JD.com Announces Fourth Quarter and Full Year 2019 Results
Beijing, China---March 2, 2020---JD.com, Inc. (NASDAQ: JD), China’s leading technology driven ecommerce company and retail infrastructure service provider, today announced its unaudited financial results
for the quarter and the full year ended December 31, 2019.
Fourth Quarter and Full Year 2019 Highlights⚫

Net revenues for the fourth quarter of 2019 were RMB170.7 billion (US$124.5 billion), an increase of
26.6% from the fourth quarter of 2018. Net service revenues for the fourth quarter of 2019 were
RMB21.0 billion (US$3.0 billion), an increase of 43.6% from the fourth quarter of 2018. Net revenues
for the full year of 2019 were RMB576.9 billion (US$82.9 billion), an increase of 24.9% from the fullyear of 2018. Net service revenues for the full year of 2019 were RMB66.2 billion (US$9.5 billion),
an increase of 44.1% from the full year of 2018.

⚫

Income from operations for the fourth quarter of 2019 was RMB529.5 million (US$76.1 million),compared to loss from operations of RMB938.9 million for the same period last year. Non-GAAP2
income from operations for the fourth quarter of 2019 was RMB704.0 million (US$101.1 million),compared to RMB313.0 million for the fourth quarter of 2018. Income from operations for the fullyear of 2019 was RMB9.0 billion (US$1.3 billion), compared to loss from operations of RMB2.6
billion for the same period last year. Non-GAAP income from operations for full year of 2019
increased by 364% to RMB8.9 billion (US$1.3 billion) with a non-GAAP operating margin of 1.5%,
as compared to RMB1.9 billion for the full year of 2018 with a non-GAAP operating margin of 0.4%.

⚫

Net income attributable to ordinary shareholders for the fourth quarter of 2019 was RMB3.6 billion(US$0.5 billion), compared to a net loss attributable to ordinary shareholders of RMB4.8 billion forthe same period last year. Non-GAAP net income attributable to ordinary shareholders for the
fourth quarter of 2019 was RMB810.7 million (US$116.5 million), compared to RMB749.9 million
for the same period last year. Net income attributable to ordinary shareholders for the full year of2019 was RMB12.2 billion (US$1.8 billion), compared to a net loss attributable to ordinary
shareholders of RMB2.5 billion for the full year of 2018. Non-GAAP net income attributable toordinary shareholders for the full year of 2019 increased by 211% to RMB10.7 billion (US$1.5
billion), compared to RMB3.5 billion for the full year of 2018.

⚫

Diluted net income per ADS for the fourth quarter of 2019 was RMB2.44 (US$0.35), compared todiluted net loss per ADS of RMB3.32 for the fourth quarter of 2018. Non-GAAP diluted net income
per ADS for the fourth quarter of 2019 was RMB0.54 (US$0.08), compared to RMB0.51 for the samequarter last year. Diluted net income per ADS for the full year of 2019 was RMB8.21 (US$1.18),
compared to diluted net loss per ADS of RMB1.73 for the full year of 2018. Non-GAAP diluted net
income per ADS for the full year of 2019 was RMB7.25 (US$1.04), as compared to RMB2.35 for thefull year of 2018.

1 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that wereactually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of
Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statisticalrelease of the Board of Governors of the Federal Reserve System as of December 31, 2019, which was
RMB6.9618 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-GAAPResults” for more information about the non-GAAP measures referred to in this press release.

1⚫

Operating cash flow for the full year of 2019 increased to RMB24.8 billion (US$3.6 billion) from
RMB20.9 billion for the full year of 2018. Free cash flow, which excludes the impact from JD Baitiao
receivables included in the operating cash flow, for the full year of 2019 increased to inflow of
RMB19.5 billion (US$2.8 billion), compared to outflow of RMB7.9 billion for the full year of 2018.

⚫

Annual active customer accounts3 increased by 18.6% to 362.0 million in 2019 from 305.3 million
in 2018. Mobile monthly active users4 in December 2019 increased by 41% as compared to December
2018.

“We achieved robust top-line growth for the fourth quarter as Chinese consumers increasingly associate the JD
brand with trust and reliability,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “We also
saw strong customer growth, especially in China’s lower-tier cities, driven by innovative marketing, superior
product selection and better customer service.”
Richard Liu continued, “Since late January, we’ve spared no effort in the fight against COVID-19 in China.
Our leading supply chain and logistics network have been called upon to address unmet needs across China.
We’ve been ensuring consumers’ livelihoods while partnering with public institutions to ensure access toemergency supplies. In Hubei, the epicenter of the outbreak, we have been providing medical supplies andfacilitating relief organizations to maintain continuous supply to hospitals, in addition to rolling out a suite ofinnovations across our business to help the country. All of us at JD will continue working around the clock tohelp Chinese consumers, merchants and communities get through this challenging time.”“We are pleased to conclude 2019 with another strong set of results in the fourth quarter,” said Sidney Huang,
Chief Financial Officer of JD.com. “The year 2019 sets a new milestone in our corporate history with record
earnings and excellent cash flow on an annual basis as our continued investments in infrastructure andtechnology began to yield solid financial results. Our vertically integrated ecommerce model, resilient self-built
logistics network and high level of consumer trust allow us to continue serving consumers effectively now andin the long term.”

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 monthly active users in a given month are the number of unique mobile devices that were used tovisit JD mobile app at least once during that month.

