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JD.com, Inc. (JD)

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  • JD.com Announces 2020 Third Quarter Results
    GlobeNewswire

    JD.com Announces 2020 Third Quarter Results

    BEIJING, Nov. 16, 2020 (GLOBE NEWSWIRE) -- JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider, today announced its unaudited financial results for the three months ended September 30, 2020. Third Quarter 2020 Highlights * Net revenues for the third quarter of 2020 were RMB174.2 billion (US$125.7 billion), an increase of 29.2% from the third quarter of 2019. Net revenues from the sales of general merchandise products for the third quarter of 2020 were RMB58.1 billion (US$8.6 billion), an increase of 34.8% from the third quarter of 2019. Net service revenues for the third quarter of 2020 were RMB22.8 billion (US$3.4 billion), an increase of 42.7% from the third quarter of 2019. * Income from operations for the third quarter of 2020 was RMB4.4 billion (US$0.6 billion), compared to RMB5.0 billion for the same period last year. Non-GAAP2 income from operations for the third quarter of 2020 was RMB5.3 billion (US$0.8 billion) with a non-GAAP operating margin of 3.0%, as compared to RMB3.0 billion for the third quarter of 2019 with a non-GAAP operating margin of 2.2%. * Net income attributable to ordinary shareholders for the third quarter of 2020 was RMB7.6 billion (US$1.1 billion), compared to RMB0.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of 2020 increased by 80.1% to RMB5.6 billion (US$0.8 billion) from RMB3.1 billion for the same period last year. * Diluted net income per ADS for the third quarter of 2020 was RMB4.70 (US$0.69), compared to RMB0.41 for the third quarter of 2019. Non-GAAP diluted net income per ADS for the third quarter of 2020 was RMB3.42 (US$0.50), compared to RMB2.08 for the same period last year. * Annual active customer accounts3 increased by 32.1% to 441.6 million in the twelve months ended September 30, 2020 from 334.4 million in the twelve months ended September 30, 2019. “Today, as China emerges from the pandemic, we are glad to see that our business partners are recovering rapidly with the support of our online and offline supply chain infrastructure. And our consumer mindshare continues to expand with over 100 million new active users joining our platform compared to a year ago,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “In order to ensure superior customer experience and better serve our business partners, we continued to add new hires even against the backdrop of uncertainties arising from the COVID. We look forward to continuously leveraging JD’s leading supply chain-based technology and nationwide infrastructure for the benefit of the society.”“We are pleased to set new records across many of our financial and operating metrics this quarter,” said Sandy Xu, Chief Financial Officer of JD.com. “We delivered robust topline growth across all of our product lines as well as record profitability driven by improved operating efficiency and the realization of scale benefits. With solid profitable growth as our basis, we will continue to invest in technology and infrastructure to enhance our user experience.”Business HighlightsEnvironment, Social and Governance * JD.com won the Sustainable Retailing Initiative of the Year Award for its Green Stream Initiative at the World Retail Congress in September. The company’s Green Stream Initiative promotes a wide range of environment-friendly practices including the use of recyclable parcels, paperless system and new energy vehicles, helping to reduce up to 1,300,000 tons of disposable packaging materials since its launch in 2017. JD Logistics also launched the JD Green Packaging Alliance, a sustainable packaging platform to promote and enhance environmentally friendly projects within the JD ecosystem, counting nearly one hundred enterprises as members, including P&G, Johnson & Johnson, Unilever and Mengniu. JD Retail * Subscribers of JD PLUS, JD.com’s paid membership program, exceeded 20 million in October 2020. JD PLUS has expanded its membership offerings from exclusive sales discounts, shipping savings and 24 hour dedicated customer services, to include additional benefits from quality consumer brands and bundled membership in collaboration with leading service providers to better satisfy PLUS members’ demands in entertainment, travel, education and local services, among others. * In August, JD.com announced a partnership with China’s largest online travel agency Trip.com. As part of the partnership, Trip.com will leverage JD.com’s user and traffic resources to strengthen its marketing and operations, while JD.com will benefit from access to Trip.com’s core service supply chain, including accommodation reservation, transportation ticketing and tour packages, among others. * Multiple luxury and fashion brands officially launched stores on JD.com in the third quarter, including Italian luxury menswear brand Zegna, French fashion house Balmain, luxury luggage brand Rimowa, legendary Japanese designer brand Yohji Yamamoto, French clothing brand Ami Paris and Italian sneaker brand Golden Goose Deluxe. In the same period, Chinese-American designer brand 3.1 Phillip Lim, Turkish leather goods brand Manu Atelier, Korean designer brand Juun.J, Japanese fashion jewelry brand Ahkah, as well as luxury lifestyle brand Seletti, also joined the JD.com platform. JD Health * In August, JD Health launched its JD Family Doctor brand. The program offers one-stop services integrating all of JD Health’s online healthcare services and providing Chinese families with various family-oriented health management packages, including dedicated family doctor teams, unlimited specialist consultations, doctor referrals, 24/7 health manager services and more. JD Logistics * In September, JD Logistics and Nestlé, the world’s leading food & beverage company, co-launched a large-scale smart storage and distribution center in Tianjin. Leveraging JD Logistics’ superior operational capability and technological advancements in supply chain management, the distribution center has the tech-capability to identify specific products and loads that are destined to Nestlé customers, recognize their geographic locations, and use advanced intelligence to visualize and control the migrations or infiltrations of loads between different provinces. * JD Logistics held the fifth Global Smart Supply Chain Summit (GSSC) in October. At the GSSC, the company launched its own technology brand - JDL Technology - aiming to provide smart supply chain products and solutions, including big data, IoT and robotic technology, for the entire industry as the company continues to focus on supply chain-based technology innovations and applications and opening up its capabilities to other parities. * As of September 30, 2020, JD Logistics operated over 800 warehouses, which covered an aggregate gross floor area of approximately 20 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform. JD Cloud & AI * In September, JD Cloud & AI became the official technology service provider for the 2020 China International Fair for Trade in Services (CIFTIS), one of China’s three major exhibition platforms. Leveraging its advanced technology in providing business solutions, JD Cloud & AI helped to create a digital event for tens of thousands of exhibitors through a series of services including visual exhibition halls with livestream features, online product and service launch platforms with AI-powered supply and demand match functionality, and smart customer services. Operational Metrics Update * As of September 30, 2020, JD.com had approximately 284,000 employees excluding part-time and interns. Third Quarter 2020 Financial ResultsNet Revenues. For the third quarter of 2020, JD.com reported net revenues of RMB174.2 billion (US$25.7 billion), representing a 29.2% increase from the same period in 2019. Net product revenues increased by 27.4%, while net service revenues increased by 42.7% for the third quarter of 2020, as compared to the same period of 2019.Cost of Revenues. Cost of revenues increased by 28.5% to RMB147.4 billion (US$21.7 billion) for the third quarter of 2020 from RMB114.7 billion for the third quarter of 2019.Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 32.4% to RMB11.6 billion (US$1.7 billion) for the third quarter of 2020 from RMB8.8 billion for the third quarter of 2019.Fulfilled Gross Margin4. Fulfilled gross margin for the third quarter of 2020 was 8.7%, as compared to 8.4% for the third quarter of 2019.Marketing Expenses. Marketing expenses increased by 22.8% to RMB5.5 billion (US$0.8 billion) for the third quarter of 2020 from RMB4.4 billion for the third quarter of 2019.Research and Development Expenses. Research and development expenses was RMB4.1 billion (US$0.6 billion) for the third quarter of 2020, as compared to RMB3.6 billion for the third quarter of 2019.General and Administrative Expenses. General and administrative expenses was RMB1.6 billion (US$0.2 billion) for the third quarter of 2020, as compared to RMB1.3 billion for the third quarter of 2019.Income from Operations and Non-GAAP Income from Operations. Income from operations for the third quarter of 2020 was RMB4.4 billion (US$0.6 billion), compared to RMB5.0 billion for the same period last year. Non-GAAP income from operations for the third quarter of 2020 was RMB5.3 billion (US$0.8 billion) with a non-GAAP operating margin of 3.0%, as compared to non-GAAP income from operations of RMB3.0 billion for the third quarter of 2019 with a non-GAAP operating margin of 2.2%. Operating margin of JD Retail before unallocated items for the third quarter of 2020 was 3.9%, compared to 3.3% for the third quarter of 2019.Non-GAAP EBITDA for the third quarter of 2020 was RMB6.6 billion (US$1.0 billion) with a non-GAAP EBITDA margin of 3.8%, compared to RMB4.2 billion with a non-GAAP EBITDA margin of 3.1% for the third quarter of 2019.Others, net. Others are other non-operating income/(loss), primarily consists of gains/(losses) from fair value change of long-term investments, gains from business and investment disposals, impairment of investments, government incentives, and foreign exchange gains/(losses). In the third quarter of 2020, other non-operating income was RMB3.7 billion (US$0.5 billion), as compared to other non-operating loss of RMB4.0 billion for the third quarter of 2019. The substantial increase was primarily due to the fair value change of investment securities, which had a gain of RMB2.9 billion (US$0.4 billion) for the third quarter of 2020, as compared to a loss of RMB4.0 billion for the same period of last year.Net Income Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable to Ordinary Shareholders. Net income attributable to ordinary shareholders for the third quarter of 2020 was RMB7.6 billion (US$1.1 billion), compared to RMB0.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of 2020 was RMB5.6 billion (US$0.8 billion), compared to RMB3.1 billion for the same period last year.Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the third quarter of 2020 was RMB4.70 (US$0.69), compared to RMB0.41 for the third quarter of 2019. Non-GAAP diluted net income per ADS for the third quarter of 2020 was RMB3.42 (US$0.50), compared to RMB2.08 for the third quarter of 2019.Cash Flow and Working CapitalAs of September 30, 2020, the company’s cash and cash equivalents, restricted cash and short-term investments totaled RMB126.7 billion (US$18.7 billion), compared to RMB64.5 billion as of December 31, 2019. For the third quarter of 2020, free cash flow of the company was as follows:  For the three months ended   September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$   (In thousands)     Net cash provided by operating activities 1,262,118 12,255,678 1,805,066  Less: Impact from JD Baitiao receivables included in the operating cash flow (1,312,084)(2,785,606)(410,275) Add/(Less): Capital expenditures     Capital expenditures for development properties, net of related sales proceeds* 771,208 (1,111,723)(163,739) Other capital expenditures** (658,634)(839,706)(123,675) Free cash flow 62,608 7,518,643 1,107,377           * Including logistics facilities and other real estate properties developed by JD Property, which may be sold under various equity structures. In the third quarter of 2020, approximately RMB0.4 billion proceeds from the sale of development properties were included in this line, compared to approximately RMB2.9 billion proceeds in the third quarter of 2019. ** Including capital expenditures related to the company’s headquarters in Beijing and all other CAPEX.Net cash used in investing activities was RMB12.5 billion (US$1.8 billion) for the third quarter of 2020, consisting primarily of increase in time deposits of RMB5.0 billion, cash paid for investments in equity investees and purchases of investment securities of RMB4.6 billion and cash paid for capital expenditures of RMB2.4 billion.Net cash provided by financing activities was RMB4.1 billion (US$0.6 billion) for the third quarter of 2020, consisting primarily of proceeds of RMB6.3 billion from the non-redeemable series B preference share financing of JD Health and proceeds of RMB4.0 billion from issuance of ordinary shares upon a partial exercise of the over-allotment option of the company’s Hong Kong Listing, partially offset by repayment of short-term debts of RMB7.2 billion.For the twelve months ended September 30, 2020, free cash flow of the company was as follows:  For the twelve months ended   September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$   (In thousands)     Net cash provided by operating activities 30,805,649 37,334,450 5,498,770  Less: Impact from JD Baitiao receivables included in the operating cash flow (9,716,127)(470,882)(69,353) Less: Capital expenditures     Capital expenditures for development properties, net of related sales proceeds (1,150,152)(3,604,204)(530,842) Other capital expenditures (4,331,506)(3,068,413)(451,929) Free cash flow 15,607,864 30,190,951 4,446,646           Supplemental InformationThe table below sets forth the three months segment operating results:  For the three months ended   September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$   (In thousands) Net revenues:     JD Retail 128,674,050 163,273,657 24,047,611  New businesses* 5,884,079 10,966,712 1,615,222  Inter-segment (33,669)(184,404)(27,160) Total segment net revenues 134,524,460 174,055,965 25,635,673  Unallocated items** 318,325 158,499 23,344  Total consolidated net revenues 134,842,785 174,214,464 25,659,017        Operating income/(loss):     JD Retail 4,245,571 6,305,731 928,734  New businesses* 1,716,452 (687,863)(101,312) Including: gain on sale of development properties  2,987,079 343,982 50,663  Total segment operating income 5,962,023 5,617,868 827,422  Unallocated items** (988,816)(1,234,519)(181,825) Total consolidated operating income 4,973,207 4,383,349 645,597           * New businesses of the company include logistics services provided to third parties, overseas business, technology initiatives, as well as asset management services to logistics property investors and sale of development properties by JD Property.JD Property develops and manages logistics facilities and other real estate properties. By leveraging its fund management platform, JD Property can realize development profits and recycle capital from mature properties to fund new developments and scale the business.** Unallocated items include share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, and impairment of goodwill and intangible assets, which are not allocated to segments.The table below sets forth the three months revenue information:  For the three months ended   September 30, 2019 September 30, 2020 September 30, 2020    RMB RMB US$    (In thousands)     Electronics and home appliance revenues 75,784,238 93,329,728 13,745,983  General merchandise revenues 43,070,063 58,069,531 8,552,718  Net product revenues 118,854,301 151,399,259 22,298,701           Marketplace and advertising revenues 9,985,991 12,412,342 1,828,140  Logistics and other service revenues 6,002,493 10,402,863 1,532,176  Net service revenues 15,988,484 22,815,205 3,360,316           Total net revenues 134,842,785 174,214,464 25,659,017           Recent DevelopmentThe company is pleased to announce that JD Health has submitted the post hearing information pack (the “PHIP”) to the Hong Kong Stock Exchange (“HKEX”) for publication on November 15, 2020, in connection with the proposed separate listing of JD Health in Hong Kong. The PHIP is now available for viewing and downloading from the HKEX’s website at www.hkexnews.hk. The proposed listing in Hong Kong is subject to, among other things, the approval from the listing committee of the HKEX, and the final decisions of the board of directors of the company and of the board of directors of JD Health. There is no assurance that such proposed listing will take place or as to when it may take place.In October 2020, with the approvals of the company’s board of directors and the board of directors of JD Logistics and JD Health, each a consolidated subsidiary of the company, granted to Mr. Richard Qiangdong Liu, Chairman and Chief Executive Officer of the company, options to acquire 99,186,705 ordinary shares of JD Logistics and options to acquire 53,042,516 ordinary shares of JD Health (collectively, the “Grants”) according to the existing share incentive plan of each of JD Logistics and JD Health. The Grants were awarded to Mr. Liu to recognize his significant contributions to the development of JD Logistics and JD Health and to motivate him to continue leading the future success of JD Logistics and JD Health. The Grants by JD Logistics and JD Health are each subject to a six-year vesting schedule and each account for approximately 2% of the issued and outstanding shares of JD Logistics and JD Health as of October 31, 2020, as applicable. As of October 31, 2020, JD Logistics and JD Health had outstanding options to acquire more than 450 million and 90 million ordinary shares of JD Logistics and JD Health, respectively, to award and incentivize their respective senior management, employees and consultants.Conference CallJD.com’s management will hold a conference call at 7:00 am, Eastern Time on November 16, 2020, (8:00 pm, Beijing/Hong Kong Time on November 16, 2020) to discuss the third quarter 2020 financial results.Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/4162664 CONFERENCE ID: 4162664A telephone replay will be available from 10:00 am, Eastern Time on November 16, 2020 through 7:59 am, Eastern Time on November 24, 2020. The dial-in details are as follows:US Toll Free:+1-855-452-5696 or +1-646-254-3697  International:+61-2-8199-0299  Passcode:4162664  Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.jd.com. About JD.com.JD.com is a leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider. The company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries. JD.com is the largest retailer in China, a member of the NASDAQ100 and a Fortune Global 500 company.Non-GAAP MeasuresIn evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per share and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP income/(loss) from operations as income/(loss) from operations excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, gain on sale of development properties and impairment of goodwill and intangible assets. The company defines non-GAAP net income/(loss) attributable to ordinary shareholders as net income/(loss) attributable to ordinary shareholders excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements and non-compete agreements, gain/(loss) on disposals/deemed disposals of investments, reconciling items on the share of equity method investments, loss/(gain) from fair value change of long-term investments, impairment of goodwill, intangible assets and investments, gain and foreign exchange impact in relation to sale of development properties and tax effects on non-GAAP adjustments. The company defines free cash flow as operating cash flow adjusting the impact from JD Baitiao receivables included in the operating cash flow and capital expenditures, net of the proceeds from sale of development properties. Capital expenditures include purchase of property, equipment and software, cash paid for construction in progress, purchase of intangible assets and land use rights. The company defines non-GAAP EBITDA as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions. Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per share multiplied by two.The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP income/(loss) from operations, non-GAAP net income/(loss) attributable to ordinary shareholders and non-GAAP EBITDA reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from JD Baitiao receivables included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the company’s current operating performance and future prospects in the same manner as management does, if they so choose. The company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the company’s core operating results and business outlook.The non-GAAP financial measures have limitations as analytical tools. The company’s non-GAAP financial measures do not reflect all items of income and expense that affect the company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The company encourages you to review the company’s financial information in its entirety and not rely on a single financial measure.CONTACTS:Investor Relations Ruiyu Li Senior Director of Investor Relations +86 (10) 8912-6804 IR@JD.comMedia +86 (10) 8911-6155 Press@JD.com Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as JD.com's strategic and operational plans, contain forward-looking statements. JD.com may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com's growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China's e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to JD.com's industry and general economic conditions in China. Further information regarding these and other risks is included in JD.com's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law. JD.com, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In thousands, except per share data and otherwise noted)       As of   December 31, 2019September 30, 2020September 30, 2020   RMBRMBUS$ ASSETS     Current assets     Cash and cash equivalents 36,971,42073,112,97110,768,377 Restricted cash 2,940,8595,163,987760,573 Short-term investments 24,602,77748,402,2287,128,878 Accounts receivable, net (including JD Baitiao of RMB1.0 billion and RMB0.8 billion as of December 31, 2019 and September 30, 2020, respectively)(1) 6,190,5886,691,873985,606 Advance to suppliers 593,1305,134,067756,166 Inventories, net 57,932,15655,345,6248,151,529 Prepayments and other current assets 5,629,5615,932,325873,737 Amount due from related parties 4,234,0677,422,2261,093,176 Assets held for sale(2) -361,99753,316 Total current assets 139,094,558207,567,29830,571,358 Non-current assets     Property, equipment and software, net 20,654,07121,579,0573,178,252 Construction in progress 5,806,3086,715,352989,064 Intangible assets, net 4,110,0346,740,614992,785 Land use rights, net 10,891,74211,032,4021,624,897 Operating lease right-of-use assets 8,643,59714,313,0752,108,088 Goodwill 6,643,66910,927,8031,609,491 Investment in equity investees 35,575,80751,954,3457,652,048 Investment securities 21,417,10427,803,6234,095,031 Deferred tax assets 80,556153,93522,672 Other non-current assets 6,806,25812,403,5391,826,846 Amount due from related parties -228,71533,686 Assets held for sale(2) -2,880,451424,245 Total non-current assets 120,629,146166,732,91124,557,105 Total assets 259,723,704374,300,20955,128,463       JD.com, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In thousands, except per share data and otherwise noted)       As of   December 31, 2019September 30, 2020September 30, 2020   RMBRMBUS$ LIABILITIES     Current liabilities     Short-term debts -2,941,671433,261 Accounts payable 90,428,382105,302,64415,509,403 Advances from customers 16,078,61921,697,5043,195,697 Deferred revenues 3,326,5943,435,660506,018 Taxes payable 2,015,7882,640,043388,836 Amount due to related parties 317,978359,02752,879 Unsecured senior notes -3,400,371500,821 Accrued expenses and other current liabilities 24,656,18027,670,4854,075,423 Operating lease liabilities 3,193,4804,962,214730,855 Liabilities held for sale(2) -185,97827,392 Total current liabilities 140,017,021172,595,597 25,420,585 Non-current liabilities     Deferred revenues 1,942,6351,780,299262,210 Unsecured senior notes 6,912,49210,011,1151,474,478 Deferred tax liabilities 1,338,9882,026,037298,403 Long-term borrowings 3,139,2903,176,150467,796 Operating lease liabilities 5,523,1649,476,7011,395,767 Other non-current liabilities 225,883157,43123,187 Total non-current liabilities 19,082,45226,627,733 3,921,841 Total liabilities 159,099,473199,223,330 29,342,426       (1) JD Digits performs credit risk assessment services for JD Baitiao business and absorbs the credit risk of the underlying Baitiao receivables. Facilitated by JD Digits, the Company periodically securitizes Baitiao receivables through the transfer of those assets to asset-backed securitization plans and derecognizes the related Baitiao receivables through sales type arrangements. (2) The company entered into definitive agreements to transfer certain logistic facilities and real estate properties to JD Logistics Properties Core Fund II, L.P. (the “Core Fund II”). As of September 30, 2020, classified the related undisposed assets and liabilities as assets and liabilities held for sale under ASC 360, which included cash of RMB409.2 million. JD.com, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In thousands, except per share data and otherwise noted)         As of   December 31, 2019September 30, 2020September 30, 2020   RMBRMBUS$       MEZZANINE EQUITY     Convertible redeemable non-controlling interests 15,964,38417,130,1632,523,000       SHAREHOLDERS’ EQUITY     Total JD.com, Inc. shareholders’ equity (US$0.00002 par value, 100,000,000 shares authorized, 3,129,794 shares issued and 3,099,754 shares outstanding as of September 30, 2020) 81,855,970150,558,47122,174,866 Non-controlling interests 2,803,8777,388,2451,088,171 Total shareholders’ equity 84,659,847157,946,71623,263,037 Total liabilities, mezzanine equity and shareholders’ equity 259,723,704374,300,20955,128,463       JD.com, Inc. Unaudited Interim Condensed Consolidated Statements of Operations (In thousands, except per share data and otherwise noted)    For the three months ended For the nine months ended  September 30, 2019September 30, 2020September 30, 2020 September 30, 2019September 30, 2020September 30, 2020  RMBRMBUS$ RMBRMBUS$ Net revenues        Net product revenues118,854,301 151,399,259 22,298,701  361,021,874 459,679,278 67,703,441  Net service revenues15,988,484 22,815,205 3,360,316  45,182,572 61,794,453 9,101,339  Total net revenues134,842,785 174,214,464 25,659,017  406,204,446 521,473,731 76,804,780  Cost of revenues(114,728,621)(147,419,446)(21,712,538) (345,781,556)(443,507,716)(65,321,627) Fulfillment(8,754,785)(11,592,062)(1,707,326) (25,973,275)(33,948,204)(5,000,030) Marketing(4,446,816)(5,460,508)(804,246) (14,008,595)(16,732,743)(2,464,467) Research and development(3,585,171)(4,106,739)(604,857) (11,027,619)(11,645,498)(1,715,196) General and administrative(1,341,264)(1,596,342)(235,116) (4,018,365)(4,431,265)(652,655) Gain on sale of development properties2,987,079 343,982 50,663  3,070,297 539,568 79,470  Income from operations(3)(4)4,973,207 4,383,349  645,597   8,465,333 11,747,873  1,730,275   Other income/(expenses)        Share of results of equity investees(199,226)(272,313)(40,107) (1,220,008)2,611,631 384,652  Interest income502,871 733,498 108,033  1,191,145 1,794,579 264,313  Interest expense(162,947)(297,802)(43,861) (505,238)(829,120)(122,116) Others, net(3,958,355)3,729,126 549,241  1,728,325 11,544,095 1,700,261  Income before tax1,155,550 8,275,858  1,218,903   9,659,557 26,869,058  3,957,385   Income tax expenses(604,856)(690,373)(101,681) (1,323,303)(1,813,367)(267,080) Net income550,694 7,585,485  1,117,222   8,336,254 25,055,691  3,690,305   Net income/(loss) attributable to non-controlling