BEIJING, Aug. 15, 2024 (GLOBE NEWSWIRE) -- JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter), the "Company"), a leading supply chain-based technology and service provider, today announced its unaudited financial results for the three and six months ended June 30, 2024. Second Quarter 2024 Highlights Net revenues were RMB291.4 billion (US$140.1 billion) for the second quarter of 2024, an increase of 1.2% from the second quarter of 2023. Income from operations was RMB10.5 billion (US$1.4 billion) for the second quarter of 2024, compared to RMB8.3 billion for the second quarter of 2023. Non-GAAP2 income from operations was RMB11.6 billion (US$1.6 billion) for the second quarter of 2024, compared to RMB8.7 billion for the second quarter of 2023. Operating margin of JD Retail before unallocated items was 3.9% for the second quarter of 2024, compared to 3.2% for the second quarter of 2023. Net income attributable to the Company's ordinary shareholders was RMB12.6 billion (US$1.7 billion) for the second quarter of 2024, compared to RMB6.6 billion for the second quarter of 2023. Net margin attributable to the Company's ordinary shareholders was 4.3% for the second quarter of 2024, compared to 2.3% for the second quarter of 2023. Non-GAAP net income attributable to the Company's ordinary shareholders was RMB14.5 billion (US$2.0 billion) for the second quarter of 2024, compared to RMB8.6 billion for the second quarter of 2023. Non-GAAP net margin attributable to the Company's ordinary shareholders was 5.0% for the second quarter of 2024, compared to 3.0% for the second quarter of 2023. Diluted net income per ADS was RMB8.19 (US$1.13) for the second quarter of 2024, an increase of 97.3% from RMB4.15 for the second quarter of 2023. Non-GAAP diluted net income per ADS was RMB9.36 (US$1.29) for the second quarter of 2024, an increase of 73.7% from RMB5.39 for the second quarter of 2023. Operating cash flow for the twelve months ended June 30, 2024 was RMB74.0 billion (US$10.2 billion), an increase of 40.9% from RMB52.5 billion for the twelve months ended June 30, 2023. Free cash flow, which excludes the impact from consumer financing receivables included in the operating cash flow, for the twelve months ended June 30, 2024 was RMB55.6 billion (US$7.7 billion), an increase of 66.2% from RMB33.5 billion for the twelve months ended June 30, 2023. "We remained committed to the sustainable and high-quality growth of our business in the second quarter," said Sandy Xu, Chief Executive Officer of JD.com. "Our steadfast efforts to strengthen supply chain capabilities and user experience continue to distinguish JD in China's e-commerce industry, as we leverage our growing economies of scale and procurement efficiencies to bring users everyday low prices without sacrificing quality. Combined with our progress in building a thriving platform ecosystem, these efforts have led to favorable response from users, with robust user base expansion and user engagement improvement in the quarter.  Going forward, we will continue to focus on our own strengths to enhance user experience, price competitiveness and platform ecosystem, which we believe are the fundamentals to ensure sustainable growth in the years to come." "In the second quarter, our total revenues increased by 1.2% year-on-year, as we navigated a high base in our electronics and home appliances category from last year, while growth in our general merchandise category, particularly supermarket, remained robust," said Ian Su Shan, Chief Financial Officer of JD.com. "We continued to enhance price competitiveness during the promotional season through our supply chain and disciplined approach, as opposed to reliance on subsidies. As such, our gross margin substantially increased by 137bps year-on-year to 15.8%, contributing to our record-high operating and net profit on a non-GAAP basis in the quarter. These high-quality results, coupled with our accelerated share repurchase, highlight JD's commitment to creating long-term value for our shareholders." Updates of Share Repurchase Program The Company repurchased a total of 136.8 million Class A ordinary shares (equivalent of 68.4 million ADSs) for a total of US$2.1 billion during the three months ended June 30, 2024. The Company repurchased a total of 224.3 million Class A ordinary shares (equivalent of 112.2 million ADSs) for a total of US$3.3 billion during the six months ended June 30, 2024. All of these ordinary shares were repurchased from both Nasdaq and the Hong Kong Stock Exchange pursuant to the Company's share repurchase programs publicly announced. The total number of ordinary shares repurchased by the Company for the three months ended June 30, 2024 amounted to approximately 4.5% of its ordinary shares outstanding as of March 31, 