FORM 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2021

Commission File Number: 001-36450

 

 

JD.com, Inc.

 

 

20th Floor, Building A, No. 18 Kechuang 11 Street

Yizhuang Economic and Technological Development Zone

Daxing District, Beijing 101111

The People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


Exhibit Index

 

99.1    JD.com Announces Third Quarter 2021 Results


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

JD.COM, INC.
By   :  

/s/ Sandy Ran Xu

Name   :   Sandy Ran Xu
Title   :   Chief Financial Officer

Date: November 18, 2021

EX-99.1

Exhibit 99.1

 

LOGO

 

JD.com Announces Third Quarter 2021 Results

Beijing, China—-November 18, 2021—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, 2021.

Third Quarter 2021 Highlights

 

   

Net revenues for the third quarter of 2021 were RMB218.7 billion (US$133.9 billion), an increase of 25.5% from the third quarter of 2020. Net service revenues for the third quarter of 2021 were RMB32.7 billion (US$5.1 billion), an increase of 43.3% from the third quarter of 2020.

 

   

Income from operations for the third quarter of 2021 was RMB2.6 billion (US$0.4 billion), compared to RMB4.4 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 20203.

 

   

Net loss attributable to ordinary shareholders for the third quarter of 2021 was RMB2.8 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 of 2021 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 per ADS 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 by 25.0% 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$) amounts disclosed in this announcement, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ 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, 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” and “Unaudited 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 retrospectively adjusted to conform to current period presentation of segment information.

4 

Annual active customer accounts are customer accounts that made at least one purchase during the twelve months ended on the respective dates, whether through online retail or online marketplace.

 

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“With resilient business operations and core competences in technology and supply chain, JD has built a unique business model, enabling us to have better control 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 based enterprise. 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 strong results 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 initiatives including 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 ensure JD’s 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 Jingxi’s multiple online platforms.

 

During the 4th Chinese Farmers’ Harvest Festival in September, JD.com announced that in 2021, the company’s 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 more than 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 JD’s sales channels.

JD Retail

 

In September, JD.com opened its first “JD MALL” offline store in Xi’an offering consumers an immersive 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, smart healthcare 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 services that incorporate furniture and home appliances categories.

 

In the third quarter, over 20 domestic and international household and home decor brands launched official stores 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 joined JD.com’s 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 joined JD.com’s 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.com’s new on-demand consumer retail section. The three parties will further accelerate the digital transformation of physical 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 offline stores in China.

JD Health

 

In July, JD Health and Allianz JD, JD.com’s joint venture with Allianz, one of the world’s leading insurers 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 users directly 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 as medicine purchasing and door-to-door delivery.

 

In September, over 200 institutional exhibitors and participants attended JD Health’s third Online Pharmaceutical 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 a “Intelligent 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 JD Logistics’s first regular cargo charter flight between China and Europe. Further expanding JD Logistics’s international transportation network, the route will deliver products from China’s major manufacturing regions with same day port-to-port delivery and product arrival within one week.

 

In the third quarter, JD Logistics established a strategic partnership with Volvo Cars to build integrated supply 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 aggregate gross 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 increased by 43.3% for the third quarter of 2021, as compared to the same period of 2020.

Cost of Revenues. Cost of revenues increased 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 payment processing 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 third quarter of 2021, compared to 6.7% for the same period last year.

Marketing Expenses. Marketing expenses increased by 42.3% to RMB7.8 billion (US$1.2 billion) for the third quarter of 2021 from RMB5.5 billion for the third quarter of 2020.

Research and Development Expenses. 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) for the 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 quarter of 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$0.7 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.

Non-GAAP EBITDA. Non-GAAP EBITDA for the third quarter of 2021 was 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 was primarily due to non-cash impairment in certain equity investees.

Others, net. Other non-operating loss was RMB3.1 billion (US$0.5 billion) for the third quarter of 2021, as compared to other non-operating income of RMB4.5 billion for the third quarter of 2020. The decrease was primarily due to fair value change of investment securities, which resulting from decreases in the market prices of equity investments in publicly-traded companies.

Net Income/(Loss) Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable to Ordinary Shareholders. Net loss attributable to ordinary shareholders for the third quarter of 2021 was RMB2.8 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 of 2021 was RMB5.0 billion (US$0.8 billion), compared to RMB5.6 billion for the same period last year.

