Annuncio pubblicitario
Italia markets closed
  • FTSE MIB

    35.398,82
    -11,31 (-0,03%)
     
  • Dow Jones

    40.003,59
    +134,21 (+0,34%)
     
  • Nasdaq

    16.685,97
    -12,35 (-0,07%)
     
  • Nikkei 225

    38.787,38
    -132,88 (-0,34%)
     
  • Petrolio

    80,00
    +0,77 (+0,97%)
     
  • Bitcoin EUR

    62.119,66
    +454,19 (+0,74%)
     
  • CMC Crypto 200

    1.372,96
    -0,89 (-0,06%)
     
  • Oro

    2.419,80
    +34,30 (+1,44%)
     
  • EUR/USD

    1,0872
    +0,0002 (+0,02%)
     
  • S&P 500

    5.303,27
    +6,17 (+0,12%)
     
  • HANG SENG

    19.553,61
    +177,08 (+0,91%)
     
  • Euro Stoxx 50

    5.064,14
    -8,31 (-0,16%)
     
  • EUR/GBP

    0,8555
    -0,0021 (-0,24%)
     
  • EUR/CHF

    0,9881
    +0,0038 (+0,38%)
     
  • EUR/CAD

    1,4787
    -0,0007 (-0,05%)
     

JD.com Announces Second Quarter and Interim 2023 Results

JD.com
JD.com

BEIJING, Aug. 16, 2023 (GLOBE NEWSWIRE) -- JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, today announced its unaudited financial results for the three and six months ended June 30, 2023.

Second Quarter 2023 Highlights

  • Net revenues for the second quarter of 2023 were RMB287.9 billion (US$139.7 billion), an increase of 7.6% from the second quarter of 2022. Net service revenues for the second quarter of 2023 were RMB54.1 billion (US$7.5 billion), an increase of 30.1% from the second quarter of 2022.

  • Income from operations for the second quarter of 2023 was RMB8.3 billion (US$1.1 billion), compared to RMB3.8 billion for the same period last year. Non-GAAP2 income from operations was RMB8.7 billion (US$1.2 billion) for the second quarter of 2023, as compared to RMB5.8 billion for the second quarter of 2022. Operating margin of JD Retail before unallocated items for the second quarter of 2023 was 3.2%, compared to 3.4% for the second quarter of 2022.

  • Net income attributable to the company's ordinary shareholders for the second quarter of 2023 was RMB6.6 billion (US$0.9 billion), compared to RMB4.4 billion for the same period last year. Non-GAAP net income attributable to the company's ordinary shareholders for the second quarter of 2023 was RMB8.6 billion (US$1.2 billion), as compared to RMB6.5 billion for the same period last year.

  • Diluted net income per ADS for the second quarter of 2023 was RMB4.15 (US$0.57), compared to RMB2.74 for the second quarter of 2022. Non-GAAP diluted net income per ADS for the second quarter of 2023 was RMB5.39 (US$0.74), compared to RMB4.06 for the same period last year.

  • Operating cash flow for the twelve months ended June 30, 2023 was RMB52.5 billion (US$7.2 billion), compared to RMB51.1 billion for the twelve months ended June 30, 2022. Free cash flow, which excludes the impact from JD Baitiao receivables included in the operating cash flow, for the twelve months ended June 30, 2023 was RMB33.5 billion (US$4.6 billion), compared to RMB27.7 billion for the twelve months ended June 30, 2022.

ANNUNCIO PUBBLICITARIO

“We reported a solid performance for the second quarter both financially and operationally, thanks to JD.com's enhanced business structure and leading supply chain capabilities,” said Sandy Xu, Chief Executive Officer of JD.com. “We are also encouraged to see the number of our marketplace merchants more than doubled and reached a new record during the quarter, reflecting our efforts to build a superior marketplace ecosystem, one of our priorities to provide customers with enriched supplies at better prices. I am confident that JD.com's commitment to providing the utmost in selection, speed, quality and value will continue to resonate with customers and set a strong foundation for our long-term success.”

“JD.com delivered both revenues and profitability ahead of our expectation in the second quarter, an encouraging trend we are happy to see amidst our business adjustment and a highly competitive market environment,” said Ian Su Shan, Chief Financial Officer of JD.com. “In JD Retail, we continued to gain market share in core categories of home appliances and 3C, propelled by our supply chain advantages and service quality, while supermarket category made steady progress as expected to build a healthier business model. We are encouraged by such solid results, and we will continue to further optimize JD’s business model and invest in JD’s long term sustainable growth.”

Business Highlights

Environment, Social and Governance

  • In June, JD.com released its 2022 Environmental, Social, and Governance (“ESG”) Report, covering the company’s progress in 2022 across corporate governance, business ethics, green operations, green logistics, consumer services and sustainable supply chain, among others. The report highlights JD.com’s commitment to aligning its business development strategy with the value proposition of building a “responsible supply chain” and to continually enhancing its ESG practices.

  • In April, JD Logistics launched the Supply Chain Emission Management Platform (“SCEMP”), a validated carbon footprint management platform incorporating over 140 types of carbon emission factors in road transportation in China. The platform calculates carbon emissions with higher granularity based on the actual routes of transportation vehicles. The SCEMP aims to drive more enterprises to reduce carbon emissions with enhanced efficiency and lower cost, ultimately steering towards achieving the net-zero emission target.

JD Retail

  • During the JD 618 Grand Promotion, the company further upgraded its trade-in services for home appliance and home goods, providing customers attractive discounts, complimentary on-site disassembly and moving, and integrated services covering delivery, installation, disassembly and cleaning. These efforts not only improve JD.com’s user experience, but also elevate the industry service standard for home appliance and home goods.

  • During the JD 618 Grand Promotion, the company opened two JD MALLs in Dongguan and Kunming alongside thirteen city-level flagship home appliance and electronics stores in eleven cities such as Chengdu, Tangshan, Suzhou and Nanjing, as well as 724 JD home appliance stores in lower-tier markets. The expansion strives to improve customers’ shopping experience, while further enriching the traditional retail ecosystem.

  • In the second quarter, Italian luxury fashion brands Bottega Veneta and Missoni both joined hands with JD.com and launched their official flagship stores on the JD platform. Meanwhile, beauty brands including Sisley, a French luxury skincare brand, and SkinCeuticals, a science-based skincare brand of the L'Oreal Group, launched their official flagship stores on JD.com. Others joining JD.com in the quarter included Maison Margiela Fragrances, Byredo, Farmacy, and Aesop, among others, further enriching the platform’s product offerings to fully address customers’ diverse skincare needs.

