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JD.COM, INC.[JD]
Date Filed : Nov 18, 2021
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Exhibit 99.1
JD.com Announces Third Quarter 2021 Results
Beijing, China-November 18, 2021JD.com, Inc. (NASDAQ: JD and HKEX: 9618), a leading supply chain-based technology and service provider, todayannounced its unaudited financial results for the three months ended September 30, 2021.
Third Quarter 2021 Highlights
| Net revenues for the third quarter of 2021 were RMB218.7 billion (US$ |
| Income from operations for the third quarter of 2021 was RMB2.6 billion (US$0.4 billion), compared toRMB4.4 billion for the same period last year. Non-GAAP2 income from operations for the third quarter of 2021 was RMB4.6 billion(US$0.7 billion), compared to RMB5.3 billion for the third quarter of 2020. Operating margin of JD Retail before unallocated items for the third quarter of 2021 was 4.0%, compared to 4.2% for the third quarter of 2020 |
| Net loss attributable to ordinary shareholders for the third quarter of 2021 wasRMB2.8 billion (US$0.4 billion), compared to a net income of RMB7.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of2021 was RMB5.0 billion (US$0.8 billion), compared to RMB5.6 billion for the same period last year. |
| Diluted net loss per ADS for the third quarter of 2021 was RMB1.81 (US$0.28), compared to an income perADS of RMB4.70 for the third quarter of 2020. Non-GAAP diluted net income per ADS for the third quarter of 2021 was RMB3.16 (US$0.49), compared to RMB3.42 for the same period last year. |
| Operating cash flow for the twelve months ended September 30, 2021 increased to RMB41.0 billion(US$6.4 billion) from RMB37.3 billion for the twelve months ended September 30, 2020. Free cash flow, which excludes the impact from JD Baitiao receivables included in the operating cash flow, for the twelve months ended September 30,2021 was RMB28.5 billion (US$4.4 billion), compared to RMB30.2 billion for the twelve months ended September 30, 2020. |
| Annual active customer accounts4 increased by25.0% to 552.2 million in the twelve months ended September 30, 2021 from 441.6 million in the twelve months ended September 30, 2020. |
1 | The U.S. dollar (US$) amounts disclosed in this announcement, except for those transaction amounts that wereactually 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 ofGovernors of the Federal Reserve System as of September 30, 2021, which was RMB6.4434 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 andUnaudited Reconciliation of GAAP and Non-GAAP Results for more information about the non-GAAP measures referred to in this announcement. |
3 | Operating margin of JD Retail before unallocated items for the third quarter of 2020 was retrospectivelyadjusted to conform to current period presentation of segment information. |
4 | Annual active customer accounts are customer accounts that made at least one purchase during the twelve monthsended on the respective dates, whether through online retail or online marketplace. |
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With resilient business operations and core competences in technology and supply chain, JD has built a unique business model, enabling us to have bettercontrol across the entire business process, said Lei Xu, President of JD.com. This powerful competitive advantage allows us to navigate through economic cycles and increases our ability to create value as a new type of real economy basedenterprise. As a result, consumers and business partners increasingly trust and rely on JD, and we were able to outpace the industry growth in China in the third quarter. JD will continue to create value for our users and business partners,especially the millions of SMEs in the real economy that we work with every day.
Our growing consumer mindshare helped drive the strongresults for the quarter with more new and existing users purchasing high-frequency products such as supermarket categories on JD, said Sandy Xu, Chief Financial Officer of JD.com. We were also pleased to see our key strategic initiativesincluding the third-party marketplace and omni-channel strategies begin to generate positive results. Going forward, we will continue to focus on building high-quality businesses and investing in technologies and core capabilities to ensureJDs sustainable growth in the long term.