interests shareholders(62,348)23,127 3,406  (216,250)(27,677)(4,076) Net income attributable to mezzanine equity classified as non-controlling interests shareholders791 2,020 298  2,303 3,596 530  Net income attributable to ordinary shareholders612,251 7,560,338  1,113,518   8,550,201 25,079,772  3,693,851                  JD.com, Inc. Unaudited Interim Condensed Consolidated Statements of Operations (In thousands, except per share data and otherwise noted)         For the three months ended For the nine months ended   September 30, 2019September 30, 2020September 30, 2020 September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$ RMBRMBUS$ (3) Includes share-based compensation expenses as follows: Cost of revenues (23,615)(31,120)(4,583) (57,687)(65,618)(9,664) Fulfillment (123,878)(153,662)(22,632) (304,134)(350,156)(51,572) Marketing (69,850)(87,099)(12,828) (180,441)(218,354)(32,160) Research and development (371,720)(384,400)(56,616) (964,105)(935,126)(137,729) General and administrative (435,623)(395,263)(58,216) (1,157,223)(1,092,028)(160,838) (4) Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows: Fulfillment (40,011)(51,584)(7,598) (123,790)(141,217)(20,799) Marketing (140,430)(187,876)(27,671) (496,944)(473,534)(69,744) Research and development (24,700)(24,700)(3,638) (74,580)(74,100)(10,914) General and administrative (77,315)(77,314)(11,387) (230,462)(231,447)(34,088)           Net income per share:         Basic 0.21 2.44 0.36  2.94 8.37 1.23  Diluted 0.21 2.35 0.35  2.89 8.02 1.18            Net income per ADS:         Basic 0.42 4.88 0.72  5.88 16.75 2.47  Diluted 0.41 4.70 0.69  5.77 16.03 2.36            JD.com, Inc. Unaudited Non-GAAP Net Income Per Share and Per ADS (In thousands, except per share data and otherwise noted)         For the three months ended For the nine months ended   September 30, 2019September 30, 2020September 30, 2020 September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$ RMBRMBUS$           Non-GAAP net income attributable to ordinary shareholders 3,085,8855,558,054818,614  9,939,18514,441,4082,126,987           Weighted average number of shares:         Basic 2,919,7063,096,3043,096,304 2,909,0972,994,7562,994,756 Diluted 2,971,2453,191,1593,191,159 2,963,0093,077,0633,077,063           Non-GAAP net income per share:         Basic 1.061.800.26 3.424.820.71 Diluted 1.041.710.25 3.334.500.66           Non-GAAP net income per ADS:         Basic 2.113.590.53 6.839.641.42 Diluted 2.083.420.50 6.669.001.32           JD.com, Inc. Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free Cash Flow (In thousands)     For the three months ended For the nine months ended   September 30, 2019September 30, 2020September 30, 2020 September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$ RMBRMBUS$           Net cash provided by operating activities 1,262,118 12,255,678 1,805,066  24,777,519 37,330,749 5,498,225  Net cash used in investing activities (5,670,328)(12,518,857)(1,843,828) (27,801,801)(44,105,163)(6,495,988) Net cash provided by/(used in) financing activities 2,489,553 4,117,987 606,514  (515,402)47,658,991 7,019,411  Effect of exchange rate changes on cash, cash equivalents and restricted cash 804,434 (2,660,012)(391,778) 796,854 (2,110,679)(310,870) Net increase/(decrease) in cash, cash equivalents and restricted cash (1,114,223)1,194,796 175,974  (2,742,830)38,773,898 5,710,778  Cash, cash equivalents and restricted cash at beginning of period 35,873,451 77,491,381 11,413,247  37,502,058 39,912,279 5,878,443  Cash, cash equivalents and restricted cash at end of period(5) 34,759,228 78,686,177 11,589,221  34,759,228 78,686,177 11,589,221            Net cash provided by operating activities 1,262,118 12,255,678 1,805,066  24,777,519 37,330,749 5,498,225  Less: Impact from JD Baitiao receivables included in the operating cash flow (1,312,084)(2,785,606)(410,275) (3,922,166)(159,164)(23,442) Add/(Less): Capital expenditures         Capital expenditures for development properties, net of related sales proceeds 771,208 (1,111,723)(163,739) 1,365,124 (4,659,481)(686,268) Other capital expenditures (658,634)(839,706)(123,675) (2,611,254)(2,164,926)(318,859) Free cash flow 62,608 7,518,643 1,107,377  19,609,223 30,347,178 4,469,656                  (5) Including cash, cash equivalents and restricted cash classified as assets held for sale. JD.com, Inc. Supplemental Financial Information and Business Metrics   Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020         Free cash flow (in RMB billions) – trailing twelve months (“TTM”) 15.619.515.222.730.2 Inventory turnover days(6) – TTM 35.135.835.434.834.3 Accounts payable turnover days(7) – TTM 56.654.551.750.849.2 Accounts receivable turnover days(8) – TTM 3.23.23.12.92.8 Annual active customer accounts (in millions) 334.4362.0387.4417.4441.6         (6) TTM inventory turnover days are the quotient of average inventory over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days. (7) TTM accounts payable turnover days are the quotient of average accounts payable for retail business over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days. (8) TTM accounts receivable turnover days are the quotient of average accounts receivable over the immediately preceding five quarters, up to and including the last quarter of the annual period, to total net revenues for the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days excluding the impact from JD Baitiao. JD.com, Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results (In thousands, except percentage data)             For the three months ended For the nine months ended   September 30, 2019September 30, 2020September 30, 2020 September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$ RMBRMBUS$           Income from operations 4,973,207 4,383,349 645,597  8,465,333 11,747,873 1,730,275  Add: Share-based compensation 1,024,686 1,051,544 154,875  2,663,590 2,661,282 391,963  Add: Amortization of intangible assets resulting from assets and business acquisitions 146,234 193,215 28,458  737,730 494,797 72,875  Reversal of: Effects of business cooperation arrangements (182,103)(10,240)(1,508) (632,022)(241,025)(35,499) Reversal of: Gain on sale of development properties (2,987,079)(343,982)(50,663) (3,070,297)(539,568)(79,470) Non-GAAP income from operations 2,974,945 5,273,886  776,759   8,164,334 14,123,359  2,080,144   Add: Depreciation and other amortization 1,239,526 1,327,856 195,572  3,680,984 3,893,155 573,400  Non-GAAP EBITDA 4,214,471 6,601,742  972,331   11,845,318 18,016,514  2,653,544             Total net revenues 134,842,785 174,214,464 25,659,017  406,204,446 521,473,731 76,804,780            Non-GAAP operating margin 2.2%3.0%3.0% 2.0%2.7%2.7%           Non-GAAP EBITDA margin 3.1%3.8%3.8% 2.9%3.5%3.5%                 JD.com, Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results (In thousands, except percentage data)             For the three months ended For the nine months ended   September 30, 2019September 30, 2020September 30, 2020 September 30, 2019September 30, 2020September 30, 2020   RMBRMBUS$ RMBRMBUS$           Net income attributable to ordinary shareholders 612,251 7,560,338 1,113,518  8,550,201 25,079,772 3,693,851  Add: Share-based compensation 1,024,686 1,051,544 154,875  2,663,590 2,661,282 391,963  Add: Amortization of intangible assets resulting from assets and business acquisitions 146,234 193,215 28,458  737,730 494,797 72,875  Add: Reconciling items on the share of equity method investments(9) 91,099 55,687 8,202  301,110 172,156 25,356  Add: Impairment of goodwill, intangible assets, and investments 194,848 - -  1,750,713 661,735 97,463  Add/(Reversal of): Loss/(Gain) from fair value change of long-term investments 4,030,673 (2,939,789)(432,984) 714,645 (9,007,791)(1,326,704) Reversal of: Gain and foreign exchange impact in relation to sale of development properties (3,099,786)(343,982)(50,663) (3,183,004)(539,568)(79,470) Reversal of: Gain on disposals/deemed disposals of investments (18,629)(12,724)(1,874) (1,227,835)(4,802,557)(707,340) Including: Dilution gain recognized upon the IPO of Dada Group - - -  - (4,138,838)(609,585) Reversal of: Effects of business cooperation arrangements and non-compete agreements (202,909)(30,847)(4,543) (693,207)(303,507)(44,702) Add: Tax effects on non-GAAP adjustments 307,418 24,612 3,625  325,242 25,089 3,695  Non-GAAP net income attributable to ordinary shareholders 3,085,885 5,558,054 818,614   9,939,185 14,441,408  2,126,987             Total net revenues 134,842,785 174,214,464 25,659,017  406,204,446 521,473,731 76,804,780            Non-GAAP net margin 2.3%3.2%3.2% 2.4%2.8%2.8%           (9) To exclude the non-GAAP to GAAP reconciling items on the share of equity method investments, and share of amortization of intangibles not on their books._____________ 1 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2020, which was RMB6.7896 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts. 2 See the sections entitled “Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release. 3 Annual active customer accounts are customer accounts that made at least one purchase during the twelve months ended on the respective dates, whether through online retail or online marketplace. 4 Fulfilled gross margin is calculated by dividing fulfilled gross profit by net revenues. Fulfilled gross profit is defined as the difference between net revenues and the total amount of cost of revenues and fulfillment expenses.