JD Health

  • In the second quarter, JD Health expanded its collaborations with global pharmaceutical companies, including Novartis and Novo Nordisk. By further enhancing its cold chain and offline Direct to Patient (“DTP”) omni-channel fulfillment capabilities, JD Health continues to build up its industry-leading online retail channel for new specialized medicines, which provides better accessibility to patients in need.

  • In April, JD Health officially launched one of the first online medical centers specializing in dermatology in China. The platform features online clinics with over 40 leading experts in the dermatology field, in addition to over 3,000 registered dermatologists from China’s top-tier AAA hospitals. The platform has also assembled a team of full-time dermatologists to provide around-the-clock support for users’ inquiries related to skin issues.

  • As a strategic service offering of JD Health, JD Family Doctor completed its products upgrade in June and launched a “year-round caring for elderly” service. The service pairs an exclusive health caregiver with each of the elderly users to monitor and manage their health conditions throughout the year, and also provides customized health management solutions to serve the elderly users in the long term. Since 2023, the overall user satisfaction rate of JD Family Doctor service has reached 99%.

JD Logistics

  • In April, JD Airlines launched a new all-cargo route between Beijing Daxing and Shenzhen. With the new all-cargo flights operations between the two destinations, JD Airlines is positioned to provide reliable next-morning delivery services in key cities in the Beijing-Tianjin-Hebei region and the Pearl River Delta region.

  • In June, phase II of JD Logistics Kunshan Asia No.1 smart industrial park (“Kunshan Asia No.1”) officially commenced operation. During the JD 618 Grand Promotion this year, Kunshan Asia No.1's sorting capacity ramped up to an average of over 4.5 million parcels per day, representing the world’s leading level.

  • As of June 30, 2023, JD Logistics operated over 1,600 warehouses. Including warehouse space managed through the Open Warehouse Platform, JD Logistics’s warehouse network had an aggregate gross floor area of over 32 million square meters.3

Dada

  • In April, JDDJ emerged as one of the first on-demand retail service providers to support the launch of Xiaomi 13 Ultra smartphones. JDDJ brought customers a convenient shopping experience with one-hour delivery for in-stock products.

  • During the JD 618 Grand Promotion, JDDJ saw an 80% year-over-year increase in the number of collaborated offline stores, along with triple-digit year-over-year GMV growth in categories including home appliance, computers, cosmetics, sports and outdoors, and liquor, further diversifying the platform’s supplies and ecosystem. Additionally, the provision of JDDJ’s “Shop Now” services reached customers in over 2,000 counties, districts, and cities during the promotion.

Second Quarter 2023 Financial Results

Net Revenues.   For the second quarter of 2023, JD.com reported net revenues of RMB287.9 billion (US$39.7 billion), representing a 7.6% increase from the same period of 2022. Net product revenues increased by 3.5%, while net service revenues increased by 30.1% for the second quarter of 2023, as compared to the same period of 2022.

Cost of Revenues. Cost of revenues increased by 6.4% to RMB246.5 billion (US$34.0 billion) for the second quarter of 2023 from RMB231.7 billion for the second quarter of 2022.

Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 2.3% to RMB16.7 billion (US$2.3 billion) for the second quarter of 2023 from RMB16.3 billion for the second quarter of 2022. Fulfillment expenses as a percentage of net revenues was 5.8% for the second quarter of 2023, compared to 6.1% for the same period last year.

Marketing Expenses. Marketing expenses increased by 16.7% to RMB11.1 billion (US$1.5 billion) for the second quarter of 2023 from RMB9.5 billion for the second quarter of 2022, marketing expenses as a percentage of net revenues was 3.8% for the second quarter of 2023, compared to 3.5% for the same period last year, mainly due to the increased spending in promotion activities.

Research and Development Expenses. Research and development expenses increased by 1.1% to RMB4.1 billion (US$0.6 billion) for the second quarter of 2023 from RMB4.0 billion for the second quarter of 2022. Research and development expenses as a percentage of net revenues was 1.4% for the second quarter of 2023, compared to 1.5% for the same period last year.

General and Administrative Expenses.   General and administrative expenses increased by 1.5% to RMB2.4 billion (US$0.3 billion) for the second quarter of 2023 from RMB2.3 billion for the second quarter of 2022. General and administrative expenses as a percentage of net revenues was 0.8% for the second quarter of 2023, compared to 0.9% for the same period last year.

Income from Operations and Non-GAAP Income from Operations.   Income from operations for the second quarter of 2023 was RMB8.3 billion (US$1.1 billion), compared to RMB3.8 billion for the same period last year. Non-GAAP income from operations was RMB8.7 billion (US$1.2 billion) for the second quarter of 2023, as compared to RMB5.8 billion for the second quarter of 2022. Operating margin of JD Retail before unallocated items for the second quarter of 2023 was 3.2%, compared to 3.4% for the second quarter of 2022.

Non-GAAP EBITDA. Non-GAAP EBITDA increased by 45.0% to RMB10.4 billion (US$1.4 billion) for the second quarter of 2023 from RMB7.2 billion for the second quarter of 2022.

Share of Results of Equity Investees.   Share of results of equity investees was an income of RMB0.9 billion (US$0.1 billion) for the second quarter of 2023, as compared to a loss of RMB1.6 billion for the second quarter of 2022, primarily due to the increase in share of profit and the decrease in impairment of equity method investees.

Others, net. Other non-operating income was RMB1.2 billion (US$0.2 billion) for the second quarter of 2023, as compared to RMB3.6 billion for the second quarter of 2022. The decrease was primarily due to net losses arising from fair value changes of investment securities, compared to net gains in the same quarter last year, and the increase in impairment of investments.

Net Income Attributable to the Company's Ordinary Shareholders and Non-GAAP Net Income Attributable to the Company's Ordinary Shareholders. Net income attributable to the company's ordinary shareholders for the second quarter of 2023 was RMB6.6 billion (US$0.9 billion), compared to RMB4.4 billion for the same period last year. Non-GAAP net income attributable to the company's ordinary shareholders for the second quarter of 2023 was RMB8.6 billion (US$1.2 billion), as compared to RMB6.5 billion for the same period last year.

Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the second quarter of 2023 was RMB4.15 (US$0.57), compared to RMB2.74 for the second quarter of 2022. Non-GAAP diluted net income per ADS for the second quarter of 2023 was RMB5.39 (US$0.74), compared to RMB4.06 for the second quarter of 2022.

