GlobeNewswire Inc | Nov 18, 2021 04:00AM EST

November 18, 2021

BEIJING, Nov. 18, 2021 (GLOBE NEWSWIRE) -- JD.com, Inc. (NASDAQ: JD and HKEX: 9618), a leading supply chain-based technology and service provider, today announced its unaudited financial results for the three months ended September 30, 2021.

Third Quarter 2021 Highlights

-- Net revenues for the third quarter of 2021 were RMB218.7 billion (US$133.9 billion), an increase of 25.5% from the third quarter of 2020. Net service revenues for the third quarter of 2021 were RMB32.7 billion (US$5.1 billion), an increase of 43.3% from the third quarter of 2020. -- Income from operations for the third quarter of 2021 was RMB2.6 billion (US$0.4 billion), compared to RMB4.4 billion for the same period last year. Non-GAAP2 income from operations for the third quarter of 2021 was RMB4.6 billion (US$0.7 billion), compared to RMB5.3 billion for the third quarter of 2020. Operating margin of JD Retail before unallocated items for the third quarter of 2021 was 4.0%, compared to 4.2% for the third quarter of 20203. -- Net loss attributable to ordinary shareholders for the third quarter of 2021 was RMB2.8 billion (US$0.4 billion), compared to a net income of RMB7.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of 2021 was RMB5.0 billion (US$0.8 billion), compared to RMB5.6 billion for the same period last year. -- Diluted net loss per ADS for the third quarter of 2021 was RMB1.81 (US$0.28), compared to an income per ADS of RMB4.70 for the third quarter of 2020. Non-GAAP diluted net income per ADS for the third quarter of 2021 was RMB3.16 (US$0.49), compared to RMB3.42 for the same period last year. -- Operating cash flow for the twelve months ended September 30, 2021 increased to RMB41.0 billion (US$6.4 billion) from RMB37.3 billion for the twelve months ended September 30, 2020. Free cash flow, which excludes the impact from JD Baitiao receivables included in the operating cash flow, for the twelve months ended September 30, 2021 was RMB28.5 billion (US$4.4 billion), compared to RMB30.2 billion for the twelve months ended September 30, 2020. -- Annual active customer accounts4 increased by 25.0% to 552.2 million in the twelve months ended September 30, 2021 from 441.6 million in the twelve months ended September 30, 2020.

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1 The U.S. dollar (US$) amounts disclosed in this announcement, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this announcement 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, 2021, which was RMB6.4434 to US$1.00. The percentages stated in this announcement 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 announcement.3 Operating margin of JD Retail before unallocated items for the third quarter of 2020 was retrospectively adjusted to conform to current period presentation of segment information.4 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.

With resilient business operations and core competences in technology and supply chain, JD has built a unique business model, enabling us to have better control across the entire business process, said Lei Xu, President of JD.com. This powerful competitive advantage allows us to navigate through economic cycles and increases our ability to create value as a new type of real economy based enterprise. As a result, consumers and business partners increasingly trust and rely on JD, and we were able to outpace the industry growth in China in the third quarter. JD will continue to create value for our users and business partners, especially the millions of SMEs in the real economy that we work with every day.

Our growing consumer mindshare helped drive the strong results for the quarter with more new and existing users purchasing high-frequency products such as supermarket categories on JD, said Sandy Xu, Chief Financial Officer of JD.com. We were also pleased to see our key strategic initiatives including the third-party marketplace and omni-channel strategies begin to generate positive results. Going forward, we will continue to focus on building high-quality businesses and investing in technologies and core capabilities to ensure JD's sustainable growth in the long term.

Business Highlights

Environment, Social and Governance

-- In August, Jingxi, a platform for everyday shopping under JD.com, donated over 100,000 prevention supply kits, including facemasks and hand sanitizers to local residents in Nanjing in response to the COVID-19 outbreak. Nanjing residents can apply to receive kits free of charge through Jingxis multiple online platforms. -- During the 4th Chinese Farmers Harvest Festival in September, JD.com announced that in 2021, the companys supportive measures for agriculture in rural areas have promoted the development of local brands from scratch, such as Suqian King Crabs in Jiangsu Province, and increased the transaction volume of local agricultural products by more than 200%. In continuing its commitment to rural rejuvenation, JD.com has constructed logistics infrastructure in production regions, and built an agricultural product marketing ecosystem which integrates JDs sales channels.