  • JD.com to Report Third Quarter 2020 Financial Results on November 16, 2020
    GlobeNewswire

    JD.com to Report Third Quarter 2020 Financial Results on November 16, 2020

    BEIJING, Nov. 10, 2020 (GLOBE NEWSWIRE) -- JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading technology driven e-commerce company transforming to become the leading supply chain based technology and service provider, today announced that it plans to release its unaudited third quarter 2020 financial results on Monday, November 16, 2020, before the U.S. market opens. JD.com’s management will hold a conference call at 7:00 am, Eastern Time on November 16, 2020, (8:00 pm, Beijing/Hong Kong Time on November 16, 2020) to discuss the third quarter 2020 financial results.Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/4162664CONFERENCE ID: 4162664A telephone replay will be available from 10:00 am, Eastern Time on November 16, 2020 through 7:59 am, Eastern Time on November 24, 2020. The dial-in details are as follows:US:+1-855-452-5696 or +1-646-254-3697 International: +61-2-8199-0299 Passcode:4162664 Additionally, a live and archived webcast of the conference call will also be available on the Company’s investor relations website at http://ir.jd.com.About JD.com, Inc.JD.com is a leading technology driven e-commerce company transforming to become the leading supply chain based technology and service provider. The company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries. JD.com is the largest retailer in China, a member of the NASDAQ100 and a Fortune Global 500 company.For investor and media inquiries, please contact:Investor Relations Ruiyu Li +86 (10) 8912-6804 IR@JD.comMedia Relations +86 (10) 8911-6155 Press@JD.com

  • GlobeNewswire

    JD.com Announces 2020 Second Quarter and Interim Financial Results

    BEIJING, Aug. 17, 2020 (GLOBE NEWSWIRE) -- JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider, today announced its unaudited financial results for the three months and six months ended June 30, 2020.Second Quarter 2020 Highlights * Net revenues for the second quarter of 2020 were RMB201.1 billion (US$1 28.5 billion), an increase of 33.8% from the second quarter of 2019. Net revenues from the sales of general merchandise products for the second quarter of 2020 were RMB64.0 billion (US$9.1 billion), an increase of 45.4% from the second quarter of 2019. Net service revenues for the second quarter of 2020 were RMB22.9 billion (US$3.2 billion), an increase of 36.4% from the second quarter of 2019. * Income from operations for the second quarter of 2020 was RMB5.0 billion (US$0.7 billion), compared to RMB2.3 billion for the same period last year. Non-GAAP2 income from operations for the second quarter of 2020 was RMB5.6 billion (US$0.8 billion) with a non-GAAP operating margin of 2.8%, as compared to RMB3.2 billion for the second quarter of 2019 with a non-GAAP operating margin of 2.1%. * Net income attributable to ordinary shareholders for the second quarter of 2020 was RMB16.4 billion (US$2.3 billion), compared to RMB0.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the second quarter of 2020 increased by 66.1% to RMB5.9 billion (US$0.8 billion) from RMB3.6 billion for the same period last year. * Diluted net income per ADS for the second quarter of 2020 was RMB10.47 (US$1.48), compared to RMB0.36 for the second quarter of 2019. Non-GAAP diluted net income per ADS for the second quarter of 2020 was RMB3.51 (US$0.50), compared to RMB2.30 for the same period last year. * Annual active customer accounts3 increased by 29.9% to 417.4 million in the twelve months ended June 30, 2020 from 321.3 million in the twelve months ended June 30, 2019. Mobile daily active users4 in June 2020 increased by 40% as compared to June 2019.“Since the COVID-19 outbreak, JD has steadfastly leveraged our distinctive supply chain and technology capabilities to contribute to society and ensure the steady supply and undisrupted delivery of daily necessities to consumers, while helping to create jobs within our ecosystem and support business partners amidst the dynamic economic environment,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. "I'm grateful for the efforts of JD's employees and business partners in driving another solid quarter of accelerated revenue growth, as our extensive product offerings and superior services continue to attract large numbers of new users.”“Our scale advantages and cost efficiency enabled us to provide attractive prices during our June 18 sales promotions, benefiting consumers and society as China's economy emerges from the difficult pandemic period, and helped drive solid top and bottom line results for the second quarter,” said Sandy Xu, Chief Financial Officer of JD.com. “Our strong financial and operating performance form the basis for JD’s continued investment in innovative supply chain capabilities and a superior customer experience to support our long term growth.”Business HighlightsHong Kong Listing * On June 18, 2020, JD.com successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited under the stock code “9618”, with a global offering of 152,912,100 new Class A ordinary shares (including a partial exercise of the over-allotment option completed on July 15, 2020) (the “Global Offering”). The Hong Kong-listed shares are fully fungible with JD.com’s American depositary shares (“ADSs”) listed on the Nasdaq Stock Exchange, based on the ratio of two ordinary shares per ADS. The gross proceeds from the Global Offering, before deducting underwriting fees and the offering expenses, amounted to approximately HK$34,558 million. JD.com plans to use the net proceeds to invest in key supply chain-based technology initiatives to further enhance customer experience and improve operating efficiency.Environment, Social and Governance * In response to the COVID-19 resurgence in Beijing in June, JD.com rapidly deployed prevention measures to protect consumers and employees while ensuring the steady supply of daily necessities. As the new outbreak was linked to a wholesale food market in Beijing, JD.com carried out virus screening on fresh produce. Contactless deliveries were made widely available in local residential compounds, and JD delivery staff, truck drivers and warehouse workers were all tested for the virus. * In the second quarter, JD.com continued to contribute to China’s poverty alleviation efforts, including joining a nationwide program to offer tens of thousands jobs in its logistic and retail operations and hosting live stream shows with rural counties to promote local specialties. JD Health and JD Foundation launched online purchase subsidies for low income families covering selected medicines, creating the largest health poverty alleviation project in China in terms of geographical coverage, population benefited and total monetary amount.JD Retail * JD.com continued to attract premium global brands to its platform as a widely trusted retailing channel for high quality products. In the second quarter, brands including Prada’s high end footwear brand Church’s, London based innovative luxury fashion label Christopher Kane, well-known British furniture design brand Tom Dixon, Italian luxury shoe brand Sergio Rossi, Korean high street apparel brand SJYP and affordable Japanese cosmetics and drug store Daikoku, all launched flagship stores on JD.com. * In the second quarter, livestreaming continued to grow in popularity as a tool for suppliers and merchants to engage with customers. Ms. Dong Mingzhu, Chairwoman of Gree Electronic Appliances, booked a record-breaking sale during a three-hour livestream show, featuring pre-sale customer education and product recommendations. In order to diversify its user engagement channels and fully leverage its supply chain strengths, JD Retail announced a strategic partnership with Kwai, one of China’s leading short video platforms. The debut event, a one-day livestream show jointly held by the two companies, was a great success connecting Kwai’s large user base to JD.com’s broad selection of high quality products and superior online shopping experience. * In April, JD Retail launched “Instant Delivery” services for mobile products, with delivery of mobile phones in as fast as one hour through JD Daojia. The initiative applies its omni-channel strategies to more diversified categories and further improves customer experience. The service currently covers selected authorized stores as well as other partners within JD.com’s omni-channel ecosystem. * JD Retail continued to apply advanced technology to various consumption scenarios in order to facilitate online purchasing. Following the launch of its AR-based virtual shoe “try-on” service - the first for an e-commerce platform in China - JD Retail launched its AI-powered skin evaluation service in June, allowing users to upload images from their mobile phone for analysis and receive customized shopping guidance on suitable skincare and cosmetics products.JD Health * On August 17, 2020, JD Health, a subsidiary of JD.com, entered into a definitive agreement with Hillhouse Capital for its non-redeemable series B preference share financing. The total amount expected to be raised from Hillhouse Capital is over US$830 million. JD.com will remain the majority shareholder of JD Health after the completion of this transaction, which is subject to customary closing conditions. The closing is expected to occur in the third quarter of 2020. Hillhouse Capital is a leading investment management company that has established a comprehensive ecosystem in the healthcare sector in China. By leveraging Hillhouse Capital’s industry expertise and resources, JD Health will further strengthen its pharmacy supply chain capabilities and explore additional healthcare services opportunities in the broader healthcare sector. * In June, JD Health unveiled its Traditional Chinese Medicine Consultation Center and Intelligent Otorhinolaryngology Services Center, each bringing together the country’s top specialists and providing online consultations and disease management programs for patients nationwide. With the addition of these two centers, the specialized virtual medical treatment centers within the JD Health app cover areas including heart disease, mental health, diabetes, kidney disease, pediatrics, oncology and maternity, among others.JD Logistics * In the second quarter, JD Logistics launched a new Asia No.1 warehouse in Langfang, Hebei province, near Beijing, equipped with the first automated storage and retrieval system for bulky items in Asia’s e-commerce industry, greatly improving efficiency in handling items including air conditioners, refrigerators and furniture. Thanks to its continuous focus on technology innovation, JD Logistics maintained fast delivery standards during the June 18 Anniversary Sale as orders surged to record highs, ensuring that 91% of packages from its direct sales platforms arrived at consumers’ doorsteps same or next day throughout China. * As of June 30, 2020, JD Logistics operated over 750 warehouses, which covered an aggregate gross floor area of approximately 18 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform.Equity Investees Update * On June 25, 2020, JD.com announced that it has entered into agreements with JD Digits, pursuant to which JD.com will acquire a 36.8% equity interest in JD Digits by converting its profit sharing rights with respect to JD Digits as set forth in the Framework Agreement entered into between the two parties in 2017, and investing an additional RMB1.78 billion in cash in JD Digits to satisfy the minimum capital registration requirement under the PRC laws. Upon closing, the Framework Agreement, including the current profit-sharing arrangement between JD.com and JD Digits, will terminate, and JD Digits will become an equity method investee of JD.com.  * Dada Group, one of JD.com’s important ecosystem partners, listed on the Nasdaq Stock Market under the ticker “DADA” on June 5, 2020. Upon its initial public offering (IPO), JD.com purchased additional shares as a cornerstone investor. As of June 30, 2020, JD.com is the largest shareholder of Dada Group with a 47.9% stake. JD.com has formed an extensive cooperation relationship with Dada, as its local on-demand delivery and retail capabilities support JD.com’s innovative projects and omni-channel strategy, together bringing consumers the most convenient and advanced shopping experience.Operational Metrics Update * As of June 30, 2020, JD.com had approximately 240,000 employees excluding part-time and interns.Second Quarter 2020 Financial ResultsNet Revenues. For the second quarter of 2020, JD.com reported net revenues of RMB201.1 billion (US$28.5 billion), representing a 33.8% increase from the same period in 2019. Net product revenues increased by 33.5%, while net service revenues increased by 36.4% for the second quarter of 2020, as compared to the same period of 2019.Cost of Revenues. Cost of revenues increased by 34.5% to RMB172.4 billion (US$24.4 billion) for the second quarter of 2020 from RMB128.2 billion for the second quarter of 2019.Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 30.6% to RMB12.0 billion (US$1.7 billion) for the second quarter of 2020 from RMB9.2 billion for the second quarter of 2019. Fulfillment expenses as a percentage of net revenues was 5.9% for the second quarter of 2020, compared to 6.1% for the same period last year, mainly due to the nationwide relief for social security contributions.Fulfilled Gross Margin5. Fulfilled gross margin for the second quarter of 2020 was 8.3%, as compared to 8.6% for the second quarter of 2019. The decrease was primarily due to a one-time benefit from Value Added Tax Reform resulted in lower cost of revenues in the second quarter of 2019.Marketing Expenses. Marketing expenses increased by 21.0% to RMB6.8 billion (US$1.0 billion) for the second quarter of 2020 from RMB5.6 billion for the second quarter of 2019.Research and Development Expenses. Research and development expenses was RMB3.6 billion (US$0.5 billion) for the second quarter of 2020, as compared to RMB3.7 billion for the second quarter of 2019.General and Administrative Expenses. General and administrative expenses was RMB1.4 billion (US$0.2 billion) for both the second quarter of 2020 and 2019, respectively.Income from Operations and Non-GAAP Income from Operations. Income from operations for the second quarter of 2020 was RMB5.0 billion (US$0.7 billion), compared to RMB2.3 billion for the same period last year. Non-GAAP income from operations for the second quarter of 2020 was RMB5.6 billion (US$0.8 billion) with a non-GAAP operating margin of 2.8%, as compared to non-GAAP income from operations of RMB3.2 billion for the second quarter of 2019 with a non-GAAP operating margin of 2.1%. Operating margin of JD Retail before unallocated items for the second quarter of 2020 was 3.0%, compared to 2.8% for the second quarter of 2019.Non-GAAP EBITDA for the second quarter of 2020 was RMB6.9 billion (US$1.0 billion) with a non-GAAP EBITDA margin of 3.4%, compared to RMB4.4 billion with a non-GAAP EBITDA margin of 2.9% for the second quarter of 2019.Share of Results of Equity Investees. In the second quarter of 2020, share of results of equity investees was an income of RMB4.0 billion (US$0.6 billion), as compared to a loss of RMB0.3 billion for the second quarter of 2019. The substantial increase was primarily due to a dilution gain of RMB4.1 billion (US$0.6 billion) recognized upon the IPO of Dada Group.Others, net. Others are other non-operating income/(loss), primarily consists of gains/(losses) from fair value change of long-term investments, gains from business and investment disposals, impairment of investments, government incentives, and foreign exchange gains/(losses). In the second quarter of 2020, other non-operating income was RMB7.9 billion (US$1.1 billion), as compared to other non-operating loss of RMB1.2 billion for the second quarter of 2019. The substantial increase was primarily due to the fair value change of investment securities, which had a gain of RMB6.7 billion (US$1.0 billion) for the second quarter of 2020, as compared to a loss of RMB2.4 billion for the same period of last year.Net Income Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable to Ordinary Shareholders. Net income attributable to ordinary shareholders for the second quarter of 2020 was RMB16.4 billion (US$2.3 billion), compared to RMB0.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the second quarter of 2020 was RMB5.9 billion (US$0.8 billion), compared to RMB3.6 billion for the same period last year.Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the second quarter of 2020 was RMB10.47 (US$1.48), compared to RMB0.36 for the second quarter of 2019. Non-GAAP diluted net income per ADS for the second quarter of 2020 was RMB3.51 (US$0.50), compared to RMB2.30 for the second quarter of 2019.Cash Flow and Working CapitalAs of June 30, 2020, the company’s cash and cash equivalents, restricted cash and short-term investments totaled RMB126.0 billion (US$17.8 billion), compared to RMB64.5 billion as of December 31, 2019. For the second quarter of 2020, free cash flow of the company was as follows:  For the three months ended   June 30, 2019June 30, 2020June 30, 2020   RMBRMBUS$   (In thousands)     Net cash provided by operating activities20,192,150 26,617,548 3,767,469  Add/(less): Impact from JD Baitiao receivables included in the operating cash flow(448,964)2,050,714 290,260  Less: Capital expenditures     Capital expenditures for development properties, net of related sales proceeds*(496,762)(2,116,213)(299,531)  Other capital expenditures**(979,899)(749,037)(106,019) Free cash flow18,266,525 25,803,012 3,652,179  * Including logistics facilities and other real estate properties developed by JD Property, which may be sold under various equity structures. In the second quarter of 2020, approximately RMB0.5 billion proceeds from the sale of development properties were included in this line, compared to nil in the second quarter of 2019.** Including capital expenditures related to the company’s headquarters in Beijing and all other CAPEX.Net cash used in investing activities was RMB23.4 billion (US$3.3 billion) for the second quarter of 2020, consisting primarily of increase in short-term investments of RMB19.2 billion, cash paid for investments in equity investees and purchases of investment securities of RMB4.5 billion, and cash paid for capital expenditures of RMB3.4 billion, partially offset by the cash acquired from business combination of RMB2.1 billion.In the second quarter of 2020, the company acquired 54% equity interest in Jiangsu Five Star Appliance Co., Ltd. (“Jiangsu Five Star”) from the shareholder of Jiangsu Five Star (the “Seller”) by converting a loan of approximately RMB1.03 billion owed by the Seller to the company and assuming the Seller’s RMB0.4 billion debt owed to Jiangsu Five Star. Since then, Jiangsu Five Star has become the company’s wholly-owned subsidiary.Net cash provided by financing activities was RMB28.5 billion (US$4.0 billion) for the second quarter of 2020, consisting primarily of proceeds from issuance of ordinary shares of RMB27.3 billion.For the twelve months ended June 30, 2020, free cash flow of the company was as follows:  For the twelve months ended   June 30, 2019June 30, 2020June 30, 2020   RMBRMBUS$   (In thousands)     Net cash provided by operating activities31,756,192 26,340,890 3,728,311  Add/(less): Impact from JD Baitiao receivables included in the operating cash flow(10,179,682)1,002,640 141,915  Less: Capital expenditures     Capital expenditures for development properties, net of related sales proceeds(3,963,356)(1,721,273)(243,630)  Other capital expenditures(10,254,777)(2,887,341)(408,677) Free cash flow7,358,377 22,734,916 3,217,919  Half-Year Supplemental InformationThe table below sets forth the half-year segment operating results: For the six months ended  June 30, 2019June 30, 2020June 30, 2020  RMBRMBUS$  (In thousands) Net revenues:    JD Retail260,493,299 331,060,999 46,858,643  New businesses*10,609,280 15,989,538 2,263,173  Inter-segment(242,661)(299,297)(42,363) Total segment net revenues270,859,918 346,751,240 49,079,453  Unallocated items**501,743 508,027 71,907  Total consolidated net revenues271,361,661 347,259,267 49,151,360       Operating income/(loss):    JD Retail7,233,587 10,137,365 1,434,851  New businesses*(1,960,980)(1,092,306)(154,606) Including: gain on sale of development properties 83,218 195,586 27,683  Total segment operating income5,272,607 9,045,059 1,280,245  Unallocated items**(1,780,481)(1,680,535)(237,864) Total consolidated operating income3,492,126 7,364,524 1,042,381  * New businesses of the company include logistics services provided to third parties, overseas business, technology initiatives, as well as asset management services to logistics property investors and sale of development properties by JD Property.JD Property develops and manages logistics facilities and other real estate properties. By leveraging its fund management platform, JD Property can realize development profits and recycle capital from mature properties to fund new developments and scale the business.