Cash Flow and Working Capital

As of June 30, 2023, the company’s cash and cash equivalents, restricted cash and short-term investments totaled RMB243.3 billion (US$33.5 billion), compared to RMB226.2 billion as of December 31, 2022. For the second quarter of 2023, free cash flow of the company was as follows:

 

 

For the three months ended

 

 

June 30,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

 

 

(In millions)

 

 

 

Net cash provided by operating activities

 

33,667

 

46,511

 

6,414

 

Add: Impact from JD Baitiao receivables included in the operating cash flow

 

1,802

 

1,586

 

219

 

Less: Capital expenditures, net of related sales proceeds

 

 

 

 

Capital expenditures for development properties

 

(4,947

)

(2,363

)

(326

)

Other capital expenditures*

 

(513

)

(1,244

)

(172

)

Free cash flow

 

30,009

 

44,490

 

6,135

 

 

 

 

 

 

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

Net cash used in investing activities was RMB28.1 billion (US$3.9 billion) for the second quarter of 2023, consisting primarily of the increase in short-term investments and time deposits, and cash paid for capital expenditures.

Net cash used in financing activities was RMB1.8 billion (US$0.3 billion) for the second quarter of 2023, consisting primarily of cash paid for dividends, partially offset by the net proceeds from bank loans.

For the twelve months ended June 30, 2023, free cash flow of the company was as follows:

 

 

For the twelve months ended

 

 

June 30,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

 

 

(In millions)

 

 

 

Net cash provided by operating activities

 

51,102

 

52,541

 

7,246

 

(Less)/Add: Impact from JD Baitiao receivables included in the operating cash flow

 

(1,956

)

692

 

95

 

Less: Capital expenditures, net of related sales proceeds

 

 

Capital expenditures for development properties

 

(16,637

)

(14,390

)

(1,985

)

Other capital expenditures

 

(4,849

)

(5,372

)

(741

)

Free cash flow

 

27,660

 

33,471

 

4,615

 

 

 

 

 

 

 

 

 

Supplemental Information

The company reports four segments, JD Retail, JD Logistics, Dada and New businesses. JD Retail, including JD Health and JD Industrials, among other components, mainly engage in online retail, online marketplace and marketing services in China. JD Logistics includes both internal and external logistics businesses. Dada is a local on-demand delivery and retail platform in China. New businesses mainly include JD Property, Jingxi and overseas businesses.

The table below sets forth the segment operating results:

 

For the three months ended

 

For the six months ended

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

RMB

RMB

US$

 

RMB

RMB

US$

 

(In millions, except percentage data)

Net revenues:

 

 

 

 

 

 

 

JD Retail

241,557

 

253,280

 

34,929

 

 

459,081

 

465,638

 

64,214

 

JD Logistics

31,272

 

41,033

 

5,659

 

 

58,623

 

77,761

 

10,724

 

Dada

2,281

 

2,811

 

388

 

 

2,969

 

5,387

 

743

 

New businesses

6,265

 

4,316

 

595

 

 

12,020

 

7,766

 

1,071

 

Inter-segment eliminations *

(13,775

)

(13,509

)

(1,863

)

 

(25,438

)

(25,665

)

(3,539

)

Total consolidated net revenues

267,600

 

287,931

 

39,708

 

 

507,255

 

530,887

 

73,213

 

 

 

 

 

 

 

 

 

Operating income/(loss):

 

 

 

 

 

 

 

JD Retail

8,173

 

8,143

 

1,123

 

 

16,064

 

17,987

 

2,481

 

JD Logistics

36

 

510

 

70

 

 

(625

)

(613

)

(85

)

Dada

(424

)

(29

)

(4

)

 

(616

)

(246

)

(34

)

New businesses

(2,032

)

1,061

 

145

 

 

(4,418

)

904

 

123

 

Including: gain on sale of development properties

 

1,009

 

139

 

 

 

1,481

 

204

 

Total segment operating income

5,753

 

9,685

 

1,334

 

 

10,405

 

18,032

 

2,485

 

Unallocated items**

(1,995

)

(1,415

)

(194

)

 

(4,239

)

(3,335

)

(459

)

Total consolidated operating income

3,758

 

8,270

 

1,140

 

 

6,166

 

14,697

 

2,026

 

 

 

 

 

 

 

 

 

Operating margin:

 

 

 

 

 

 

 

JD Retail

3.4

%

3.2

%

3.2

%

 

3.5

%

3.9

%

3.9

%

JD Logistics

0.1

%

1.2

%

1.2

%

 

(1.1

)%

(0.8

)%

(0.8

)%

Dada

(18.6

)%

(1.0

)%

(1.0

)%

 

(20.7

)%

(4.6

)%

(4.6

)%

New businesses

(32.4

)%

24.6

%

24.6

%

 

(36.8

)%

11.6

%

11.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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


The table below sets forth the revenue information:

 

For the three months ended

 

For the six months ended

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

RMB

RMB

US$

 

RMB

RMB

US$

 

(In millions)

 

(In millions)

Electronics and home appliances revenues

136,618

152,131

20,980

 

254,986

269,130

37,115

General merchandise revenues

89,402

81,724

11,270

 

175,450

160,289

22,105

Net product revenues

226,020

233,855

32,250

 

430,436

429,419

59,220

 

 

 

 

 

Marketplace and marketing revenues

20,742

22,509

3,104

 

38,418

41,571

5,733

Logistics and other service revenues

20,838

31,567

4,354

 

38,401

59,897

8,260

Net service revenues

41,580

54,076

7,458

 

76,819

101,468

13,993

 

 

 

 

 

Total net revenues

267,600

287,931

39,708

 

507,255

530,887

73,213

 

 

 

 

 

 

 

 

Conference Call

JD.com’s management will hold a conference call at 8:00 am, Eastern Time on August 16, 2023, (8:00 pm, Beijing/Hong Kong Time on August 16, 2023) to discuss its financial results for the three months and six months ended June 30, 2023.

Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers, the Passcode and unique access PIN which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10032645-3wu7ql.html

CONFERENCE ID: 10032645

A telephone replay will be available for one week until August 23, 2023. The dial-in details are as follows:

US:

+1-855-883-1031

International:

+61-7-3107-6325

Hong Kong:

800-930-639

Mainland China:

400-120-9216

Passcode:

10032645

 

 

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

About JD.com

JD.com is a leading supply chain-based technology and service provider. The company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.

Non-GAAP Measures

In evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to the company's ordinary shareholders, non-GAAP net margin to the company’s ordinary shareholders, 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 the company's ordinary shareholders as net income/(loss) attributable to the company's ordinary shareholders excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements and non-compete agreements, gain/(loss) on disposals/deemed disposals of investments and others, reconciling items on the share of equity method investments, loss/(gain) from fair value change of long-term investments, impairment of goodwill, intangible assets and investments, gain in relation to sale of development properties and tax effects on non-GAAP adjustments. The company defines free cash flow as operating cash flow adjusting the impact from JD Baitiao receivables included in the operating cash flow and capital expenditures, net of the proceeds from sale of development properties. Capital expenditures include purchase of property, equipment and software, cash paid for construction in progress, purchase of intangible assets and land use rights. The company defines non-GAAP EBITDA as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions. Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to the company's 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 the company's 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 the company's ordinary shareholders and non-GAAP EBITDA reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from JD Baitiao receivables included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the company’s current operating performance and future prospects in the same manner as management does, if they so choose. The company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the company’s core operating results and business outlook.

