2024-11-14 09:00Financial Performance - For Q3 2024, JD.com reported revenue of RMB 260.4 billion (USD 37.1 billion), an increase of 5.1% compared to Q3 2023[4] - Operating profit for Q3 2024 was RMB 12 billion (USD 1.7 billion), up 29.5% year-over-year, with an operating margin of 4.6% compared to 3.8% in Q3 2023[4] - Net profit attributable to ordinary shareholders for Q3 2024 was RMB 11.7 billion (USD 1.7 billion), a 47.8% increase from Q3 2023, with a net profit margin of 4.5%[4] - Diluted earnings per American depositary share for Q3 2024 were RMB 7.73 (USD 1.10), a 54.6% increase from RMB 5.00 in Q3 2023[5] - Revenue increased by 5.1% from RMB 247.7 billion in Q3 2023 to RMB 260.4 billion (USD 37.1 billion) in Q3 2024, with product revenue up 4.8% and service revenue up 6.5%[12] - Operating profit rose by 29.5% from RMB 9.3 billion in Q3 2023 to RMB 12.0 billion (USD 1.7 billion) in Q3 2024, with an operating margin of 4.6%[14] - Net profit attributable to ordinary shareholders increased by 47.8% from RMB 7.9 billion in Q3 2023 to RMB 11.7 billion (USD 1.7 billion) in Q3 2024, with a net profit margin of 4.5%[15] - Total revenue for the three months ended September 30, 2024, was RMB 260,387 million (USD 37,105 million), representing a year-over-year increase of 5.1%[22] - The company’s total revenue for the nine months ended September 30, 2024, was RMB 811,833 million, an increase of 4.3% year-over-year[22] Shareholder Returns - The company repurchased approximately 31.0 million Class A ordinary shares (equivalent to 15.5 million ADS) for about USD 390 million in Q3 2024[7] - JD.com initiated a new share repurchase program with a maximum value of USD 5 billion, effective until August 2027[7] - The company completed its previously announced share repurchase plan and highlighted its commitment to shareholder returns[6] Expenses and Investments - Research and development expenses grew by 15.9% from RMB 3.8 billion in Q3 2023 to RMB 4.4 billion (USD 0.6 billion) in Q3 2024, representing 1.7% of revenue[13] - Marketing expenses increased by 25.7% from RMB 8.0 billion in Q3 2023 to RMB 10.0 billion (USD 1.4 billion) in Q3 2024, accounting for 3.8% of revenue[12] - The company has made significant investments in new product development and market expansion strategies to enhance its competitive position[42] Cash Flow and Liquidity - Free cash flow for Q3 2024 was negative RMB 13.8 billion (USD 1.9 billion), a decrease from positive RMB 8.3 billion in Q3 2023[16] - Cash and cash equivalents totaled RMB 196.8 billion (USD 28.0 billion) as of September 30, 2024, slightly down from RMB 197.7 billion at the end of 2023[16] - For the twelve months ended September 30, 2024, the company's free cash flow was RMB 33,569 million (USD 4,784 million), down from RMB 39,396 million in the previous year[18] Business Segments and Operations - JD Retail announced a comprehensive layout in the apparel category, aiming to enhance consumer experience and attract international luxury brands[8] - Revenue from JD Retail for the three months ended September 30, 2024, was RMB 224,986 million, up 6.1% compared to the same period last year[20] - Operating profit for JD Retail for the three months ended September 30, 2024, was RMB 11,608 million, with an operating margin of 5.2%[20] - The logistics segment reported revenue of RMB 44,396 million for the three months ended September 30, 2024, reflecting a 6.6% increase year-over-year[20] - New business revenue for the three months ended September 30, 2024, was RMB 4,970 million, down 25.7% compared to the same period last year[20] - The company plans to report financial data across three segments: JD Retail, JD Logistics, and New Businesses starting from Q1 2024[19] Non-GAAP Metrics - The company utilizes non-GAAP financial metrics such as operating profit/loss, net profit/loss attributable to ordinary shareholders, and EBITDA to assess business performance[26] - Non-GAAP operating profit/loss excludes stock-based compensation, intangible asset amortization from acquisitions, and other non-recurring items, providing a clearer view of ongoing operations[27] - Non-GAAP EBITDA is calculated by adding back depreciation and amortization to non-GAAP operating profit/loss, excluding intangible asset amortization from acquisitions[27] - The company believes that non-GAAP financial metrics help investors understand and evaluate current operational performance and future prospects[27] - Limitations exist in using non-GAAP metrics as they do not reflect all revenue and expense items affecting operations, and comparability with other companies may be limited[28] - The management team uses non-GAAP metrics to formulate business plans and assess liquidity and cash flow needs[27] Future Outlook - The company provided guidance for the next quarter, expecting continued growth in revenue driven by market expansion and new product launches[36] - Forward-looking statements regarding business outlook and management's expectations are subject to risks and uncertainties, including market trends and regulatory changes[29]