• JD.com Announces Third Quarter 2022 Results

    المصدر: Nasdaq GlobeNewswire / 18 نوفمبر 2022 05:15:27   America/New_York

    BEIJING, Nov. 18, 2022 (GLOBE NEWSWIRE) -- 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 ended September 30, 2022.

    Third Quarter 2022 Highlights

    • Net revenues for the third quarter of 2022 were RMB243.5 billion (US$134.2 billion), an increase of 11.4% from the third quarter of 2021. Net service revenues for the third quarter of 2022 were RMB46.5 billion (US$6.5 billion), an increase of 42.2% from the third quarter of 2021.
    • Income from operations for the third quarter of 2022 was RMB8.7 billion (US$1.2 billion), compared to RMB2.6 billion for the same period last year. Non-GAAP2 income from operations was RMB9.9 billion (US$1.4 billion) for the third quarter of 2022, as compared to RMB4.6 billion for the third quarter of 2021. Operating margin of JD Retail before unallocated items for the third quarter of 2022 was 5.2%, compared to 4.0% for the third quarter of 2021.
    • Net income attributable to ordinary shareholders for the third quarter of 2022 was RMB6.0 billion (US$0.8 billion), compared to a net loss of RMB2.8 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of 2022 was RMB10.0 billion (US$1.4 billion), as compared to RMB5.0 billion for the same period last year.
    • Diluted net income per ADS for the third quarter of 2022 was RMB3.57 (US$0.50), compared to a diluted net loss per ADS of RMB1.81 for the third quarter of 2021. Non-GAAP diluted net income per ADS for the third quarter of 2022 was RMB6.27 (US$0.88), compared to RMB3.16 for the same period last year.
    • Operating cash flow for the twelve months ended September 30, 2022 was RMB45.8 billion (US$6.4 billion), compared to RMB41.0 billion for the twelve months ended September 30, 2021. Free cash flow, which excludes the impact from JD Baitiao receivables included in the operating cash flow, for the twelve months ended September 30, 2022 was RMB25.8 billion (US$3.6 billion), compared to RMB28.5 billion for the twelve months ended September 30, 2021.
    • Annual active customer accounts3 increased by 6.5% to 588.3 million in the twelve months ended September 30, 2022 from 552.2 million in the twelve months ended September 30, 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 September 30, 2022, which was RMB7.1135 to US$1.00. The percentages stated in this announcement are calculated based on the RMB amounts.
    2 See the sections entitled “Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this announcement.
    3 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.

    “JD.com's focus on efficiency across various businesses helped drive healthy growth even when the industry continued to face significant challenges,” said Lei Xu, CEO of JD.com. “We are pleased that JD.com's high-quality growth is increasingly powered by the millions of SMEs especially in rural industries that look to us for the most efficient supply chain solutions and sustainable growth opportunities. Looking ahead, we are confident that our well-established supply chain infrastructure, technical capabilities, as well as the social responsibility we shoulder will continue to enable JD.com to play an important role in the new development phase in the years to come.”

    “JD.com's relentless focus on user experience, cost and efficiency has allowed us to continuously expand our user base while delivering profitable growth,” said Sandy Xu, Chief Financial Officer of JD.com. “Our pre-emptive efforts earlier this year to promote operating efficiency and financial discipline have proven timely and effective given the ongoing external challenges. We will continue to focus on capturing the vast opportunity presented by China's retail market by striving to be the partner of choice for China's consumers and enterprises.”

    Business Highlights

    Environment, Social and Governance

    • In the third quarter, JD.com received multiple awards for its outstanding achievements in ESG. It was named on Fortune’s “2022 China ESG Impact List”, together with other 39 companies, a highlight of its significant anti-COVID efforts and contribution to green supply chain through its “Green Stream Initiative”. JD.com also made the list of “50 Most Innovative Companies of 2022” in the world released by Boston Consulting Group, thanks to its achievements in climate and sustainability.
    • In August, JD Logistics deployed the first batch of battery swapping vehicles. It expects to expand the scale to approximately 1,000 EVs in operation across China by the end of 2022. As the first logistics enterprise that adopts battery swapping vehicles on a large scale, JD Logistics is committed to reducing the number of vehicles used in its logistics parks by over 20% and carbon emissions by 15% for each vehicle, with overall carbon emissions down by nearly 35%.