2

Business Highlights
Environment, Social and Governance⚫

Following the coronavirus outbreak, JD reacted swiftly to ensure the smooth transportation and supplyof key medical resources and daily necessities nationwide by leveraging its in-house delivery team andits capabilities in areas including supply chain, logistics infrastructure and related technologies. JD
Retail promptly donated over one million face masks, as well as a significant amount of drugs andmedical supply items on January 24th, 2020, to help residents in Hubei, the epicenter province. JD
Logistics, one of three logistics companies recommended to offer logistics solutions in Wuhan, theepicenter of the outbreak, has made emergency medicine deliveries for local pharma companies,
prioritized orders from hospitals and medical institutions and established an express route fortransporting relief supplies from throughout China to Wuhan. Cooperating with over 30,000 doctors,
JD Health launched 24/7 free online medical consultation and psychological counselling services. JD
Health also invited leading medical specialists to hold livestreaming sessions, providing the publicwith clinical disease information and preventative measures. In addition, JD has rolled out a series ofmeasures to subsidize and support coronavirus-hit merchants on its platform, including fee reductions
and waivers as well as financing, logistics, marketing and technology support. JD has also introduced
additional preferential policies for merchants in Hubei province.

JD Retail⚫

In the fourth quarter, JD.com made further progress in its Consumer to Manufacturer (C2M) initiative,
which helps brands to provide tailored products on JD’s platforms by leveraging the company’s big
data capabilities and consumer insights. During the Singles Day Shopping Festival in 2019, JD saw
increasing popularity with its C2M products. Sales of tailored personal computers increased by over
490%, and sales of customized refrigerators and washing machines also increased substantially.

⚫

As part of the company’s omnichannel strategy, on November 11, JD.com launched JD E-SPACE, a
50,000 square-meter experience store in Chongqing. The super store provides customers a unique andimmersive experience in which they can fully interact with innovative electronics and smart products
from over 1,000 brands. In-store customers can purchase products online through the JD platform andenjoy fast direct-to-door delivery. In the fourth quarter, 7FRESH, JD’s offline fresh food supermarket
brand, launched two new omnichannel store formats: 7FRESH LIFE and SEVEN FUN, in Beijing.
7FRESH LIFE is a 24/7 fresh food supermarket that provides in-store purchase and online orderdelivery options of groceries as well as meal solutions for customers in the surrounding local
community. SEVEN FUN is a lifestyle space located in Beijing’s business district and provides various
meal and leisure options for local professionals.

JD Logistics⚫

In the fourth quarter, JD Logistics launched its largest Asia No.1 warehouse in Dongguan, located near
Shenzhen, greatly improving product availability in the Guangdong-Hong Kong-Macao Greater Bay
Area and helping enterprise customers lower logistics costs. As of the end of 2019, JD has established
Asia No.1 mega warehouses in 17 cities across China, forming the largest smart warehouse cluster in3

Asia. In the fourth quarter, two ultra-large sorting centers began operations in JD’s Chengdu andWuhan Asia No.1 warehouses, each able to handle over one million daily orders, greatly enhancing
JD Logistics’ ability to serve consumers in southwest and central China.
⚫

In the fourth quarter, JD Logistics formed a partnership with Mannings, Hong Kong's largest healthand beauty products chain store. JD Logistics will provide Mannings with comprehensive logistics
solutions including international transportation, customs clearance, sorting and delivery. JD Logistics'
strong network and international supply chain capabilities will help Mannings to deliver high-quality
products to customers in China in a highly effective and transparent manner.

⚫

As of December 31, 2019, JD Logistics operated over 700 warehouses, which covered an aggregate
gross floor area of approximately 16.9 million square meters, including warehouse space managed
under the JD Logistics Open Warehouse Platform.

Equity Investees Update⚫

JD.com joint venture, DADA Group, formerly known as Dada-JD Daojia, China’s leading on-demandlogistics and omnichannel e-commerce platform, saw robust growth during the 2019 Singles Day
Shopping Festival, with sales on the JD Daojia platform almost doubling year over year and sales
surging 5.7 times in the third and fourth tier cities compared to last year as consumers welcomed theconvenience of its one-hour shopping delivery service. To date, JD Daojia has formed partnerships
with over 70 first-tier international and domestic FMCG brands, and Dada Now, its logistics network
covers over 2,400 counties and cities across the country, adding important supplementary capacity to
JD Logistics’ infrastructure. In response to the coronavirus outbreak, JD Daojia has partnered withover 50 supermarket chains as well as nearly 30 community grocery chains to meet the enormous
demand for to-door delivery of fresh produce. DADA Group has also launched a fast track allowing
retailers and brands to join the platform within 24 hours, helping merchants to offer on-demand
fulfillment solutions in the current capacity-constrained environment.

Operational Metrics Update⚫

As of December 31, 2019, JD.com had over 270,000 merchants on its online marketplace, and over
220,000 employees excluding part-time and interns.

