JD.com Announces Fourth Quarter and Full Year 2020 Results
March 11, 2021
BEIJING, March 11, 2021 (GLOBE NEWSWIRE) -- JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading technology driven e-commercecompany transforming to become the leading supply chain-based technology and service provider, today announced its unaudited financial results forthe quarter and the full year ended December 31, 2020.
Fourth Quarter and Full Year 2020 Highlights

Net revenues for the fourth quarter of 2020 were RMB224.3 billion (US$134.4 billion), an increase of 31.4% from thefourth quarter of 2019. Net service revenues for the fourth quarter of 2020 were RMB32.1 billion (US$4.9 billion), an
increase of 53.2% from the fourth quarter of 2019. Net revenues for the full year of 2020 were RMB745.8 billion(US$114.3 billion), an increase of 29.3% from the full year of 2019. Net service revenues for the full year of 2020 were
RMB93.9 billion (US$14.4 billion), an increase of 42.0% from the full year of 2019.
Income from operations for the fourth quarter of 2020 was RMB594.9 million (US$91.2 million), compared to RMB529.5
million for the same period last year. Non-GAAP2 income from operations for the fourth quarter of 2020 was
RMB1,213.5 million (US$186.0 million), compared to RMB704.0 million for the fourth quarter of 2019. Income fromoperations for the full year of 2020 was RMB12.3 billion (US$1.9 billion), compared to RMB9.0 billion for the full year of
2019. Non-GAAP income from operations for the full year of 2020 was RMB15.3 billion (US$2.4 billion) with a
non-GAAP operating margin of 2.1%, as compared to RMB8.9 billion for the full year of 2019 with a non-GAAP operating
margin of 1.5%.
Net income attributable to ordinary shareholders for the fourth quarter of 2020 was RMB24.3 billion (US$3.7 billion),compared to RMB3.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders
for the fourth quarter of 2020 increased by 194% to RMB2.4 billion (US$0.4 billion) from RMB0.8 billion for the same
period last year. Net income attributable to ordinary shareholders for the full year of 2020 was RMB49.4 billion (US$7.6
billion), compared to RMB12.2 billion for the full year of 2019. Non-GAAP net income attributable to ordinary
shareholders for the full year of 2020 was RMB16.8 billion (US$2.6 billion), compared to RMB10.7 billion for the full yearof 2019.
Diluted net income per ADS for the fourth quarter of 2020 was RMB15.18 (US$2.33), compared to RMB2.44 for the
fourth quarter of 2019. Non-GAAP diluted net income per ADS for the fourth quarter of 2020 was RMB1.49 (US$0.23),
compared to RMB0.54 for the same period last year. Diluted net income per ADS for the full year of 2020 was RMB31.68(US$4.86), compared to RMB8.21 for the full year of 2019. Non-GAAP diluted net income per ADS for the full year of2020 was RMB10.56 (US$1.62), compared to RMB7.25 for the full year of 2019.
Operating cash flow for the full year of 2020 increased to RMB42.5 billion (US$6.5 billion) from RMB24.8 billion for thefull year of 2019. Free cash flow, which excludes the impact from JD Baitiao receivables included in the operating cash
flow, for the full year of 2020 increased to RMB34.9 billion (US$5.4 billion), compared to RMB19.5 billion for the full year of2019.
Annual active customer accounts3 increased by 30.3% to 471.9 million in 2020 from 362.0 million in 2019.
“JD saw accelerated revenue and user growth during the fourth quarter driven by our long-term operating philosophy and customer-centric value
proposition despite the ongoing market challenges,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “During this quarter, JD
continued its strategic transformation into a supply chain-based technology and service company with increasingly diversified sources of revenues.
With a strong momentum going into 2021 and with our recently optimized organizational structure, JD will continue to invest in innovative, highpotential businesses to drive long-term sustainable growth.”“We are pleased to conclude the year on a strong note with another quarter of solid top and bottom-line results as well as excellent cash flow,” said
Sandy Xu, Chief Financial Officer of JD.com. “Our operational efficiency continued to improve driven by technology and innovation. We have also
made progress in a number of new businesses that we have been incubating, including the successful IPO of JD Health, the submission of JD
Logistics’s listing application to the Hong Kong Stock Exchange and the progress of JD Property’s series A financing.”
Business Highlights
Environment, Social and GovernanceIn the fourth quarter, JD Logistics became the first Chinese logistics company to join the Science Based Targets initiative