    JD Retail

    • In August, JD.com upgraded its trade-in services to support cross-category trade-in for cell phones, computers, digital devices and home appliances. After the upgrade, users can also trade in a mix of up to six electronic products for new ones. Some of such recycling and trade-in services are facilitated by ATRenew, an investee of JD.com that aims at prolonging the life cycle of electronic devices and thereby promoting environmental sustainability. JD.com becomes the first in industry to support both cross-category and multi-devices trade-in, providing users with the best-in-class experiences while promoting recycling.
    • In September, JD Ehome, the first Apple authorized offline store operated by JD.com, was officially launched in Beijing, providing customers an integrated online to offline shopping experience. This is the first time for JD.com and Apple to expand collaboration from online to offline by leveraging JD.com’s proprietary business model. It also marks a milestone as JD.com is the first online retailer in China in nearly five years that receives the authorization of Apple Premium Reseller (APR), the highest level of Apple reseller in China.
    • In the third quarter, FENDI, a luxury fashion brand under LVMH, launched a flagship store on JD.com, making the company the first with full partnerships with the nine top fashion brands under LVMH. Meanwhile, Italian high-end clothing brand Max Mara and French luxury footwear brand Roger Vivier also joined JD.com. In terms of beauty brands, JD.com welcomed Christian Louboutin Beauty, BOBBI BROWN and LA PRAIRIE, among others, further enriching the Company’s offerings of high-end beauty and cosmetic products. In addition, Canadian fashion and sportswear brand Lululemon launched its flagship store on JD.com during the third quarter.
    • JD.com continues to accelerate the rollout of its “National Pavilions” program, bringing consumers a variety of specialty products from around the world, especially the supermarket category. In addition to the over 70 national pavilions that were launched on JD.com, the Company welcomed nearly 20 countries during 2022’s Singles’ Day Grand Promotion. By leveraging JD.com’s app, 7Fresh and other marketing and logistics channels, JD has introduced many high-quality specialty products from overseas to Chinese consumers, providing with more diverse and convenient shopping options.

    JD Health

    • In the third quarter, JD Health collaborated with a number of domestic and international leading pharmaceutical and healthcare companies to accelerate the integration of physical products and services, and promote business innovation. Specifically, JD Health reached a strategic cooperation with Omron Healthcare to collaborate deeply in various fields including service model innovation and digital marketing, effectively encouraging users to engage in proactive healthcare management.
    • In August, JD Health became the first company in China’s internet healthcare sector that received the ISO27799 certification for personal health information security management system, issued by the international certification body British Standards Institution (BSI). This demonstrates JD Health’s international leading capabilities in user information security and privacy management.

    JD Logistics

    • JD Logistics was one of the first logistics companies connected to the Yinxuda service of Douyin’s e-commerce platform, providing high-quality delivery services such as to-door delivery to Douyin users.
    • On August 31, 2022, JD Logistics received the Operation Certification of Public Air Carriers of Large Aircraft (CCAR- Part 121) from the Civil Aviation Administration of China, marking the official commencement of the operation of JD Logistics Airlines. At present, JD Logistics’ self-owned all-cargo route between Nantong and Beijing is fully operational.
    • As of September 30, 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 meters4.

    Dada

    • In September, JD.com’s intra-city business played an active role in supporting the launch of new cell phone models. As the only on-demand retail platform selected for Apple’s pre-sale, JD Daojia (JDDJ) joined hands with Shop Now, JD.com’s one-hour delivery service, as well as Apple authorized resellers to secure inventory of iPhone14 models, promptly open and process pre-sale orders, and provide instant delivery services to customers. This boosted sales to RMB200 million within the first six hours on the opening day. In addition, JDDJ and Shop Now also successfully supported the launch and pre-sale for Huawei Mate 50 models.

    JD Industry

    • In the third quarter, JD Industry established strategic cooperation with a number of leading industrial enterprises, such as State Grid, PipeChina, Nippon Paint, among others. With its core intelligent capabilities in commodities, procurement, fulfillment and operations, JD Industry helps its business partners to achieve high-efficient resource coordination and allocation along the industrial chain, thus building more resilient supply chain capabilities.