JD Retail

-- In September, JD.com opened its first JD MALL offline store in Xian offering consumers an immersive omni-channel shopping experience. In addition to traditional electronic categories offered by JD Super Experience Store, JD MALL provides over 200,000 items from more than 150 brands, in categories including home, furniture, kids, smart healthcare products and auto accessories. Through its partnership with furniture maker Shangpin Home Collection, JD MALL meets the demand among younger consumers for bespoke one-stop-shop home design services that incorporate furniture and home appliances categories. -- In the third quarter, over 20 domestic and international household and home decor brands launched official stores on JD.com, including Camerich, Lost & Found, QEEBOO, and Lattoflex, bringing a variety of high-quality and stylish home goods to address consumers increasingly diverse lifestyle preferences. -- Sephora, a high-end beauty retailer owned by LVMH, recently joined JD.coms omni-channel service network. Products ordered through the Sephora store on JD.com can be delivered to consumers doorsteps within one hour from nearby Sephora offline stores. Chinese beauty brand Perfect Diary also joined JD.coms omni-channel service network to offer delivery from its 120 offline stores in 84 cities. -- During the quarter, JD.com and Dada Group formed a strategic partnership with ASUS, a global technology leader, launching more than 150 ASUS stores on JD Daojia (JDDJ) and Shop Now, JD.coms new on-demand consumer retail section. The three parties will further accelerate the digital transformation of physical stores in the second half of 2021 to improve the offline shopping experience for computer and digital products, including the extension of one-hour delivery service to all ASUS offline stores in China.

JD Health

-- In July, JD Health and Allianz JD, JD.coms joint venture with Allianz, one of the worlds leading insurers and asset managers, jointly launched a comprehensive online clinical insurance service offering a one-stop platform for healthcare, medicine purchasing and insurance services. By connecting users directly with doctors, pharmacies and insurance companies, JD Health improves the experience of insured users through its full cycle service that provide online health consultations, prescriptions, direct claims and reimbursements as well as medicine purchasing and door-to-door delivery. -- In September, over 200 institutional exhibitors and participants attended JD Healths third Online Pharmaceutical Expo under the theme Intelligent Digital Empowerment and Ecosystem Interconnection. JD Health helped to facilitate transactions between up and downstream players among the participating companies to create a Intelligent Digital Pharmaceutical Circulation Supply Chain Ecosystem to support digital transformation and optimize user experience in the health care industry.

JD Logistics

-- In September, JD Logistics launched an air cargo route between East China and London marking JD Logisticss first regular cargo charter flight between China and Europe. Further expanding JD Logisticss international transportation network, the route will deliver products from Chinas major manufacturing regions with same day port-to-port delivery and product arrival within one week. -- In the third quarter, JD Logistics established a strategic partnership with Volvo Cars to build integrated supply chain services for the mid and high-end auto aftermarket. The two parties will cooperate in areas such as supply chain warehouse networks planning, inventory management and store delivery. -- As of September 30, 2021, JD Logistics operated approximately 1,300 warehouses, which covered an aggregate gross floor area of over 23 million square meters, including space in cloud warehouses managed under the JD Logistics Open Warehouse Platform.

Third Quarter 2021 Financial Results

Net Revenues.For the third quarter of 2021, JD.com reported net revenues of RMB218.7 billion (US$33.9 billion), representing a 25.5% increase from the same period of 2020. Net product revenues increased by 22.9%, while net service revenues increased by 43.3% for the third quarter of 2021, as compared to the same period of 2020.

Cost of Revenues. Cost of revenues increased by 27.3% to RMB187.6 billion (US$29.1 billion) for the third quarter of 2021 from RMB147.4 billion for the third quarter of 2020.

Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 23.2% to RMB14.3 billion (US$2.2 billion) for the third quarter of 2021 from RMB11.6 billion for the third quarter of 2020. Fulfillment expenses as a percentage of net revenues was 6.5% for the third quarter of 2021, compared to 6.7% for the same period last year.

Marketing Expenses. Marketing expenses increased by 42.3% to RMB7.8 billion (US$1.2 billion) for the third quarter of 2021 from RMB5.5 billion for the third quarter of 2020.

Research and Development Expenses. Research and development expenses was RMB4.0 billion (US$0.6 billion) for the third quarter of 2021, as compared to RMB4.1 billion for the third quarter of 2020.