(SBTi) with a commitment to reducing its carbon emissions by 50% compare to 2019 by 2030. SBTi is a partnership
between CDP (Carbon Disclosure Project), the United Nations Global Compact (UNGC), World Resources Institute (WRI)
and the World Wide Fund for Nature (WWF) driving ambitious climate action in the private sector by enabling companies to
set science-based emissions reduction targets. JD Logistics is dedicated to deploying more new energy vehicles,
promoting renewable energies & environmentally friendly materials and enabling partners to implement environmentallyfriendly practices.
In November, JD Logistics’s courier Xuewen Song received China’s 2020 “National Model Workers” award, the nation’s
highest recognition for outstanding work ethics and contributions to the country and society. Since joining JD.com in 2011,
Mr. Song has traveled 320,000 kilometers and delivered 300,000 packages with zero errors, complaints, and safetyincidents.
JD RetailMultiple renowned fashion and luxury brands launched flagship stores on JD.com, including Hermès Group’s luxury shoebrand John Lobb, Italian luxury brand Stefano Ricci, British designer brand Vivienne Westwood, LVMH Group’s fashion
brand JW Anderson, designer accessories brand Anya Hindmarch, French silverware and jewelry brand Christofle andJapanese streetwear label White Mountaineering. Furthermore, Prada and Miu Miu became the first batch of luxury brands
to partner with JD.com to implement pioneering omni-channel initiatives. Customers on JD platforms now have access to awider range of Prada and Miu Miu products, including exclusive items from their physical stores. The initiatives also help toimprove the operational efficiency and inventory management capability of these brands’ physical stores.
In the fourth quarter, JD Retail received multiple prestigious awards from influential advertising organizations, including
Effie Awards (Greater China), Modern Advertising Awards, and ROI Awards, for its innovation and contribution in
supporting brands in their marketing strategies.
JD HealthOn December 8, 2020, JD Health successfully listed on the Main Board of the Hong Kong Stock Exchange under the stock
code “6618,” with a global offering of 439,185,000 new shares (including a full exercise of the over-allotment option). Gross
proceeds from this offering, before deducting underwriting fees and offering expenses, amounted to approximately HK$31
billion. As a technology-driven platform centered on the supply chain of pharmaceutical and healthcare products andstrengthened by healthcare services, JD Health strives to improve user experience and provide easily accessible,
convenient, high-quality yet affordable healthcare products and services, encompassing a user’s full life span.
JD Logistics

In January 2021, JD.com was selected by INFORMS as one of the seven finalists for the 50th annual Franz Edelman
Award for Achievement in Advanced Analytics, Operations Research and Management Science, the world’s mostprestigious award for achievements in the practice of analytics and operations research. Along with other seven worldleading enterprises including Amazon, JD.com was recognized for its advanced research and self-developed "unmanned"
warehouse scheduling system. JD.com is among the few Chinese companies that were selected as finalists in the historyof the award.
In January 2021, JD Logistics signed an agreement with Chinese confectionary manufacturer Xu Fu Chi. Leveraging JD
Logistics’s technology capabilities, the collaboration will support Xu Fu Chi’s supply chain management system
digitalization efforts and enhance the confectionary manufacturer’s omni-channel service capabilities across various
distribution channels.
As of December 31, 2020, JD Logistics operated over 900 warehouses, which covered an aggregate gross floor area ofapproximately 21 million square meters, including warehouse space managed under the JD Logistics Open Warehouse
Platform.
Jingxi BusinessHighlighting the commitment to enhancing its presence in lower tier cities, JD.com formed Jingxi Business Group recently,
to better serve customer demands and empower small business owners in lower-tier cities. Jingxi Business Group mainly
consolidates social e-commerce platform Jingxi, convenience store business Jingxitong (formerly known as Xintonglu or JD
New Markets) and community group purchase business Jingxi Pinpin. JD.com is also making efforts to strengthen its
supply chain capabilities in lower tier market through business cooperation and strategic investments. Recently announced
investments in Xingsheng Preference Electronic Business Limited, a leading community group purchase e-commerce
platform based in Hunan province, and China Dili Group, a wholesale produce market operator listed in Hong Kong, aim torealize synergies between JD.com and its investees in lower-tier cities through close collaborations in technology, supply
chain and logistics.

