
|
123 |
|
Add/ (Reversal of):
Reconciling items on the share of equity method investments(9) |
|
283 |
|
200 |
|
29 |
|
|
(868 |
) |
1,111 |
|
161 |
|
Add: Impairment of goodwill,
intangible assets, and investments |
|
3,956 |
|
1,631 |
|
236 |
|
|
6,077 |
|
3,249 |
|
471 |
|
Add: Loss from fair value
change of long-term investments |
|
1,890 |
|
1,041 |
|
151 |
|
|
7,295 |
|
3,985 |
|
578 |
|
Reversal of: Gain on sale of
development properties |
|
(4 |
) |
(117 |
) |
(17 |
) |
|
(685 |
) |
(1,127 |
) |
(163 |
) |
(Reversal of)/Add: Net
(gain)/loss on disposals/deemed disposals of investments and
others |
|
(65 |
) |
(27 |
) |
(4 |
) |
|
(134 |
) |
3,464 |
|
502 |
|
(Reversal of)/Add: Effects of
business cooperation arrangements and non-compete agreements |
|
(32 |
) |
100 |
|
14 |
|
|
(106 |
) |
463 |
|
67 |
|
(Reversal of)/Add: Tax effects
on non-GAAP adjustments |
|
(55 |
) |
(239 |
) |
(35 |
) |
|
42 |
|
(538 |
) |
(78 |
) |
Non-GAAP net income
attributable to ordinary shareholders |
|
3,565 |
|
7,659 |
|
1,111 |
|
|
17,207 |
|
28,220 |
|
4,094 |
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
275,908 |
|
295,446 |
|
42,836 |
|
|
951,592 |
|
1,046,236 |
|
151,690 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
margin |
|
1.3 |
% |
2.6 |
% |
2.6 |
% |
|
1.8 |
% |
2.7 |
% |
2.7 |
% |
|
(9) 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. |
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