20243. The total number of shares repurchased by the Company for the six months ended June 30, 2024 amounted to approximately 7.1% of its ordinary shares outstanding as of December 31, 20234. The Company issued certain convertible senior notes due 2029 with an aggregate principal amount of US$2.0 billion in May 2024 (the "Notes"). The maximum number of shares deliverable upon conversion of the Notes is approximately 87.5 million Class A ordinary shares (or 43.8 million ADSs). As the Company repurchased a total of 136.8 million Class A ordinary shares (equivalent of 68.4 million ADSs) for the three months ended June 30, 2024, the potential dilution to the Company's shareholders upon the conversion of the Notes could be deemed to have been fully offset. Pursuant to the Company's US$3.0 billion share repurchase program which was approved in March 2024, the Company had repurchased a total of approximately US$2.6 billion and the remaining amount was approximately US$0.4 billion as of June 30, 2024. Business Highlights JD Retail:In the second quarter, JD.com entered into strategic partnership agreements with multiple brands, including Xiaomi, Lenovo and OPPO, to further deepen cooperation with a focus on smart devices, intelligent supply chain, and AI technology integration. JD.com and these brands have established three-year sales targets and will work closely to maximize their respective strengths and identify new markets for growth.In the second quarter, JD.com officially onboarded the luxury fashion brand MONCLER and American luxury lifestyle brand alexanderwang. JD.com also established a strategic partnership with Inditex, one of the world's largest fashion retailers, with Massimo Dutti as the first of Inditex's brands launching a flagship store on JD.com. JD.com will continue to carry out diversified and deepened cooperation with fashion brands and provide users with more enriched and convenient online shopping experience. JD Health: In the second quarter, JD Health partnered with a number of pharmaceutical companies to debut their new and specialty drugs online, including Sinqi Pharmaceutical, Sanofi and GeneScience, among others. In addition, in June, JD Health sold the first domestic order of Leqembi®, a targeted drug for Alzheimer's disease treatment, highlighting JD Health's advanced omni-channel supply chain and professional service capabilities in the pharmaceutical field. JD Logistics: In the second quarter, JD Logistics continued to optimize its network layout, algorithm-based vehicle scheduling capabilities and product structure to achieve cost reduction and efficiency gains, resulting in a significant improvement in profitability. Environment, Social and Governance In the second quarter, JD Logistics continued to leverage its Supply Chain Emission Management Platform (SCEMP) to provide customers with data monitoring, reporting and verification of carbon emissions in the logistics transportation process, enabling more valid and accurate carbon reduction efforts through big data computing. By the end of June, over 25 customers around the world had used the platform to steer towards their carbon reduction targets. Driven by JD.com's unwavering commitment and unremitting efforts to creating more jobs and making contribution to the society, the Company's total expenditure for human resources, including both its own employees and external personnel who work for the Company, amounted to RMB109.2 billion for the twelve months ended June 30, 2024. Second Quarter 2024 Financial Results Net Revenues.  Net revenues increased by 1.2% to RMB291.4 billion (US$40.1 billion) for the second quarter of 2024 from RMB287.9 billion for the second quarter of 2023. Net product revenues remained stable, while net service revenues increased by 6.3% for the second quarter of 2024, compared to the second quarter of 2023. Cost of Revenues.  Cost of revenues decreased by 0.4% to RMB245.5 billion (US$33.8 billion) for the second quarter of 2024 from RMB246.5 billion for the second quarter of 2023. Fulfillment Expenses.  Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 3.2% to RMB17.2 billion (US$2.4 billion) for the second quarter of 2024 from RMB16.7 billion for the second quarter of 2023. Fulfillment expenses as a percentage of net revenues was 5.9% for the second quarter of 2024, compared to 5.8% for the second quarter of 2023. Marketing Expenses.  Marketing expenses increased by 7.3% to RMB11.9 billion (US$1.6 billion) for the second quarter of 2024 from RMB11.1 billion for the second quarter of 2023. Marketing expenses as a percentage of net revenues was 4.1% for the second quarter of 2024, compared to 3.8% for the second quarter of 2023, mainly due to the increased spending in promotion activities. Research and Development Expenses.  