4Fourth Quarter 2019 Financial Results
Net Revenues. For the fourth quarter of 2019, JD.com reported net revenues of RMB170.7 billion (US$24.5
billion), representing a 26.6% increase from the same period in 2018. Net product revenues increased by 24.5%,
while net service revenues increased by 43.6% for the fourth quarter of 2019, as compared to the same periodof 2018.
Cost of Revenues. Cost of revenues increased by 26.8% to RMB146.7 billion (US$21.1 billion) for the fourth
quarter of 2019 from RMB115.7 billion for the fourth quarter of 2018. This increase was primarily due to thegrowth of the company’s online direct sales business and the logistics services provided to third parties.
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by 24.1% to RMB11.0 billion (US$1.6 billion)
for the fourth quarter of 2019 from RMB8.9 billion for the fourth quarter of 2018. Fulfillment expenses as apercentage of net revenues decreased to 6.4% for the fourth quarter of 2019, compared to 6.6% in the same
period last year, mainly due to economies of scale from enhanced logistics capacity utilization and staff
productivity.
Marketing Expenses. Marketing expenses increased by 29.5% to RMB8.2 billion (US$1.2 billion) for the
fourth quarter of 2019 from RMB6.4 billion for the fourth quarter of 2018.
Research and Development Expenses. Research and development expenses increased to RMB3.6 billion(US$0.5 billion) for the fourth quarter of 2019 from RMB3.5 billion for the fourth quarter of 2018.
General and Administrative Expenses. General and administrative expenses increased to RMB1.5 billion(US$0.2 billion) for the fourth quarter of 2019 from RMB1.4 billion for the fourth quarter of 2018.
Gain on Sale of Development Properties. Gain on sale of development properties for the fourth quarter of2019 was RMB0.8 billion (US$0.1 billion), which was part of the gain on sale of development properties to theCore Fund in relation to the previously disclosed February 2019 transaction.
Income/(Loss) from Operations and Non-GAAP Income from Operations. Income from operations for the
fourth quarter of 2019 was RMB529.5 million (US$76.1 million), compared to loss from operations of
RMB938.9 million for the same period last year. Non-GAAP income from operations for the fourth quarter of2019 was RMB704.0 million (US$101.1 million), compared to RMB313.0 million for the fourth quarter of
2018. Operating margin of JD Retail before unallocated items for the fourth quarter of 2019 was 1.4%,
compared to 1.1% for the fourth quarter of 2018.
Non-GAAP EBITDA for the fourth quarter of 2019 was RMB2.0 billion (US$0.3 billion) with a non-GAAP
EBITDA margin of 1.2%, as compared to RMB1.5 billion with a non-GAAP EBITDA margin of 1.1% for the
fourth quarter of 2018.
Others, net. Others are other non-operating income/(loss) including gains/(losses) from fair value change oflong-term investments, gains from business and investment disposals, impairment of investments, government
incentives, foreign exchange gains/(losses) and others. In the fourth quarter of 2019, other non-operating income
was RMB3.6 billion (US$0.5 billion), compared with a loss of RMB4.0 billion for the fourth quarter of 2018.
The substantial increase was primarily due to the increase of the fair value change of long-term investments,
which had a gain of RMB4.2 billion (US$0.6 billion) for the fourth quarter of 2019, compared with a loss of
RMB4.1 billion for the same period of last year.

5Net Income/(Loss) Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable toOrdinary Shareholders. Net income attributable to ordinary shareholders for the fourth quarter of 2019 was
RMB3.6 billion (US$0.5 billion), compared to net loss attributable to ordinary shareholders of RMB4.8 billion
for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the fourth quarterof 2019 was RMB810.7 million (US$116.5 million), compared to RMB749.9 million for the same period lastyear.
Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the fourth quarter of 2019 was
RMB2.44 (US$0.35), compared to diluted net loss per ADS of RMB3.32 for the fourth quarter of 2018. NonGAAP diluted net income per ADS for the fourth quarter of 2019 was RMB0.54 (US$0.08), as compared to
RMB0.51 for the fourth quarter of 2018.
Cash Flow and Working Capital
As of December 31, 2019, the company’s cash and cash equivalents, restricted cash and short-term investments
totaled RMB64.5 billion (US$9.3 billion), compared to RMB39.5 billion as of December 31, 2018. For the
fourth quarter of 2019, free cash flow of the company was as follows:
For the three months ended
December 31, December 31, December 31,
2018
2019
2019
RMB
RMB
US$
(In thousands)
Net cash provided by operating activities
Less: Impact from the decreasing JD Baitiao receivables
included in the operating cash flowAdd/(less): Capital expenditures
Capital expenditures for development properties, netof related sales proceeds*
Other capital expenditures**
Free cash flow

6,028,130

3,701

532

(5,793,961)(311,718)(44,775)(2,515,276)(1,720,252)(4,001,359)

1,055,277(903,487)(156,227)

151,581(129,778)(22,440)* Including logistics facilities and other real estate properties developed by the company’s property
management group (“JD Property”), which may be sold under various equity structures. In the fourth quarterof 2019, approximately RMB2.5 billion proceeds from the sale of development properties were included in thisline.
** Including capital expenditures related to the company’s headquarters in Beijing and all other CAPEX.
Net cash provided by investing activities was RMB2.5 billion (US$0.4 billion) for the fourth quarter of 2019,consisting primarily of the loans repaid by JD Digits. In addition, cash paid for capital expenditures in the fourth
quarter of 2019 was RMB2.3 billion, offset by the proceeds from sale of development properties to the Core
Fund of RMB2.5 billion.
Net cash provided by financing activities was RMB3.1 billion (US$0.4 billion) for the fourth quarter of 2019,consisting primarily of cash received in the second closing of JD Health’s Series A financing.
For working capital turnover days, see table under “Supplemental Financial Information and Business Metrics.”6