** Unallocated items include share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, and impairment of goodwill and intangible assets, which are not allocated to segments.The table below sets forth the half-year revenue information: For the six months ended  June 30, 2019 June 30, 2020 June 30, 2020  RMB RMB US$  (In thousands)    Electronics and home appliance revenues160,188,234 191,778,310 27,144,458  General merchandise revenues81,979,339 116,501,709 16,489,747  Net product revenues242,167,573 308,280,019 43,634,205          Marketplace and advertising revenues19,221,424 23,579,686 3,337,488  Logistics and other service revenues9,972,664 15,399,562 2,179,667  Net service revenues29,194,088 38,979,248 5,517,155          Total net revenues271,361,661 347,259,267 49,151,360  Conference CallJD.com’s management will hold a conference call at 7:30 am, Eastern Time on August 17, 2020, (7:30 pm, Beijing/Hong Kong Time on August 17, 2020) to discuss financial results for the three months and six months ended June 30, 2020.Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/3771815CONFERENCE ID: 3771815A telephone replay will be available from 10:30 am, Eastern Time on August 17, 2020 through 9:59 am, Eastern Time on August 25, 2020. The dial-in details are as follows:US Toll Free:+1-855-452-5696 or +1-646-254-3697    International+61-2-8199-0299    Passcode:3771815 Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.jd.com.About JD.com.JD.com is a leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider. The company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries. JD.com is the largest retailer in China, a member of the NASDAQ100 and a Fortune Global 500 company.Non-GAAP MeasuresIn evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to ordinary shareholders, non-GAAP net margin, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per share and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP income/(loss) from operations as income/(loss) from operations excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, gain on sale of development properties and impairment of goodwill and intangible assets. The company defines non-GAAP net income/(loss) attributable to ordinary shareholders as net income/(loss) attributable to ordinary shareholders excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements and non-compete agreements, gain/(loss) on disposals/deemed disposals of investments, reconciling items on the share of equity method investments, loss/(gain) from fair value change of long-term investments, impairment of goodwill, intangible assets and investments, gain and foreign exchange impact in relation to sale of development properties and tax effects on non-GAAP adjustments. The company defines free cash flow as operating cash flow adjusting the impact from JD Baitiao receivables included in the operating cash flow and capital expenditures, net of the proceeds from sale of development properties. Capital expenditures include purchase of property, equipment and software, cash paid for construction in progress, purchase of intangible assets and land use rights. The company defines non-GAAP EBITDA as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions. Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per share multiplied by two.The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP income/(loss) from operations, non-GAAP net income/(loss) attributable to ordinary shareholders and non-GAAP EBITDA reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from JD Baitiao receivables included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the company’s current operating performance and future prospects in the same manner as management does, if they so choose. The company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the company’s core operating results and business outlook.The non-GAAP financial measures have limitations as analytical tools. The company’s non-GAAP financial measures do not reflect all items of income and expense that affect the company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The company encourages you to review the company’s financial information in its entirety and not rely on a single financial measure.CONTACTS:Investor Relations Ruiyu Li Senior Director of Investor Relations +86 (10) 8912-6804 IR@JD.comMedia +86 (10) 8911-6155 Press@JD.com Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as JD.com's strategic and operational plans, contain forward-looking statements. JD.com may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com's growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China's e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to JD.com's industry and general economic conditions in China. Further information regarding these and other risks is included in JD.com's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law. JD.com, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In thousands, except per share data and otherwise noted)     As of  December 31, 2019June 30, 2020June 30, 2020  RMBRMBUS$ ASSETS    Current assets    Cash and cash equivalents36,971,42071,571,97610,130,356 Restricted cash2,940,8595,742,904812,855 Short-term investments24,602,77748,730,3086,897,327 Accounts receivable, net (including JD Baitiao of RMB1.0 billion and RMB3.7 billion as of December 31, 2019 and June 30, 2020, respectively)(1)6,190,5889,674,2511,369,301 Advance to suppliers593,1302,319,717328,335 Inventories, net57,932,15654,476,7457,710,683 Prepayments and other current assets5,629,5618,882,3331,257,212 Amount due from related parties4,234,0673,804,468538,487 Assets held for sale(2)-273,97038,778 Total current assets139,094,558205,476,67229,083,334 Non-current assets    Property, equipment and software, net20,654,07117,909,5362,534,930 Construction in progress5,806,3087,742,4631,095,875 Intangible assets, net4,110,0344,408,977624,050 Land use rights, net10,891,74210,902,6451,543,169 Operating lease right-of-use assets8,643,59711,501,5711,627,942 Goodwill6,643,6699,271,8971,312,352 Investment in equity investees35,575,80748,202,5656,822,630 Investment securities21,417,10426,417,9093,739,212 Deferred tax assets80,556153,93521,788 Other non-current assets6,806,2587,284,1481,031,005 Assets held for sale(2)-3,208,117454,079 Total non-current assets120,629,146147,003,76320,807,032 Total assets259,723,704352,480,43549,890,366       JD.com, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In thousands, except per share data and otherwise noted)     As of  December 31, 2019June 30, 2020June 30, 2020  RMBRMBUS$ LIABILITIES    Current liabilities    Short-term debts-8,788,1841,243,887 Accounts payable90,428,382100,209,90514,183,791 Advances from customers16,078,61918,765,8962,656,140 Deferred revenues3,326,5944,054,132573,825 Taxes payable2,015,7882,515,719356,077 Amount due to related parties317,9781,179,112166,892 Unsecured senior notes-3,532,830500,040 Accrued expenses and other current liabilities24,656,18028,733,9864,067,031 Operating lease liabilities3,193,4804,109,880581,716 Liabilities held for sale(2)-58,8708,333 Total current liabilities140,017,021171,948,51424,337,732 Non-current liabilities    Deferred revenues1,942,6351,862,264263,586 Unsecured senior notes6,912,49210,404,2501,472,626 Deferred tax liabilities1,338,9881,398,509197,946 Long-term borrowings3,139,2903,185,775450,917 Operating lease liabilities5,523,1647,492,9611,060,560 Other non-current liabilities225,883184,59226,127 Total non-current liabilities19,082,45224,528,3513,471,762 Total liabilities159,099,473196,476,86527,809,494 (1) JD Digits performs credit risk assessment services for JD Baitiao business and absorbs the credit risk of the underlying Baitiao receivables. Facilitated by JD Digits, the Company periodically securitizes Baitiao receivables through the transfer of those assets to asset-backed securitization plans and derecognizes the related Baitiao receivables through sales type arrangements(2) The company entered into definitive agreements to transfer certain logistic facilities and real estate properties to JD Logistics Properties Core Fund II, L.P. (the “Core Fund II”). As of June 30, 2020, classified the related assets and liabilities as assets and liabilities held for sale under ASC 360, which included cash of RMB176.5 million.JD.com, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In thousands, except per share data and otherwise noted)       As of  December 31, 2019June 30, 2020June 30, 2020  RMBRMBUS$      MEZZANINE EQUITY    Convertible redeemable non-controlling interests15,964,38415,965,9602,259,835      SHAREHOLDERS’ EQUITY    Total JD.com, Inc. shareholders’ equity (US$0.00002 par value, 100,000,000 shares authorized, 3,109,882 shares issued and 3,077,901 shares outstanding as of June 30, 2020)81,855,970136,345,75419,298,489 Non-controlling interests2,803,8773,691,856522,548 Total shareholders’ equity84,659,847140,037,61019,821,037 Total liabilities, mezzanine equity and shareholders’ equity259,723,704352,480,43549,890,366      JD.com, Inc. Unaudited Interim Condensed Consolidated Statements of Operations (In thousands, except per share data and otherwise noted)    For the three months ended For the six months ended  June 30, 2019June 30, 2020June 30, 2020 June 30, 2019June 30, 2020June 30, 2020  RMBRMBUS$ RMBRMBUS$ Net revenues        Net product revenues133,516,303 178,186,881 25,220,716  242,167,573 308,280,019 43,634,205  Net service revenues16,764,299 22,867,177 3,236,639  29,194,088 38,979,248 5,517,155  Total net revenues150,280,602 201,054,058 28,457,355  271,361,661 347,259,267 49,151,360  Cost of revenues(128,155,583)(172,418,571)(24,404,265) (231,052,935)(296,088,270)(41,908,575) Fulfillment(9,155,158)(11,956,352)(1,692,312) (17,218,490)(22,356,142)(3,164,307) Marketing(5,621,380)(6,803,919)(963,032) (9,561,779)(11,272,235)(1,595,481) Research