General and Administrative Expenses.General and administrative expenses increased by 91.1% to RMB3.1 billion (US$0.5 billion) for the third quarter of 2021 from RMB1.6 billion for the third quarter of 2020. The increase was primarily due to the increase in share-based compensation expenses.

Income from Operations and Non-GAAP Income from Operations. Income from operations for the third quarter of 2021 was RMB2.6 billion (US$0.4 billion), compared to RMB4.4 billion for the same period last year. Non-GAAP income from operations for the third quarter of 2021 was RMB4.6 billion (US$0.7 billion), compared to RMB5.3 billion for the third quarter of 2020. Operating margin of JD Retail before unallocated items for the third quarter of 2021 was 4.0%, compared to 4.2% for the third quarter of 2020.

Non-GAAP EBITDA. Non-GAAP EBITDA for the third quarter of 2021 was RMB5.9 billion (US$0.9 billion), compared to RMB6.6 billion for the third quarter of 2020.

Share of Results of Equity Investees.Share of results of equity investees was a loss of RMB1.9 billion (US$0.3 billion) for the third quarter of 2021, as compared to a loss of RMB0.3 billion for the third quarter of 2020. The loss for the third quarter of 2021 was primarily due to non-cash impairment in certain equity investees.

Others, net. Other non-operating loss was RMB3.1 billion (US$0.5 billion) for the third quarter of 2021, as compared to other non-operating income of RMB4.5 billion for the third quarter of 2020. The decrease was primarily due to fair value change of investment securities, which resulting from decreases in the market prices of equity investments in publicly-traded companies.

Net Income/(Loss) Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable to Ordinary Shareholders. Net loss attributable to ordinary shareholders for the third quarter of 2021 was RMB2.8 billion (US$0.4 billion), compared to a net income of RMB7.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of 2021 was RMB5.0 billion (US$0.8 billion), compared to RMB5.6 billion for the same period last year.

Diluted EPS and Non-GAAP Diluted EPS. Diluted net loss per ADS for the third quarter of 2021 was RMB1.81 (US$0.28), compared to a diluted net income per ADS of RMB4.70 for the third quarter of 2020. Non-GAAP diluted net income per ADS for the third quarter of 2021 was RMB3.16 (US$0.49), compared to RMB3.42 for the third quarter of 2020.

Cash Flow and Working Capital

As of September 30, 2021, the companys cash and cash equivalents, restricted cash and short-term investments totaled RMB196.2 billion (US$30.5 billion), compared to RMB151.1 billion as of December 31, 2020. For the third quarter of 2021, free cash flow of the company was as follows:

For the three months ended September 30, September 30, September 2020 2021 30, 2021 RMB RMB US$ (In thousands) Net cash provided by operating 12,255,678 14,447,587 2,242,230 activitiesLess: Impact from JD Baitiaoreceivables included in the operating (2,785,606 ) (3,324,823 ) (516,004 )cash flowLess: Capital expenditures, net of related sales proceedsCapital expenditures for development (1,111,723 ) (5,147,087 ) (798,815 )propertiesOther capital expenditures* (839,706 ) (1,819,254 ) (282,344 )Free cash flow 7,518,643 4,156,423 645,067

* Including capital expenditures related to the companys headquarters in Beijing and all other CAPEX.

Net cash used in investing activities was RMB29.8 billion (US$4.6 billion) for the third quarter of 2021, consisting primarily of increase in short-term investments and cash paid for capital expenditures.

Net cash provided by financing activities was RMB6.1 billion (US$0.9 billion) for the third quarter of 2021, consisting primarily of proceeds from short-term debts.

For the twelve months ended September 30, 2021, free cash flow of the company was as follows:

For the twelve months ended September 30, September 30, September 30, 2020 2021 2021 RMB RMB US$ (In thousands) Net cash provided by operating 37,334,450 41,042,537 6,369,702 activities(Less)/Add: Impact from JD Baitiaoreceivables included in the operating (470,882 ) 1,398,385 217,026 cash flowLess: Capital expenditures, net of related sales proceedsCapital expenditures for development (3,604,204 ) (8,517,968 ) (1,321,968 )propertiesOther capital expenditures (3,068,413 ) (5,411,875 ) (839,910 )Free cash flow 30,190,951 28,511,079 4,424,850



Supplemental Information

The company reports three segments, JD Retail, JD Logistics and New businesses. JD Retail mainly consists of online retail, online marketplace and marketing services in China. JD Logistics includes both internal and external logistics businesses. New businesses mainly include JD Property, Jingxi, overseas businesses and technology initiatives.

