JD(JD) - 2021 Q4 - Annual Report

Financial Performance - Net revenues for Q3 2021 were RMB218.7 billion (US$33.9 billion), a 25.5% increase from Q3 2020[2] - Net service revenues for Q3 2021 were RMB32.7 billion (US$5.1 billion), reflecting a 43.3% increase year-over-year[2] - Net loss attributable to ordinary shareholders for Q3 2021 was RMB2.8 billion (US$0.4 billion), compared to a net income of RMB7.6 billion in Q3 2020[2] - For the three months ended September 30, 2021, total consolidated net revenues increased to RMB 218,708,358, representing a growth of 25.5% compared to RMB 174,214,464 for the same period in 2020[21] - JD Retail segment net revenues rose to RMB 198,080,245, up 23% from RMB 161,081,245 year-over-year[21] - JD Logistics segment net revenues increased significantly by 43.5% to RMB 25,749,276 from RMB 17,964,350 in the prior year[21] - Total net revenues for the three months ended September 30, 2021, reached RMB 218.71 billion, a 25.5% increase from RMB 174.21 billion for the same period in 2020[41] - Net product revenues for the nine months ended September 30, 2021, amounted to RMB 580.98 billion, up 26.3% from RMB 459.68 billion in the same period of 2020[41] - Total net revenues for the three months ended September 30, 2021, were RMB 218,708,358, representing a year-over-year increase of 25.6% from RMB 174,214,464 in the same period of 2020[51] - Total net revenues for the nine months ended September 30, 2021, were RMB 675,684,997, an increase from RMB 521,473,731 in the same period of 2020[53] Customer Metrics - Annual active customer accounts increased by 25.0% to 552.2 million in the twelve months ended September 30, 2021[2] - The annual active customer accounts reached 552.2 million as of September 30, 2021, an increase of 25.0% from 441.6 million in the same quarter of 2020[48] Expenses and Costs - Fulfillment expenses increased by 23.2% to RMB14.3 billion (US$2.2 billion) for Q3 2021[10] - Marketing expenses rose by 42.3% to RMB7.8 billion (US$1.2 billion) in Q3 2021[11] - Operating income for total consolidated operations decreased to RMB 2,572,437, down 41.4% from RMB 4,383,349 in the previous year[21] - The company reported a net loss in the JD Logistics segment of RMB 726,612 for the three months ended September 30, 2021, compared to a profit of RMB 83,549 in the same period last year[21] - Research and development expenses for the three months ended September 30, 2021, were RMB 472,429, up 23.0% from RMB 384,400 in the same period of 2020[51] - Share-based compensation increased to RMB 1,954,097 for the three months ended September 30, 2021, compared to RMB 1,051,544 in the same period of 2020[53] Cash Flow and Assets - Operating cash flow for the twelve months ended September 30, 2021, increased to RMB41.0 billion (US$6.4 billion) from RMB37.3 billion in the previous year[2] - Free cash flow for the twelve months ended September 30, 2021, was RMB 28,511,079, a decrease of 5.6% from RMB 30,190,951 for the same period in 2020[18] - The company’s free cash flow for the three months ended September 30, 2021, was RMB 4,156,423, down from RMB 7,518,643 in the same period of 2020[47] - Operating cash flow for the three months ended September 30, 2021, was RMB 14,447,587, an increase of 17.9% compared to RMB 12,255,678 for the same period in 2020[47] - Total current assets increased to RMB 288.80 billion as of September 30, 2021, compared to RMB 234.80 billion as of December 31, 2020, reflecting a growth of 23.0%[34] - Cash and cash equivalents rose to RMB 88.00 billion as of September 30, 2021, from RMB 86.08 billion as of December 31, 2020[34] - Total non-current assets increased to RMB 194.25 billion as of September 30, 2021, from RMB 187.49 billion as of December 31, 2020, marking a growth of 3.9%[34] Liabilities and Equity - Total liabilities increased to RMB 233.90 billion as of September 30, 2021, compared to RMB 200.67 billion as of December 31, 2020, representing a growth of 16.5%[37] - The company’s accounts payable increased to RMB 126.44 billion as of September 30, 2021, from RMB 106.82 billion as of December 31, 2020, reflecting a rise of 18.4%[37] - Total shareholders' equity rose to RMB 247.94 billion as of September 30, 2021, compared to RMB 204.49 billion as of December 31, 2020, indicating an increase of 21.2%[39] - The company reported a diluted net income per share of (0.90) for the three months ended September 30, 2021, compared to a diluted net income per share of 2.35 for the same period in 2020[41] Non-GAAP Metrics - For the three months ended September 30, 2021, JD.com reported a non-GAAP net income attributable to ordinary shareholders of RMB 5,047,992, a decrease of 9.2% from RMB 5,558,054 for the same period in 2020[45] - Non-GAAP EBITDA for the three months ended September 30, 2021, was RMB 5,863,078, a decrease of 11.2% from RMB 6,601,742 in the same period of 2020[51] - Non-GAAP net income attributable to ordinary shareholders for the nine months ended September 30, 2021, was RMB 13,642,150, a decrease from RMB 14,441,408 in the same period of 2020[53] - Non-GAAP net margin for the three months ended September 30, 2021, was 2.3%, down from 3.2% in the same period of 2020[53] - JD.com’s non-GAAP operating margin for the three months ended September 30, 2021, was 2.1%, down from 3.0% in the same period of 2020[51] Strategic Initiatives - JD.com opened its first "JD MALL" offline store in Xi'an, offering over 200,000 items from more than 150 brands[6] - JD Logistics launched an air cargo route between East China and London, enhancing its international transportation network[9] - JD Health and Allianz JD launched a comprehensive online clinical insurance service, improving user experience through a full cycle service[8] - The company continues to focus on expanding its technology initiatives and logistics capabilities to enhance operational efficiency and customer service[20] - JD.com is committed to its Retail as a Service strategy, aiming to leverage its infrastructure to drive productivity across various industries[26] Impairments and Other Adjustments - The company reported an impairment of goodwill and intangible assets amounting to RMB 1,813,473 for the three months ended September 30, 2021[53] - The reversal of gain from fair value change of long-term investments was RMB 4,639,028 for the three months ended September 30, 2021, compared to a loss of RMB 2,939,789 in the same period of 2020[53] - The company experienced a foreign exchange impact loss of RMB 510,701 related to the sale of development properties for the three months ended September 30, 2021[53] - The company reported a tax effect reversal on non-GAAP adjustments of RMB (33,696) for the three months ended September 30, 2021[53]