Business Highlights
Environment, Social and Governance
● | In August, Jingxi, a platform for everyday shopping under JD.com, donated over 100,000 prevention supply kits,including facemasks and hand sanitizers to local residents in Nanjing in response to the COVID-19 outbreak. Nanjing residents can apply to receive kits free of charge through Jingxis multiple onlineplatforms. |
● | During the 4th Chinese Farmers Harvest Festival in September, JD.com announced that in 2021, thecompanys supportive measures for agriculture in rural areas have promoted the development of local brands from scratch, such as Suqian King Crabs in Jiangsu Province, and increased the transaction volume of local agricultural products by morethan 200%. In continuing its commitment to rural rejuvenation, JD.com has constructed logistics infrastructure in production regions, and built an agricultural product marketing ecosystem which integrates JDs sales channels. |
JD Retail
● | In September, JD.com opened its first JD MALL offline store in Xian offering consumers animmersive omni-channel shopping experience. In addition to traditional electronic categories offered by JD Super Experience Store, JD MALL provides over 200,000 items from more than 150 brands, in categories including home, furniture, kids, smarthealthcare products and auto accessories. Through its partnership with furniture maker Shangpin Home Collection, JD MALL meets the demand among younger consumers for bespoke one-stop-shop home design servicesthat incorporate furniture and home appliances categories. |
● | In the third quarter, over 20 domestic and international household and home decor brands launched officialstores on JD.com, including Camerich, Lost & Found, QEEBOO, and Lattoflex, bringing a variety of high-quality and stylish home goods to address consumers increasingly diverse lifestyle preferences. |
● | Sephora, a high-end beauty retailer owned by LVMH, recently joinedJD.coms omni-channel service network. Products ordered through the Sephora store on JD.com can be delivered to consumers doorsteps within one hour from nearby Sephora offline stores. Chinese beauty brand Perfect Diary also joinedJD.coms omni-channel service network to offer delivery from its 120 offline stores in 84 cities. |
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● | During the quarter, JD.com and Dada Group formed a strategic partnership with ASUS, a global technology leader,launching more than 150 ASUS stores on JD Daojia (JDDJ) and Shop Now, JD.coms new on-demand consumer retail section. The three parties will further accelerate the digital transformation ofphysical stores in the second half of 2021 to improve the offline shopping experience for computer and digital products, including the extension of one-hour delivery service to all ASUS offlinestores in China. |
JD Health
● | In July, JD Health and Allianz JD, JD.coms joint venture with Allianz, one of the worlds leadinginsurers and asset managers, jointly launched a comprehensive online clinical insurance service offering a one-stop platform for healthcare, medicine purchasing and insurance services. By connecting usersdirectly with doctors, pharmacies and insurance companies, JD Health improves the experience of insured users through its full cycle service that provide online health consultations, prescriptions, direct claims and reimbursements as well asmedicine purchasing and door-to-door delivery. |
● | In September, over 200 institutional exhibitors and participants attended JD Healths third OnlinePharmaceutical Expo under the theme Intelligent Digital Empowerment and Ecosystem Interconnection. JD Health helped to facilitate transactions between up and downstream players among the participating companies to create aIntelligent Digital Pharmaceutical Circulation Supply Chain Ecosystem to support digital transformation and optimize user experience in the health care industry. |
JD Logistics
● | In September, JD Logistics launched an air cargo route between East China and London marking JDLogisticss first regular cargo charter flight between China and Europe. Further expanding JD Logisticss international transportation network, the route will deliver products from Chinas major manufacturing regions with same day |
● | In the third quarter, JD Logistics established a strategic partnership with Volvo Cars to build integratedsupply chain services for the mid and high-end auto aftermarket. The two parties will cooperate in areas such as supply chain warehouse networks planning, inventory management and store delivery. |
● | As of September 30, 2021, JD Logistics operated approximately 1,300 warehouses, which covered an aggregategross floor area of over 23 million square meters, including space in cloud warehouses managed under the JD Logistics Open Warehouse Platform. |
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Third Quarter 2021 Financial Results
Net Revenues.For the third quarter of 2021, JD.com reported net revenues of RMB218.7 billion (US$33.9 billion), representing a 25.5% increase from the same period of 2020. Net product revenues increased by 22.9%, while net service revenues increasedby 43.3% for the third quarter of 2021, as compared to the same period of 2020.
Cost of Revenues. Cost of revenuesincreased by 27.3% to RMB187.6 billion (US$29.1 billion) for the third quarter of 2021 from RMB147.4 billion for the third quarter of 2020.
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and paymentprocessing expenses, increased by 23.2% to RMB14.3 billion (US$2.2 billion) for the third quarter of 2021 from RMB11.6 billion for the third quarter of 2020. Fulfillment expenses as a percentage of net revenues was 6.5% for the thirdquarter of 2021, compared to 6.7% for the same period last year.
Marketing Expenses. Marketing expenses increased by 42.3% toRMB7.8 billion (US$1.2 billion) for the third quarter of 2021 from RMB5.5 billion for the third quarter of 2020.
Research and DevelopmentExpenses. Research and development expenses was RMB4.0 billion (US$0.6 billion) for the third quarter of 2021, as compared to RMB4.1 billion for the third quarter of 2020.
General and Administrative Expenses. General and administrative expenses increased by 91.1% to RMB3.1 billion (US$0.5 billion) forthe third quarter of 2021 from RMB1.6 billion for the third quarter of 2020. The increase was primarily due to the increase in share-based compensation expenses.
Income from Operations and Non-GAAP Income from Operations. Income from operations for the third quarterof 2021 was RMB2.6 billion (US$0.4 billion), compared to RMB4.4 billion for the same period last year. Non-GAAP income from operations for the third quarter of 2021 was RMB4.6 billion (US$0.7billion), compared to RMB5.3 billion for the third quarter of 2020. Operating margin of JD Retail before unallocated items for the third quarter of 2021 was 4.0%, compared to 4.2% for the third quarter of 2020.
Non-GAAP EBITDA. Non-GAAP EBITDA for the third quarter of 2021was RMB5.9 billion (US$0.9 billion), compared to RMB6.6 billion for the third quarter of 2020.
Share of Results of Equity Investees.Share of results of equity investees was a loss of RMB1.9 billion (US$0.3 billion) for the third quarter of 2021, as compared to a loss of RMB0.3 billion for the third quarter of 2020. The loss for the third quarter of 2021 wasprimarily due to non-cash impairment in certain equity investees.