Full Year 2019 Financial Results
Net Revenues. For the full year of 2019, JD.com reported net revenues of RMB576.9 billion (US$82.9 billion),
representing a 24.9% increase from the full year of 2018. Net product revenues increased by 22.7%, while net
service revenues increased by 44.1% for the full year of 2019, as compared to the full year of 2018.
Cost of Revenues. Cost of revenues increased by 24.3% to RMB492.5 billion (US$70.7 billion) for the fullyear of 2019 from RMB396.1 billion for the full year of 2018. This increase was primarily due to the growthof the company’s online direct sales business and the logistics services provided to third parties.
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery,
customer service and payment processing expenses, increased by 15.5% to RMB37.0 billion (US$5.3 billion)
for the full year of 2019 from RMB32.0 billion for the full year of 2018. Fulfillment expenses as a percentageof net revenues was 6.4% for the full year of 2019, compared to 6.9% for the full year of 2018.
Fulfilled Gross Margin5.
the full year of 2018.

Fulfilled gross margin for the full year of 2019 was 8.2%, as compared to 7.3% forMarketing Expenses. Marketing expenses increased by 15.6% to RMB22.2 billion (US$3.2 billion) for thefull year of 2019 from RMB19.2 billion for the full year of 2018.
Research and Development Expenses. Research and development expenses increased by 20.4% to RMB14.6
billion (US$2.1 billion) for the full year of 2019 from RMB12.1 billion for the full year of 2018.
General and Administrative Expenses. General and administrative expenses increased by 6.4% to RMB5.5
billion (US$0.8 billion) for the full year of 2019 from RMB5.2 billion for the full year of 2018.
Gain on Sale of Development Properties. Gain on sale of development properties for the full year of 2019
was RMB3.9 billion (US$0.6 billion), consisting primarily of the gain on sale of development properties to theCore Fund.
Income/(Loss) from Operations and Non-GAAP Income from Operations. Income from operations for thefull year of 2019 was RMB9.0 billion (US$1.3 billion), compared to loss from operations of RMB2.6 billion
for the full year of 2018. Non-GAAP income from operations for the full year of 2019 increased by 364% to
RMB8.9 billion (US$1.3 billion) with a non-GAAP operating margin of 1.5%, as compared to RMB1.9 billion
for the full year of 2018 with a non-GAAP operating margin of 0.4%. Operating margin of JD Retail before
unallocated items for the full year of 2019 was 2.5%, compared to 1.6% for the full year of 2018.
Non-GAAP EBITDA for the full year of 2019 increased by 144% to RMB13.8 billion (US$2.0 billion) with a
non-GAAP EBITDA margin of 2.4%, from RMB5.7 billion with a non-GAAP EBITDA margin of 1.2% for
the full year of 2018.
Others, net. Other non-operating income for the full year of 2019 was RMB5.4 billion (US$0.8 billion),compared with RMB0.1 billion for the full year of 2018. The 2019 income was primarily attributable to gains
from fair value change of long-term investments of RMB3.5 billion (US$0.5 billion) as well as various
government incentives and gain on investment disposals.

5 Fulfilled gross margin is calculated by dividing fulfilled gross profit by net revenues. Fulfilled gross profit isdefined as the difference between net revenues and the total amount of cost of revenues and fulfillment expenses.

7

Net Income/(Loss) Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable toOrdinary Shareholders. Net income attributable to ordinary shareholders for the full year of 2019 was
RMB12.2 billion (US$1.8 billion), compared to net loss attributable to ordinary shareholders of RMB2.5 billion
for the full year of 2018. Non-GAAP net income attributable to ordinary shareholders for the full year of 2019
increased by 211% to RMB10.7 billion (US$1.5 billion), compared to RMB3.5 billion for the full year of 2018.
Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the full year of 2019 was
RMB8.21 (US$1.18), compared to diluted net loss per ADS of RMB1.73 for the full year of 2018. Non-GAAP
diluted net income per ADS for the full year of 2019 was RMB7.25 (US$1.04) as compared to RMB2.35 forthe full year of 2018.
Cash Flow and Working Capital
For the full year of 2019, free cash flow of the company was as follows:
For the year ended
December 31, December 31, December 31,
2018
2019
2019
RMB
RMB
US$
(In thousands)
Net cash provided by operating activities
Less: Impact from the decreasing JD Baitiao receivables
included in the operating cash flowAdd/(less): Capital expenditures
Capital expenditures for development properties, netof related sales proceeds*
Other capital expenditures**
Free cash flow

20,881,422

24,781,220

3,559,600(7,369,421)(4,233,884)(608,160)(8,857,569)(12,511,925)(7,857,493)

2,420,401(3,514,741)
19,452,996

347,669(504,861)
2,794,248* Including logistics facilities and other real estate properties developed by JD Property, which may be soldunder various equity structures. For the year ended December 31, 2019, approximately RMB7.9 billion
proceeds from the sale of development properties were included in this line.
** Including capital expenditures related to the company’s headquarters in Beijing and all other CAPEX.
Net cash used in investing activities was RMB25.3 billion (US$3.6 billion) for the full year of 2019, consisting
primarily of increase in short-term investments of RMB22.5 billion, prepayments and investments in equity
investees and purchases investment securities of RMB11.3 billion, and cash paid for capital expenditures of
RMB9.0 billion, partially offset by the proceeds from sale of development properties of RMB7.9 billion, cash
received from disposals of equity investment and investment securities of RMB4.6 billion, and the loans settled
by JD Digits of RMB4.1 billion.
Net cash provided by financing activities was RMB2.6 billion (US$0.4 billion) for the full year of 2019,consisting primarily of cash received as part of JD Health’s Series A financing of RMB6.3 billion, partially
offset by repayment of nonrecourse securitization debt of RMB3.9 billion.
For working capital turnover days, see table under “Supplemental Financial Information and Business Metrics.”8

