JD(JD) - 2024 Q3 - Quarterly Results

Revenue Growth - Net revenues increased by 5.1% to RMB260.4 billion (US$37.1 billion) for Q3 2024, driven by growth in electronics, home appliances, and general merchandise[1][14] - JD Retail net revenues increased 6.1$32.060 billion) in Q3 2024[19] - JD Logistics net revenues grew 6.6% YoY to RMB44.396 billion (US$6.326 billion) in Q3 2024[19] - General merchandise revenues grew 8.0$11.692 billion) in Q3 2024[19] - Logistics and other service revenues increased 6.5% YoY to RMB35.011 billion (US$4.989 million) in Q3 2024[19] - Total consolidated net revenues increased 5.1$37.105 billion) in Q3 2024[21] - Total net revenues for the three months ended September 30, 2024, increased to RMB 260,387 million (US$37,105 million), up from RMB 247,698 million in the same period last year[35] - Net product revenues for the three months ended September 30, 2024, increased to RMB 204,613 million (US$ 29,157 million), up from RMB 195,304 million in the same period last year[35] - Net service revenues for the three months ended September 30, 2024, rose to RMB 55,774 million (US$7,948 million), up from RMB 52,394 million in the same period last year[35] - Total net revenues for Q3 2024 were RMB 260,387 million (US$ 37,105 million), up from RMB 247,698 million in Q3 2023[44] Profitability and Margins - Income from operations rose 29.5% to RMB12.0 billion (US$1.7 billion) with an operating margin of 4.6$1.7 billion), with a net margin of 4.5%, up from 3.2% in Q3 2023[3][15] - Diluted net income per ADS increased 54.6% to RMB7.73 (US$1.10) for Q3 2024[4][15] - Non-GAAP net income attributable to JD.com's ordinary shareholders increased to RMB 13,174 million (US$ 1,877 million) for Q3 2024, up from RMB 10,637 million in Q3 2023[37] - Non-GAAP operating margin improved to 5.0% in Q3 2024 from 4.5% in Q3 2023[43] - Non-GAAP EBITDA margin increased to 5.8% in Q3 2024 from 5.2% in Q3 2023[43] - Non-GAAP net margin attributable to JD.com's ordinary shareholders increased to 5.1% in Q3 2024 from 4.3% in Q3 2023[44] Share Repurchase and Equity - JD.com repurchased 31.0 million Class A ordinary shares (15.5 million ADSs) for US$390 million in Q3 2024, totaling 1.1$5.0 billion share repurchase program effective from September 2024 through August 2027[7] - Total shareholders' equity as of September 30, 2024, was RMB 228,611 million (US$32,576 million), slightly down from RMB 231,858 million as of December 31, 2023[31] Cash Flow and Financial Position - Free cash flow for Q3 2024 was negative RMB13.8 billion (US$1.97 billion), compared to positive RMB8.3 billion in Q3 2023[16] - Net cash used in operating activities decreased by RMB21.2 billion to RMB6.2 billion (US$0.9 billion) in Q3 2024 compared to Q3 2023[17] - Net cash provided by investing activities was RMB21.7 billion (US$3.1 billion) in Q3 2024, primarily from maturity of short-term investments[17] - Net cash used in financing activities was RMB1.8 billion (US$0.3 billion) in Q3 2024, mainly due to share repurchases[17] - Free cash flow for the twelve months ended September 30, 2024 was RMB33.569 billion (US$4.784 billion), down from RMB39.396 billion in the prior year[18] - Free cash flow for Q3 2024 was negative at RMB -13,809 million (US$-1,968 million), compared to RMB 8,264 million in Q3 2023[39] - Operating cash flow for the trailing twelve months (TTM) decreased to RMB 52.8 billion in Q3 2024 from RMB 58.4 billion in Q3 2023[40] Segment Performance - New Businesses segment revenues declined 25.7$708 million) in Q3 2024[19] Assets and Liabilities - Total assets as of September 30, 2024, stood at RMB 643,559 million (US$91,706 million), up from RMB 628,958 million as of December 31, 2023[29] - Short-term investments as of September 30, 2024, were RMB 91,801 million (US$ 13,082 million), down from RMB 118,254 million as of December 31, 2023[29] - Accounts receivable, net as of September 30, 2024, were RMB 19,714 million (US$2,809 million), slightly down from RMB 20,302 million as of December 31, 2023[29] - Inventories, net as of September 30, 2024, increased to RMB 72,883 million (US$ 10,386 million), up from RMB 68,058 million as of December 31, 2023[29] - Total current liabilities as of September 30, 2024, were RMB 265,553 million (US$37,841 million), slightly down from RMB 265,650 million as of December 31, 2023[32] Operational Metrics - Inventory turnover days increased slightly to 30.4 days in Q3 2024 from 30.8 days in Q3 2023[40] - Accounts payable turnover days increased to 57.5 days in Q3 2024 from 52.6 days in Q3 2023[40] Strategic Initiatives - JD Health enabled online payment through individual medical insurance accounts in 12 cities, covering over 100 million people and nearly 2,000 pharmacies[11] - JD Logistics partnered with Taobao and Tmall, completing system integration and allowing merchants to use JD Logistics services[12] Marketing Expenses - Marketing expenses increased 25.7$1.4 billion) due to higher promotion spending, accounting for 3.8% of net revenues[14]