Research and development expenses increased by 3.6% to RMB4.2 billion (US$0.6 billion) for the second quarter of 2024 from RMB4.1 billion for the second quarter of 2023. Research and development expenses as a percentage of net revenues remained stable at 1.4% for the second quarter of 2024 and 2023. General and Administrative Expenses.  General and administrative expenses decreased by 9.6% to RMB2.1 billion (US$0.3 billion) for the second quarter of 2024 from RMB2.4 billion for the second quarter of 2023, primarily due to a decrease in share-based compensation expenses. General and administrative expenses as a percentage of net revenues was 0.7% for the second quarter of 2024, compared to 0.8% for the second quarter of 2023. Income from Operations and Non-GAAP Income from Operations. Income from operations increased by 27.0% to RMB10.5 billion (US$1.4 billion) for the second quarter of 2024 from RMB8.3 billion for the second quarter of 2023. Operating margin was 3.6% for the second quarter of 2024, compared to 2.9% for the second quarter of 2023. Non-GAAP income from operations increased by 33.7% to RMB11.6 billion (US$1.6 billion) for the second quarter of 2024 from RMB8.7 billion for the second quarter of 2023. Non-GAAP operating margin was 4.0% for the second quarter of 2024, compared to 3.0% for the second quarter of 2023. Operating margin of JD Retail before unallocated items was 3.9% for the second quarter of 2024, compared to 3.2% for the second quarter of 2023. Non-GAAP EBITDA.  Non-GAAP EBITDA increased by 30.1% to RMB13.5 billion (US$1.9 billion) for the second quarter of 2024 from RMB10.4 billion for the second quarter of 2023. Non-GAAP EBITDA margin was 4.6% for the second quarter of 2024, compared to 3.6% for the second quarter of 2023. Others, net.  Other non-operating income was RMB4.7 billion (US$0.6 billion) for the second quarter of 2024, compared to RMB1.2 billion for the second quarter of 2023. The increase was primarily due to increase in government subsidies and decrease in investment related loss. Net Income Attributable to the Company's Ordinary Shareholders and Non-GAAP Net Income Attributable to the Company's Ordinary Shareholders. Net income attributable to the Company's ordinary shareholders increased by 92.1% to RMB12.6 billion (US$1.7 billion) for the second quarter of 2024 from RMB6.6 billion for the second quarter of 2023. Net margin attributable to the Company's ordinary shareholders was 4.3% for the second quarter of 2024, compared to 2.3% for the second quarter of 2023. Non-GAAP net income attributable to the Company's ordinary shareholders increased by 69.0% to RMB14.5 billion (US$2.0 billion) for the second quarter of 2024 from RMB8.6 billion for the second quarter of 2023. Non-GAAP net margin attributable to the Company's ordinary shareholders was 5.0% for the second quarter of 2024, compared to 3.0% for the second quarter of 2023. Diluted EPS and Non-GAAP Diluted EPS.  Diluted net income per ADS increased by 97.3% to RMB8.19 (US$1.13) for the second quarter of 2024 from RMB4.15 for the second quarter of 2023. Non-GAAP diluted net income per ADS increased by 73.7% for the second quarter of 2024 to RMB9.36 (US$1.29) from RMB5.39 for the second quarter of 2023. Cash Flow and Working Capital As of June 30, 2024, the Company's cash and cash equivalents, restricted cash and short-term investments totaled RMB209.5 billion (US$28.8 billion), compared to RMB197.7 billion as of December 31, 2023. For the second quarter of 2024, free cash flow of the Company was as follows:     For the three months ended     June 30,2023 June 30,2024 June 30,2024     RMB RMB US$     (In millions)       Net cash provided by operating activities   46,511      50,738      6,982   Add: Impact from consumer financing receivables included in the operating cash flow   1,586      2,138      294   Less: Capital expenditures, net of related sales proceeds         Capital expenditures for development properties   (2,363 )    (1,590 )    (219 ) Other capital expenditures*   (1,244 )    (1,731 )    (238 ) Free cash flow   44,490      49,555      6,819             * Including capital expenditures related to the Company's headquarters in Beijing and all other CAPEX. Net cash used in investing activities was RMB38.5 billion (US$5.3 billion) for the second quarter of 2024, consisting primarily of net cash paid for purchase of time deposits and wealth management products, and cash paid for capital expenditures. Net cash used in financing activities was RMB9.0 billion (US$1.2 billion) for the second quarter of 2024, consisting primarily of cash paid for repurchase of ordinary shares and cash paid for dividends, partially offset by the net proceeds from issuance of convertible senior notes. For the twelve months ended June 30, 