    _______________

    4 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. As of September 30, 2022, JD Logistics controls a total of approximately 72% of the issued share capital of Deppon.

    Third Quarter 2022 Financial Results

    Net Revenues. For the third quarter of 2022, JD.com reported net revenues of RMB243.5 billion (US$34.2 billion), representing a 11.4% increase from the same period of 2021. Net product revenues increased by 5.9%, while net service revenues increased by 42.2% for the third quarter of 2022, as compared to the same period of 2021.

    Cost of Revenues. Cost of revenues increased by 10.5% to RMB207.3 billion (US$29.1 billion) for the third quarter of 2022 from RMB187.6 billion for the third quarter of 2021.

    Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 0.5% to RMB14.4 billion (US$2.0 billion) for the third quarter of 2022 from RMB14.3 billion for the third quarter of 2021. Fulfillment expenses as a percentage of net revenues was 5.9% for the third quarter of 2022, compared to 6.5% for the same period last year.

    Marketing Expenses. Marketing expenses was RMB7.6 billion (US$1.1 billion) for the third quarter of 2022, as compared to RMB7.8 billion for the third quarter of 2021.

    Research and Development Expenses. Research and development expenses was RMB4.1 billion (US$0.6 billion) for the third quarter of 2022, as compared to RMB4.0 billion for the third quarter of 2021.

    General and Administrative Expenses. General and administrative expenses was RMB2.6 billion (US$0.4 billion) for the third quarter of 2022, as compared to RMB3.1 billion for the third quarter of 2021.

    Income from Operations and Non-GAAP Income from Operations. Income from operations for the third quarter of 2022 was RMB8.7 billion (US$1.2 billion), compared to RMB2.6 billion for the same period last year. Non-GAAP income from operations was RMB9.9 billion (US$1.4 billion) for the third quarter of 2022, as compared to RMB4.6 billion for the third quarter of 2021. Operating margin of JD Retail before unallocated items for the third quarter of 2022 was 5.2%, compared to 4.0% for the third quarter of 2021.

    Non-GAAP EBITDA. Non-GAAP EBITDA was RMB11.5 billion (US$1.6 billion) for the third quarter of 2022, compared to RMB5.9 billion for the third quarter of 2021.

    Share of Results of Equity Investees. Share of results of equity investees was an income of RMB0.4 billion (US$0.1 billion) for the third quarter of 2022, as compared to a loss of RMB1.9 billion for the third quarter of 2021. The loss for the third quarter of 2021 was primarily due to non-cash impairment from certain equity investees.

    Others, net. Other non-operating loss was RMB0.8 billion (US$0.1 billion) for the third quarter of 2022, as compared to loss of RMB3.1 billion for the third quarter of 2021. The decrease of loss was primarily due to the fair value change of investment securities.

    Net Income/(Loss) Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable to Ordinary Shareholders. Net income attributable to ordinary shareholders for the third quarter of 2022 was RMB6.0 billion (US$0.8 billion), compared to a net loss of RMB2.8 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of 2022 was RMB10.0 billion (US$1.4 billion), as compared to RMB5.0 billion for the same period last year.

    Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the third quarter of 2022 was RMB3.57 (US$0.50), compared to a diluted net loss per ADS of RMB1.81 for the third quarter of 2021. Non-GAAP diluted net income per ADS for the third quarter of 2022 was RMB6.27 (US$0.88), compared to RMB3.16 for the third quarter of 2021.

    Cash Flow and Working Capital

    As of September 30, 2022, the company’s cash and cash equivalents, restricted cash and short-term investments totaled RMB218.2 billion (US$30.7 billion), compared to RMB191.3 billion as of December 31, 2021. For the third quarter of 2022, free cash flow of the company was as follows:

      For the three months ended
      September 30,
    2021
    September 30,
    2022
    September 30,
    2022
      RMBRMBUS$
      (In millions)
       
    Net cash provided by operating activities 14,448 9,151 1,286 
    Less: Impact from JD Baitiao receivables included in the operating cash flow (3,325)(1,506)(212)
    Less: Capital expenditures, net of related sales proceeds    
    Capital expenditures for development properties (5,147)(3,784)(532)
    Other capital expenditures* (1,820)(1,522)(213)
    Free cash flow 4,156 2,339 329 
         

    * Including capital expenditures related to the company’s headquarters in Beijing and all other CAPEX.