Diluted EPS and Non-GAAP Diluted 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-GAAP diluted 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 of September 30, 2021, the company’s 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 of 2021, 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
  

 

 

    

 

 

    

 

 

 

Free cash flow

     7,518,643        4,156,423        645,067  
  

 

 

    

 

 

    

 

 

 

 

*

Including capital expenditures related to the company’s 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 of increase in short-term investments and cash paid for capital expenditures.

Net cash provided by financing activities was RMB6.1 billion (US$0.9 billion) for the third quarter of 2021, consisting primarily of proceeds from short-term debts.

For the twelve months ended September 30, 2021, free cash 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
  

 

 

    

 

 

    

 

 

 

Free cash flow

     30,190,951        28,511,079        4,424,850  
  

 

 

    

 

 

    

 

 

 

 

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Supplemental Information

The company reports three segments, 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 mainly include JD Property, Jingxi, overseas businesses and technology initiatives.

The table below sets forth the segment operating results, with prior period segment 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
  

 

 

    

 

 

    

 

 

 

Total segment net revenues

     174,055,965        218,558,904        33,919,810  

Unallocated items**

     158,499        149,454        23,195  
  

 

 

    

 

 

    

 

 

 

Total consolidated net revenues

     174,214,464        218,708,358        33,943,005  
  

 

 

    

 

 

    

 

 

 

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  
  

 

 

    

 

 

    

 

 

 

Total segment operating income

     5,617,868        5,142,180        798,053  

Unallocated items**

     (1,234,519      (2,569,743      (398,817
  

 

 

    

 

 

    

 

 

 

Total consolidated operating income

     4,383,349        2,572,437        399,236  
  

 

 

    

 

 

    

 

 

 

 

*

The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics services provided by JD Logistics to JD Retail, and property leasing services provided by JD Property to JD Logistics.

**

Unallocated items include share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, and impairment of goodwill and intangible assets, which are not allocated to segments.

 

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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  
  

 

 

    

 

 

    

 

 

 

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  
  

 

 

    

 

 

    

 

 

 

Net service revenues

     22,815,205        32,699,993        5,074,959  
  

 

 

    

 

 

    

 

 

 

Total net revenues

     174,214,464        218,708,358        33,943,005  
  

 

 

    

 

 

    

 

 

 

Conference Call

JD.com’s 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 link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/2385515

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 dial-in details are as follows:

 

    US Toll Free:    +1-855-452-5696 or +1-646-254-3697
    International:    +61-2-8199-0299
    Passcode:    2385515

Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.jd.com.

About JD.com

JD.com is a leading 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.

 

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Non-GAAP Measures

In evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per share and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP income/(loss) from operations as income/(loss) from operations excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, gain on sale of development properties and impairment of goodwill and intangible assets. The company defines non-GAAP net income/(loss) attributable to ordinary shareholders as net income/(loss) attributable to ordinary shareholders excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements and non-compete agreements, gain/(loss) on disposals/deemed disposals of investments, reconciling items on the share of equity method investments, loss/(gain) from fair value change of long-term investments, impairment of goodwill, intangible assets and investments, gain and foreign exchange impact in relation to sale of development properties and tax effects on non-GAAP adjustments. The company defines free cash flow as operating cash flow adjusting the impact from JD Baitiao receivables included in the operating cash flow and capital expenditures, net of the proceeds from sale of development properties. Capital expenditures include purchase of property, equipment and software, cash paid for construction in progress, purchase of intangible assets and land use rights. The company defines non-GAAP EBITDA as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions. Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per share multiplied by two.

The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP income/(loss) from operations, non-GAAP net income/(loss) attributable to ordinary shareholders and non-GAAP EBITDA reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from JD Baitiao receivables included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the company’s current operating performance and future prospects in the same manner as management does, if they so choose. The company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the company’s core operating results and business outlook.

 

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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

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 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.

 

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JD.com, Inc.