2024, free cash flow of the Company was as follows:     For the twelve months ended     June 30,2023 June 30,2024 June 30,2024     RMB RMB US$     (In millions)       Net cash provided by operating activities   52,541      74,040      10,188   Add/(Less): Impact from consumer financing receivables included in the operating cash flow   692      (639 )    (88 ) Less: Capital expenditures, net of related sales proceeds         Capital expenditures for development properties   (14,390 )    (10,559 )    (1,453 ) Other capital expenditures   (5,372 )    (7,200 )    (990 ) Free cash flow   33,471      55,642      7,657                       Supplemental Information From the first quarter of 2024, the Company started to report three segments, JD Retail, JD Logistics and New Businesses, to reflect changes made to the reporting structure whose financial information is reviewed by the chief operating decision maker of the Company under its ongoing operating strategies. JD Retail, including JD Health and JD Industrials, among other components, mainly engages in online retail, online marketplace and marketing services in China. JD Logistics includes both internal and external logistics businesses. New Businesses mainly include Dada, JD Property, Jingxi and overseas businesses. The table below sets forth the segment operating results, with prior period segment information retrospectively recast to conform to the current period presentation:   For the three months ended   For the six months ended   June 30,2023 June 30,2024 June 30,2024   June 30,2023 June 30,2024 June 30,2024   RMB RMB US$   RMB RMB US$   (In millions, except percentage data) Net revenues:               JD Retail 253,280     257,072     35,374     465,638     483,907     66,588   JD Logistics 41,033     44,207     6,083     77,761     86,344     11,881   New Businesses 7,127     4,636     638     13,153     9,506     1,308   Inter-segment eliminations* (13,509 )   (14,518 )   (1,997 )   (25,665 )   (28,311 )   (3,896 ) Total consolidated net revenues 287,931     291,397     40,098     530,887     551,446     75,881   Operating income/(loss):               JD Retail 8,143     10,108     1,391     17,987     19,433     2,674   JD Logistics 510     2,183     300     (613 )   2,407     331   New Businesses 1,032     (695 )   (95 )   658     (1,365 )   (187 ) Including: gain on sale of development properties 1,009     —     —     1,481     —     —   Total segment operating income 9,685     11,596     1,596     18,032     20,475     2,818   Unallocated items** (1,415 )   (1,095 )   (150 )   (3,335 )   (2,274 )   (313 ) Total consolidated operating income 8,270     10,501     1,446     14,697     18,201     2,505                   YoY% change of net revenues:               JD Retail 4.9 %   1.5 %       1.4 %   3.9 %     JD Logistics 31.2 %   7.7 %       32.6 %   11.0 %     New Businesses (16.6 )%   (35.0 )%       (12.2 )%   (27.7 )%                     Operating margin:               JD Retail 3.2 %   3.9 %       3.9 %   4.0 %     JD Logistics 1.2 %   4.9 %       (0.8 )%   2.8 %     New Businesses 14.5 %   (15.0 )%       5.0 %   (14.4 )%                                     * The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics services provided by JD Logistics to JD Retail, on-demand delivery and retail services provided by Dada to JD Retail and JD Logistics, 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     June 30,2023   June 30,2024   June 30,2024     YoY%Change   RMB   RMB   US$       (In millions, except percentage data) Electronics and home appliances revenues 152,131   145,061   19,961     (4.6 )% General merchandise revenues 81,724   88,847   12,226     8.7 % Net product revenues 233,855   233,908   32,187     0.0 % Marketplace and marketing revenues 22,509   23,425   3,223     4.1 % Logistics and other service revenues 31,567   34,064   4,688     7.9 % Net service revenues 54,076   57,489   7,911     6.3 % Total net revenues 287,931   291,397   40,098     1.2 %                       For the six months ended     June 30,2023   June 30,2024   June 30,2024     YoY%Change   RMB   RMB   US$       (In millions, except percentage data) Electronics and home appliances revenues 269,130   268,273   36,915     (0.3 )% General merchandise revenues 160,289   174,143   23,963     8.6 % Net product revenues 429,419   442,416   60,878     3.0 % Marketplace and marketing revenues 41,571   42,714   5,878     2.7 % Logistics and other service revenues 59,897   66,316   9,125     10.7 % Net service revenues 101,468   109,030   15,003     7.5 % Total net revenues 530,887   551,446   75,881     3.9 %                     Recent Development The Company has appointed Ms. Grace Kun Ding and Ms. Jennifer Ngar-Wing Yu as independent directors of the board of directors of the Company, effective