JD(09618)2023-05-11 09:45Financial Performance - In Q1 2023, JD.com reported revenue of RMB 243 billion (USD 35.4 billion), an increase of 1.4% compared to Q1 2022[3]. - Service revenue for Q1 2023 reached RMB 47.4 billion (USD 6.9 billion), representing a growth of 34.5% year-over-year[3]. - Operating profit for Q1 2023 was RMB 6.4 billion (USD 0.9 billion), up from RMB 2.4 billion in the same period last year[3]. - Net profit attributable to ordinary shareholders for Q1 2023 was RMB 6.3 billion (USD 0.9 billion), a significant turnaround from a net loss of RMB 3 billion in Q1 2022[3]. - The diluted earnings per American depositary share for Q1 2023 was RMB 3.93 (USD 0.57), compared to a loss of RMB 1.92 in Q1 2022[3]. - The operating profit margin for JD Retail (excluding unallocated items) improved to 4.6% in Q1 2023 from 3.6% in Q1 2022[3]. - JD Group's operating profit for Q1 2023 was RMB 6.4 billion (USD 0.9 billion), compared to RMB 2.4 billion in the same period last year, reflecting a significant improvement in profitability[11]. - The non-GAAP operating profit for Q1 2023 was RMB 7.9 billion (USD 1.1 billion), up from RMB 4.7 billion year-over-year, indicating a strong operational performance[11]. - JD's net profit attributable to ordinary shareholders for Q1 2023 was RMB 6.3 billion (USD 0.9 billion), a turnaround from a net loss of RMB 3 billion in the previous year[13]. - The company reported a significant increase in service revenue, which reached RMB 47.392 billion in Q1 2023, compared to RMB 35.239 billion in Q1 2022[22]. - Total revenue for the three months ended March 31, 2023, was RMB 242,956 million, a slight increase from RMB 239,655 million in the same period of 2022, representing a growth of approximately 1%[31]. - Net profit attributable to ordinary shareholders for the three months ended March 31, 2023, was RMB 6,261 million, compared to a net loss of RMB 2,991 million in the same period of 2022, indicating a significant turnaround[31]. - The company reported a gross profit margin of approximately 14.5% for the three months ended March 31, 2023, compared to 13.6% in the same period of 2022[31]. Cash Flow and Liquidity - The company’s cash and cash equivalents totaled RMB 203.2 billion (USD 29.6 billion) as of March 31, 2023, down from RMB 226.2 billion at the end of 2022[14]. - Free cash flow for the twelve months ending March 31, 2023, was RMB 18.99 billion (USD 2.765 billion), down from RMB 27.173 billion in the previous year[18]. - The net cash flow from investing activities in Q1 2023 was RMB 16.7 billion (USD 2.4 billion), primarily due to a decrease in short-term investments[16]. - The net cash flow from financing activities in Q1 2023 was RMB 1.3 billion (USD 0.2 billion), which included proceeds from financing and bank loans, partially offset by share repurchases[17]. - Operating cash flow for Q1 2023 was negative RMB 21,607 million, compared to negative RMB 3,485 million in Q1 2022, indicating a significant increase in cash outflow[35]. - Free cash flow for Q1 2023 was negative RMB 25,402 million, a decrease from negative RMB 8,797 million in Q1 2022[35]. - The company’s cash and cash equivalents at the end of Q1 2023 were RMB 80,770 million, down from RMB 90,006 million at the end of Q1 2022[35]. Customer and Market Expansion - The number of active customers increased to 580 million as of March 31, 2023, compared to 500 million in the same period of 2022, representing a growth of 16%[31]. - JD.com plans to enhance its business structure to serve a broader user base across China in the coming quarters[3]. - The company opened its first home appliance experience store in Jin Tang County, Sichuan, in March 2023, catering to the needs of lower-tier market consumers[6]. - JD.com continues to leverage its omnichannel advantages, with the launch of Tesla's official flagship store on its platform in February 2023[6]. - JD.com plans to continue expanding its logistics network and investing in technology to enhance customer experience and operational efficiency in the upcoming quarters[31]. Operational Metrics - The company reported a non-GAAP net profit attributable to ordinary shareholders of RMB 7,591 million for Q1 2023, a 88.5% increase from RMB 4,032 million in Q1 2022[34]. - The diluted non-GAAP earnings per share for Q1 2023 was RMB 2.42, compared to RMB 1.29 in Q1 2022, reflecting an increase of 88.4%[34]. - The non-GAAP operating margin for Q1 2023 was 3.2%, compared to 1.9% in Q1 2022, showing an improvement in profitability[38]. - Inventory turnover days for the last twelve months (TTM) was 32.4 days in Q1 2023, slightly up from 30.2 days in Q1 2022[36]. - Accounts payable turnover days for TTM was 51.3 days in Q1 2023, compared to 45.0 days in Q1 2022, indicating a longer payment cycle[36]. Strategic Initiatives - JD Logistics signed a strategic cooperation agreement with Master Kong in February to enhance supply chain transformation through digitalization, improving service levels across multiple channels and scenarios[8]. - JD Health launched a new "Rare Disease Consultation Map" in February, targeting approximately 20 million patients nationwide, in collaboration with Boao Lecheng Medical Center to reduce consultation costs for rare disease patients[7]. - The company utilizes non-GAAP financial metrics such as operating profit/loss, net profit/loss attributable to ordinary shareholders, and EBITDA to assess business performance and inform strategic planning[26]. - Non-GAAP operating profit/loss excludes stock-based compensation, amortization of intangible assets from acquisitions, and other non-recurring items, providing a clearer view of ongoing operations[27]. - The company emphasizes that non-GAAP financial metrics may differ from those used by peers, limiting comparability, and encourages a holistic review of financial data[27]. - Forward-looking statements regarding business outlook and strategic plans are subject to risks and uncertainties, including market trends and regulatory changes[28]. - The company acknowledges potential impacts from COVID-19, geopolitical events, and changes in tax rates and financial risks on its operations[28]. - Management believes that non-GAAP metrics provide useful information for investors to understand current performance and future prospects[27]. - The company has a commitment to transparency in financial reporting, urging stakeholders to consider all financial indicators rather than relying solely on one[27]. - The company’s investor relations contact is available for further inquiries, emphasizing its openness to communication with stakeholders[27]. Assets and Liabilities - The company’s inventory decreased from RMB 77,949 million as of December 31, 2022, to RMB 63,299 million as of March 31, 2023, a decline of approximately 18.9%[30]. - Total assets as of March 31, 2023, were RMB 551,036 million, down from RMB 595,250 million as of December 31, 2022, reflecting a decrease of about 7.4%[30]. - The total liabilities decreased from RMB 321,127 million as of December 31, 2022, to RMB 277,031 million as of March 31, 2023, a reduction of approximately 13.7%[30]. - Research and development expenses for the three months ended March 31, 2023, were RMB 4,186 million, down from RMB 4,384 million in the same period of 2022, a decrease of about 4.5%[31].