Unaudited Interim Condensed 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 JD Baitiao 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        —          —    
  

 

 

    

 

 

    

 

 

 

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 lease right-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        —          —    
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     187,486,536        194,245,989        30,146,504  
  

 

 

    

 

 

    

 

 

 

Total assets

     422,287,794        483,046,934        74,967,709  
  

 

 

    

 

 

    

 

 

 

 

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JD.com, Inc.

Unaudited Interim Condensed 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        —          —    
  

 

 

    

 

 

    

 

 

 

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  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     26,652,016        29,731,837        4,614,309  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     200,668,678        233,900,932        36,300,856  
  

 

 

    

 

 

    

 

 

 

 

(1)

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

(2)

The company entered into definitive agreements to transfer certain logistic facilities and real estate properties to third parties through the infrastructure asset management and integrated service platform of JD Property. The company classified the related undisposed assets and liabilities as assets and liabilities held for sale under ASC 360.

 

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JD.com, Inc.

Unaudited Interim Condensed 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-controlling interests

     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  
  

 

 

    

 

 

    

 

 

 

Total shareholders’ equity

     204,485,908        247,938,789        38,479,496  
  

 

 

    

 

 

    

 

 

 

Total liabilities, mezzanine equity and shareholders’ equity

     422,287,794        483,046,934        74,967,709  
  

 

 

    

 

 

    

 

 

 

 

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JD.com, Inc.

Unaudited Interim Condensed 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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     174,214,464       218,708,358       33,943,005       521,473,731       675,684,997       104,864,667  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations(3)(4)

     4,383,349       2,572,437       399,236       11,747,873       4,532,937       703,501  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss)

     7,585,485       (3,268,587     (507,277     25,055,691       851,435       132,141  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss) attributable to non-controlling interests shareholders

     23,127       (466,736     (72,436     (27,677     (764,856     (118,704

Net income attributable to mezzanine equity classified as non-controlling interests shareholders

     2,020       4,687       727       3,596       11,277       1,750  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss) attributable to ordinary shareholders

     7,560,338       (2,806,538     (435,568     25,079,772       1,605,014       249,095  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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  

 

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JD.com, Inc.

Unaudited Interim Condensed 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:

 

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 and intangible assets resulting from assets and business acquisitions as follows:

 

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 of gains/(losses) from fair value change of long-term investments, gains/(losses) from business and investment disposals, impairment of investments, government incentives, interest income and foreign exchange gains/(losses).

 

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JD.com, Inc.

Unaudited Non-GAAP Net Income Per Share and Per ADS

(In thousands, except per share data and otherwise noted)

 

     For the three months ended      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 ordinary shareholders

     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  

 

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JD.com, Inc.

Unaudited Interim Condensed 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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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(6)

     77,491,381       102,790,404       15,952,821       39,912,279       90,635,223       14,066,366  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period(6)

     78,686,177       93,869,688       14,568,347       78,686,177       93,869,688       14,568,347  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

     7,518,643       4,156,423       645,067       30,347,178       23,936,012       3,714,811  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(6)

Including cash, cash equivalents and restricted cash classified as assets held for sale of RMB409.2 million, RMB115.9 million and nil as of September 30, 2020, December 31, 2020 and September 30, 2021, respectively.

 

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JD.com, Inc.

Supplemental Financial 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 the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.

(9)

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

 

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JD.com, Inc.

Unaudited Reconciliation 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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income from operations

     5,273,886       4,563,479       708,240       14,123,359       10,588,240       1,643,270  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Add: Depreciation and other amortization

     1,327,856       1,299,599       201,695       3,893,155       3,961,450       614,807  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP EBITDA

     6,601,742       5,863,078       909,935       18,016,514       14,549,690       2,258,077  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP EBITDA margin

     3.8     2.7     2.7     3.5     2.2     2.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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JD.com, Inc.

Unaudited Reconciliation 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(10)

     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 development properties

     (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 and non-compete agreements

     (30,847     (29,498     (4,578     (303,507     (75,502     (11,718

Add/(Reversal of): Tax effects on non-GAAP adjustments

     24,612       (33,696     (5,230     25,089       96,170       14,925  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to ordinary shareholders

     5,558,054       5,047,992       783,435       14,441,408       13,642,150       2,117,228  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(10)

To exclude the GAAP to non-GAAP reconciling items on the share of equity method investments, and share of amortization of intangibles not on their books.

 

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