The table below sets forth the segment operating results, with prior period segment information retrospectively recast to conform to current period presentation:

For the three months ended September 30, September 30, September 30, 2020 2021 2021 RMB RMB US$ (In thousands)Net revenues: JD Retail 161,081,245 198,080,245 30,741,572 JD Logistics 17,964,350 25,749,276 3,996,225 New businesses 4,302,067 5,732,810 889,718 Inter-segment* (9,291,697 ) (11,003,427 ) (1,707,705 )Total segment net revenues 174,055,965 218,558,904 33,919,810 Unallocated items** 158,499 149,454 23,195 Total consolidated net revenues 174,214,464 218,708,358 33,943,005 Operating income/(loss): JD Retail 6,734,811 7,942,242 1,232,617 JD Logistics 83,549 (726,612 ) (112,768 )New businesses (1,200,492 ) (2,073,450 ) (321,796 )Including: gain on sale of 343,982 578,701 89,813 development propertiesTotal segment operating income 5,617,868 5,142,180 798,053 Unallocated items** (1,234,519 ) (2,569,743 ) (398,817 )Total consolidated operating income 4,383,349 2,572,437 399,236

* The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics services provided by JD Logistics to JD Retail, and property leasing services provided by JD Property to JD Logistics.

** 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 revenue information:

For the three months ended September 30, September 30, September 30, 2020 2021 2021 RMB RMB US$ (In thousands) Electronics and home appliances 93,329,728 110,881,046 17,208,469revenuesGeneral merchandise revenues 58,069,531 75,127,319 11,659,577Net product revenues 151,399,259 186,008,365 28,868,046 Marketplace and marketing revenues 12,412,342 16,774,786 2,603,406Logistics and other service revenues 10,402,863 15,925,207 2,471,553Net service revenues 22,815,205 32,699,993 5,074,959 Total net revenues 174,214,464 218,708,358 33,943,005

Conference Call

JD.coms management will hold a conference call at 7:00 am, Eastern Time on November 18, 2021, (8:00 pm, Beijing/Hong Kong Time on November 18, 2021) to discuss financial results for the three months ended September 30, 2021.

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/2385515

CONFERENCE ID: 2385515

A telephone replay will be available from 10:00 am, Eastern Time on November 18, 2021 through 7:59 am, Eastern Time on November 26, 2021. 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: 2385515

Additionally, a live and archived webcast of the conference call will also be available on the companys investor relations website at http://ir.jd.com.

About JD.com

JD.com is a leading supply chain-based technology and service provider. The companys 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.

Non-GAAP Measures

In 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 companys 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 companys 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 companys core operating results and business outlook.

The non-GAAP financial measures have limitations as analytical tools. The companys non-GAAP financial measures do not reflect all items of income and expense that affect the companys 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 companys financial information in its entirety and not rely on a single financial measure.

CONTACTS:

Investor RelationsRuiyu LiSenior Director of Investor Relations+86 (10) 8912-6804IR@JD.com