Full-Year Supplemental Information
The table below sets forth the full year segment operating results:
For the year ended
December 31, December 31, December 31,
2018
2019
2019
RMB
RMB
US$
(In thousands)
Net revenues:
JD RetailNew businesses*
Inter-segment
Total segment net revenues
Unallocated items**
Total consolidated net revenues

447,502,173
14,665,281(1,103,943)
461,063,511
956,248
462,019,759

552,245,141
23,932,278(435,364)
575,742,055
1,146,429
576,888,484

79,325,051
3,437,657(62,536)
82,700,172
164,674
82,864,846

Operating income/(loss):
JD RetailNew businesses*
Including: gain on sale of development properties
Total segment operating income
Unallocated items**
Total consolidated operating income/(loss)

7,049,222(5,136,657)
1,912,565(4,531,696)(2,619,131)

13,775,339(1,022,281)
3,884,709
12,753,058(3,758,178)
8,994,880

1,978,704(146,841)
558,004
1,831,863(539,830)
1,292,033* 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 ofdevelopment properties by JD Property.
JD Property develops and manages logistics facilities and other real estate properties. By leveraging its fundmanagement 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 andintangible assets, which are not allocated to segments.

9

The table below sets forth the full year revenue information:
For the year ended
December 31,
December 31,
December 31,
2018
2019
2019
RMB
RMB
US$
(In thousands)
Electronics and home appliance revenues
General merchandise revenues
Net product revenues

280,059,089
136,049,657
416,108,746

328,703,453
182,030,514
510,733,967

47,215,297
26,147,047
73,362,344

Marketplace and advertising revenues
Logistics and other service revenues
Net service revenues

33,531,862
12,379,151
45,911,013

42,680,212
23,474,305
66,154,517

6,130,629
3,371,873
9,502,502

Total net revenues

462,019,759

576,888,484

82,864,846

First Quarter 2020 Guidance
Net revenues for the first quarter of 2020 are expected to grow at least 10% compared with the first quarter of
2019. This forecast reflects JD.com’s current and preliminary expectation, which is subject to change in lightof uncertainties related to how COVID-19 develops.
Conference Call
JD.com’s management will hold a conference call at 7:00 am, Eastern Time on March 2, 2020 (8:00 pm,
Beijing/Hong Kong Time on March 2, 2020) to discuss the fourth quarter and full year 2019 financial results.
Listeners may access the call by dialing the following numbers:
US Toll Free:+1-845-675-0437 or +1-866-519-4004

Hong Kong+852-3018-6771 or 800-906-601

Mainland China

400-6208-038 or 800-8190-121

International+65-6713-5090

Passcode:

3837306

A telephone replay will be available from 10:00 am, Eastern Time on March 2, 2020 through 8:59 am,
Eastern Time on March 10, 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:

3837306

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.

10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 enableconsumers 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 tohelp drive productivity and innovation across a range of industries. JD.com is the largest retailer in China, amember of the NASDAQ100 and a Fortune Global 500 company.
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 toordinary 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 andpresented 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 businessacquisitions, effects of business cooperation arrangements, gain on sale of development properties andimpairment 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 ofbusiness cooperation arrangements and non-compete agreements, gain/(loss) on disposals/deemed disposals ofinvestments, reconciling items on the share of equity method investments, loss/(gain) from fair value change oflong-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 theoperating 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 ofordinary 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 ofordinary 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 also believes that the use of the nonGAAP 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

11also believes that the non-GAAP financial measures provide useful information to both management andinvestors 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 theircomparability 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 whenevaluating 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) 8912-6805
IR@JD.com
Media+86 (10) 8911-6155
Press@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 canbe 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 frommanagement 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 andother 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, areforward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number offactors 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, resultsof 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 otherrisks is included in JD.com's filings with the SEC. All information provided in this press release and in theattachments is as of the date of this press release, and JD.com undertakes no obligation to update any forwardlooking statement, except as required under applicable law.

12

JD.com, Inc.
Unaudited Condensed Consolidated Balance Sheets(In thousands, except per share data and otherwise noted)

December 31,
2018

As of
December 31,
2019

December 31,
2019

RMB

RMB

US$

Cash and cash equivalents

34,262,445

36,971,420

5,310,612

Restricted cash

3,239,613

2,940,859

422,428

Short-term investments

2,035,575

24,602,777

3,533,968

11,109,988

6,190,588

889,222477,109593,130

85,198Inventories, net

44,030,084

57,932,156

8,321,434

Prepayments and other current assets

6,564,700

5,629,561

808,636

Amount due from related parties

3,136,265

4,234,067

608,186

104,855,779

139,094,558

19,979,684

Property, equipment and software, net

21,082,838

20,654,071

2,966,772

Construction in progress

6,553,712

5,806,308

834,024

Intangible assets, net

5,011,706

4,110,034

590,369

10,475,658

10,891,742

1,564,501-

8,643,597

1,241,575

Goodwill

6,643,669

6,643,669

954,303

Investment in equity investees

31,356,616

35,575,807

5,110,145

Investment securities

15,901,573

21,417,104

3,076,375

Deferred tax assets

103,158

80,556

11,571

December 31, 2018 and 2019, respectively)(1)5,283,948

6,806,258

977,658

Amount due from related parties

1,896,200--

Total non-current assets

104,309,078

120,629,146

17,327,293

Total assets

209,164,857

259,723,704

37,306,977

ASSETS
Current assets

Accounts receivable, net (including JD Baitiao of
RMB6.3 billion and RMB1.0 billion as ofDecember 31, 2018 and 2019, respectively)(1)Advance to suppliers