The non-GAAP financial measures have limitations as analytical tools. The company’s non-GAAP financial measures do not reflect all items of income and expense that affect the company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The company encourages you to review the company’s financial information in its entirety and not rely on a single financial measure.

CONTACTS:

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

Media Relations
+86 (10) 8911-6155
Press@JD.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the 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 Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; laws, regulations and governmental policies relating to the industries in which JD.com or its business partners operate; potential changes in laws, regulations and governmental policies or changes in the interpretation and implementation of laws, regulations and governmental policies that could adversely affect the industries in which JD.com or its business partners operate, including, among others, initiatives to enhance supervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with JD.com’s acquisitions, investments and alliances, including fluctuation in the market value of JD.com’s investment portfolio; impact of the COVID-19 pandemic; natural disasters and geopolitical events; change in tax rates and financial risks; intensity of competition; and general market and economic conditions in China and globally. Further information regarding these and other risks is included in JD.com’s filings with the SEC and the announcements on the website of the Hong Kong Stock Exchange. All information provided herein is as of the date of this announcement, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law.


JD.com, Inc.

Unaudited Interim Condensed Consolidated Balance Sheets

(In millions, except otherwise noted)

 

 

 

 

 

As of

 

 

December 31,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

78,861

91,020

12,552

Restricted cash

 

6,254

8,129

1,121

Short-term investments

 

141,095

144,101

19,872

Accounts receivable, net (including JD

 

 

 

 

Baitiao of RMB3.1 billion and
RMB4.1 billion as of December 31,
2022 and June 30, 2023,
respectively)(1)

 

20,576

20,003

2,759

Advance to suppliers

 

3,838

2,584

356

Inventories, net

 

77,949

63,562

8,766

Prepayments and other current assets

 

15,156

15,410

2,125

Amount due from related parties

 

6,142

4,375

603

Assets held for sale

 

1,203

Total current assets

 

351,074

349,184

48,154

Non-current assets

 

 

 

 

Property, equipment and software, net

 

55,080

59,862

8,255

Construction in progress

 

11,161

9,857

1,359

Intangible assets, net

 

9,139

8,441

1,164

Land use rights, net

 

33,848

37,752

5,206

Operating lease right-of-use assets

 

22,267

22,396

3,089

Goodwill

 

23,123

23,123

3,189

Investment in equity investees

 

57,641

58,387

8,052

Investment securities

 

11,611

6,260

863

Deferred tax assets

 

1,536

1,506

208

Other non-current assets

 

18,770

27,156

3,745

Total non-current assets

 

244,176

254,740

35,130

Total assets

 

595,250

603,924

83,284

 

 

 

 

 



JD.com, Inc.

Unaudited Interim Condensed Consolidated Balance Sheets

(In millions, except otherwise noted)

 

 

 

 

 

As of

 

 

December 31,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Short-term debts

 

12,146

17,951

2,476

Accounts payable

 

160,607

152,011

20,963

Advance from customers

 

33,713

31,649

4,365

Deferred revenues

 

3,351

2,476

341

Taxes payable

 

5,926

7,563

1,043

Amount due to related parties

 

488

180

25

Accrued expenses and other current liabilities

 

42,570

39,923

5,504

Operating lease liabilities

 

7,688

7,945

1,096

Liabilities held for sale

 

72

Total current liabilities

 

266,561

259,698

35,813

Non-current liabilities

 

 

 

 

Deferred revenues

 

1,107

1,081

149

Unsecured senior notes

 

10,224

10,614

1,464

Deferred tax liabilities

 

6,511

7,213

995

Long-term borrowings

 

20,009

21,450

2,958

Operating lease liabilities

 

14,978

14,981

2,066

Other non-current liabilities

 

1,737

1,597

220

Total non-current liabilities

 

54,566

56,936

7,852

Total liabilities

 

321,127

316,634

43,665

 

 

 

 

 

MEZZANINE EQUITY

 

590

595

82

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

Total JD.com, Inc. shareholders’ equity (US$0.00002 par value, 100,000 million shares authorized, 3,183 million shares issued and 3,146 million shares outstanding as of June 30, 2023)

 

213,366

221,786

30,586

Non-controlling interests

 

60,167

64,909

8,951

Total shareholders’ equity

 

273,533

286,695

39,537

Total liabilities, mezzanine equity and shareholders’ equity

 

595,250

603,924

83,284

 

 

 

 

 

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


JD.com, Inc.

Unaudited Interim Condensed Consolidated Statements of Operations

(In millions, except per share data)

 

 

For the three months ended

 

For the six months ended

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

RMB

RMB

US$

 

RMB

RMB

US$

Net revenues

 

 

 

 

 

 

 

Net product revenues

226,020

 

233,855

 

32,250

 

 

430,436

 

429,419

 

59,220

 

Net service revenues

41,580

 

54,076

 

7,458

 

 

76,819

 

101,468

 

13,993

 

Total net revenues

267,600

 

287,931

 

39,708

 

 

507,255

 

530,887

 

73,213

 

Cost of revenues

(231,706

)

(246,498

)

(33,994

)

 

(437,915

)

(453,436

)

(62,532

)

Fulfillment

(16,308

)

(16,679

)

(2,300

)

 

(31,793

)

(32,050

)

(4,420

)

Marketing

(9,477

)

(11,063

)

(1,526

)

 

(18,182

)

(19,068

)

(2,630

)

Research and development

(4,027

)

(4,072

)

(562

)

 

(8,411

)

(8,258

)

(1,139

)

General and administrative

(2,324

)

(2,358

)

(325

)

 

(4,788

)

(4,859

)

(670

)

Gain on sale of development properties

 

1,009

 

139

 

 

 

1,481

 

204

 

Income from operation(2)(3)

3,758

 

8,270

 

1,140

 

 

6,166

 

14,697

 

2,026

 

Other income/(expenses)

 

 

 

 

 

 

 

Share of results of equity investees

(1,604

)

907

 

125

 

 

(2,685

)

86

 

12

 

Interest expense

(484

)

(654

)

(90

)

 

(828

)

(1,244

)

(172

)

Others, net(4)

3,586

 

1,211

 

167

 