JD Property

With the successful launch of two logistics properties core funds (“Core Funds”), JD Property launched its first logistics
properties development fund (“Development Fund”) with RMB3 billion of assets under management in the fourth quarter of2020. The key investors of Development Fund include GIC, the Singapore sovereign wealth fund, and MubadalaInvestment Company, an Abu Dhabi-based sovereign investor. Thus far, the total assets under management of Core Funds
and Development Fund has exceeded RMB19 billion.
Other Highlights

JD.com and JD Digits became the first group of e-commerce and technology companies to partner up with the Digital
Currency Research Institute of the People’s Bank of China to test the applications of the Chinese digital currency e-CNY.
JD.com and JD Digits have already supported the trial launch of the e-CNY in cities including Beijing, Suzhou andChengdu. To facilitate the trial launch, JD.com provided local residents in these cities with application scenario for e-CNY
including its online e-commerce platforms and offline stores such as JD Home Appliance Stores and JD convenience
stores, while JD Digits provided technology supports and services to financial institutions and merchants.
Operational Metrics Update

As of December 31, 2020, JD.com had approximately 310,000 employees excluding part-time and interns.
Fourth Quarter 2020 Financial Results
Net Revenues. For the fourth quarter of 2020, JD.com reported net revenues of RMB224.3 billion (US$34.4 billion), representing a 31.4% increase
from the same period in 2019. Net product revenues increased by 28.4%, while net service revenues increased by 53.2% for the fourth quarter of
2020, as compared to the same period of 2019.
Cost of Revenues. Cost of revenues increased by 31.7% to RMB193.2 billion (US$29.6 billion) for the fourth quarter of 2020 from RMB146.7 billion
for the fourth quarter of 2019.
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing
expenses, increased by 34.2% to RMB14.8 billion (US$2.3 billion) for the fourth quarter of 2020 from RMB11.0 billion for the fourth quarter of 2019.
Marketing Expenses. Marketing expenses increased by 26.7% to RMB10.4 billion (US$1.6 billion) for the fourth quarter of 2020 from RMB8.2 billion
for the fourth quarter of 2019.
Research and Development Expenses. Research and development expenses increased by 25.4% to RMB4.5 billion (US$0.7 billion) for the fourth
quarter of 2020 from RMB3.6 billion for the fourth quarter of 2019.
General and Administrative Expenses. General and administrative expenses increased by 34.4% to RMB2.0 billion (US$0.3 billion) for the fourth
quarter of 2020 from RMB1.5 billion for the fourth quarter of 2019. The increase was primarily due to the increase in share-based compensation
expenses in relation to JD Health’s share incentive plan.
Income from Operations and Non-GAAP Income from Operations. Income from operations for the fourth quarter of 2020 was RMB594.9 million(US$91.2 million), compared to RMB529.5 million for the same period last year. Non-GAAP income from operations for the fourth quarter of 2020 was
RMB1,213.5 million (US$186.0 million), compared to non-GAAP income from operations of RMB704.0 million for the fourth quarter of 2019. Operating
margin of JD Retail before unallocated items for the fourth quarter of 2020 was 1.5%, compared to 1.4% for the fourth quarter of 2019.
Non-GAAP EBITDA for the fourth quarter of 2020 was RMB2.7 billion (US$0.4 billion), compared to RMB2.0 billion for the fourth quarter of 2019.
Others, net. Others are other non-operating income/(loss), primarily consist of gains/(losses) from fair value change of long-term investments, gains
from business and investment disposals, impairment of investments, government incentives, and foreign exchange gains/(losses). In the fourth
quarter of 2020, other non-operating income was RMB21.0 billion (US$3.2 billion), as compared to other non-operating income of RMB3.6 billion for
the fourth quarter of 2019. The substantial increase was primarily due to increase in the net gain arising from increases in the market prices of ourequity investments in publicly-traded companies, the net gain for the fourth quarter of 2020 was RMB20.5 billion (US$3.1 billion), as compared to net
gain of RMB4.2 billion for the same period of last year.
Net Income Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable to Ordinary Shareholders. Net income attributable
to ordinary shareholders for the fourth quarter of 2020 was RMB24.3 billion (US$3.7 billion), compared to RMB3.6 billion for the same period last year.
Non-GAAP net income attributable to ordinary shareholders for the fourth quarter of 2020 was RMB2.4 billion (US$0.4 billion), compared to RMB0.8
billion for the same period last year.
Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the fourth quarter of 2020 was RMB15.18 (US$2.33), compared to
RMB2.44 for the fourth quarter of 2019. Non-GAAP diluted net income per ADS for the fourth quarter of 2020 was RMB1.49 (US$0.23), compared to
RMB0.54 for the fourth quarter of 2019.
Cash Flow and Working Capital
As of December 31, 2020, the company’s cash and cash equivalents, restricted cash and short-term investments totaled RMB151.1 billion (US$23.2
billion), compared to RMB64.5 billion as of December 31, 2019. For the fourth quarter of 2020, free cash flow of the company was as follows:
For the three months ended