Others, net. Other
Net Income/(Loss) Attributable to Ordinary Shareholders and
Diluted EPS and Non-GAAPDiluted EPS. Diluted net loss per ADS for the third quarter of 2021 was RMB1.81 (US$0.28), compared to a diluted net income per ADS of RMB4.70 for the third quarter of 2020. Non-GAAPdiluted net income per ADS for the third quarter of 2021 was RMB3.16 (US$0.49), compared to RMB3.42 for the third quarter of 2020.
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Cash Flow and Working Capital
As ofSeptember 30, 2021, the companys cash and cash equivalents, restricted cash and short-term investments totaled RMB196.2 billion (US$30.5 billion), compared to RMB151.1 billion as of December 31, 2020. For the third quarter of2021, free cash flow of the company was as follows:
For the three months ended | ||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
(In thousands) | ||||||||||||
Net cash provided by operating activities | 12,255,678 | 14,447,587 | 2,242,230 | |||||||||
Less: Impact from JD Baitiao receivables included in the operating cash flow | (2,785,606 | ) | (3,324,823 | ) | (516,004 | ) | ||||||
Less: Capital expenditures, net of related sales proceeds | ||||||||||||
Capital expenditures for development properties | (1,111,723 | ) | (5,147,087 | ) | (798,815 | ) | ||||||
Other capital expenditures* | (839,706 | ) | (1,819,254 | ) | (282,344 | ) | ||||||
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Free cash flow | 7,518,643 | 4,156,423 | 645,067 | |||||||||
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* | Including capital expenditures related to the companys headquarters in Beijing and all other CAPEX. |
Net cash used in investing activities was RMB29.8 billion (US$4.6 billion) for the third quarter of 2021, consisting primarily ofincrease in short-term investments and cash paid for capital expenditures.
Net cash provided by financing activities was RMB6.1 billion (US$0.9billion) for the third quarter of 2021, consisting primarily of proceeds from short-term debts.
For the twelve months ended September 30, 2021, freecash flow of the company was as follows:
For the twelve months ended | ||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
(In thousands) | ||||||||||||
Net cash provided by operating activities | 37,334,450 | 41,042,537 | 6,369,702 | |||||||||
(Less)/Add: Impact from JD Baitiao receivables included in the operating cash flow | (470,882 | ) | 1,398,385 | 217,026 | ||||||||
Less: Capital expenditures, net of related sales proceeds | ||||||||||||
Capital expenditures for development properties | (3,604,204 | ) | (8,517,968 | ) | (1,321,968 | ) | ||||||
Other capital expenditures | (3,068,413 | ) | (5,411,875 | ) | (839,910 | ) | ||||||
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Free cash flow | 30,190,951 | 28,511,079 | 4,424,850 | |||||||||
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Supplemental Information
The company reports threesegments, JD Retail, JD Logistics 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. New businesses mainlyinclude JD Property, Jingxi, overseas businesses and technology initiatives.
The table below sets forth the segment operating results, with prior periodsegment information retrospectively recast to conform to current period presentation:
For the three months ended | ||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
(In thousands) | ||||||||||||
Net revenues: | ||||||||||||
JD Retail | 161,081,245 | 198,080,245 | 30,741,572 | |||||||||
JD Logistics | 17,964,350 | 25,749,276 | 3,996,225 | |||||||||
New businesses | 4,302,067 | 5,732,810 | 889,718 | |||||||||
Inter-segment* | (9,291,697 | ) | (11,003,427 | ) | (1,707,705 | ) | ||||||
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Total segment net revenues | 174,055,965 | 218,558,904 | 33,919,810 | |||||||||
Unallocated items** | 158,499 | 149,454 | 23,195 | |||||||||
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Total consolidated net revenues | 174,214,464 | 218,708,358 | 33,943,005 | |||||||||
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Operating income/(loss): | ||||||||||||
JD Retail | 6,734,811 | 7,942,242 | 1,232,617 | |||||||||
JD Logistics | 83,549 | (726,612 | ) | (112,768 | ) | |||||||
New businesses | (1,200,492 | ) | (2,073,450 | ) | (321,796 | ) | ||||||
Including: gain on sale of development properties | 343,982 | 578,701 | 89,813 | |||||||||
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Total segment operating income | 5,617,868 | 5,142,180 | 798,053 | |||||||||
Unallocated items** | (1,234,519 | ) | (2,569,743 | ) | (398,817 | ) | ||||||
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Total consolidated operating income | 4,383,349 | 2,572,437 | 399,236 | |||||||||
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* | The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics servicesprovided by JD Logistics to JD Retail, and property leasing services provided by JD Property to JD Logistics. |
** | Unallocated items include share-based compensation, amortization of intangible assets resulting from assets andbusiness acquisitions, effects of business cooperation arrangements, and impairment of goodwill and intangible assets, which are not allocated to segments. |
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The table below sets forth the revenue information:
For the three months ended | ||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
(In thousands) | ||||||||||||
Electronics and home appliances revenues | 93,329,728 | 110,881,046 | 17,208,469 | |||||||||
General merchandise revenues | 58,069,531 | 75,127,319 | 11,659,577 | |||||||||
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Net product revenues | 151,399,259 | 186,008,365 | 28,868,046 | |||||||||
Marketplace and marketing revenues | 12,412,342 | 16,774,786 | 2,603,406 | |||||||||
Logistics and other service revenues | 10,402,863 | 15,925,207 | 2,471,553 | |||||||||
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Net service revenues | 22,815,205 | 32,699,993 | 5,074,959 | |||||||||
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Total net revenues | 174,214,464 | 218,708,358 | 33,943,005 | |||||||||
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Conference Call
JD.coms management will hold a conference call at 7:00 am, Eastern Time on November 18, 2021, (8:00 pm, Beijing/Hong Kong Time on November 18,2021) to discuss financial results for the three months ended September 30, 2021.
