JD(JD) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenues for Q3 2024 were RMB260.4 billion (US$37.1 billion), a 5.1$1.7 billion), marking a 29.5% increase year-on-year, with an operating margin of 4.6%[5] - Net income attributable to ordinary shareholders increased by 47.8% to RMB11.7 billion (US$1.7 billion), with a net margin of 4.5$1.9 billion), a 23.9% increase from the previous year[21] - Total consolidated net revenues for Q3 2024 reached RMB260.4 billion (US$37.1 billion), representing a year-over-year increase of 5.1$32.1 billion) in Q3 2024[29] - JD Logistics segment revenues grew by 6.6% year-over-year to RMB44.4 billion (US$6.3 billion) in Q3 2024[29] - Non-GAAP net income for the nine months ended September 30, 2024, was RMB31,505 million, compared to RMB20,778 million for the same period in 2023, indicating a growth of approximately 51.6$(1.97) billion), compared to RMB8.3 billion in Q3 2023, indicating a significant decline[23] - Net cash used in operating activities for Q3 2024 was RMB6.2 billion (US$0.9 billion), a decrease of RMB21.2 billion compared to Q3 2023, primarily due to payment delays and swift payments for supplies[24] - Free cash flow for the twelve months ended September 30, 2024, was RMB33.6 billion (US$4.8 billion), down from RMB39.4 billion in the previous year[27] - Cash and cash equivalents as of September 30, 2024, were RMB99,092 million, an increase from RMB71,892 million as of December 31, 2023[43] - The company experienced a net increase in cash and cash equivalents of RMB12,909 million in Q3 2024, down from RMB24,719 million in Q3 2023[51] Expenses and Investments - Marketing expenses increased by 25.7% to RMB10.0 billion (US$1.4 billion), representing 3.8$0.6 billion), accounting for 1.7% of net revenues[17] - Capital expenditures for development properties in Q3 2024 amounted to RMB3.5 billion (US$0.5 billion)[23] - Research and development expenses for Q3 2024 were RMB172 million, down from RMB203 million in Q3 2023[49] Shareholder Actions - The company completed a share repurchase of approximately 31.0 million Class A ordinary shares for about US$390 million in Q3 2024[8] Segment Reporting and Business Developments - The company has restructured its reporting segments into JD Retail, JD Logistics, and New Businesses to better align with its operational strategies[28] - JD.com expanded its apparel and accessories business and launched flagship stores for French luxury brands BALENCIAGA and SAINT LAURENT[11] - JD Health introduced online payment through individual medical insurance accounts in twelve cities, covering over 100 million people[11] - JD Logistics integrated with Taobao and Tmall platforms, enhancing service offerings for merchants[11] Assets and Liabilities - As of September 30, 2024, the company's cash and cash equivalents totaled RMB196.8 billion (US$28.0 billion), a slight decrease from RMB197.7 billion as of December 31, 2023[23] - Total assets increased to RMB643,559 million as of September 30, 2024, compared to RMB628,958 million as of December 31, 2023, showing a growth of approximately 2.5%[43] - Total liabilities as of September 30, 2024, were RMB346,814 million, up from RMB332,578 million as of December 31, 2023, representing an increase of about 4.3%[44] Non-GAAP Measures and Future Outlook - The Company emphasizes the importance of non-GAAP financial measures for evaluating operating performance and future prospects, despite their limitations[37] - Forward-looking statements indicate that JD.com anticipates growth in the Chinese e-commerce market and plans to enhance customer retention and revenue generation from repeat customers[39] - Non-GAAP operating margin improved to 5.0% in Q3 2024 from 4.5% in Q3 2023[56] Impairments and Other Adjustments - The Company reported an impairment of goodwill and long-lived assets amounting to RMB1,036 million for the three months ended September 30, 2024, compared to RMB384 million in the same period of 2023[57] - The Company experienced a loss from fair value change of long-term investments of RMB360 million for the three months ended September 30, 2024, compared to a gain of RMB783 million in the same period of 2023[57] - Share-based compensation decreased to RMB639 million for the three months ended September 30, 2024, down from RMB1,078 million in the same period of 2023[57] - The Company recorded a reversal of gain on disposals of investments amounting to RMB49 million for the three months ended September 30, 2024, compared to a loss of RMB5 million in the same period of 2023[57] - The effects of business cooperation arrangements and non-compete agreements contributed RMB113 million for the three months ended September 30, 2024, slightly up from RMB112 million in the same period of 2023[57] - Tax effects on non-GAAP adjustments showed a reversal of RMB67 million for the three months ended September 30, 2024, compared to a reversal of RMB96 million in the same period of 2023[57]