 

(312

)

4,003

 

552

 

Income before tax

5,256

 

9,734

 

1,342

 

 

2,341

 

17,542

 

2,418

 

Income tax expenses

(1,227

)

(2,811

)

(388

)

 

(1,831

)

(4,420

)

(610

)

Net income

4,029

 

6,923

 

954

 

 

510

 

13,122

 

1,808

 

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

(350

)

342

 

47

 

 

(883

)

280

 

39

 

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

3

 

 

 

 

8

 

 

 

Net income attributable to the company's ordinary shareholders

4,376

 

6,581

 

907

 

 

1,385

 

12,842

 

1,769

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Basic

1.40

 

2.09

 

0.29

 

 

0.45

 

4.09

 

0.56

 

Diluted

1.37

 

2.08

 

0.29

 

 

0.43

 

4.04

 

0.56

 

Net income per ADS:

 

 

 

 

 

 

 

Basic

2.80

 

4.19

 

0.58

 

 

0.89

 

8.18

 

1.13

 

Diluted

2.74

 

4.15

 

0.57

 

 

0.85

 

8.08

 

1.11

 


JD.com, Inc.

Unaudited Interim Condensed Consolidated Statements of Operations

(In millions, except per share data)

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

 

RMB

RMB

US$

(2) Includes share-based compensation expenses as follows:

Cost of revenues

 

(28

)

(27

)

(4

)

 

(59

)

(64

)

(9

)

Fulfillment

 

(200

)

(132

)

(18

)

 

(427

)

(331

)

(46

)

Marketing

 

(149

)

(83

)

(11

)

 

(298

)

(218

)

(30

)

Research and development

 

(325

)

(155

)

(21

)

 

(740

)

(487

)

(67

)

General and administrative

 

(875

)

(580

)

(81

)

 

(1,904

)

(1,351

)

(186

)

Total

 

(1,577

)

(977

)

(135

)

 

(3,428

)

(2,451

)

(338

)

 

 

 

 

 

 

 

 

 

(3) Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows:

Fulfillment

 

(107

)

(103

)

(14

)

 

(180

)

(208

)

(28

)

Marketing

 

(219

)

(220

)

(30

)

 

(436

)

(439

)

(60

)

Research and development

 

(60

)

(83

)

(11

)

 

(98

)

(173

)

(24

)

General and administrative

 

(32

)

(32

)

(4

)

 

(97

)

(64

)

(9

)

Total

 

(418

)

(438

)

(59

)

 

(811

)

(884

)

(121

)

 

 

 

 

 

 

 

 

 

(4) Others, net are other non-operating income/(loss), primarily consist of gains/(losses) from fair value change of long-term investments, gains/(losses) from business and investment disposals, impairment of investments, government incentives, foreign exchange gains/(losses), interest income and gains/(losses) from fair value change of short-term investments.


JD.com, Inc.

Unaudited Non-GAAP Net Income Per Share and Per ADS

(In millions, except per share data)

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

 

RMB

RMB

US$

 

 

 

 

 

 

 

 

 

Non-GAAP net income attributable to the company's ordinary shareholders

 

6,489

8,557

1,180

 

10,521

16,148

2,225

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

Basic

 

3,121

3,143

3,143

 

3,119

3,141

3,141

Diluted

 

3,176

3,166

3,166

 

3,182

3,173

3,173

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

Basic

 

2.08

2.72

0.38

 

3.37

5.14

0.71

Diluted

 

2.03

2.70

0.37

 

3.29

5.08

0.70

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS:

 

 

 

 

 

 

 

 

Basic

 

4.16

5.44

0.75

 

6.75

10.28

1.42

Diluted

 

4.06

5.39

0.74

 

6.58

10.16

1.40


JD.com, Inc.

Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free Cash Flow

(In millions)

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

 

RMB

RMB

US$

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

33,667

 

46,511

 

6,414

 

 

30,182

 

24,904

 

3,434

 

Net cash used in investing activities

 

(30,926

)

(28,127

)

(3,879

)

 

(26,364

)

(11,435

)

(1,577

)

Net cash provided by/(used in) financing activities

 

(11,309

)

(1,832

)

(253

)

 

1,386

 

(577

)

(80

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

3,126

 

1,827

 

252

 

 

2,668

 

1,101

 

152

 

Net increase/(decrease) in cash, cash equivalents and restricted cash

 

(5,442

)

18,379

 

2,534

 

 

7,872

 

13,993

 

1,929

 

Cash, cash equivalents and restricted cash at beginning of period, including cash and cash equivalents classified within assets held for sale

 

90,006

 

80,770

 

11,139

 

 

76,692

 

85,156

 

11,744

 

Less: cash, cash equivalents, and restricted cash classified within assets held for sale at beginning of period

 

 

 

 

 

 

(41

)

(6

)

Cash, cash equivalents, and restricted cash at beginning of period

 

90,006

 

80,770

 

11,139

 

 

76,692

 

85,115

 

11,738

 

Cash, cash equivalents and restricted cash at end of period

 

84,564

 

99,149

 

13,673

 

 

84,564

 

99,149

 

13,673

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

33,667

 

46,511

 

6,414

 

 

30,182

 

24,904

 

3,434

 

Add: Impact from JD Baitiao receivables included in the operating cash flow

 

1,802

 

1,586

 

219

 

 

68

 

1,004

 

138

 

Less: Capital expenditures, net of related sales proceeds

 

 

 

 

 

 

 

 

Capital expenditures for development properties

 

(4,947

)

(2,363

)

(326

)

 

(7,623

)

(4,508

)

(622

)

Other capital expenditures

 

(513

)

(1,244

)

(172

)

 

(1,415

)

(2,312

)

(319

)

Free cash flow

 

30,009

 

44,490

 

6,135

 

 

21,212

 

19,088

 

2,631

 


JD.com, Inc.