Media Relations+86 (10) 8911-6155Press@JD.com

Safe Harbor Statement

This 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.coms 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 announcements made on the website of The Stock Exchange of Hong Kong Limited (the Hong Kong Stock Exchange), 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.coms 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.coms 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 Chinas e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; laws, regulations and governmental policies relating to the industries in which JD.com or its business partners operate; potential changes in laws, regulations and governmental policies or changes in the interpretation and implementation of laws, regulations and governmental policies that could adversely affect the industries in which JD.com or its business partners operate, including, among others, initiatives to enhance supervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with JD.coms acquisitions, investments and alliances, including fluctuation in the market value of JD.coms investment portfolio; impact of the COVID-19 pandemic; natural disasters and geopolitical events; change in tax rates and financial risks; intensity of competition; and general market and economic conditions in China and globally. Further information regarding these and other risks is included in JD.coms filings with the SEC and the announcements on the website of the Hong Kong Stock Exchange. All information provided herein is as of the date of this announcement, 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 otherwise noted) As of December September September 31, 30, 30, 2020 2021 2021 RMB RMB US$ASSETS Current assets Cash and cash equivalents 86,084,857 87,997,670 13,657,024Restricted cash 4,434,448 5,872,018 911,323Short-term investments 60,577,110 102,346,912 15,883,992Accounts receivable, net (including JDBaitiao of RMB0.8 billion and RMB2.2 billion 7,111,947 10,951,303 1,699,616as of December 31, 2020 and September 30,2021, respectively)^(1)Advance to suppliers 3,767,933 4,751,219 737,378Inventories, net 58,932,519 60,043,995 9,318,682Prepayments and other current assets 7,076,590 10,471,299 1,625,120Amount due from related parties 6,667,262 6,366,529 988,070Assets held for sale^(2) 148,592 - -Total current assets 234,801,258 288,800,945 44,821,205Non-current assets Property, equipment and software, net 22,596,570 27,884,937 4,327,674Construction in progress 7,906,406 6,847,557 1,062,724Intangible assets, net 6,462,888 6,079,799 943,570Land use rights, net 11,124,913 13,321,660 2,067,489Operating lease right-of-use assets 15,484,082 17,693,478 2,745,985Goodwill 10,904,409 12,395,299 1,923,720Investment in equity investees 58,501,329 67,128,486 10,418,178Investment securities 39,085,150 21,898,941 3,398,662Deferred tax assets 532,746 853,053 132,392Other non-current assets 13,315,844 19,885,003 3,086,104Amount due from related parties 242,527 257,776 40,006Assets held for sale^(2) 1,329,672 - -Total non-current assets 187,486,536 194,245,989 30,146,504Total assets 422,287,794 483,046,934 74,967,709

JD.com, Inc.Unaudited Interim Condensed Consolidated Balance Sheets(In thousands, except otherwise noted) As of December September September 31, 30, 30, 2020 2021 2021 RMB RMB US$LIABILITIES Current liabilities Short-term debts - 7,027,897 1,090,713Accounts payable 106,818,425 126,442,308 19,623,539Advance from customers 20,998,001 26,276,260 4,078,012Deferred revenues 3,417,313 3,813,161 591,793Taxes payable 3,029,416 2,318,572 359,837Amount due to related parties 585,324 426,585 66,205Accrued expenses and other current 30,034,571 31,460,175 4,882,542liabilitiesOperating lease liabilities 5,513,534 6,404,137 993,906Unsecured senior notes 3,259,882 - -Liabilities held for sale^(2) 360,196 - -Total current liabilities 174,016,662 204,169,095 31,686,547Non-current liabilities Deferred revenues 1,617,844 1,355,767 210,412Unsecured senior notes 9,594,556 9,544,666 1,481,309Deferred tax liabilities 1,921,831 1,949,525 302,562Long-term borrowings 2,936,205 2,947,910 457,508Operating lease liabilities 10,249,957 11,683,031 1,813,178Other non-current liabilities 331,623 2,250,938 349,340Total non-current liabilities 26,652,016 29,731,837 4,614,309Total liabilities 200,668,678 233,900,932 36,300,856

(1) JD Technology performs credit risk assessment services for JD Baitiaobusiness and absorbs the credit risk of the underlying Baitiao receivables.Facilitated by JD Technology, the company periodically securitizes Baitiaoreceivables through the transfer of those assets to asset-backed securitizationplans and derecognizes the related Baitiao receivables through sales typearrangements.(2) The company entered into definitive agreements to transfer certain logisticfacilities and real estate properties to third parties through theinfrastructure asset management and integrated service platform of JD Property.The company classified the related undisposed assets and liabilities as assetsand liabilities held for sale under ASC 360.

JD.com, Inc.Unaudited Interim Condensed Consolidated Balance Sheets(In thousands, except otherwise noted) As of December September September 31, 30, 30, 2020 2021 2021 RMB RMB US$ MEZZANINE EQUITY Convertible redeemable non-controlling 17,133,208 1,207,213 187,357interests SHAREHOLDERS? EQUITY Total JD.com, Inc. shareholders? equity(US$0.00002 par value, 100,000,000 sharesauthorized, 3,156,709 shares issued and 187,543,295 215,314,346 33,416,2623,106,539 shares outstanding as of September30, 2021)Non-controlling interests 16,942,613 32,624,443 5,063,234Total shareholders? equity 204,485,908 247,938,789 38,479,496Total liabilities, mezzanine equity and 422,287,794 483,046,934 74,967,709shareholders? equity