December 31,
2019

December 31,
2020

December 31,
2020

RMB

RMB
(In thousands)

US$

Net cash provided by operating activities
Add/(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**

3,701(311,718)

5,213,568
207,102

799,014
31,7401,055,277(903,487)

1,125,815(1,971,418)

172,539(302,133)

Free cash flow

(156,227)

4,575,067

701,160* Including logistics facilities and other real estate properties developed by JD Property, which may be sold under various equity structures. In the
fourth quarter of 2020, approximately RMB3.6 billion proceeds from the sale of development properties were included in this line, compared toapproximately RMB2.5 billion proceeds in the fourth quarter of 2019.
** Including capital expenditures related to the company’s headquarters in Beijing and all other CAPEX.
Net cash used in investing activities was RMB13.7 billion (US$2.1 billion) for the fourth quarter of 2020, consisting primarily of increase in short-term
investments of RMB12.5 billion, cash paid for investments in equity investees and purchases of investment securities of RMB7.2 billion and cash paid
for capital expenditures of RMB4.5 billion, partially offset by cash received from disposal of investment securities of RMB7.0 billion, and proceeds fromsale of development properties of RMB3.6 billion.
Net cash provided by financing activities was RMB23.4 billion (US$3.6 billion) for the fourth quarter of 2020, consisting primarily of net proceeds of
RMB25.8 billion from the initial public offering of JD Health, partially offset by repayment of short-term debts of RMB2.9 billion.
Full Year 2020 Financial Results
Net Revenues. For the full year of 2020, JD.com reported net revenues of RMB745.8 billion (US$114.3 billion), representing a 29.3% increase fromthe full year of 2019. Net product revenues increased by 27.6%, while net service revenues increased by 42.0% for the full year of 2020, as comparedto the full year of 2019.
Cost of Revenues. Cost of revenues increased by 29.3% to RMB636.7 billion (US$97.6 billion) for the full year of 2020 from RMB492.5 billion for thefull year of 2019.
Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing
expenses, increased by 31.7% to RMB48.7 billion (US$7.5 billion) for the full year of 2020 from RMB37.0 billion for the full year of 2019.
Marketing Expenses. Marketing expenses increased by 22.1% to RMB27.2 billion (US$4.2 billion) for the full year of 2020 from RMB22.2 billion for
the full year of 2019.
Research and Development Expenses. Research and development expenses increased by 10.5% to RMB16.1 billion (US$2.5 billion) for the fullyear of 2020 from RMB14.6 billion for the full year of 2019.
General and Administrative Expenses. General and administrative expenses increased by 16.7% to RMB6.4 billion (US$1.0 billion) for the full yearof 2020 from RMB5.5 billion for the full year of 2019.
Income from Operations and Non-GAAP Income from Operations. Income from operations for the full year of 2020 was RMB12.3 billion (US$1.9
billion), compared to RMB9.0 billion for the full year of 2019. Non-GAAP income from operations for the full year of 2020 was RMB15.3 billion (US$2.4
billion) with a non-GAAP operating margin of 2.1%, as compared to non-GAAP income from operations of RMB8.9 billion for the full year of 2019 witha non-GAAP operating margin of 1.5%. Operating margin of JD Retail before unallocated items for the full year of 2020 was 2.8%, compared to 2.5%
for the full year of 2019.
Non-GAAP EBITDA for the full year of 2020 was RMB20.7 billion (US$3.2 billion) with a non-GAAP EBITDA margin of 2.8%, compared to RMB13.8
billion with a non-GAAP EBITDA margin of 2.4% for the full year of 2019.
Others, net. Others are other non-operating income/(loss), primarily consist of gains/(losses) from fair value change of long-term investments, gains
from business and investment disposals, impairment of investments, government incentives, and foreign exchange gains/(losses). In the full year of
2020, other non-operating income was RMB32.6 billion (US$5.0 billion), as compared to other non-operating income of RMB5.4 billion for the full yearof 2019. The substantial increase was primarily due to the increase in the net gain arising from increases in the market prices of our equity investmentsin publicly-traded companies, the net gain for the full year of 2020 was RMB29.5 billion (US$4.5 billion), as compared to net gain of RMB3.5 billion for
the full year of 2019.
Net Income Attributable to Ordinary Shareholders and Non-GAAP Net Income Attributable to Ordinary Shareholders. Net income attributable
to ordinary shareholders for the full year of 2020 was RMB49.4 billion (US$7.6 billion), compared to RMB12.2 billion for the full year of 2019.
Non-GAAP net income attributable to ordinary shareholders for the full year of 2020 was RMB16.8 billion (US$2.6 billion), compared to RMB10.7
billion for the full year of 2019.
Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS for the full year of 2020 was RMB31.68 (US$4.86), compared to RMB8.21 forthe full year of 2019. Non-GAAP diluted net income per ADS for the full year of 2020 was RMB10.56 (US$1.62), compared to RMB7.25 for the full yearof 2019.
Cash Flow and Working Capital
For the full year of 2020, free cash flow of the company was as follows:For the year ended
December 31,
2019