Please register in advance of the conference using the linkprovided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automaticallylinked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.
CONFERENCE ID: 2385515
A telephone replay will be available from 10:00 am, Eastern Time on November 18, 2021 through 7:59 am, Eastern Time on November 26, 2021. The
US Toll Free: | +1-855-452-5696 or | |
International: | +61-2-8199-0299 | |
Passcode: | 2385515 |
Additionally, a live and archived webcast of the conference call will also be available on the companys investorrelations website at http://ir.jd.com.
About JD.com
JD.com is a leading supply chain-based technology and service provider. The companys cutting-edge retail infrastructure seeks to enable consumers to buywhatever 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 arange of industries.
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Non-GAAP Measures
In evaluating the business, the company considers and uses non-GAAP measures, such as
The company presentsthese 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 companys ongoing business operations in a manner that allows moremeaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from JD Baitiaoreceivables 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 thenon-GAAP financial measures facilitates investors to understand and evaluate the companys current operating performance and future prospects in the same manner as management does, if they so choose. Thecompany 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 resultin future cash payments or that are non-recurring in nature or may not be indicative of the companys core operating results and business outlook.
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The non-GAAP financial measures have limitations as analytical tools. The companysnon-GAAP financial measures do not reflect all items of income and expense that affect the companys 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. Thecompany 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 companyencourages you to review the companys financial information in its entirety and not rely on a single financial measure.
CONTACTS:
Investor Relations
Ruiyu Li
Senior Director of Investor Relations
+86 (10) 8912-6804
IR@JD.com
Media Relations
+86 (10) 8911-6155
Press@JD.com
Safe Harbor Statement
This announcement containsforward-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 aswill, expects, anticipates, future, intends, plans, believes, estimates, confident and similar statements. Among other things, the businessoutlook and quotations from management in this announcement, as well as JD.coms strategic and operational plans, contain forward-looking statements. JD.com may also make written or oral forward-looking statements in its periodic reports to theU.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 andother 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.coms beliefs and expectations, are forward-lookingstatements. 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.coms 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 regardingdemand for and market acceptance of its products and services; trends and competition in Chinas e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of theChinese 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 governmentalpolicies 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 enhancesupervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with JD.coms acquisitions, investments and alliances, including fluctuation in the market value of JD.comsinvestment 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 conditionsin China and globally. Further information regarding these and other risks is included in JD.coms 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 ofthis announcement, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law.
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JD.com, Inc.
Unaudited InterimCondensed Consolidated Balance Sheets
(In thousands, except otherwise noted)
As of | ||||||||||||
December 31, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 86,084,857 | 87,997,670 | 13,657,024 | |||||||||
Restricted cash | 4,434,448 | 5,872,018 | 911,323 | |||||||||
Short-term investments | 60,577,110 | 102,346,912 | 15,883,992 | |||||||||
Accounts receivable, net (including JDBaitiao of RMB0.8 billion and RMB2.2 billion as of December 31, 2020 and September 30, 2021, respectively)(1) | 7,111,947 | 10,951,303 | 1,699,616 | |||||||||
Advance to suppliers | 3,767,933 | 4,751,219 | 737,378 | |||||||||
Inventories, net | 58,932,519 | 60,043,995 | 9,318,682 | |||||||||
Prepayments and other current assets | 7,076,590 | 10,471,299 | 1,625,120 | |||||||||
Amount due from related parties | 6,667,262 | 6,366,529 | 988,070 | |||||||||
Assets held for sale(2) | 148,592 | | | |||||||||
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Total current assets | 234,801,258 | 288,800,945 | 44,821,205 | |||||||||
Non-current assets | ||||||||||||
Property, equipment and software, net | 22,596,570 | 27,884,937 | 4,327,674 | |||||||||
Construction in progress | 7,906,406 | 6,847,557 | 1,062,724 | |||||||||
Intangible assets, net | 6,462,888 | 6,079,799 | 943,570 | |||||||||
Land use rights, net | 11,124,913 | 13,321,660 | 2,067,489 | |||||||||
Operating leaseright-of-use assets | 15,484,082 | 17,693,478 | 2,745,985 | |||||||||
Goodwill | 10,904,409 | 12,395,299 | 1,923,720 | |||||||||
Investment in equity investees | 58,501,329 | 67,128,486 | 10,418,178 | |||||||||
Investment securities | 39,085,150 | 21,898,941 | 3,398,662 | |||||||||
Deferred tax assets | 532,746 | 853,053 | 132,392 | |||||||||
Other non-current assets | 13,315,844 | 19,885,003 | 3,086,104 | |||||||||
Amount due from related parties | 242,527 | 257,776 | 40,006 | |||||||||
Assets held for sale(2) | 1,329,672 | | | |||||||||
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Total non-current assets | 187,486,536 | 194,245,989 | 30,146,504 | |||||||||
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Total assets | 422,287,794 | 483,046,934 | 74,967,709 | |||||||||
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JD.com, Inc.