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, September 30, September 30, September 30, September 30, September 30, 2020 2021 2021 2020 2021 2021 RMB RMB US$ RMB RMB US$Net revenues Net product 151,399,259 186,008,365 28,868,046 459,679,278 580,980,053 90,166,690 revenuesNet service 22,815,205 32,699,993 5,074,959 61,794,453 94,704,944 14,697,977 revenuesTotal net 174,214,464 218,708,358 33,943,005 521,473,731 675,684,997 104,864,667 revenuesCost of (147,419,446 ) (187,615,621 ) (29,117,488 ) (443,507,716 ) (583,740,647 ) (90,595,128 )revenuesFulfillment (11,592,062 ) (14,275,651 ) (2,215,546 ) (33,948,204 ) (42,728,366 ) (6,631,338 )Marketing (5,460,508 ) (7,769,166 ) (1,205,756 ) (16,732,743 ) (25,380,343 ) (3,938,967 )Research and (4,106,739 ) (4,004,001 ) (621,411 ) (11,645,498 ) (12,226,917 ) (1,897,588 )developmentGeneral and (1,596,342 ) (3,050,183 ) (473,381 ) (4,431,265 ) (7,824,587 ) (1,214,357 )administrativeGain on sale ofdevelopment 343,982 578,701 89,813 539,568 748,800 116,212 propertiesIncome fromoperations^(3) 4,383,349 2,572,437 399,236 11,747,873 4,532,937 703,501 (4)Other income/ (expenses)Share ofresults of (272,313 ) (1,850,787 ) (287,238 ) 2,611,631 (645,677 ) (100,207 )equityinvesteesInterest (297,802 ) (276,139 ) (42,856 ) (829,120 ) (766,285 ) (118,926 )expenseOthers, net^(5) 4,462,624 (3,061,899 ) (475,199 ) 13,338,674 (568,228 ) (88,188 )Income/(loss) 8,275,858 (2,616,388 ) (406,057 ) 26,869,058 2,552,747 396,180 before taxIncome tax (690,373 ) (652,199 ) (101,220 ) (1,813,367 ) (1,701,312 ) (264,039 )expensesNet income/ 7,585,485 (3,268,587 ) (507,277 ) 25,055,691 851,435 132,141 (loss)Net income/(loss)attributable to 23,127 (466,736 ) (72,436 ) (27,677 ) (764,856 ) (118,704 )non-controllinginterestsshareholdersNet incomeattributable tomezzanineequity 2,020 4,687 727 3,596 11,277 1,750 classified asnon-controllinginterestsshareholdersNet income/(loss)attributable to 7,560,338 (2,806,538 ) (435,568 ) 25,079,772 1,605,014 249,095 ordinaryshareholders Net income/(loss) per share:Basic 2.44 (0.90 ) (0.14 ) 8.37 0.52 0.08 Diluted 2.35 (0.90 ) (0.14 ) 8.02 0.50 0.08 Net income/ (loss) per ADS:Basic 4.88 (1.81 ) (0.28 ) 16.75 1.03 0.16 Diluted 4.70 (1.81 ) (0.28 ) 16.03 1.00 0.16

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 September September September September September 30, 30, 30, 30, 30, 30, 2020 2021 2021 2020 2021 2021 RMB RMB US$ RMB RMB US$(3) Includes share-based compensation expenses as follows:Cost of (31,120 ) (32,282 ) (5,010 ) (65,618 ) (68,693 ) (10,661 )revenuesFulfillment (153,662 ) (265,211 ) (41,160 ) (350,156 ) (606,570 ) (94,138 )Marketing (87,099 ) (164,129 ) (25,472 ) (218,354 ) (412,976 ) (64,093 )Research and (384,400 ) (472,429 ) (73,320 ) (935,126 ) (1,350,536 ) (209,600 )developmentGeneral and (395,263 ) (1,409,379 ) (218,732 ) (1,092,028 ) (3,679,865 ) (571,106 )administrative (4) Includes amortization of business cooperation arrangement and intangibleassets resulting from assets and business acquisitions as follows:Fulfillment (51,584 ) (55,957 ) (8,684 ) (141,217 ) (163,984 ) (25,450 )Marketing (187,876 ) (216,246 ) (33,561 ) (473,534 ) (636,853 ) (98,838 )Research and (24,700 ) (26,250 ) (4,074 ) (74,100 ) (77,716 ) (12,061 )developmentGeneral and (77,314 ) (77,314 ) (11,999 ) (231,447 ) (231,448 ) (35,920 )administrative (5) Others are other non-operating income/(loss), primarily consist of gains/(losses) from fair value change of long-term investments, gains/(losses) frombusiness and investment disposals, impairment of investments, governmentincentives, interest income and foreign exchange gains/(losses).