Total current assets
Non-current assets

Land use rights, net(2)

Operating lease right-of-use assets

Other non-current assets (including JD Baitiao of
RMB0.2 billion and RMB0.4 billion as of13

JD.com, Inc.
Unaudited Condensed Consolidated Balance Sheets(In thousands, except per share data and otherwise noted)

December 31,
2018

As of
December 31,
2019

December 31,
2019

RMB

RMB

US$

LIABILITIESCurrent liabilities
Short-term borrowings

147,264--

4,397,670--

Accounts payable

79,985,018

90,428,382

12,989,224

Advances from customers

13,017,603

16,078,619

2,309,549

Deferred revenues

1,980,489

3,326,594

477,835

Taxes payable

825,677

2,015,788

289,550

Amount due to related parties

215,614317,978

45,675

20,292,680

24,656,180

3,541,639-

3,193,480

458,715

120,862,015

140,017,021

20,112,187

Nonrecourse securitization debt

(1)

Accrued expenses and other current liabilities
Operating lease liability(2)

Total current liabilities
Non-current liabilities
Deferred revenues

463,153

1,942,635

279,042

Unsecured senior notes

6,786,143

6,912,492

992,917

Deferred tax liabilities

828,473

1,338,988

192,334

Long-term borrowings

3,088,440

3,139,290

450,931(2)-

5,523,164

793,353

Other non-current liabilities

308,489

225,883

32,446

Total non-current liabilities

11,474,698

19,082,452

2,741,023

Total liabilities

132,336,713

159,099,473

22,853,210

Operating lease liabilities(1) JD Digits performs credit risk assessment services for JD Baitiao business and absorbs the credit risk of theunderlying Baitiao receivables. Due to the company’s continuing involvement in the asset-backed securitization（“ABS”）arrangements prior to October 2017, the company was not able to derecognize the related Baitiao receivables
upon issuance of ABS. Beginning from October 2017, the company revised certain structural arrangements for the newissuance of ABS plans, and derecognized the related Baitiao receivables.
(2) On January 1, 2019, the company adopted ASC 842, the new lease standard, using the optional transition method.

14

JD.com, Inc.
Unaudited Condensed Consolidated Balance Sheets(In thousands, except per share data and otherwise noted)

December 31,
2018

As of
December 31,
2019

December 31,
2019

RMB

RMB

US$

15,961,284

15,964,384

2,293,140

December 31, 2019)59,770,973

81,855,970

11,757,875

Non-controlling interests

1,095,887

2,803,877

402,752

Total shareholders’ equity

60,866,860

84,659,847

12,160,627

209,164,857

259,723,704

37,306,977

MEZZANINE EQUITY
Convertible redeemable non-controlling interests
SHAREHOLDERS’ EQUITY
Total JD.com, Inc. shareholders’ equity (US$0.00002
par value, 100,000,000 shares authorized, 2,973,943
shares issued and 2,924,315 shares outstanding as of

Total liabilities, mezzanine equity and shareholders’equity15

JD.com, Inc.
Unaudited Condensed Consolidated Statements of Operations(In thousands, except per share data and otherwise noted)

For the three months ended

For the year ended

December 31, December 31, December 31,

December 31, December 31,

December 31,

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Net product revenues

120,231,574

149,712,093

21,504,797

416,108,746

510,733,967

73,362,344

Net service revenues

14,600,975

20,971,945

3,012,431

45,911,013

66,154,517

9,502,502

Total net revenues

134,832,549

170,684,038

24,517,228

462,019,759

576,888,484

82,864,846

Cost of revenues(115,660,696)(146,685,835)(21,070,102)(396,066,126)(492,467,391)(70,738,515)

Fulfillment(8,860,519)(10,994,766)(1,579,299)(32,009,658)(36,968,041)(5,310,127)

Marketing(6,352,543)(8,225,450)(1,181,512)(19,236,740)(22,234,045)(3,193,721)

Research and development(3,502,059)(3,591,058)(515,823)(12,144,383)(14,618,677)(2,099,842)

General and administrative(1,395,636)(1,471,794)(211,410)(5,159,666)(5,490,159)(788,612)

Impairment of goodwill and intangible assets

-

-

-

(22,317)--

Gain on sale of development properties

Net revenues-

814,412116,983-3,884,709

558,004(4)(5)(938,904)

529,547

76,065(2,619,131)

8,994,880

1,292,033

Share of results of equity investees(171,284)(518,211)(74,436)(1,113,105)(1,738,219)(249,680)

Income/(Loss) from operations
Other income/(expenses)(3)389,887594,427

85,384

2,117,921

1,785,572

256,481Interest expense(3)(144,847)(219,772)(31,568)(854,538)(725,010)(104,141)(3,951,371)