    Net cash used in investing activities was RMB9.8 billion (US$1.4 billion) for the third quarter of 2022, consisting primarily of the net cash paid for the acquisition of Deppon and cash paid for capital expenditures.

    Net cash provided by financing activities was RMB4.0 billion (US$0.6 billion) for the third quarter of 2022, consisting primarily of the proceeds from the second closing of JD Property’s non-redeemable series B preferred share financing.

    For the twelve months ended September 30, 2022, free cash flow of the company was as follows:

      For the twelve months ended
      September 30,
    2021
    September 30,
    2022
    September 30,
    2022
      RMBRMBUS$
      (In millions)
       
    Net cash provided by operating activities 41,043 45,805 6,439 
    Add/(Less): Impact from JD Baitiao receivables included in the operating cash flow 1,398 (137)(19)
    Less: Capital expenditures, net of related sales proceeds    
    Capital expenditures for development properties (8,518)(15,274)(2,147)
    Other capital expenditures (5,412)(4,551)(640)
    Free cash flow 28,511 25,843 3,633 
            

    Supplemental Information

    The company reported four segments since the first quarter of 2022, JD Retail, JD Logistics, Dada and New businesses. JD Retail 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
     September 30,
    2021
    September 30,
    2022
    September 30,
    2022
     RMBRMBUS$
     (In millions)
    Net revenues:   
    JD Retail198,080 211,923 29,792 
    JD Logistics25,749 35,771 5,029 
    Dada 2,380 335 
    New businesses5,733 4,997 702 
    Inter-segment*(11,003)(11,536)(1,622)
    Total segment net revenues218,559 243,535 34,236 
    Unallocated items**149   
    Total consolidated net revenues218,708 243,535 34,236 
        
    Operating income/(loss):   
    JD Retail7,942 10,926 1,536 
    JD Logistics(727)253 36 
    Dada (300)(42)
    New businesses(2,073)276 38 
    Including: gain on sale of development properties579 1,229 173 
    Total segment operating income5,142 11,155 1,568 
    Unallocated items**(2,570)(2,427)(341)
    Total consolidated operating income2,572 8,728 1,227 
        

    * 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
     September 30,
    2021
    September 30,
    2022
    September 30,
    2022
     RMBRMBUS$
     (In millions)
      
    Electronics and home appliances revenues110,881119,28416,769
    General merchandise revenues75,12777,74310,929
    Net product revenues186,008197,02727,698
        
    Marketplace and marketing revenues16,77518,9542,665
    Logistics and other service revenues15,92527,5543,873
    Net service revenues32,70046,5086,538
        
    Total net revenues218,708243,53534,236
        

    Conference Call

    JD.com’s management will hold a conference call at 7:00 am, Eastern Time on November 18, 2022, (8:00 pm, Beijing/Hong Kong Time on November 18, 2022) to discuss the third quarter 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/10026677-t5m3xa.html

    CONFERENCE ID: 10026677

    A telephone replay will be available for one week until November 25, 2022. 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:10026677

    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 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 Relations
    Sean Zhang
    +86 (10) 8912-6804
    IR@JD.com

    Media Relations
    +86 (10) 8911-6155
    Press@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 Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; laws, regulations and governmental policies relating to the industries in which JD.com or its business partners operate; potential changes in laws, regulations and governmental policies or changes in the interpretation and implementation of laws, regulations and governmental policies that could adversely affect the industries in which JD.com or its business partners operate, including, among others, initiatives to enhance supervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with JD.com’s acquisitions, investments and alliances, including fluctuation in the market value of JD.com’s investment portfolio; 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 Interim Condensed Consolidated Balance Sheets
    (In millions, except otherwise noted)
       