Unaudited InterimCondensed Consolidated Balance Sheets
(In thousands, except otherwise noted)
As of | ||||||||||||
December 31, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Short-term debts | | 7,027,897 | 1,090,713 | |||||||||
Accounts payable | 106,818,425 | 126,442,308 | 19,623,539 | |||||||||
Advance from customers | 20,998,001 | 26,276,260 | 4,078,012 | |||||||||
Deferred revenues | 3,417,313 | 3,813,161 | 591,793 | |||||||||
Taxes payable | 3,029,416 | 2,318,572 | 359,837 | |||||||||
Amount due to related parties | 585,324 | 426,585 | 66,205 | |||||||||
Accrued expenses and other current liabilities | 30,034,571 | 31,460,175 | 4,882,542 | |||||||||
Operating lease liabilities | 5,513,534 | 6,404,137 | 993,906 | |||||||||
Unsecured senior notes | 3,259,882 | | | |||||||||
Liabilities held for sale(2) | 360,196 | | | |||||||||
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Total current liabilities | 174,016,662 | 204,169,095 | 31,686,547 | |||||||||
Non-current liabilities | ||||||||||||
Deferred revenues | 1,617,844 | 1,355,767 | 210,412 | |||||||||
Unsecured senior notes | 9,594,556 | 9,544,666 | 1,481,309 | |||||||||
Deferred tax liabilities | 1,921,831 | 1,949,525 | 302,562 | |||||||||
Long-term borrowings | 2,936,205 | 2,947,910 | 457,508 | |||||||||
Operating lease liabilities | 10,249,957 | 11,683,031 | 1,813,178 | |||||||||
Other non-current liabilities | 331,623 | 2,250,938 | 349,340 | |||||||||
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Total non-current liabilities | 26,652,016 | 29,731,837 | 4,614,309 | |||||||||
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Total liabilities | 200,668,678 | 233,900,932 | 36,300,856 | |||||||||
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(1) | JD Technology performs credit risk assessment services for JD Baitiao business and absorbs the credit risk ofthe underlying Baitiao receivables. Facilitated by JD Technology, the company periodically securitizes Baitiao receivables through the transfer of those assets to asset-backed securitization plans and derecognizes the related Baitiao receivablesthrough sales type arrangements. |
(2) | The company entered into definitive agreements to transfer certain logistic facilities and real estateproperties to third parties through the infrastructure asset management and integrated service platform of JD Property. The company classified the related undisposed assets and liabilities as assets and liabilities held for sale under ASC 360. |
11
JD.com, Inc.
Unaudited InterimCondensed Consolidated Balance Sheets
(In thousands, except otherwise noted)
As of | ||||||||||||
December 31, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
MEZZANINE EQUITY | ||||||||||||
Convertible redeemable non-controllinginterests | 17,133,208 | 1,207,213 | 187,357 | |||||||||
SHAREHOLDERS EQUITY | ||||||||||||
Total JD.com, Inc. shareholders equity (US$0.00002 par value, 100,000,000 shares authorized,3,156,709 shares issued and 3,106,539 shares outstanding as of September 30, 2021) | 187,543,295 | 215,314,346 | 33,416,262 | |||||||||
Non-controlling interests | 16,942,613 | 32,624,443 | 5,063,234 | |||||||||
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Total shareholders equity | 204,485,908 | 247,938,789 | 38,479,496 | |||||||||
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Total liabilities, mezzanine equity and shareholders equity | 422,287,794 | 483,046,934 | 74,967,709 | |||||||||
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12
JD.com, Inc.
