JD(JD) - 2023 Q4 - Annual Report

Financial Performance - Net revenues for Q3 2023 were RMB247.7 billion (US$34.0 billion), a 1.7$1.3 billion), up 6.6% from RMB8.7 billion in Q3 2022[3] - Net income attributable to ordinary shareholders increased by 33.1% to RMB7.9 billion (US$1.1 billion) in Q3 2023, compared to RMB6.0 billion in Q3 2022[15] - Non-GAAP net income attributable to ordinary shareholders for Q3 2023 was RMB10.6 billion (US$1.5 billion), a 5.9% increase from RMB10.0 billion in Q3 2022[15] - Diluted net income per ADS for Q3 2023 increased by 40.3% to RMB5.00 (US$0.69) from RMB3.57 in Q3 2022[16] - Non-GAAP diluted net income per ADS for Q3 2023 rose by 6.9$0.92) from RMB6.27 in Q3 2022[16] - Free cash flow for Q3 2023 was RMB8.264 billion (US$1.133 billion), compared to RMB2.339 billion in Q3 2022[18] - Basic net income per share for the three months ended September 30, 2023, was RMB 2.52, compared to RMB 1.91 for the same period in 2022, reflecting a 31.9$33.950 billion), a 1.7% increase from RMB243.535 billion in Q3 2022[23] - JD Retail segment revenues for Q3 2023 were RMB212.059 billion (US$29.065 billion), slightly up from RMB211.923 billion in Q3 2022[22] - Logistics and other service revenues increased by 19.3$4.504 billion) in Q3 2023[23] - Net product revenues for the nine months ended September 30, 2023, totaled RMB 624,723 million, slightly down from RMB 627,463 million in the same period of 2022[41] - Net service revenues for the three months ended September 30, 2023, increased by 12.5% to RMB 52,394 million from RMB 46,508 million in the same period of 2022[41] Cash Flow and Liquidity - Operating cash flow for the twelve months ended September 30, 2023, was RMB58.4 billion (US$8.0 billion), compared to RMB45.8 billion for the same period in 2022[3] - As of September 30, 2023, the company's cash and cash equivalents totaled RMB250.3 billion (US$34.3 billion), up from RMB226.2 billion as of December 31, 2022[17] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2023, totaled RMB 123,868 million, significantly up from RMB 89,789 million at the end of Q3 2022[48] - Net cash provided by operating activities for the three months ended September 30, 2023, was RMB 15,004 million, a 64.5% increase from RMB 9,151 million in the same period of 2022[48] Expenses and Costs - Research and development expenses decreased by 7.8% to RMB3.8 billion (US$0.5 billion) for Q3 2023[12] - The company reported a total cost of revenues of RMB 208,947 million for the three months ended September 30, 2023, compared to RMB 207,339 million in the same period of 2022[41] Assets and Liabilities - As of September 30, 2023, total assets increased to RMB 617,393 million from RMB 595,250 million as of December 31, 2022, reflecting a growth of approximately 3.9%[36] - Total current liabilities decreased slightly to RMB 262,438 million from RMB 266,561 million, indicating improved management of short-term obligations[38] - Total shareholders' equity increased to RMB 295,681 million as of September 30, 2023, compared to RMB 273,533 million, marking a growth of approximately 8.1%[38] - Inventories decreased to RMB 64,638 million from RMB 77,949 million, a reduction of approximately 17%[36] Strategic Initiatives - JD.com expanded its merchant base and improved user shopping behavior, with year-on-year growth in 3P orders and active customers[5] - The company launched a strategic partnership with luxury brands including GUCCI and DE BEERS, enhancing its product offerings[7] - JD.com opened three city-level home appliances and electronics flagship stores in Shanghai, and launched two JD MALLs in Ningbo and Wuhan[7] - JD.com continues to focus on expanding its fulfillment infrastructure and technology platform to enhance operational efficiency[29] Sustainability and ESG - JD.com achieved a 65% increase in its ESG score in the 2023 Standard & Poor's Global Corporate Sustainability Assessment[6] Future Outlook - The 2023 Share Incentive Plan allows for the issuance of up to 223,666,717 Class A ordinary shares, effective December 21, 2023[24] - JD.com will hold a conference call on November 15, 2023, to discuss its financial results for Q3 2023[25]