JD(09618)2022-11-18 10:16Financial Performance - For Q3 2022, JD.com reported revenue of RMB 243.5 billion (USD 34.2 billion), an increase of 11.4% compared to Q3 2021[3] - Service revenue for Q3 2022 was RMB 46.5 billion (USD 6.5 billion), representing a 42.2% increase year-over-year[3] - Operating profit for Q3 2022 was RMB 8.7 billion (USD 1.2 billion), up from RMB 2.6 billion in the same period last year[3] - Net profit attributable to ordinary shareholders for Q3 2022 was RMB 6.0 billion (USD 0.8 billion), compared to a net loss of RMB 2.8 billion in Q3 2021[3] - Total revenue for Q3 2022 was RMB 243.535 billion (USD 34.236 billion), an increase from RMB 218.708 billion in Q3 2021[20] - JD Retail's revenue in Q3 2022 was RMB 211.923 billion (USD 29.792 billion), up from RMB 198.080 billion in Q3 2021[18] - JD Logistics reported revenue of RMB 35.771 billion (USD 5.029 billion) in Q3 2022, compared to RMB 25.749 billion in Q3 2021[18] - The operating profit for JD Retail and JD Logistics combined was RMB 10.926 billion (USD 1.536 billion) in Q3 2022, compared to RMB 7.942 billion in Q3 2021[18] - The company reported a total operating profit of RMB 8.728 billion (USD 1.227 billion) for Q3 2022, significantly higher than RMB 2.572 billion in Q3 2021[18] - The company reported a net profit attributable to ordinary shareholders of 10,040 million RMB for the three months ended September 30, 2022, compared to 5,048 million RMB in the same period of 2021, reflecting a growth of 98.9%[37] User Engagement - The number of annual active users increased by 6.5% to 588.3 million as of September 30, 2022, from 552.2 million a year earlier[4] - The annual active user count reached 588.3 million as of September 30, 2022, up from 580.8 million in the previous quarter[39] Cash Flow and Investments - Free cash flow for the twelve months ending September 30, 2022, was RMB 25.8 billion (USD 3.6 billion), down from RMB 28.5 billion in the previous year[4] - JD's free cash flow for Q3 2022 was RMB 2.3 billion (USD 0.3 billion), down from RMB 4.2 billion in Q3 2021[16] - The company achieved a net cash flow from operating activities of 9,151 million RMB for the three months ended September 30, 2022, down from 14,448 million RMB in the same period of 2021[38] - JD.com recorded a free cash flow of 2,339 million RMB for the nine months ended September 30, 2022, compared to 4,156 million RMB in the same period of 2021, indicating a decrease[38] Expenses and Investments - The marketing expenses for Q3 2022 were RMB 7.6 billion (USD 1.1 billion), slightly decreased from RMB 7.8 billion in the same quarter of 2021[13] - JD's R&D expenses in Q3 2022 were RMB 4.1 billion (USD 0.6 billion), a slight increase from RMB 4.0 billion in Q3 2021[13] - Research and development expenses for the third quarter of 2022 were RMB 4.12 billion, slightly up from RMB 4.00 billion in the same quarter of 2021[31] - The company’s research and development expenses for the nine months ended September 30, 2022, were 1,156 million RMB, compared to 1,350 million RMB in the same period of 2021, indicating a decrease[32] Strategic Initiatives - JD Logistics plans to deploy approximately 1,000 battery swap electric vehicles nationwide by the end of 2022, aiming to reduce vehicle deployment by over 20% in logistics parks[6] - JD.com upgraded its trade-in service in August 2022, allowing users to trade in multiple categories of electronics simultaneously[7] - The first offline JD self-operated Apple authorized store, JD Ehome, opened in Beijing in September 2022, marking a new collaboration with Apple[7] - JD's strategic partnerships with leading healthcare companies aim to innovate service models and enhance user engagement in health management[9] - The company plans to continue expanding its logistics and retail services, leveraging its supply chain technology to enhance operational efficiency[22] - The company has been focusing on enhancing its operational efficiency and expanding its market presence through strategic investments and acquisitions[41] - The company plans to continue investing in new product development and technology to drive future growth and market expansion[41] Financial Metrics and Guidance - 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[23] - 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[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] - The company emphasizes that non-GAAP metrics may differ from those used by peers, limiting comparability, and encourages a comprehensive review of financial data[25] - Forward-looking statements regarding business outlook and strategic plans are subject to risks and uncertainties, including market trends and regulatory changes[27] - The company aims to enhance customer retention and revenue generation through improved product and service demand[27] - Future growth in the Chinese e-commerce market is anticipated, with a focus on adapting to competitive pressures and regulatory environments[27] - Management believes that non-GAAP financial indicators provide useful information for investors to understand current performance and future prospects[24] - The company does not undertake any obligation to update forward-looking statements unless required by law[27] Assets and Liabilities - Cash and cash equivalents increased to RMB 83.36 billion as of September 30, 2022, up from RMB 70.77 billion at the end of 2021, reflecting a growth of 17.5%[28] - Total assets as of September 30, 2022, amounted to RMB 579.56 billion, an increase from RMB 496.51 billion at the end of 2021, indicating a growth of 16.7%[30] - Short-term investments rose to RMB 128.45 billion as of September 30, 2022, compared to RMB 114.56 billion at the end of 2021, marking an increase of 12.1%[28] - Total liabilities increased to RMB 308.43 billion as of September 30, 2022, up from RMB 249.72 billion at the end of 2021, representing a growth of 23.4%[29] - Non-current assets totaled RMB 245.16 billion as of September 30, 2022, an increase from RMB 196.84 billion at the end of 2021, indicating a growth of 24.5%[30] Inventory and Turnover - The company’s inventory decreased to RMB 71.76 billion as of September 30, 2022, down from RMB 75.60 billion at the end of 2021, reflecting a decline of 5.0%[28] - The inventory turnover days increased to 31.7 days for the twelve months ended September 30, 2022, compared to 30.1 days in the same period of 2021[39] - The accounts payable turnover days for the past 12 months were calculated based on the average accounts payable divided by the past 12 months' cost of goods sold, multiplied by 360 days[40] - The accounts receivable turnover days for the past 12 months were calculated based on the average accounts receivable divided by the past 12 months' total revenue, multiplied by 360 days, excluding the impact from JD White条[40] Earnings Per Share - JD.com reported a basic earnings per share of 1.91 RMB for the three months ended September 30, 2022, compared to a loss of (0.90) RMB in the same period of 2021, representing a significant increase[32] - JD.com’s diluted earnings per share for the three months ended September 30, 2022, was 1.78 RMB, compared to a diluted loss per share of (0.90) RMB in the same period of 2021[32] - The non-GAAP operating margin for the three months ended September 30, 2022, was 4.1%, compared to 2.3% for the same period in 2021, showing an improvement of 1.8 percentage points[42] - The company reported a non-GAAP net profit margin of 4.1% for the three months ended September 30, 2022, compared to 2.0% for the same period in 2021, indicating a significant improvement[42]