Unaudited InterimCondensed Consolidated Statements of Operations
(In thousands, except per share data and otherwise noted)
For the three months ended | For the nine months ended | |||||||||||||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net revenues | ||||||||||||||||||||||||
Net product revenues | 151,399,259 | 186,008,365 | 28,868,046 | 459,679,278 | 580,980,053 | 90,166,690 | ||||||||||||||||||
Net service revenues | 22,815,205 | 32,699,993 | 5,074,959 | 61,794,453 | 94,704,944 | 14,697,977 | ||||||||||||||||||
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Total net revenues | 174,214,464 | 218,708,358 | 33,943,005 | 521,473,731 | 675,684,997 | 104,864,667 | ||||||||||||||||||
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Cost of revenues | (147,419,446 | ) | (187,615,621 | ) | (29,117,488 | ) | (443,507,716 | ) | (583,740,647 | ) | (90,595,128 | ) | ||||||||||||
Fulfillment | (11,592,062 | ) | (14,275,651 | ) | (2,215,546 | ) | (33,948,204 | ) | (42,728,366 | ) | (6,631,338 | ) | ||||||||||||
Marketing | (5,460,508 | ) | (7,769,166 | ) | (1,205,756 | ) | (16,732,743 | ) | (25,380,343 | ) | (3,938,967 | ) | ||||||||||||
Research and development | (4,106,739 | ) | (4,004,001 | ) | (621,411 | ) | (11,645,498 | ) | (12,226,917 | ) | (1,897,588 | ) | ||||||||||||
General and administrative | (1,596,342 | ) | (3,050,183 | ) | (473,381 | ) | (4,431,265 | ) | (7,824,587 | ) | (1,214,357 | ) | ||||||||||||
Gain on sale of development properties | 343,982 | 578,701 | 89,813 | 539,568 | 748,800 | 116,212 | ||||||||||||||||||
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Income fromoperations(3)(4) | 4,383,349 | 2,572,437 | 399,236 | 11,747,873 | 4,532,937 | 703,501 | ||||||||||||||||||
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Other income/(expenses) | ||||||||||||||||||||||||
Share of results of equity investees | (272,313 | ) | (1,850,787 | ) | (287,238 | ) | 2,611,631 | (645,677 | ) | (100,207 | ) | |||||||||||||
Interest expense | (297,802 | ) | (276,139 | ) | (42,856 | ) | (829,120 | ) | (766,285 | ) | (118,926 | ) | ||||||||||||
Others, net(5) | 4,462,624 | (3,061,899 | ) | (475,199 | ) | 13,338,674 | (568,228 | ) | (88,188 | ) | ||||||||||||||
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Income/(loss) before tax | 8,275,858 | (2,616,388 | ) | (406,057 | ) | 26,869,058 | 2,552,747 | 396,180 | ||||||||||||||||
Income tax expenses | (690,373 | ) | (652,199 | ) | (101,220 | ) | (1,813,367 | ) | (1,701,312 | ) | (264,039 | ) | ||||||||||||
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Net income/(loss) | 7,585,485 | (3,268,587 | ) | (507,277 | ) | 25,055,691 | 851,435 | 132,141 | ||||||||||||||||
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Net income/(loss) attributable to non-controllinginterests shareholders | 23,127 | (466,736 | ) | (72,436 | ) | (27,677 | ) | (764,856 | ) | (118,704 | ) | |||||||||||||
Net income attributable to mezzanine equity classified asnon-controlling interests shareholders | 2,020 | 4,687 | 727 | 3,596 | 11,277 | 1,750 | ||||||||||||||||||
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Net income/(loss) attributable to ordinary shareholders | 7,560,338 | (2,806,538 | ) | (435,568 | ) | 25,079,772 | 1,605,014 | 249,095 | ||||||||||||||||
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Net income/(loss) per share: | ||||||||||||||||||||||||
Basic | 2.44 | (0.90 | ) | (0.14 | ) | 8.37 | 0.52 | 0.08 | ||||||||||||||||
Diluted | 2.35 | (0.90 | ) | (0.14 | ) | 8.02 | 0.50 | 0.08 | ||||||||||||||||
Net income/(loss) per ADS: | ||||||||||||||||||||||||
Basic | 4.88 | (1.81 | ) | (0.28 | ) | 16.75 | 1.03 | 0.16 | ||||||||||||||||
Diluted | 4.70 | (1.81 | ) | (0.28 | ) | 16.03 | 1.00 | 0.16 |
13
JD.com, Inc.
Unaudited InterimCondensed Consolidated Statements of Operations
(In thousands, except per share data and otherwise noted)
For the three months ended | For the nine months ended | |||||||||||||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
(3) Includes share-based compensation expenses as follows: |
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Cost of revenues | (31,120 | ) | (32,282 | ) | (5,010 | ) | (65,618 | ) | (68,693 | ) | (10,661 | ) | ||||||||||||
Fulfillment | (153,662 | ) | (265,211 | ) | (41,160 | ) | (350,156 | ) | (606,570 | ) | (94,138 | ) | ||||||||||||
Marketing | (87,099 | ) | (164,129 | ) | (25,472 | ) | (218,354 | ) | (412,976 | ) | (64,093 | ) | ||||||||||||
Research and development | (384,400 | ) | (472,429 | ) | (73,320 | ) | (935,126 | ) | (1,350,536 | ) | (209,600 | ) | ||||||||||||
General and administrative | (395,263 | ) | (1,409,379 | ) | (218,732 | ) | (1,092,028 | ) | (3,679,865 | ) | (571,106 | ) | ||||||||||||
(4) Includes amortization of business cooperation arrangement andintangible assets resulting from assets and business acquisitions as follows: |
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Fulfillment | (51,584 | ) | (55,957 | ) | (8,684 | ) | (141,217 | ) | (163,984 | ) | (25,450 | ) | ||||||||||||
Marketing | (187,876 | ) | (216,246 | ) | (33,561 | ) | (473,534 | ) | (636,853 | ) | (98,838 | ) | ||||||||||||
Research and development | (24,700 | ) | (26,250 | ) | (4,074 | ) | (74,100 | ) | (77,716 | ) | (12,061 | ) | ||||||||||||
General and administrative | (77,314 | ) | (77,314 | ) | (11,999 | ) | (231,447 | ) | (231,448 | ) | (35,920 | ) |
(5) | Others are other non-operating income/(loss), primarily consist ofgains/(losses) from fair value change of long-term investments, gains/(losses) from business and investment disposals, impairment of investments, government incentives, interest income and foreign exchange gains/(losses). |
14
JD.com, Inc.