December 31,
2020

December 31,
2020

RMB

RMB
(In thousands)

US$

Net cash provided by operating activities
Add/(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**24,781,220(4,233,884)

42,544,317
47,9386,520,202
7,347

2,420,401(3,514,741)(3,533,666)(4,136,344)(541,558)(633,923)

Free cash flow

19,452,996

34,922,245

5,352,068* Including logistics facilities and other real estate properties developed by JD Property, which may be sold under various equity structures. For the fullyear of 2020, approximately RMB4.8 billion proceeds from the sale of development properties were included in this line, compared to approximately
RMB7.9 billion for the full year of 2019.
** Including capital expenditures related to the company’s headquarters in Beijing and all other CAPEX.
Net cash used in investing activities was RMB57.8 billion (US$8.9 billion) for the full year of 2020, consisting primarily of increase in short-term
investments of RMB35.6 billion, increase in time deposits of RMB5.0 billion, cash paid for investments in equity investees and purchases ofinvestment securities of RMB18.1 billion and cash paid for capital expenditures of RMB12.5 billion, partially offset by cash received from disposal ofinvestments in equity investees and investment securities of RMB10.2 billion, and proceeds from sale of development properties of RMB4.8 billion.
Net cash provided by financing activities was RMB71.1 billion (US$10.9 billion) for the full year of 2020, consisting primarily of net proceeds of
RMB32.1 billion from the non-redeemable series B preference share financing of JD Health together with the initial public offering of JD Health, netproceeds of RMB31.3 billion from the company’s Hong Kong Listing, and net proceeds of RMB6.8 billion from the issuance of unsecured senior notes.
Supplemental Information
The table below sets forth the segment operating results:
For the three months ended

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

For the year ended

December
31,
2019

December
31,
2020

December
31,
2020

December
31,
2019

December
31,
2020

December
31,
2020

RMB

RMB
(In thousands)

US$

RMB

RMB
(In thousands)

US$

163,077,792 208,594,963 31,968,577
7,438,919 15,834,704 2,426,774(159,034)(240,938)(36,925)552,245,141 702,929,619 107,728,677
23,932,278 42,790,954
6,558,001(435,364)(724,639)(111,056)

170,357,677 224,188,729 34,358,426
326,361
139,426
21,368575,742,055 744,995,934 114,175,622
1,146,429
805,952
123,518