and development(3,725,903)(3,603,600)(510,056) (7,442,448)(7,538,759)(1,067,042) General and administrative(1,356,026)(1,423,127)(201,431) (2,677,101)(2,834,923)(401,257) Gain on sale of development properties- 195,586 27,683  83,218 195,586 27,683  Income from operations(3)(4)2,266,552 5,044,075 713,942  3,492,126 7,364,524 1,042,381  Other income/(expenses)              Share of results of equity investees(303,360)4,004,164 566,753  (1,020,782)2,883,944 408,196  Interest income375,699 538,027 76,153  688,274 1,061,081 150,186  Interest expense(154,846)(324,218)(45,890) (342,291)(531,318)(75,203) Others, net(1,199,356)7,947,525 1,124,899  5,686,680 7,814,969 1,106,137  Income before tax984,689 17,209,573 2,435,857  8,504,007 18,593,200 2,631,697  Income tax expenses(438,807)(796,550)(112,744) (718,447))(1,122,994)(158,949) Net income545,882 16,413,023 2,323,113  7,785,560 17,470,206 2,472,748  Net loss attributable to non-controlling interests shareholders(73,699)(34,384)(4,867) (153,902)(50,804)(7,191) Net income attributable to mezzanine equity classified as non-controlling interests shareholders764 794 112  1,512 1,576 223  Net income attributable to ordinary shareholders618,817 16,446,613 2,327,868  7,937,950 17,519,434 2,479,716                  JD.com, Inc. Unaudited Interim Condensed Consolidated Statements of Operations (In thousands, except per share data and otherwise noted)         For the three months ended For the six months ended   June 30, 2019June 30, 2020June 30, 2020 June 30, 2019June 30, 2020June 30, 2020   RMBRMBUS$ RMBRMBUS$ (3)Includes share-based compensation expenses as follows:               Cost of revenues(21,043)(13,638)(1,930) (34,072)(34,498)(4,883)  Fulfillment(122,718)(64,616)(9,146) (180,256)(196,494)(27,812)  Marketing(71,408)(54,183)(7,669) (110,591)(131,255)(18,578)  Research and development(365,430)(190,127)(26,911) (592,385)(550,726)(77,950)  General and administrative(440,259)(310,660)(43,971) (721,600)(696,765)(98,621) (4)Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows:               Fulfillment(41,892)(48,200)(6,822) (83,779)(89,633)(12,687)  Marketing(56,032)(146,709)(20,766) (356,514)(285,658)(40,432)  Research and development(24,940)(24,700)(3,496) (49,880)(49,400)(6,992)  General and administrative(76,820)(77,313)(10,942) (153,147)(154,133)(21,816)           Net income per share:         Basic0.21 5.55 0.79  2.73 5.95 0.84   Diluted0.18 5.23 0.74  2.68 5.68 0.80            Net income per ADS:         Basic0.42 11.11 1.57  5.47 11.90 1.68   Diluted0.36 10.47 1.48  5.37 11.37 1.61             JD.com, Inc. Unaudited Non-GAAP Net Income Per Share and Per ADS (In thousands, except per share data and otherwise noted)       For the three months ended For the six months ended  June 30, 2019June 30, 2020June 30, 2020 June 30, 2019June 30, 2020June 30, 2020  RMBRMBUS$ RMBRMBUS$          Non-GAAP net income attributable to ordinary shareholders3,558,9355,911,148836,670 6,853,3008,883,3541,257,359          Weighted average number of shares:        Basic2,913,6082,961,2782,961,278 2,903,7922,943,9812,943,981 Diluted2,965,7313,041,2443,041,244 2,958,8913,020,0153,020,015          Non-GAAP net income per share:        Basic1.222.000.28 2.363.020.43 Diluted1.151.750.25 2.282.770.39          Non-GAAP net income per ADS:        Basic2.443.990.57 4.726.030.85 Diluted2.303.510.50 4.565.550.79           JD.com, Inc. Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free Cash Flow (In thousands)    For the three months ended For the six months ended  June 30, 2019June 30, 2020June 30, 2020 June 30, 2019June 30, 2020June 30, 2020  RMBRMBUS$ RMBRMBUS$          Net cash provided by operating activities20,192,150 26,617,548 3,767,469  23,515,401 25,075,071 3,549,146  Net cash used in investing activities(21,028,488)(23,389,954)(3,310,633) (22,131,473)(31,586,306)(4,470,751) Net cash provided by/(used in) financing activities(449,004)28,454,594 4,027,486  (3,004,955)43,541,004 6,162,829  Effect of exchange rate changes on cash, cash equivalents and restricted cash415,633 (60,032)(8,496) (7,580)549,333 77,753  Net increase/(decrease) in cash, cash equivalents and restricted cash(869,709)31,622,156 4,475,826  (1,628,607)37,579,102 5,318,977  Cash, cash equivalents and restricted cash at beginning of period36,743,160 45,869,225 6,492,367  37,502,058 39,912,279 5,649,216  Cash, cash equivalents and restricted cash at end of period(5)35,873,451 77,491,381 10,968,193  35,873,451 77,491,381 10,968,193           Net cash provided by operating activities20,192,150 26,617,548 3,767,469  23,515,401 25,075,071 3,549,146  Add/(Less): Impact from JD Baitiao receivables included in the operating cash flow(448,964)2,050,714 290,260  (2,610,082)2,626,442 371,749  Add/(Less): Capital expenditures        Capital expenditures for development properties, net of related sales proceeds(496,762)(2,116,213)(299,531) 593,916 (3,547,758)(502,153) Other capital expenditures(979,899)(749,037)(106,019) (1,952,620)(1,325,220)(187,573) Free cash flow18,266,525 25,803,012 3,652,179  19,546,615 22,828,535 3,231,169  (5) Including cash, cash equivalents and restricted cash classified as assets held for sale.JD.com, Inc. Supplemental Financial Information and Business Metrics  Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020        Free cash flow (in RMB billions) – trailing twelve months (“TTM”)7.415.619.515.222.7 Inventory turnover days(6) – TTM36.335.135.835.434.8 Accounts payable turnover days(7) – TTM59.456.654.551.750.8 Accounts receivable turnover days(8) – TTM3.33.23.23.12.9 Annual active customer accounts (in millions)321.3334.4362.0387.4417.4 (6) TTM inventory turnover days are the quotient of average inventory over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days. (7) TTM accounts payable turnover days are the quotient of average accounts payable for retail business over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days. (8) TTM accounts receivable turnover days are the quotient of average accounts receivable over the immediately preceding five quarters, up to and including the last quarter of the annual period, to total net revenues for the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days excluding the impact from JD Baitiao.JD.com, Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results (In thousands, except percentage data)           For the three months ended For the six months ended  June 30, 2019June 30, 2020June 30, 2020 June 30, 2019June 30, 2020June 30, 2020  RMBRMBUS$ RMBRMBUS$          Income from operations2,266,552 5,044,075 713,942  3,492,126 7,364,524 1,042,381  Add: Share-based compensation1,020,858 633,224 89,627  1,638,904 1,609,738 227,844  Add: Amortization of intangible assets resulting from assets and business acquisitions147,860 154,421 21,856  591,496 301,582 42,686  Reversal of: Effects of business cooperation arrangements(217,813)(42,544)(6,021) (449,919)(230,785)(32,666) Reversal of: Gain on sale of development properties- (195,586)(27,683) (83,218)(195,586)(27,683) Non-GAAP income from operations3,217,457 5,593,590 791,721  5,189,389 8,849,473 1,252,562  Add: Depreciation and other amortization1,212,026 1,306,835 184,971  2,441,458 2,565,299 363,095  Non-GAAP EBITDA4,429,483 6,900,425 976,692  7,630,847 11,414,772 1,615,657                 Total net revenues150,280,602 201,054,058 28,457,355  271,361,661 347,259,267 49,151,360                 Non-GAAP operating margin2.1%2.8%2.8% 1.9%2.5%2.5%                Non-GAAP EBITDA margin2.9%3.4%3.4% 2.8%3.3%3.3%                 JD.com, Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results (In thousands, except percentage data)           For the three months ended For the six months ended  June 30, 2019June 30, 2020June 30, 2020 June 30, 2019June 30, 2020June 30, 2020  RMBRMBUS$ RMBRMBUS$          Net income attributable to ordinary shareholders618,817 16,446,613 2,327,868  7,937,950 17,519,434 2,479,716  Add: Share-based compensation1,020,858 633,224 89,627  1,638,904 1,609,738 227,844  Add: Amortization of intangible assets resulting from assets and business acquisitions147,860 154,421 21,856  591,496 301,582 42,686  Add: Reconciling items on the share of equity method investments(9)47,473 190,956 27,028  210,011 116,469 16,485  Add: Impairment of goodwill, intangible assets, and investments738,284 239,986 33,968  1,555,865 661,735 93,663  Add/(Reversal of): Loss/(Gain) from fair value change of long-term investments2,434,509 (6,737,705)(953,660) (3,316,028)(6,068,002)(858,870) Reversal of: Gain and foreign exchange impact in relation to sale of development properties- (195,586)(27,683) (83,218)(195,586)(27,683) Reversal of: Gain on disposals/deemed disposals of investments(1,206,568)(4,774,833)(675,834) (1,209,206)(4,789,833)(677,957) Including: Dilution gain recognized upon the IPO of Dada Group- (4,138,838)(585,814) - (4,138,838)(585,814) Reversal of: Effects of business cooperation arrangements and non-compete agreements(238,102)(63,638)(9,007) (490,298)(272,660)(38,593) Add/(Reversal of): Tax effects on non-GAAP adjustments(4,196)17,710 2,507  17,824 477 68  Non-GAAP net income attributable to ordinary shareholders3,558,935 5,911,148 836,670  6,853,300 8,883,354 1,257,359                 Total net revenues150,280,602 201,054,058 28,457,355  271,361,661 347,259,267 49,151,360                 Non-GAAP net margin2.4%2.9%2.9% 2.5%2.6%2.6% (9) To exclude the non-GAAP to GAAP reconciling items on the share of equity method investments, and share of amortization of intangibles not on their books.________________ 1 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2020, which was RMB7.0651 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts. 2 See the sections entitled “Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this press release. 3 Annual active customer accounts are customer accounts that made at least one purchase during the twelve months ended on the respective dates, whether through online direct sales or online marketplaces. 4 Mobile daily active users refer to the daily average number of users who used JD mobile app on a given day during a calendar month. 5 Fulfilled gross margin is calculated by dividing fulfilled gross profit by net revenues. Fulfilled gross profit is defined as the difference between net revenues and the total amount of cost of revenues and fulfillment expenses.