JD(09618)2023-11-15 09:00Financial Performance - Q3 2023 revenue reached RMB 247.7 billion (USD 34 billion), an increase of 1.7% compared to Q3 2022[2] - Q3 2023 operating profit was RMB 9.3 billion (USD 1.3 billion), up from RMB 8.7 billion in the same period last year[2] - Net profit attributable to ordinary shareholders for Q3 2023 was RMB 7.9 billion (USD 1.1 billion), compared to RMB 6 billion in Q3 2022[2] - Q3 2023 diluted earnings per American depositary share was RMB 5.00 (USD 0.69), an increase from RMB 3.57 in Q3 2022[2] - The company reported a stable operating profit margin of 5.2% for Q3 2023, consistent with Q3 2022[2] - The net profit attributable to ordinary shareholders increased by 33.1% to RMB 7.9 billion (USD 1.1 billion), with a net profit margin of 3.2%[13] - JD's non-GAAP EBITDA increased by 12.4% year-over-year to RMB 12.9 billion (USD 1.8 billion), with an EBITDA margin of 5.2%[12] - The company reported a gross profit of RMB 38,851 million for the nine months ended September 30, 2023, compared to RMB 38,407 million for the same period in 2022[32] - Operating profit for the nine months ended September 30, 2023, was RMB 24,000 million, an increase from RMB 14,895 million for the same period in 2022[32] - The company reported a diluted non-GAAP earnings per share of RMB 3.35 for the three months ended September 30, 2023, compared to RMB 3.14 in the same period last year, an increase of 7%[35] Cash Flow and Liquidity - Cash flow from operating activities for the twelve months ended September 30, 2023, was RMB 58.4 billion (USD 8 billion), up from RMB 45.8 billion in the previous year[2] - Free cash flow for the twelve months ended September 30, 2023, was RMB 39.4 billion (USD 5.4 billion), compared to RMB 25.8 billion in the prior year[2] - The free cash flow for Q3 2023 was RMB 8.3 billion (USD 1.1 billion), compared to RMB 2.3 billion in Q3 2022, representing a significant increase of 254%[15] - The net cash flow from operating activities for the twelve months ending September 30, 2023, was RMB 58.4 billion (USD 8.0 billion), up from RMB 45.8 billion in the same period last year[17] - Cash and cash equivalents increased to RMB 115,971 million as of September 30, 2023, from RMB 78,861 million as of December 31, 2022[30] - JD.com’s cash and cash equivalents increased to RMB 123,868 million as of September 30, 2023, compared to RMB 89,789 million at the end of the previous year, showing a significant liquidity improvement[36] Market and Business Strategy - The company continues to expand market share in core categories such as home appliances and electronics, with a positive trend in daily necessities[3] - JD announced a strategic partnership with GUCCI and launched the official flagship store, alongside new entries from brands like DE BEERS and SMCP in Q3[6] - The company plans to open three city flagship stores in Shanghai and has initiated trial operations for JD MALL in Ningbo and Wuhan[6] - The company is focused on attracting and retaining new customers to enhance revenue through increased repeat purchases[28] - JD.com is actively monitoring trends and competition in the Chinese e-commerce market, which is expected to grow significantly[28] - The company is committed to expanding its infrastructure and technology platforms to meet financial resource demands[27] - JD.com is exploring opportunities for acquisitions, investments, and alliances to enhance its market position[28] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer experience[38] Operational Efficiency - Total human resources expenditure for Q3 2023 reached RMB 25.9 billion, with a total of RMB 76.3 billion for the first nine months of the year[5] - The fulfillment expenses increased by 6.1% year-over-year to RMB 15.2 billion (USD 2.1 billion), accounting for 6.1% of revenue[11] - The marketing expenses rose by 4.6% year-over-year to RMB 8 billion (USD 1.1 billion), representing 3.2% of revenue[11] - Research and development expenses for the three months ended September 30, 2023, were RMB 416 million, up from RMB 203 million in the same period last year, representing a 105% increase[34] - Marketing expenses increased to RMB 174 million for the three months ended September 30, 2023, compared to RMB 112 million in the same period last year, reflecting a 55% rise[34] - Inventory turnover days improved to 30.8 days for the three months ended September 30, 2023, down from 31.7 days in the previous quarter, indicating better inventory management[37] Future Outlook - The company provided a positive outlook for the upcoming quarters, expecting continued revenue growth driven by increased user engagement and market expansion efforts[40] - Forward-looking statements made by management regarding JD.com's strategic and operational plans carry inherent risks and uncertainties, which could lead to significant differences from actual results[28] - The company will hold a conference call on November 15, 2023, to discuss the financial results for the three months ending September 30, 2023[23]