Supplemental Financial Information and Business Metrics

(In RMB billions, except turnover days data)

 

 

 

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Cash flow and turnover days

 

 

 

 

 

 

Operating cash flow – trailing twelve months (“TTM”)

 

51.1

45.8

57.8

39.7

52.5

Free cash flow – TTM

 

27.7

25.8

35.6

19.0

33.5

Inventory turnover days(5) – TTM

 

31.5

31.7

33.2

32.4

31.7

Accounts payable turnover days(6) – TTM

 

49.4

50.4

52.5

51.3

52.8

Accounts receivable turnover days(7) – TTM

 

3.6

4.0

4.5

4.8

5.0

 


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

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

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


JD.com, Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results

(In millions, except percentage data)

 

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

 

RMB

RMB

US$

 

 

 

 

 

 

 

 

 

Income from operations

 

3,758

 

8,270

 

1,140

 

 

6,166

 

14,697

 

2,026

 

Add: Share-based compensation

 

1,577

 

977

 

135

 

 

3,428

 

2,451

 

338

 

Add: Amortization of intangible assets resulting from assets and business acquisitions

 

291

 

327

 

44

 

 

549

 

663

 

91

 

Add: Effects of business cooperation arrangements

 

127

 

111

 

15

 

 

262

 

221

 

30

 

Reversal of: Gain on sale of development properties

 

 

(1,009

)

(139

)

 

 

(1,481

)

(204

)

Non-GAAP income from operations

 

5,753

 

8,676

 

1,195

 

 

10,405

 

16,551

 

2,281

 

Add: Depreciation and other amortization

 

1,422

 

1,727

 

239

 

 

2,836

 

3,351

 

462

 

Non-GAAP EBITDA

 

7,175

 

10,403

 

1,434

 

 

13,241

 

19,902

 

2,743

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

267,600

 

287,931

 

39,708

 

 

507,255

 

530,887

 

73,213

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin

 

2.1

%

3.0

%

3.0

%

 

2.1

%

3.1

%

3.1

%

 

 

 

 

 

 

 

 

 

Non-GAAP EBITDA margin

 

2.7

%

3.6

%

3.6

%

 

2.6

%

3.7

%

3.7

%


JD.com, Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results

(In millions, except percentage data)

 

 

 

For the three months ended

 

For the six months ended

 

 

June 30,
2022

June 30,
2023

June 30,
2023

 

June 30,
2022

June 30,
2023

June 30,
2023

 

 

RMB

RMB

US$

 

RMB

RMB

US$

 

 

 

 

 

 

 

 

 

Net income attributable to the company's ordinary shareholders

 

4,376

 

6,581

 

907

 

 

1,385

 

12,842

 

1,769

 

Add: Share-based compensation

 

1,314

 

739

 

102

 

 

2,907

 

1,995

 

275

 

Add: Amortization of intangible assets resulting from assets and business acquisitions

 

201

 

159

 

22

 

 

399

 

381

 

53

 

Add/(Reversal of): Reconciling items on the share of equity method investments(8)

 

441

 

(139

)

(19

)

 

830

 

701

 

97

 

Add: Impairment of goodwill, intangible assets, and investments

 

1,257

 

1,362

 

188

 

 

1,257

 

1,388

 

191

 

(Reversal of)/Add: (Gain)/Loss from fair value change of long-term investments

 

(1,069

)

488

 

67

 

 

165

 

(388

)

(54

)

Reversal of: Gain on sale of development properties

 

 

(756

)

(104

)

 

 

(1,120

)

(154

)

(Reversal of) /Add: Net (gain)/loss on disposals/deemed disposals of investments and others

 

(31

)

(29

)

(4

)

 

3,518

 

(50

)

(7

)

Add: Effects of business cooperation arrangements and non-compete agreements

 

127

 

111

 

15

 

 

250

 

221

 

30

 

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

 

(127

)

41

 

6

 

 

(190

)

178

 

25

 

Non-GAAP net income attributable to the company's ordinary shareholders

 

6,489

 

8,557

 

1,180

 

 

10,521

 

16,148

 

2,225

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

267,600

 

287,931

 

39,708

 

 

507,255

 

530,887

 

73,213

 

 

 

 

 

 

 

 

 

 

Non-GAAP net margin to the company’s ordinary shareholders

 

2.4

%

3.0

%

3.0

%

 

2.1

%

3.0

%

3.0

%



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

 

Reconciliation between U.S. GAAP and International Financial Reporting Standards

Deloitte Touche Tohmatsu was engaged by the company to conduct limited assurance engagement in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information" ("HKSAE 3000 (Revised)") issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA") on the reconciliation of the condensed consolidated statement of operations for the six months ended June 30, 2023 and the condensed consolidated balance sheet as at June 30, 2023 of the company and its subsidiaries (collectively referred to as the "Group") between the accounting policies adopted by the Group of the relevant period in accordance with the accounting principles generally accepted in the United States of America (the "U.S. GAAP") and the International Financial Reporting Standards (the "IFRSs") issued by the International Accounting Standards Board (together, the "Reconciliation").

The limited assurance engagement undertaken in accordance with HKSAE 3000 (Revised) involves performing procedures to obtain sufficient appropriate evidence about whether:

  • the related adjustments and reclassifications give appropriate effect to those criteria; and

  • the Reconciliation reflects the proper application of the adjustments and reclassifications to the differences between the Group's accounting policies in accordance with the U.S. GAAP and the IFRSs.

The procedures performed by Deloitte Touche Tohmatsu were based on their professional judgment, having regard to their understanding of the management’s process on preparing the Reconciliation, nature, business performance and financial position of the Group. Given the circumstances of the engagement, the procedures performed included:

(i) Comparing the "Amounts as recorded under U.S. GAAP" for the six months ended June 30, 2023 in the Reconciliation as set out in the Appendix with the Interim 2023 Results prepared in accordance with the U.S. GAAP;
(ii) Evaluating the assessment made by the board of directors in identifying the differences between the accounting policies in accordance with the U.S. GAAP and the IFRSs, and the evidence supporting the adjustments and reclassifications made in the Reconciliation in arriving at the "Amounts as recorded under IFRSs" in the Reconciliation as set out in the Appendix; and
(iii) Checking the arithmetic accuracy of the computation of the Reconciliation as set out in the Appendix.

The procedures performed by Deloitte Touche Tohmatsu in this limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Accordingly, Deloitte Touche Tohmatsu do not express a reasonable assurance opinion.

Based on the procedures performed and evidence obtained, Deloitte Touche Tohmatsu have concluded that nothing has come to their attention that causes them to believe that:

(i) The "Amounts as recorded under U.S. GAAP" for the six months ended June 30, 2023 in the Reconciliation as set out in the Appendix is not in agreement with the Interim 2023 Results prepared in accordance with the U.S. GAAP;
(ii) The adjustments and reclassifications made in the Reconciliation in arriving at the "Amounts as recorded under IFRSs" in the Reconciliation as set out in the Appendix, do not reflect, in all material respects, the different accounting treatments according to the Group's accounting policies in accordance with the U.S. GAAP and the IFRSs of the relevant period; and
(iii) The computation of the Reconciliation as set out in the Appendix is not arithmetically accurate.