3,646,984

523,856

95,1755,375,309

772,115

Income/(Loss) before tax(4,816,519)

4,032,975

579,301(2,373,678)

13,692,532

1,966,808

Income tax expenses(60,967)(479,137)(68,824)(426,872)(1,802,440)(258,904)(4,877,486)

3,553,838

510,477(2,800,550)

11,890,092

1,707,904(73,599)(80,913)(11,622)(311,409)(297,163)(42,685)

839

797

114

2,492

3,100

445

(4,804,726)

3,633,954

521,985(2,491,633)

12,184,155

1,750,144

Interest income

Others, net

Net income/(loss)
Net loss attributable to non-controlling interests
shareholders
Net income attributable to mezzanine equity
classified non-controlling interests shareholders
Net income/(loss) attributable to ordinary
shareholders(3) Interest expenses in relation to the nonrecourse securitization debt, which were collected from JD Digits in the same amount as interest income, were
RMB74.7 million and nil for the three months ended December 31, 2018 and 2019, respectively. For the year ended December 31, 2018 and 2019, they were
RMB527.0 million and RMB37.6 million, respectively.

16

JD.com, Inc.
Unaudited Condensed Consolidated Statements of Operations(In thousands, except per share data and otherwise noted)

For the three months ended

For the year ended

December 31, December 31, December 31,

December 31, December 31, December 31,

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Cost of revenues(23,986)(24,556)(3,527)(71,983)(82,243)(11,813)

Fulfillment(94,799)(136,033)(19,540)(418,895)(440,167)(63,226)

Marketing(52,252)(78,419)(11,264)(190,499)(258,860)(37,183)

Research and development(350,810)(376,212)(54,039)(1,162,579)(1,340,317)(192,524)

General and administrative(515,200)(416,145)(59,775)(1,816,033)(1,573,368)(226,000)(4) Includes share-based compensation expenses as follows:(5) Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows:
Fulfillment(41,897)(41,433)(5,951)(167,573)(165,223)(23,733)

Marketing(310,469)(140,430)(20,171)(1,231,889)(637,374)(91,553)

Research and development(22,807)(24,700)(3,548)(98,402)(99,280)(14,261)

General and administrative(77,314)(77,314)(11,105)(307,774)(307,776)(44,209)

Basic(1.66)

1.24

0.18(0.87)

4.18

0.60

Diluted(1.66)

1.22

0.18(0.87)

4.11

0.59

Basic

(3.32)

2.49

0.36(1.73)

8.37

1.20

Diluted(3.32)

2.44

0.35(1.73)

8.21

1.18

Net income/(loss) per share:

Net income/(loss) per ADS:17

JD.com, Inc.
Unaudited Non-GAAP Net Income Per ADS(In thousands, except per share data and otherwise noted)

For the three months ended

For the year ended

December 31, December 31, December 31,

December 31, December 31, December 31,

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

749,902810,722

116,450

3,459,772

10,749,907

1,544,127

Basic

2,895,114

2,923,258

2,923,258

2,877,903

2,912,637

2,912,637

Diluted2,895,114

2,980,261

2,980,261

2,877,903

2,967,322

2,967,322

Diluted (Non-GAAP)

2,937,822

2,980,261

2,980,261

2,943,379

2,967,322

2,967,322

Basic

0.52

0.55

0.08

2.40

7.38

1.06

Diluted

0.51

0.54

0.08

2.35

7.25

1.04

Non-GAAP net income attributable to ordinary
shareholders

Weighted average number of shares:

Non-GAAP net income per ADS:18

JD.com, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows and Free Cash Flow
(In thousands)

For the three months ended

For the year ended

December 31, December 31, December 31,

December 31, December 31, December 31,

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

20,881,422

24,781,220

3,559,600(3,641,208)

Net cash provided by operating activities

6,028,130

3,701

532

Net cash provided by/(used in) investing activities(2,188,115)

2,452,444

352,272(26,078,992) (25,349,357)

Net cash provided by/(used in) financing activities(3,920,878)

3,087,869

443,545

11,219,928

2,572,467

369,512(130,541)(390,963)(56,160)

1,681,163

405,891

58,302(211,404)

5,153,051

740,189

7,703,521

2,410,221

346,206

37,713,462

34,759,228

4,992,851

29,798,537

37,502,058

5,386,834

37,502,058

39,912,279

5,733,040

37,502,058

39,912,279

5,733,040

6,028,130

3,701

532

20,881,422

24,781,220

3,559,600(5,793,961)(311,718)(44,775)(7,369,421)(4,233,884)(608,160)(2,515,276)

1,055,277

151,581(8,857,569)

2,420,401

347,669(1,720,252)(903,487)(129,778)(12,511,925)(3,514,741)(504,861)(4,001,359)(156,227)(22,440)(7,857,493)

19,452,996

2,794,248

Effect of exchange rate changes on cash, cash
equivalents and restricted cash
Net increase/(decrease) in cash, cash equivalents andrestricted cash
Cash, cash equivalents and restricted cash at beginningof period/(year)
Cash, cash equivalents and restricted cash at end of
period/(year)

Net cash provided by operating activities
Less: Impact from JD Baitiao receivables included in
the operating cash flowAdd/(Less): Capital expenditures
Capital expenditures for development properties,
net of related sales proceeds
Other capital expenditures
Free cash flow19