      As of
      December 31,
    2021
    September 30,
    2022
    September 30,
    2022
      RMBRMBUS$
    ASSETS    
    Current assets    
    Cash and cash equivalents 70,76783,35611,718
    Restricted cash 5,9266,433904
    Short-term investments 114,564128,44918,057
    Accounts receivable, net (including JD Baitiao of RMB2.5 billion and RMB2.0 billion as of December 31, 2021 and September 30, 2022, respectively)(1) 11,90016,4192,308
    Advance to suppliers 3,9593,758528
    Inventories, net 75,60171,75710,087
    Prepayments and other current assets 11,45516,4222,309
    Amount due from related parties 5,5007,8031,097
    Total current assets 299,672334,39747,008
    Non-current assets    
    Property, equipment and software, net 32,94451,6867,266
    Construction in progress 5,81710,3631,457
    Intangible assets, net 5,8379,4651,331
    Land use rights, net 14,32833,4874,707
    Operating lease right-of-use assets 19,98722,1013,107
    Goodwill 12,43323,1233,251
    Investment in equity investees 63,22258,9478,287
    Investment securities 19,08815,0142,111
    Deferred tax assets 1,1111,371193
    Other non-current assets 21,80419,5522,748
    Amount due from related parties 264557
    Total non-current assets 196,835245,16434,465
    Total assets 496,507579,56181,473
         


    JD.com, Inc.
    Unaudited Interim Condensed Consolidated Balance Sheets
    (In millions, except otherwise noted)
       
      As of
      December 31,
    2021
    September 30,
    2022
    September 30,
    2022
      RMBRMBUS$
    LIABILITIES    
    Current liabilities    
    Short-term debts 4,36817,9962,530
    Accounts payable 140,484150,62421,174
    Advance from customers 29,10630,8814,341
    Deferred revenues 3,4583,975559
    Taxes payable 2,5684,929693
    Amount due to related parties 51925636
    Accrued expenses and other current liabilities 34,46840,0315,628
    Operating lease liabilities 6,6657,6401,074
    Total current liabilities 221,636256,33236,035
    Non-current liabilities    
    Deferred revenues 1,2971,019143
    Unsecured senior notes 9,38610,4201,465
    Deferred tax liabilities 1,8976,265881
    Long-term borrowings 18,1932,558
    Operating lease liabilities 13,72114,7812,078
    Other non-current liabilities 1,7861,415198
    Total non-current liabilities 28,08752,0937,323
    Total liabilities 249,723308,42543,358
         


    (1) JD Technology performs credit risk assessment services for JD Baitiao business and absorbs the credit risk of the underlying Baitiao receivables. Facilitated by JD Technology, the company periodically securitizes Baitiao receivables through the transfer of those assets to securitization plans and derecognizes the related Baitiao receivables through sales type arrangements.
     


    JD.com, Inc.
    Unaudited Interim Condensed Consolidated Balance Sheets
    (In millions, except otherwise noted)
       
      As of
      December 31,
    2021
    September 30,
    2022
    September 30,
    2022
      RMBRMBUS$
         
    MEZZANINE EQUITY 1,21258983
         
    SHAREHOLDERS’ EQUITY    
    Total JD.com, Inc. shareholders’ equity (US$0.00002 par value, 100,000 shares authorized, 3,180 shares issued and 3,131 shares outstanding as of September 30, 2022) 208,911212,16329,825
    Non-controlling interests 36,66158,3848,207
    Total shareholders’ equity 245,572270,54738,032
    Total liabilities, mezzanine equity and shareholders’ equity 496,507579,56181,473
         


    JD.com, Inc.
    Unaudited Interim Condensed Consolidated Statements of Operations
    (In millions, except per share data)
     
     For the three months ended For the nine months ended
     September 30,
    2021
    September 30,
    2022
    September 30,
    2022
     September 30,
    2021
    September 30,
    2022
    September 30,
    2022
     RMBRMBUS$ RMBRMBUS$
    Net revenues       
    Net product revenues186,008 197,027 27,698  580,980 627,463 88,207 
    Net service revenues32,700 46,508 6,538  94,705 123,327 17,337 
    Total net revenues218,708  243,535  34,236   675,685  750,790  105,544  
    Cost of revenues(187,616)(207,339)(29,147) (583,741)(645,254)(90,708)
    Fulfillment(14,276)(14,354)(2,018) (42,728)(46,148)(6,487)
    Marketing(7,769)(7,605)(1,069) (25,380)(25,787)(3,625)
    Research and development(4,004)(4,116)(579) (12,227)(12,527)(1,761)
    General and administrative(3,050)(2,622)(369) (7,825)(7,408)(1,042)
    Gain on sale of development properties579 1,229 173  749 1,229 173 
    Income from operations(2)(3)2,572  8,728  1,227   4,533  14,895  2,094  
    Other income/(expenses)       
    Share of results of equity investees(1,851)377 53  (646)(2,308)(324)
    Interest expense(276)(579)(81) (766)(1,408)(198)
    Others, net(4)(3,061)(816)(115) (568)(1,128)(159)
    Income/(Loss) before tax(2,616)7,710  1,084   2,553  10,051  1,413  
    Income tax expenses(653)(1,751)(246) (1,702)(3,581)(503)
    Net income/(loss)(3,269)5,959  838   851  6,470  910  
    Net loss attributable to non-controlling interests shareholders(467)(4)(1) (765)(886)(124)
    Net income attributable to mezzanine equity classified as non-controlling interests shareholders5    11 8 1 
    Net income/(loss) attributable to ordinary shareholders(2,807)5,963  839   1,605  7,348  1,033  
            