Appendix

 

 

 

For six months ended June 30, 2022

 

 

IFRSs adjustments

 

 

Amounts as recorded under U.S. GAAP

 

 

Preferred shares

 

 

Investments measured
at fair value

 

 

Share-based compensation

 

Lease

 

 

Amounts as recorded under IFRSs

 

 

(RMB in millions)

 

 

Note i

Note ii

Note iii

 

Note iv

 

Fulfillment

(31,793

)

 

-

 

 

-

 

 

-

 

597

 

 

(31,196

)

Marketing

(18,182

)

 

-

 

 

-

 

 

-

 

2

 

 

(18,180

)

Research and development

(8,411

)

 

-

 

 

-

 

 

-

 

3

 

 

(8,408

)

General and administrative

(4,788

)

 

-

 

 

-

 

 

-

 

4

 

 

(4,784

)

Income from operations

6,166

 

 

-

 

 

-

 

 

-

 

606

 

 

6,772

 

Share of results of equity investees

(2,685

)

 

-

 

 

279

 

 

-

 

-

 

 

(2,406

)

Interest expense

(828

)

 

-

 

 

-

 

 

-

 

(487

)

 

(1,315

)

Others, net

(312

)

 

-

 

 

(2,380

)

 

-

 

-

 

 

(2,692

)

Fair value changes of preferred shares

-

 

 

(1,074

)

 

-

 

 

-

 

-

 

 

(1,074

)

Income/(loss) before tax

2,341

 

 

(1,074

)

 

(2,101

)

 

-

 

119

 

 

(715

)

Income tax expenses

(1,831

)

 

-

 

 

1

 

 

3

 

-

 

 

(1,827

)

Net income/(loss)

510

 

 

(1,074

)

 

(2,100

)

 

3

 

119

 

 

(2,542

)

Net loss attributable to non-controlling interests shareholders

(883

)

 

(185

)

 

45

 

 

-

 

(29

)

 

(1,052

)

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

8

 

 

(8

)

 

-

 

 

-

 

-

 

 

-

 

Net income/(loss) attributable to the company’s ordinary shareholders

1,385

 

 

(881

)

 

(2,145

)

 

3

 

148

 

 

(1,490

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The condensed consolidated financial statements are prepared in accordance with U.S. GAAP, which differ in certain respects from IFRSs. The effects of material differences between the condensed consolidated financial statements of the Group prepared under U.S. GAAP and IFRSs are as follows:

 

For six months ended June 30, 2023

 

IFRSs adjustments

 

 

 

Amounts as recorded under U.S. GAAP

Preferred shares

 

 

Investments
measured at fair
value

 

 

Share-based compensation

 

 

Lease

 

 

Redeemable equity securities

 

 

Amounts as recorded under IFRSs

 

 

(RMB in millions)

 

 

Note i

Note ii

Note iii

Note iv

Note v

 

Fulfillment

(32,050

)

 

-

 

 

-

 

 

-

 

 

845

 

 

-

 

 

(31,205

)

Marketing

(19,068

)

 

-

 

 

-

 

 

-

 

 

2

 

 

-

 

 

(19,066

)

Research and development

(8,258

)

 

-

 

 

-

 

 

-

 

 

3

 

 

-

 

 

(8,255

)

General and administrative

(4,859

)

 

-

 

 

-

 

 

-

 

 

4

 

 

-

 

 

(4,855

)

Gain on sale of development properties

1,481

 

 

-

 

 

-

 

 

-

 

 

(250

)

 

-

 

 

1,231

 

Income from operations

14,697

 

 

-

 

 

-

 

 

-

 

 

604

 

 

-

 

 

15,301

 

Share of results of equity investees

86

 

 

-

 

 

(391

)

 

-

 

 

-

 

 

-

 

 

(305

)

Interest expense

(1,244

)

 

-

 

 

-

 

 

-

 

 

(517

)

 

(7

)

 

(1,768

)

Others, net

4,003

 

 

-

 

 

374

 

 

-

 

 

-

 

 

-

 

 

4,377

 

Fair value changes of preferred shares

-

 

 

(818

)

 

-

 

 

-

 

 

-

 

 

-

 

 

(818

)

Income before tax

17,542

 

 

(818

)

 

(17

)

 

-

 

 

87

 

 

(7

)

 

16,787

 

Income tax expenses

(4,420

)

 

-

 

 

(30

)

 

(265

)

 

-

 

 

-

 

 

(4,715

)

Net income

13,122

 

 

(818

)

 

(47

)

 

(265

)

 

87

 

 

(7

)

 

12,072

 

Net income attributable to non-controlling interests shareholders

280

 

 

(207

)

 

(2

)

 

-

 

 

(28

)

 

-

 

 

43

 

Net income attributable to the company’s ordinary shareholders

12,842

 

 

(611

)

 

(45

)

 

(265

)

 

115

 

 

(7

)

 

12,029

 


 

As of December 31, 2022

 

 

IFRSs adjustments

 

 

 

Amounts as recorded under U.S. GAAP

 

Preferred shares

 

Investments measured at fair value

 

Share-based compensation

 

Lease

 

 

Redeemable equity securities

 

 

Amounts as recorded under IFRSs

 

(RMB in millions)

 

 

 

Note i

Note ii

Note iii

 

Note iv

Note v

 

Operating lease right-of-use assets

22,267

 

-

 

 

-

 

 

-

 

(1,883

)

 

-

 

 

20,384

Investment in equity investees

57,641

 

-

 

 

(35,851

)

 

-

 

-

 

 

-

 

 

21,790

Investment securities

11,611

 

-

 

 

(11,611

)

 

-

 

-

 

 

-

 

 

-

Financial assets at fair value through profit or loss

-

 

-

 

 

48,893

 

 

-

 

-

 

 

-

 

 

48,893

Financial assets at fair value through other comprehensive income

-

 

-

 

 

834

 

 

-

 

-

 

 

-

 

 

834

Deferred tax assets

1,536

 

-

 

 

38

 

 

50

 

-

 

 

-

 

 

1,624

Total assets

595,250

 

-

 

 

2,303

 

 

50

 

(1,883

)

 

-

 

 

595,720

Deferred tax liabilities

6,511

 

-

 

 

487

 

 

-

 

-

 

 

-

 

 

6,998

Other non-current liabilities

1,737

 

-

 

 

-

 

 

-

 

-

 

 

547

 

 

2,284

Preferred shares

 

 

16,084

 

 

-

 

 

-

 

-

 

 

-

 

 

16,084

Total liabilities

321,127

 

16,084

 

 

487

 

 

-

 

-

 

 

547

 

 

338,245

Mezzanine Equity

590

 

-

 

 

-

 

 

-

 

-

 

 

(590

)

 

-

Total JD.com, Inc. shareholders’ equity

213,366

 

(6,408

)

 

1,751

 

 

46

 

(1,794

)

 

(440

)

 

206,521

Non-controlling interests

60,167

 