JD.com, Inc.
Supplemental Financial Information and Business Metrics
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
Free cash flow (in RMB billions) – trailing twelve months (“TTM”)(6)

Inventory turnover days

– TTM
– TTM

(7)

Accounts payable turnover days

(8)

Accounts receivable turnover days

– TTM

Annual active customer accounts (in millions)

(7.9)

2.2

7.4

15.6

19.5

38.7

36.5

36.3

35.1

35.8

60.2

57.4

59.4

56.6

54.5

2.7

3.0

3.3

3.2

3.2

305.3

310.5

321.3

334.4

362.0

For the year ended December 31,

GMV(9) (in RMB billions)

2017

2018

2019

1,294.5

1,676.9

2,085.4(6) Inventory turnover days are the quotient of average inventory to cost of revenues of direct sales business for the lasttwelve months and then multiplied by 360 days.
(7) Accounts payable turnover days are the quotient of average accounts payable of direct sales business to cost ofrevenues of direct sales business for the last twelve months and then multiplied by 360 days.
(8) Accounts receivable turnover days are the quotient of average accounts receivable over five quarter ends to total net
revenues of the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days
excluding the impact from JD Baitiao.
(9) Gross Merchandise Volume (GMV) is the total value of all orders for products and services placed in the company’s
online direct sales business and on the company’s online marketplaces, regardless of whether the goods are sold ordelivered or whether the goods are returned. GMV includes the value from orders placed on our websites and mobile
apps as well as orders placed on third-party websites and mobile apps that are fulfilled by us or by our third-party
merchants. The calculation of GMV includes shipping charges paid by buyers to sellers and for prudent consideration
excludes certain transactions over certain amounts that are comparable to the disclosed parameters in GMV definition
by our major industry peer. The company believes that GMV provides a measure of the overall volume of transactions
that flow through our platform in a given period and is only useful for the purposes of industry and peer comparisons.
Therefore, it should not be used as a financial metric.

20

JD.com, Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results(In thousands, except percentage data)

For the three months ended

For the year ended

December 31, December 31, December 31,

December 31,

December 31,

December 31,

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Income/(Loss) from operations(938,904)

529,547

76,065(2,619,131)

8,994,880

1,292,033

Add: Share-based compensation

1,037,047

1,031,365

148,1453,659,989

3,694,955

530,746

452,487

147,655

21,2081,805,638

885,385

127,178(237,651)(190,139)(27,312)(956,248)(822,161)(118,096)-(814,412)(116,983)-(3,884,709)(558,004)---

22,317--

312,979

704,016

101,123

1,912,565

8,868,350

1,273,857

Add: Depreciation and other amortization

1,162,228

1,261,687

181,2313,754,396

4,942,671

709,970

Non-GAAP EBITDA

1,475,207

1,965,703

282,354

5,666,961

13,811,021

1,983,827

134,832,549

170,684,038

24,517,228

462,019,759

576,888,484

82,864,846

Non-GAAP operating margin

0.2%

0.4%

0.4%

0.4%

1.5%

1.5%

Non-GAAP EBITDA margin

1.1%

1.2%

1.2%

1.2%

2.4%

2.4%

Add: Amortization of intangible assets
resulting from assets and businessacquisitions
Reversal of: Effects of business cooperation
arrangements
Reversal of: Gain on sale of development
properties
Add: Impairment of goodwill and intangible
assets
Non-GAAP income from operations

Total net revenues21

JD.com, Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results(In thousands, except percentage data)

For the three months ended

For the year ended

December 31, December 31, December 31,

December 31, December 31, December 31,

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

(4,804,726)

3,633,954

521,985(2,491,633)

12,184,155

1,750,144

1,037,047

1,031,365

148,1453,659,989

3,694,955

530,746

452,487

147,655

21,2081,805,638

885,385

127,178(41,246)

155,358

22,316

581,785

456,468

65,568194,1111,000,056

143,649

615,455

2,750,769

395,123

4,064,650(4,210,355)(604,780)

1,512,979(3,495,710)(502,127)-(814,412)(116,983)-(3,997,416)(574,193)

107,557(8,891)(1,277)(1,320,266)(1,236,726)(177,645)(258,245)(211,077)(30,320)(1,035,020)(904,284)(129,892)(1,733)87,06912,507130,845412,311

59,225749,902810,722

116,450

3,459,772

10,749,907

1,544,127

134,832,549

170,684,038

24,517,228

462,019,759

576,888,484

82,864,846

0.6%

0.5%

0.5%

0.7%

1.9%

1.9%

Net income/(loss) attributable to ordinary
shareholders
Add: Share-based compensation
Add: Amortization of intangible assets resulting
from assets and business acquisitions
Add/(Reversal of): Reconciling items on the shareof equity method investments(10)Add: Impairment of goodwill, intangible assets,
and investments
Add/(Reversal of): Loss/(Gain) from fair valuechange of long-term investments, net of tax
Reversal of: Gain and foreign exchange impact inrelation to sale of development properties
Add/(Reversal of): Loss/(Gain) on
disposals/deemed disposals of investments
Reversal of: Effects of business cooperation
arrangements and non-compete agreements
Add/(Reversal of): Tax effects on non-GAAP
adjustments
Non-GAAP net income attributable to ordinary
shareholders

Total net revenues

Non-GAAP net margin(10) To exclude the non-GAAP to GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on theirbooks.

22