JD(09618)2021-08-23 10:13Financial Performance - For Q2 2021, JD.com reported revenue of RMB 253.8 billion (USD 39.3 billion), an increase of 26.2% compared to Q2 2020[3] - Service revenue for Q2 2021 was RMB 34.1 billion (USD 5.3 billion), up 49.2% year-over-year[3] - Operating profit for Q2 2021 was RMB 3.008 billion (USD 466 million), compared to RMB 5 billion in the same period last year[3] - Net profit attributable to ordinary shareholders for Q2 2021 was RMB 794.3 million (USD 123 million), down from RMB 16.4 billion in Q2 2020[3] - The total revenue for the second quarter of 2021 reached RMB 253.80 billion (approximately USD 39.31 billion), up from RMB 201.05 billion in the second quarter of 2020, representing a growth of 26%[19] - The total revenue for the first half of 2021 was RMB 456.98 billion (approximately USD 70.78 billion), an increase from RMB 347.26 billion in the first half of 2020, representing a growth of 32%[19] - The revenue from JD Retail for the second quarter of 2021 was RMB 232.56 billion (approximately USD 36.02 billion), compared to RMB 189.48 billion in the same quarter of 2020, marking a 23% increase[18] - The company reported a gross margin of 12.5% for Q2 2021, down from 15.5% in Q2 2020[30] - The net profit margin for the six months ended June 30, 2021, was 1.9%, consistent with the margin for the same period in 2020[38] User Growth - The number of annual active users increased by 27.4% year-over-year to 531.9 million as of June 30, 2021[3] - JD.com added 32 million new users in Q2 2021, marking the largest single-quarter user growth in its history[4] - JD.com had 531.9 million annual active users as of the second quarter of 2021, up from 499.8 million in the first quarter of 2021[35] Cash Flow and Liquidity - Operating cash flow increased from RMB 26.3 billion to RMB 38.9 billion (USD 6 billion) for the twelve months ending June 30, 2021[3] - Free cash flow rose to RMB 31.9 billion (USD 4.9 billion) for the twelve months ending June 30, 2021, compared to RMB 22.7 billion in the previous year[3] - For the second quarter of 2021, the net cash flow from operating activities was RMB 28.89 billion (approximately USD 4.47 billion), an increase from RMB 26.62 billion in the same period of 2020[14] - The company achieved a free cash flow of RMB 29,522,182 (approximately USD 4,572,402) for the six months ended June 30, 2021, compared to RMB 25,803,012 in the same period of 2020[34] Expenses and Costs - Operating costs increased by 28.8% to RMB 222.1 billion (USD 34.4 billion) in Q2 2021, compared to RMB 172.4 billion in Q2 2020[11] - Research and development expenses for the first half of 2021 were RMB 8.22 billion, an increase of 9.1% from RMB 7.54 billion in the first half of 2020[30] - Marketing expenses for the first half of 2021 rose to RMB 17.61 billion, up from RMB 11.27 billion in the same period of 2020[30] Assets and Liabilities - As of June 30, 2021, JD.com reported total assets of RMB 476.13 billion, an increase from RMB 422.29 billion as of December 31, 2020, representing a growth of approximately 12.7%[26] - Total liabilities rose to RMB 226.73 billion as of June 30, 2021, up from RMB 200.67 billion, indicating an increase of approximately 13%[27] - The total equity attributable to JD.com, Inc. owners reached RMB 216.76 billion, up from RMB 187.54 billion, which is an increase of approximately 15.6%[29] Strategic Initiatives - The company emphasized its commitment to sustainable practices, including a reduction of at least 120,000 tons of CO2 emissions annually through the use of new energy vehicles[5] - JD.com has implemented various measures to support businesses in disaster-affected areas, including fee waivers and insurance offerings[5] - The company plans to continue expanding its logistics capabilities and investing in technology to enhance operational efficiency and customer experience[22] - The company aims to enhance customer acquisition and retention to drive revenue growth, reflecting confidence in product demand and market acceptance[25] Non-GAAP Metrics - The company utilizes non-GAAP financial metrics such as operating profit/loss, net profit/loss attributable to common shareholders, and EBITDA to assess business performance and inform strategic planning[23] - Non-GAAP operating profit/loss reflects the company's ongoing operations, allowing for more meaningful period comparisons[24] - Free cash flow is defined as operating cash flow adjusted for the impact of receivables and capital expenditures related to property sales, indicating liquidity and cash flow management[24] - Non-GAAP EBITDA is calculated by adding back depreciation and amortization to operating profit/loss, excluding intangible asset amortization from acquisitions[23] - The company emphasizes that non-GAAP financial metrics may differ from those used by peers, limiting comparability[24] Forward-Looking Statements - Forward-looking statements regarding the company's strategic and operational plans are subject to risks and uncertainties, including market trends and competition in the Chinese e-commerce sector[25] - The company does not undertake any obligation to update forward-looking statements unless required by applicable law[25] - The financial indicators presented do not reflect all income and expense items affecting the company's operations, and should be considered alongside GAAP metrics for a comprehensive evaluation[24]