Unaudited
(In thousands, except per share data and otherwise noted)
For the three months ended | For the nine months ended | |||||||||||||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Non-GAAP net income attributable to ordinaryshareholders | 5,558,054 | 5,047,992 | 783,435 | 14,441,408 | 13,642,150 | 2,117,228 | ||||||||||||||||||
Weighted average number of shares: | ||||||||||||||||||||||||
Basic | 3,096,304 | 3,106,141 | 3,106,141 | 2,994,756 | 3,106,344 | 3,106,344 | ||||||||||||||||||
Diluted | 3,191,159 | 3,186,702 | 3,186,702 | 3,077,063 | 3,194,877 | 3,194,877 | ||||||||||||||||||
Non-GAAP net income per share: | ||||||||||||||||||||||||
Basic | 1.80 | 1.63 | 0.25 | 4.82 | 4.39 | 0.68 | ||||||||||||||||||
Diluted | 1.71 | 1.58 | 0.25 | 4.50 | 4.26 | 0.66 | ||||||||||||||||||
Non-GAAP net income per ADS: | ||||||||||||||||||||||||
Basic | 3.59 | 3.25 | 0.50 | 9.64 | 8.78 | 1.36 | ||||||||||||||||||
Diluted | 3.42 | 3.16 | 0.49 | 9.00 | 8.53 | 1.32 |
15
JD.com, Inc.
Unaudited InterimCondensed Consolidated Statements of Cash Flows and Free Cash Flow
(In thousands)
For the three months ended | For the nine months ended | |||||||||||||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net cash provided by operating activities | 12,255,678 | 14,447,587 | 2,242,230 | 37,330,749 | 35,828,969 | 5,560,569 | ||||||||||||||||||
Net cash used in investing activities | (12,518,857 | ) | (29,757,109 | ) | (4,618,231 | ) | (44,105,163 | ) | (55,462,589 | ) | (8,607,659 | ) | ||||||||||||
Net cash provided by financing activities | 4,117,987 | 6,078,409 | 943,354 | 47,658,991 | 22,929,750 | 3,558,641 | ||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,660,012 | ) | 310,397 | 48,173 | (2,110,679 | ) | (61,665 | ) | (9,570 | ) | ||||||||||||||
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Net increase/(decrease) in cash, cash equivalents and restricted cash | 1,194,796 | (8,920,716 | ) | (1,384,474 | ) | 38,773,898 | 3,234,465 | 501,981 | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 77,491,381 | 102,790,404 | 15,952,821 | 39,912,279 | 90,635,223 | 14,066,366 | ||||||||||||||||||
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Cash, cash equivalents and restricted cash at end of period | 78,686,177 | 93,869,688 | 14,568,347 | 78,686,177 | 93,869,688 | 14,568,347 | ||||||||||||||||||
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Net cash provided by operating activities | 12,255,678 | 14,447,587 | 2,242,230 | 37,330,749 | 35,828,969 | 5,560,569 | ||||||||||||||||||
(Less)/Add: Impact from JD Baitiao receivables included in the operating cash flow | (2,785,606 | ) | (3,324,823 | ) | (516,004 | ) | (159,164 | ) | 1,191,283 | 184,884 | ||||||||||||||
Less: Capital expenditures, net of related sales proceeds | ||||||||||||||||||||||||
Capital expenditures for development properties | (1,111,723 | ) | (5,147,087 | ) | (798,815 | ) | (4,659,481 | ) | (9,643,783 | ) | (1,496,692 | ) | ||||||||||||
Other capital expenditures | (839,706 | ) | (1,819,254 | ) | (282,344 | ) | (2,164,926 | ) | (3,440,457 | ) | (533,950 | ) | ||||||||||||
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Free cash flow | 7,518,643 | 4,156,423 | 645,067 | 30,347,178 | 23,936,012 | 3,714,811 | ||||||||||||||||||
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(6) | Including cash, cash equivalents and restricted cash classified as assets held for sale ofRMB409.2 million, RMB115.9 million and nil as of September 30, 2020, December 31, 2020 and September 30, 2021, respectively. |
16
JD.com, Inc.
SupplementalFinancial Information and Business Metrics
Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | ||||||||||||||||
Free cash flow (in RMB billions) trailing twelve months (TTM) | 30.2 | 34.9 | 28.2 | 31.9 | 28.5 | |||||||||||||||
Inventory turnover days(7) TTM | 34.3 | 33.3 | 31.2 | 31.0 | 30.1 | |||||||||||||||
Accounts payable turnover days(8) TTM | 49.2 | 47.1 | 44.2 | 45.8 | 45.5 | |||||||||||||||
Accounts receivable turnover days(9) TTM | 2.8 | 2.7 | 2.6 | 2.7 | 2.8 | |||||||||||||||
Annual active customer accounts (in millions) | 441.6 | 471.9 | 499.8 | 531.9 | 552.2 |
(7) | TTM inventory turnover days are the quotient of average inventory over the immediately preceding five quarters,up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days. |
(8) | TTM accounts payable turnover days are the quotient of average accounts payable for retail business over theimmediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days. |
(9) | TTM accounts receivable turnover days are the quotient of average accounts receivable over the immediatelypreceding 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. |
17
JD.com, Inc.