170,684,038 224,328,155 34,379,794

576,888,484 745,801,886 114,299,140

2,296,181(777,753)
814,4123,041,388(718,682)
1,109,179

466,113(110,144)
169,989

13,775,339 19,484,484(1,022,281) (2,498,850)
3,884,709
1,648,747

2,986,128(382,964)
252,682

1,518,428(988,881)

2,322,706(1,727,759)

355,969(264,790)

12,753,058 16,985,634(3,758,178) (4,642,814)

2,603,164(711,544)

529,547

594,947

91,1798,994,880

1,891,620

12,342,820* New businesses of the company include logistics services provided to third parties, overseas business, technology initiatives, as well as asset
management services to logistics property investors and sale of development properties by JD Property.
JD Property develops and manages logistics facilities and other real estate properties. By leveraging its fund management platform, JD Property canrealize 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 ofbusiness 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
December
31,
2019

December
31,
2020

December
31,
2020

For the year ended
December
31,
2019

December
31,
2020

December
31,
2020

RMB

Electronics and home appliance revenues
General merchandise revenues
Net product revenues

RMB(In thousands)

US$

RMB

RMB
(In thousands)

US$

92,730,981 115,819,247 17,750,076
56,981,112 76,380,715 11,705,857

328,703,453 400,927,285 61,444,794
182,030,514 250,951,955 38,460,070

149,712,093 192,199,962 29,455,933

510,733,967 651,879,240 99,904,864

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

13,472,797 17,480,690
7,499,148 14,647,503

2,679,033
2,244,828

42,680,212 53,472,718
23,474,305 40,449,928

20,971,945 32,128,193

4,923,861

66,154,517 93,922,646 14,394,276

Total net revenues

170,684,038 224,328,155 34,379,794

576,888,484 745,801,886 114,299,140

8,195,053
6,199,223

Recent Development
JD Logistics
On February 16, 2021, JD Logistics, through its joint sponsors, submitted a listing application form (Form A1) to the Hong Kong Stock Exchange toapply for the listing of, and permission to deal in, the JD Logistics’s shares (representing ordinary shares with a par value of US$0.000025 each in theshare capital of JD Logistics) on the Main Board of the Hong Kong Stock Exchange. Please note that there is no assurance as to whether or when the
proposed listing may take place.
JD Property
On March 10, 2021, JD Property, the infrastructure asset management and integrated service platform within and a subsidiary of JD.com, entered into
definitive agreements for the non-redeemable series A preferred share financing with co-lead investors Hillhouse Capital and Warburg Pincus, among
others. The total amount expected to be raised is approximately US$700 million, subject to customary closing conditions. JD.com will remain the
majority shareholder of JD Property after the completion of this transaction. By leveraging Warburg Pincus and Hillhouse Capital’s industry expertiseand resources, JD Property will further strengthen its infrastructure property management capabilities and its position as a leading player inhigh-quality infrastructure properties development and operations.
Conference Call
JD.com’s management will hold a conference call at 7:00 am, Eastern Time on March 11, 2021, (8:00 pm, Beijing/Hong Kong Time on March 11, 2021)
to discuss the fourth quarter and full year 2020 financial results.
Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers,
Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after
completion of this process, unless required to provide the conference ID below due to regional restrictions.
PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/2584734
CONFERENCE ID: 2584734
A telephone replay will be available from 10:00 am, Eastern Time on March 11, 2021 through 8:59 am, Eastern Time on March 19, 2021. The dial-indetails are as follows:
US Toll Free: +1-855-452-5696 or +1-646-254-3697
International +61-2-8199-0299
Passcode:2584734
Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.jd.com.
About JD.com
JD.com is a leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider.
The company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The
company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive
productivity and innovation across a range of industries. JD.com is the largest retailer in China, a member of the NASDAQ100 and a Fortune Global
500 company.
Non-GAAP 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 ofAmerica (“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, gainon sale of development properties and impairment of goodwill and intangible assets. The company defines non-GAAP net income/(loss) attributable toordinary 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 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 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 theperiods. 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 ofshare-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 andthe demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The company believes that theuse 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 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 when evaluating performance. The company encourages you to review the company’s
financial information in its entirety and not rely on a single financial measure.
CONTACTS:
Investor Relations
Ruiyu Li
Senior Director of Investor Relations+86 (10) 8912-6804
IR@JD.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 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 frommanagement in this announcement, as well as JD.com’s strategic and operational plans, contain forward-looking statements. JD.com may also makewritten or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report toshareholders, 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. Forwardlooking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained inany forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results ofoperations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its
expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market;changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies
relating to JD.com’s industry and general economic conditions in China. Further information regarding these and other risks is included in JD.com’s
filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JD.com
undertakes no obligation to update any forward-looking statement, except as required under applicable law.