from August 14, 2024. Ms. Ding serves as a member of the nomination committee and the compensation committee of the board, and Ms. Yu serves as a member of the ESG committee of the board. Ms. Grace Kun Ding has more than 15 years of experience in strategic investment and branding consultancy. Since 2010, she has focused on retail chain branding and strategic investments in Europe and the Middle East. She is currently a strategic consulting service provider for cooperative retail suppliers on the British Land platform and an independent investor. Ms. Ding served as a strategic officer of Admire Elite. Ltd from March 2018 to March 2022 and has served as its Company Director since June 2022. Ms. Ding is well recognized in the fields of business and art. She studied at Central St. Martin's College of Art in London and the University of London, majored in Philosophy and Art History. She subsequently obtained an EMBA degree from the London Business School. Over the years, Ms. Ding has been providing consulting services, particularly in branding strategics to international clients. She has also provided consulting services to a number of private art galleries. Ms. Jennifer Ngar-Wing Yu served as an independent non-executive Director and a member of the Audit Committee and a member of the Nomination Committee of JD Logistics, Inc. from September 2022 to August 2024. Ms. Yu has been the Deputy Vice Chairwoman of CTF Education Group ("CTFEG") since May 2019 and the Group President of CTFEG since February 2021. Prior to her career in education, Ms. Yu worked in investment banking specializing in alternative investments structuring, origination and distribution to Asian institutional investors, corporates, private equity and fund managers. From 2005 to 2009, Ms. Yu worked at Goldman Sachs Asia LLC ("Goldman Sachs") and served as the Executive Director before co-founding ARCH Education Group in 2009 where she continues to serve as Director. Prior to joining Goldman Sachs, Ms. Yu worked at J.P. Morgan Securities (Asia Pacific) Limited from 2003 to 2005. Ms. Yu has been committed to promoting educational development for more than a decade. She currently serves in the Dean's Advisory Group at Harvard Graduate School of Education, and on the Board of Visitors of the Fu Foundation School of Engineering and Applied Science of Columbia University. She is also a member of the Council of The Hong Kong University of Science and Technology (HKUST), a member of the Courts of The University of Hong Kong, and a member of the Courts of Lingnan University. Ms. Yu received her Master of Education from Harvard University in May 2022 and graduated magna cum laude from Columbia University with a Bachelor of Science in Operations Research and a minor in Economics in May 2003. Conference Call JD.com's management will hold a conference call at 8:00 am, Eastern Time on August 15, 2024, (8:00 pm, Beijing/Hong Kong Time on August 15, 2024) to discuss its financial results for the three months and six months ended June 30, 2024. Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers, the Passcode and unique access PIN 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: https://s1.c-conf.com/diamondpass/10041042-4s9g2b.html CONFERENCE ID: 10041042 A telephone replay will be available for one week until August 22, 2024. The dial-in details are as follows: US: +1-855-883-1031 International: +61-7-3107-6325 Hong Kong: 800-930-639 Mainland China: 400-120-9216 Passcode: 10041042     Additionally, a live and archived webcast of the conference call will also be available on the JD.com's investor relations website at http://ir.jd.com. About JD.com JD.com is a 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. 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 the Company's ordinary shareholders, non-GAAP net margin attributable to the Company's ordinary shareholders, 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 long-lived assets. The Company defines non-GAAP net income/(loss) attributable to the Company's ordinary shareholders as net income/(loss) attributable to the Company's 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 and others, reconciling items on the share of equity method investments, loss/(gain) from fair value change of long-term investments, impairment of goodwill, long-lived assets and investments, gain 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 consumer financing 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 the Company's 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 the Company's 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 the Company's 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 consumer financing 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 RelationsSean Zhang+86 (10)   Media Relations+86 (10) 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.