UnauditedReconciliation of GAAP and Non-GAAP Results
(In thousands, except percentage data)
For the three months ended | For the nine months ended | |||||||||||||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Income from operations | 4,383,349 | 2,572,437 | 399,236 | 11,747,873 | 4,532,937 | 703,501 | ||||||||||||||||||
Add: Share-based compensation | 1,051,544 | 2,343,430 | 363,694 | 2,661,282 | 6,118,640 | 949,598 | ||||||||||||||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 193,215 | 236,543 | 36,711 | 494,797 | 703,153 | 109,128 | ||||||||||||||||||
Reversal of: Effects of business cooperation arrangements | (10,240 | ) | (10,230 | ) | (1,588 | ) | (241,025 | ) | (17,690 | ) | (2,745 | ) | ||||||||||||
Reversal of: Gain on sale of development properties | (343,982 | ) | (578,701 | ) | (89,813 | ) | (539,568 | ) | (748,800 | ) | (116,212 | ) | ||||||||||||
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Non-GAAP income from operations | 5,273,886 | 4,563,479 | 708,240 | 14,123,359 | 10,588,240 | 1,643,270 | ||||||||||||||||||
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Add: Depreciation and other amortization | 1,327,856 | 1,299,599 | 201,695 | 3,893,155 | 3,961,450 | 614,807 | ||||||||||||||||||
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Non-GAAP EBITDA | 6,601,742 | 5,863,078 | 909,935 | 18,016,514 | 14,549,690 | 2,258,077 | ||||||||||||||||||
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Total net revenues | 174,214,464 | 218,708,358 | 33,943,005 | 521,473,731 | 675,684,997 | 104,864,667 | ||||||||||||||||||
Non-GAAP operating margin | 3.0 | % | 2.1 | % | 2.1 | % | 2.7 | % | 1.6 | % | 1.6 | % | ||||||||||||
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Non-GAAP EBITDA margin | 3.8 | % | 2.7 | % | 2.7 | % | 3.5 | % | 2.2 | % | 2.2 | % | ||||||||||||
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18
JD.com, Inc.
UnauditedReconciliation of GAAP and Non-GAAP Results
(In thousands, except percentage data)
For the three months ended | For the nine months ended | |||||||||||||||||||||||
September 30, 2020 | September 30, 2021 | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2021 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net income/(loss) attributable to ordinary shareholders | 7,560,338 | (2,806,538 | ) | (435,568 | ) | 25,079,772 | 1,605,014 | 249,095 | ||||||||||||||||
Add: Share-based compensation | 1,051,544 | 1,954,097 | 303,271 | 2,661,282 | 5,729,307 | 889,175 | ||||||||||||||||||
Add: Amortization of intangible assets resulting from assets and business acquisitions | 193,215 | 193,111 | 29,970 | 494,797 | 659,721 | 102,387 | ||||||||||||||||||
Add/(Reversal of): Reconciling items on the share of equity method investments | 55,687 | (118,683 | ) | (18,419 | ) | 172,156 | (1,150,173 | ) | (178,504 | ) | ||||||||||||||
Add: Impairment of goodwill, intangible assets, and investments | | 1,813,473 | 281,447 | 661,735 | 2,121,821 | 329,301 | ||||||||||||||||||
(Reversal of)/Add: (Gain)/Loss from fair value change of long-term investments | (2,939,789 | ) | 4,639,028 | 719,966 | (9,007,791 | ) | 5,405,193 | 838,873 | ||||||||||||||||
Reversal of: Gain and foreign exchange impact in relation to sale of developmentproperties | (343,982 | ) | (510,701 | ) | (79,260 | ) | (539,568 | ) | (680,800 | ) | (105,659 | ) | ||||||||||||
Reversal of: Gain on disposals/deemed disposals of investments | (12,724 | ) | (52,601 | ) | (8,164 | ) | (4,802,557 | ) | (68,601 | ) | (10,647 | ) | ||||||||||||
Reversal of: Effects of business cooperation arrangements andnon-compete agreements | (30,847 | ) | (29,498 | ) | (4,578 | ) | (303,507 | ) | (75,502 | ) | (11,718 | ) | ||||||||||||
Add/(Reversal of): Tax effects on non-GAAPadjustments | 24,612 | (33,696 | ) | (5,230 | ) | 25,089 | 96,170 | 14,925 | ||||||||||||||||
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Non-GAAP net income attributable to ordinaryshareholders | 5,558,054 | 5,047,992 | 783,435 | 14,441,408 | 13,642,150 | 2,117,228 | ||||||||||||||||||
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Total net revenues | 174,214,464 | 218,708,358 | 33,943,005 | 521,473,731 | 675,684,997 | 104,864,667 | ||||||||||||||||||
Non-GAAP net margin | 3.2 | % | 2.3 | % | 2.3 | % | 2.8 | % | 2.0 | % | 2.0 | % | ||||||||||||
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(10) | To exclude the GAAP to non-GAAP reconciling items on the share ofequity method investments, and share of amortization of intangibles not on their books. |
19