JD.com, Inc.
Unaudited Condensed Consolidated Balance Sheets(In thousands, except per share data and otherwise noted)
As ofDecember 31,
2019

December 31,
2020

December 31,
2020

RMB

RMB

US$

ASSETS
Current assets
Cash and cash equivalents
Restricted cash
Short-term investments
Accounts receivable, net (including JD Baitiao of RMB1.0 billion and RMB0.8 billion as ofDecember 31, 2019 and 2020, respectively)(1)Advance to suppliers
Inventories, net
Prepayments and other current assets
Amount due from related parties

36,971,420
2,940,859
24,602,777

86,084,857
4,434,448
60,577,110

13,193,082
679,6099,283,848

6,190,588
593,130
57,932,156
5,629,561
4,234,067-

7,111,947
3,767,933
58,932,519
7,076,590
6,667,262

1,089,954
577,461
9,031,804
1,084,535
1,021,803

148,592

22,773139,094,558

234,801,258

35,984,869

22,596,570
7,906,406
6,462,888
11,124,913
15,484,082
10,904,409
58,501,329
39,085,150
532,746
13,315,844
242,527

3,463,076
1,211,710
990,481
1,704,968
2,373,039
1,671,174
8,965,721
5,990,061
81,6472,040,740
37,169Assets held for sale(2)Total non-current assets

20,654,071
5,806,308
4,110,034
10,891,742
8,643,597
6,643,669
35,575,807
21,417,104
80,556
6,806,258-

1,329,672

203,781

120,629,146

187,486,536

28,733,567

Total assets

259,723,704

422,287,794

64,718,436

Assets held for sale(2)Total current assets
Non-current assets
Property, equipment and software, net
Construction in progress
Intangible assets, net
Land use rights, net
Operating lease right-of-use assets
Goodwill
Investment in equity investees
Investment securities
Deferred tax assets
Other non-current assets
Amount due from related parties

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

LIABILITIESCurrent liabilities
Accounts payable
Advances from customers
Deferred revenues
Taxes payable
Amount due to related parties
Unsecured senior notes
Accrued expenses and other current liabilities
Operating lease liabilities
Liabilities held for sale(2)Total current liabilities
Non-current liabilities
Deferred revenues
Unsecured senior notes
Deferred tax liabilities
Long-term borrowings
Operating lease liabilities
Other non-current liabilities

December 31,
2019

December 31,
2020

December 31,
2020

RMB

RMB

US$

90,428,382
16,078,619
3,326,594
2,015,788
317,978
24,656,180
3,193,480

106,818,425
20,998,001
3,417,313
3,029,416
585,324
3,259,882
30,034,571
5,513,534

16,370,640
3,218,084
523,726
464,278
89,705499,599
4,602,999
844,986-

360,196

55,202140,017,021

174,016,662

26,669,219

1,942,635
6,912,492
1,338,988
3,139,290
5,523,164
225,883

1,617,844
9,594,556
1,921,831
2,936,205
10,249,957
331,623

247,945
1,470,430
294,533
449,993
1,570,875
50,823

Total non-current liabilities

19,082,452

26,652,016

4,084,599

Total liabilities

159,099,473

200,668,678

30,753,818

(1) JD Digits performs credit risk assessment services for JD Baitiao business and absorbs the credit risk of the underlying Baitiao receivables.
Facilitated by JD Digits, the company periodically securitizes Baitiao receivables through the transfer of those assets to asset-backed securitizationplans and derecognizes the related Baitiao receivables through sales type arrangements.
(2) The company entered into definitive agreements to transfer certain logistic facilities and real estate properties to JD Logistics Properties Core Fund
II, L.P. (the “Core Fund II”). As of December 31, 2020, the company classified the related undisposed assets and liabilities as assets and liabilities held
for sale under ASC 360, which included cash of RMB115.9 million.