    Net income/(loss) per share:       
    Basic(0.90)1.91 0.27  0.52 2.35 0.33 
    Diluted(0.90)1.78 0.25  0.50 2.22 0.31 
    Net income/(loss) per ADS:       
    Basic(1.81)3.81 0.54  1.03 4.71 0.66 
    Diluted(1.81)3.57 0.50  1.00 4.43 0.62 


    JD.com, Inc.
    Unaudited Interim Condensed Consolidated Statements of Operations
    (In millions, except per share data)
     
      For the three months ended For the nine months ended
      September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
     September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
      RMBRMBUS$ RMBRMBUS$
    (2) Includes share-based compensation expenses as follows:
    Cost of revenues (32)(40)(6) (69)(100)(14)
    Fulfillment (265)(257)(36) (607)(684)(96)
    Marketing (164)(174)(25) (413)(472)(66)
    Research and development (472)(416)(58) (1,350)(1,156)(163)
    General and administrative (1,410)(1,097)(154) (3,680)(3,000)(422)
             
    (3) Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows:
    Fulfillment (56)(107)(15) (164)(287)(41)
    Marketing (216)(221)(31) (637)(657)(92)
    Research and development (26)(83)(12) (78)(181)(25)
    General and administrative (77)(32)(4) (231)(128)(18)
             
    (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 nine months ended
      September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
     September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
      RMBRMBUS$ RMBRMBUS$
             
    Non-GAAP net income attributable to ordinary shareholders 5,04810,0401,411 13,64220,5612,890
             
    Weighted average number of shares:        
    Basic 3,1063,1293,129 3,1063,1223,122
    Diluted 3,1873,1813,181 3,1953,1823,182
             
    Non-GAAP net income per share:        
    Basic 1.633.210.45 4.396.590.93
    Diluted 1.583.140.44 4.266.430.90
             
    Non-GAAP net income per ADS:        
    Basic 3.256.420.90 8.7813.171.85
    Diluted 3.166.270.88 8.5312.861.81


    JD.com, Inc.
    Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free Cash Flow
    (In millions)
     
      For the three months ended For the nine months ended
      September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
     September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
      RMBRMBUS$ RMBRMBUS$
             
    Net cash provided by operating activities 14,448 9,151 1,286  35,829 39,333 5,529 
    Net cash used in investing activities (29,757)(9,754)(1,371) (55,463)(36,118)(5,077)
    Net cash provided by financing activities 6,078 4,029 566  22,930 5,415 761 
    Effect of exchange rate changes on cash, cash equivalents and restricted cash 311 1,799 253  (61)4,466 628 
    Net increase/(decrease) in cash, cash equivalents and restricted cash (8,920)5,225 734  3,235 13,096 1,841 
    Cash, cash equivalents and restricted cash at beginning of period 102,790 84,564 11,888  90,635 76,693 10,781 
    Cash, cash equivalents and restricted cash at end of period 93,870 89,789 12,622  93,870 89,789 12,622 
             
    Net cash provided by operating activities 14,448 9,151 1,286  35,829 39,333 5,529 
    (Less)/Add: Impact from JD Baitiao receivables included in the operating cash flow (3,325)(1,506)(212) 1,191 (1,438)(202)
    Less: Capital expenditures, net of related sales proceeds        
    Capital expenditures for development properties (5,147)(3,784)(532) (9,644)(11,407)(1,604)
    Other capital expenditures (1,820)(1,522)(213) (3,440)(2,937)(412)
    Free cash flow 4,156 2,339 329  23,936 23,551 3,311 
     