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 September September September September September 30, 30, 30, 30, 30, 30, 2020 2021 2021 2020 2021 2021 RMB RMB US$ RMB RMB US$ Non-GAAP netincomeattributable 5,558,054 5,047,992 783,435 14,441,408 13,642,150 2,117,228to ordinaryshareholders Weightedaverage number of shares:Basic 3,096,304 3,106,141 3,106,141 2,994,756 3,106,344 3,106,344Diluted 3,191,159 3,186,702 3,186,702 3,077,063 3,194,877 3,194,877 Non-GAAP netincome per share:Basic 1.80 1.63 0.25 4.82 4.39 0.68Diluted 1.71 1.58 0.25 4.50 4.26 0.66 Non-GAAP netincome per ADS:Basic 3.59 3.25 0.50 9.64 8.78 1.36Diluted 3.42 3.16 0.49 9.00 8.53 1.32

JD.com, Inc.Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free CashFlow(In thousands) For the three months ended For the nine months ended September 30, September 30, September 30, September 30, September 30, September 30, 2020 2021 2021 2020 2021 2021 RMB RMB US$ RMB RMB US$ Net cashprovided by 12,255,678 14,447,587 2,242,230 37,330,749 35,828,969 5,560,569 operatingactivitiesNet cash usedin investing (12,518,857 ) (29,757,109 ) (4,618,231 ) (44,105,163 ) (55,462,589 ) (8,607,659 )activitiesNet cashprovided by 4,117,987 6,078,409 943,354 47,658,991 22,929,750 3,558,641 financingactivitiesEffect ofexchange ratechanges oncash, cash (2,660,012 ) 310,397 48,173 (2,110,679 ) (61,665 ) (9,570 )equivalentsandrestrictedcashNet increase/(decrease) incash, cashequivalents 1,194,796 (8,920,716 ) (1,384,474 ) 38,773,898 3,234,465 501,981 andrestrictedcashCash, cashequivalentsandrestricted 77,491,381 102,790,404 15,952,821 39,912,279 90,635,223 14,066,366 cash atbeginning ofperiod^(6)Cash, cashequivalentsand 78,686,177 93,869,688 14,568,347 78,686,177 93,869,688 14,568,347 restrictedcash at endof period^(6) Net cashprovided by 12,255,678 14,447,587 2,242,230 37,330,749 35,828,969 5,560,569 operatingactivities(Less)/Add:Impact fromJD Baitiaoreceivables (2,785,606 ) (3,324,823 ) (516,004 ) (159,164 ) 1,191,283 184,884 included inthe operatingcash flowLess: Capitalexpenditures,net of related salesproceedsCapitalexpendituresfor (1,111,723 ) (5,147,087 ) (798,815 ) (4,659,481 ) (9,643,783 ) (1,496,692 )developmentpropertiesOther capital (839,706 ) (1,819,254 ) (282,344 ) (2,164,926 ) (3,440,457 ) (533,950 )expendituresFree cash 7,518,643 4,156,423 645,067 30,347,178 23,936,012 3,714,811 flow

(6) Including cash, cash equivalents and restricted cash classified as assets held for sale of RMB409.2 million, RMB115.9 million and nil as of September 30, 2020, December 31, 2020 and September 30, 2021, respectively.

JD.com, Inc.Supplemental Financial Information and Business Metrics

Q3 Q4 Q1 Q2 Q3 2020 2020 2021 2021 2021 Free cash flow (in RMB billions) ? trailing 30.2 34.9 28.2 31.9 28.5twelve months (?TTM?)Inventory turnover days^(7) ? TTM 34.3 33.3 31.2 31.0 30.1Accounts payable turnover days^(8) ? TTM 49.2 47.1 44.2 45.8 45.5Accounts receivable turnover days^(9) ? TTM 2.8 2.7 2.6 2.7 2.8Annual active customer accounts (in millions) 441.6 471.9 499.8 531.9 552.2

(7) TTM inventory turnover days are the quotient of average inventory over theimmediately preceding five quarters, up to and including the last quarter ofthe period, to cost of revenues of retail business for the last twelve months,and then multiplied by 360 days.