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 announcements made on the website of 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.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; 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.com's acquisitions, investments and alliances, including fluctuation in the market value of JD.com's investment portfolio; 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.com's 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 millions, except otherwise noted)           As of     December 31,2023   June 30,2024   June 30,2024     RMB   RMB   US$ ASSETS             Current assets             Cash and cash equivalents   71,892   84,496    11,627 Restricted cash   7,506   7,549    1,039 Short-term investments   118,254   117,406    16,156 Accounts receivable, net (including consumer financing receivables of RMB2.3 billion and RMB3.2 billion as of December 31, 2023 and June 30, 2024, respectively)(1)   20,302   21,643   2,978 Advance to suppliers   2,753   2,088    287 Inventories, net   68,058   70,644    9,721 Prepayments and other current assets   15,639   13,921    1,916 Amount due from related parties   2,114   3,495    481 Assets held for sale   1,292   959    132 Total current assets   307,810   322,201    44,337 Non-current assets             Property, equipment and software, net   70,035   78,178    10,758 Construction in progress   9,920   5,901    812 Intangible assets, net   6,935   6,686    920 Land use rights, net   39,563   38,436    5,289 Operating lease right-of-use assets   20,863   22,987    3,163 Goodwill   19,980   21,729    2,990 Investment in equity investees   56,746   55,029    7,572 Marketable securities and other investments   80,840   86,942    11,964 Deferred tax assets   1,744   1,593    219 Other non-current assets   14,522   11,954   1,645 Total non-current assets   321,148   329,435   45,332 Total assets   628,958   651,636   89,669               JD.com, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In millions, except otherwise noted)           As of     December 31,2023   June 30,2024   June 30,2024       RMB   RMB   US$   LIABILITIES               Current liabilities               Short-term debts   5,034   5,601   771   Accounts payable   166,167   182,247   25,078   Advance from customers   31,625   32,584   4,484   Deferred revenues   2,097   2,139   294   Taxes payable   7,313   7,335   1,009   Amount due to related parties   1,620   494   68   Accrued expenses and other current liabilities   43,533   41,984   5,778   Operating lease liabilities   7,755   7,843   1,079   Liabilities held for sale   506   —   —   Total current liabilities   265,650   280,227   38,561   Non-current liabilities               Deferred revenues   964   707   97   Unsecured senior notes   10,411   24,514   3,373   Deferred tax liabilities   9,267   9,102   1,252   Long-term borrowings   31,555   32,267   4,440   Operating lease liabilities   13,676   15,965   2,197   Other non-current liabilities   1,055   904   124   Total non-current liabilities   66,928   83,459   11,483   Total liabilities   332,578   363,686   50,044                   MEZZANINE EQUITY   614   622   86                   SHAREHOLDERS'EQUITY               Total JD.com, Inc. shareholders' equity (US$0.00002 par value, 100,000 million shares authorized, 3,188 million shares issued and 2,928 million shares outstanding as of June 30, 2024)   231,858   220,764   30,379   Non-controlling interests   63,908   66,564   9,160   Total shareholders'equity   295,766   287,328   39,539                   TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS'EQUITY   628,958   651,636   89,669                   (1) JD Technology performs credit risk assessment services for consumer financing receivables business and absorbs the credit risk of the underlying consumer financing receivables. Facilitated by JD Technology, the Company periodically securitizes consumer financing receivables through the transfer of those assets to securitization plans and derecognizes the related consumer financing receivables through sales type arrangements.   JD.com, Inc. Unaudited Interim Condensed Consolidated Statements of Operations (In millions, except per share data)     For the three months ended   For the six months ended   June 30,2023   June 30,2024   June 30,2024   June 30,2023   June 30,2024   June 30,2024     RMB RMB US$   RMB RMB US$ Net revenues               Net product revenues 233,855     233,908     32,187     429,419     442,416     60,878   Net service revenues 54,076     57,489     7,911     101,468     109,030     15,003   Total net revenues 287,931     291,397     40,098     530,887     551,446     75,881