(9,676

)

 

65

 

 

4

 

(89

)

 

483

 

 

50,954

Total shareholders’ equity

273,533

 

(16,084

)

 

1,816

 

 

50

 

(1,883

)

 

43

 

 

257,475


 

As of June 30, 2023

 

 

IFRSs adjustments

 

 

 

Amounts as recorded under U.S. GAAP

 

Preferred shares

 

Investments measured at fair value

 

Share-based compensation

 

Lease

 

Redeemable equity securities

 

Amounts as recorded under IFRSs

 

(RMB in millions)

 

 

 

Note i

Note ii

Note iii

Note iv

Note v

 

Operating lease right-of-use assets

22,396

 

-

 

 

-

 

 

-

 

 

(1,796

)

 

-

 

 

20,600

Investment in equity investees

58,387

 

-

 

 

(36,441

)

 

-

 

 

-

 

 

-

 

 

21,946

Investment securities

6,260

 

-

 

 

(6,260

)

 

-

 

 

-

 

 

-

 

 

-

Financial assets at fair value through profit or loss

-

 

-

 

 

44,497

 

 

-

 

 

-

 

 

-

 

 

44,497

Financial assets at fair value through other comprehensive income

-

 

-

 

 

448

 

 

-

 

 

-

 

 

-

 

 

448

Deferred tax assets

1,506

 

-

 

 

49

 

 

(438

)

 

-

 

 

-

 

 

1,117

Total assets

603,924

 

-

 

 

2,293

 

 

(438

)

 

(1,796

)

 

-

 

 

603,983

Deferred tax liabilities

7,213

 

-

 

 

519

 

 

-

 

 

-

 

 

-

 

 

7,732

Other non-current liabilities

1,597

 

-

 

 

                             -

 

 

                              -

 

 

                               -

 

 

554

 

 

2,151

Preferred shares

-

 

18,484

 

 

-

 

 

-

 

 

-

 

 

-

 

 

18,484

Total liabilities

316,634

 

18,484

 

 

519

 

 

-

 

 

-

 

 

554

 

 

336,191

Mezzanine Equity

595

 

-

 

 

-

 

 

-

 

 

-

 

 

(595

)

 

-

Total JD.com, Inc. shareholders’ equity

221,786

 

(6,576

)

 

1,674

 

 

(442

)

 

(1,679

)

 

(447

)

 

214,316

Non-controlling interests

64,909

 

(11,908

)

 

100

 

 

4

 

 

(117

)

 

488

 

 

53,476

Total shareholders’ equity

286,695

 

(18,484

)

 

1,774

 

 

(438

)

 

(1,796

)

 

41

 

 

267,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes

(i) Preferred shares

Under U.S. GAAP, preferred shares of the Group are accounted for as mezzanine equity or non-controlling interests, depending on the redeemable features exist or not. The preferred shares with redeemable features are classified as mezzanine equity because they are redeemable contingently upon the occurrence of certain events outside of the Group’s control. This kind of preferred shares are recorded initially at fair value, net of issuance costs at the date of issuance. Accretion to the respective redemption value of the preferred shares over the period is recognized starting from issuance date to the earliest redemption date.

Under IFRS, since the Group does not have an unconditional right to avoid delivering cash, the preferred shares represent liability. With certain embedded features, the Group designates the entire preferred shares as financial liabilities at fair value through profit or loss and are initially recognized at fair value, while the changes in the fair value are recognized in profit or loss. The issuance costs are recorded in profit or loss.

(ii) Investments measured at fair value

Under U.S. GAAP, the Group uses measurement alternative to record the investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and reports changes in the carrying value of the equity investments in profit or loss. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Those investments include convertible redeemable preferred shares, ordinary shares with preferential rights issued by privately held companies and equity investments in unlisted entities, in the form of ordinary shares without significant influence. In addition, the Group accounts for certain investments in private equity funds over which the Group does not have the ability to exercise significant influence under the existing practical expedient, and estimates fair value using net asset value per share (or its equivalent) of the investment. The Group also applies the equity method of accounting to account for certain equity investments in private equity funds.

Under IFRS, the aforementioned investments are classified as financial assets at fair value through profit or loss and measured at fair value, except for certain equity investments not held for trading but held for long-term strategic purposes, which are designated as financial assets at fair value through other comprehensive income. Fair value changes of these long-term investments are recognized in profit or loss or other comprehensive income, respectively.

(iii) Share-based compensation

Under U.S. GAAP, for awards that ordinarily give rise to a tax deduction under existing tax law, deferred taxes are computed on the basis of the compensation expense that is recognized for financial reporting purposes. In addition, tax benefits in excess of or less than the related deferred tax assets are recognized in profit or loss in the period in which the amount of the deduction is determined (typically when an award vests or, in the case of options, is exercised or expires).

Under IFRS, for awards that will give rise to a tax deduction under the applicable tax law, deferred taxes are computed on the basis of the hypothetical tax deduction for the share-based payment that corresponds to the percentage earned to date (i.e., the intrinsic value of the award on the reporting date multiplied by the percentage vested). In addition, tax benefits less than or equal to the related deferred tax assets are recognized in profit or loss, otherwise are recognized in equity.

(iv) Lease

Lease classification and measurement

Under U.S. GAAP, the amortization of the right-of-use assets and interest expense related to the lease liabilities are recorded together as lease expense to produce a straight-line recognition effect in profit or loss.

Under IFRS, the amortization of the right-of-use assets is on a straight-line basis while the interest expense related to the lease liabilities are measured at amortized cost.

Sale-and-leaseback arrangements

Under U.S. GAAP, if the sale-and-leaseback transaction qualifies as a sale, the entire gain on the transaction would be recognized.

Under IFRS, for sale-and-leaseback transactions that qualify as a sale, the gain would be limited to the amount related to the residual portion of the asset sold. The amount of the gain related to the underlying asset leased back to the lessee would be offset against the lessee’s right-of-use assets.

(v) Redeemable equity securities

Under U.S. GAAP, certain financial instruments of the Group in the form of shares with redemption features embedded are classified as redeemable non-controlling interests, when the realization of the redemption feature is subject to certain conditions that are not solely within the Group’s control.

Under IFRS, these financial instruments are classified as liabilities irrespective of whether the obligation is unconditional or conditional.

______________

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 June 30, 2023, which was RMB7.2513 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 The numbers also include warehouses managed by Deppon Logistics Co., Ltd. (“Deppon”, Shanghai Stock Exchange code: 603056) and its subsidiaries (collectively, “Deppon Group”). In the third quarter of 2022, JD Logistics completed the acquisition of the controlling interest in Deppon and began to consolidate its financial results.