(8) TTM accounts payable turnover days are the quotient of average accountspayable for retail business over the immediately preceding five quarters, up toand including the last quarter of the period, to cost of revenues of retailbusiness for the last twelve months, and then multiplied by 360 days.

(9) TTM accounts receivable turnover days are the quotient of average accountsreceivable over the immediately preceding five quarters, up to and includingthe last quarter of the period, to total net revenues for the last twelvemonths and then multiplied by 360 days. Presented are the accounts receivableturnover 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, September 30, September 30, September 30, September 30, September 30, 2020 2021 2021 2020 2021 2021 RMB RMB US$ RMB RMB US$ Income from 4,383,349 2,572,437 399,236 11,747,873 4,532,937 703,501 operationsAdd:Share-based 1,051,544 2,343,430 363,694 2,661,282 6,118,640 949,598 compensationAdd:Amortizationofintangibleassets 193,215 236,543 36,711 494,797 703,153 109,128 resultingfrom assetsand businessacquisitionsReversal of:Effects ofbusiness (10,240 ) (10,230 ) (1,588 ) (241,025 ) (17,690 ) (2,745 )cooperationarrangementsReversal of:Gain on saleof (343,982 ) (578,701 ) (89,813 ) (539,568 ) (748,800 ) (116,212 )developmentpropertiesNon-GAAPincome from 5,273,886 4,563,479 708,240 14,123,359 10,588,240 1,643,270 operationsAdd:Depreciation 1,327,856 1,299,599 201,695 3,893,155 3,961,450 614,807 and otheramortizationNon-GAAP 6,601,742 5,863,078 909,935 18,016,514 14,549,690 2,258,077 EBITDA Total net 174,214,464 218,708,358 33,943,005 521,473,731 675,684,997 104,864,667 revenues Non-GAAPoperating 3.0 % 2.1 % 2.1 % 2.7 % 1.6 % 1.6 %margin Non-GAAPEBITDA 3.8 % 2.7 % 2.7 % 3.5 % 2.2 % 2.2 %margin

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, September 30, September 30, September 30, September 30, September 30, 2020 2021 2021 2020 2021 2021 RMB RMB US$ RMB RMB US$ Net income/(loss)attributable 7,560,338 (2,806,538 ) (435,568 ) 25,079,772 1,605,014 249,095 to ordinaryshareholdersAdd:Share-based 1,051,544 1,954,097 303,271 2,661,282 5,729,307 889,175 compensationAdd:Amortizationofintangibleassets 193,215 193,111 29,970 494,797 659,721 102,387 resultingfrom assetsand businessacquisitionsAdd/(Reversalof):Reconcilingitems on the 55,687 (118,683 ) (18,419 ) 172,156 (1,150,173 ) (178,504 )share ofequitymethodinvestments^(^10^)Add:Impairmentof goodwill, - 1,813,473 281,447 661,735 2,121,821 329,301 intangibleassets, andinvestments(Reversalof)/Add:(Gain)/Lossfrom fair (2,939,789 ) 4,639,028 719,966 (9,007,791 ) 5,405,193 838,873 value changeof long-terminvestmentsReversal of:Gain andforeignexchangeimpact in (343,982 ) (510,701 ) (79,260 ) (539,568 ) (680,800 ) (105,659 )relation tosale ofdevelopmentpropertiesReversal of:Gain ondisposals/ (12,724 ) (52,601 ) (8,164 ) (4,802,557 ) (68,601 ) (10,647 )deemeddisposals ofinvestmentsReversal of:Effects ofbusinesscooperation (30,847 ) (29,498 ) (4,578 ) (303,507 ) (75,502 ) (11,718 )arrangementsandnon-competeagreementsAdd/(Reversalof): Tax 24,612 (33,696 ) (5,230 ) 25,089 96,170 14,925 effects onnon-GAAPadjustmentsNon-GAAP netincomeattributable 5,558,054 5,047,992 783,435 14,441,408 13,642,150 2,117,228 to ordinaryshareholders Total net 174,214,464 218,708,358 33,943,005 521,473,731 675,684,997 104,864,667 revenues Non-GAAP net 3.2 % 2.3 % 2.3 % 2.8 % 2.0 % 2.0 %margin (10) To exclude the GAAP to non-GAAP reconciling items on the share of equitymethod investments, and share of amortization of intangibles not on theirbooks.