    JD.com, Inc.
    Supplemental Financial Information and Business Metrics
     
      Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022
           
    Free cash flow (in RMB billions) – trailing twelve months (“TTM”) 28.526.227.227.725.8
    Inventory turnover days(5) – TTM 30.130.330.231.531.7
    Accounts payable turnover days(6) – TTM 45.545.345.049.450.4
    Accounts receivable turnover days(7) – TTM 2.82.93.23.64.0
    Annual active customer accounts (in millions) 552.2569.7580.5580.8588.3


    (5) TTM inventory turnover days are the quotient of average inventory over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.

    (6) TTM accounts payable turnover days are the quotient of average accounts payable for retail business over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.

    (7) TTM accounts receivable turnover days are the quotient of average accounts receivable over the immediately preceding five quarters, up to and including the last quarter of the period, to total net revenues for the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days excluding the impact from JD Baitiao.


    JD.com, Inc.
    Unaudited Reconciliation of GAAP and Non-GAAP Results
    (In millions, except percentage data)
     
      For the three months ended For the nine months ended
      September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
     September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
      RMBRMBUS$ RMBRMBUS$
             
    Income from operations 2,572 8,728 1,227  4,533 14,895 2,094 
    Add: Share-based compensation 2,343 1,984 279  6,119 5,412 761 
    Add: Amortization of intangible assets resulting from assets and business acquisitions 237 330 46  703 879 124 
    (Reversal of)/Add: Effects of business cooperation arrangements (10)113 16  (18)374 52 
    Reversal of: Gain on sale of development properties (579)(1,229)(173) (749)(1,229)(173)
    Non-GAAP income from operations 4,563  9,926  1,395   10,588  20,331  2,858  
    Add: Depreciation and other amortization 1,300 1,537 216  3,962 4,373 615 
    Non-GAAP EBITDA 5,863  11,463  1,611   14,550  24,704  3,473  
             
    Total net revenues 218,708 243,535 34,236  675,685 750,790 105,544 
             
    Non-GAAP operating margin 2.1%4.1%4.1% 1.6%2.7%2.7%
             
    Non-GAAP EBITDA margin 2.7%4.7%4.7% 2.2%3.3%3.3%
                   


    JD.com, Inc.
    Unaudited Reconciliation of GAAP and Non-GAAP Results
    (In millions, except percentage data)
       
      For the three months ended For the nine months ended
      September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
     September
    30,

    2021
    September
    30,

    2022
    September
    30,

    2022
      RMBRMBUS$ RMBRMBUS$
             
    Net income/(loss) attributable to ordinary shareholders (2,807)5,963 839  1,605 7,348 1,033 
    Add: Share-based compensation 1,954 1,668 234  5,729 4,575 643 
    Add: Amortization of intangible assets resulting from assets and business acquisitions 193 221 31  660 620 87 
    (Reversal of)/Add: Reconciling items on the share of equity method investments(8) (119)81 11  (1,150)911 128 
    Add: Impairment of goodwill, intangible assets, and investments 1,813 361 51  2,122 1,618 227 
    Add: Loss from fair value change of long-term investments 4,639 2,779 391  5,405 2,944 414 
    Reversal of: Gain on sale of development properties (511)(1,010)(142) (681)(1,010)(142)
    (Reversal of)/Add: Net (gain)/loss on disposals/deemed disposals of investments and others (53)(27)(4) (69)3,491 491 
    (Reversal of)/Add: Effects of business cooperation arrangements and non-compete agreements (28)113 16  (76)363 51 
    (Reversal of)/Add: Tax effects on non-GAAP adjustments (33)(109)(16) 97 (299)(42)
    Non-GAAP net income attributable to ordinary shareholders 5,048  10,040  1,411   13,642  20,561  2,890  
             
    Total net revenues 218,708 243,535 34,236  675,685 750,790 105,544 
             
    Non-GAAP net margin 2.3%4.1%4.1% 2.0%2.7%2.7%
     
    (8) To exclude the GAAP to non-GAAP reconciling items on the share of equity method investments, and share of amortization of intangibles not on their books.

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