JD.com, Inc.
Unaudited Condensed Consolidated Balance Sheets(In thousands, except per share data and otherwise noted)
As ofDecember 31,
2019

December 31,
2020

December 31,
2020

RMB

RMB

US$

MEZZANINE EQUITY
Convertible redeemable non-controlling interests

15,964,384

17,133,208

2,625,779

SHAREHOLDERS’ EQUITY
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value, 100,000,000 sharesauthorized, 3,129,794 shares issued and 3,103,499 shares outstanding as of December 31,
2020)
Non-controlling interests

81,855,970
2,803,877

187,543,295
16,942,613

28,742,270
2,596,569

Total shareholders’ equity

84,659,847

204,485,908

31,338,839

Total liabilities, mezzanine equity and shareholders’ equity

259,723,704

422,287,794

64,718,436

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

Net revenues
Net product revenues
Net service revenues
Total net revenues
Cost of revenues
Fulfillment
MarketingResearch and development
General and administrative
Gain on sale of development properties
Income from operations(3)(4)
Other income/(expenses)
Share of results of equity investees
Interest income
Interest expense
Others, net
Income before tax
Income tax benefits/(expenses)
Net income
Net loss attributable to non-controlling interests
shareholders
Net income attributable to mezzanine equity classified as
non-controlling interests shareholders

For the year ended

December
31,
2019

December
31,
2020

December
31,
2020

December
31,
2019

December
31,
2020

December
31,
2020

RMB

RMB

US$

RMB

RMB

US$

149,712,093
20,971,945

192,199,962
32,128,193

29,455,933
4,923,861

510,733,967
66,154,517

651,879,240
93,922,646

99,904,864
14,394,276

170,684,038

224,328,155

34,379,794

576,888,484

745,801,886 114,299,140(146,685,835) (193,185,835) (29,607,025)(10,994,766) (14,752,007) (2,260,844)(8,225,450) (10,423,229) (1,597,430)(3,591,058) (4,503,450)(690,184)(1,471,794) (1,977,866)(303,121)
814,412
1,109,179
169,989(492,467,391) (636,693,551) (97,577,556)(36,968,041) (48,700,211) (7,463,634)(22,234,045) (27,155,972) (4,161,835)(14,618,677) (16,148,948) (2,474,935)(5,490,159) (6,409,131)(982,242)
3,884,709
1,648,747
252,682

529,547

594,947

91,1798,994,880

12,342,820

1,891,620(518,211)
594,427(219,772)
3,646,984

1,679,822
958,781(296,061)
21,012,344

257,444
146,940(45,373)
3,220,283(1,738,219)
1,785,572(725,010)
5,375,309

4,291,453
2,753,360(1,125,181)
32,556,439

657,694
421,971(172,442)
4,989,493

4,032,975(479,137)

23,949,833
331,7223,670,473
50,83913,692,532(1,802,440)

50,818,891(1,481,645)

7,788,336(227,072)

3,553,838

24,281,555

3,721,312

11,890,092

49,337,246

7,561,264(80,913)(46,941)(7,194)(297,163)(74,618)(11,436)

797

3,045

467

3,100

6,641

1,018

Net income attributable to ordinary shareholders

3,633,954

24,325,451

3,728,039

12,184,155

49,405,223

7,571,682

JD.com, Inc.
Unaudited Condensed Consolidated Statements of Operations(In thousands, except per share data and otherwise noted)
For the three months ended
December
31,
2019

For the year ended

December December
31,
31,
2020
2020

December
31,
2019

December
31,
2020

December
31,
2020

RMB
RMB
US$
RMB
RMB
US$
(3) Includes share-based compensation expenses as follows:
Cost of revenues(24,556)(32,550)(4,989)(82,243)(98,168)(15,045)
Fulfillment(136,033)(296,175)(45,391)(440,167)(646,331)(99,055)
Marketing(78,419)(128,598)(19,709)(258,860)(346,952)(53,173)
Research and development(376,212)(464,941)(71,255) (1,340,317) (1,400,067)(214,570)
General and administrative(416,145)(572,387)(87,721) (1,573,368) (1,664,415)(255,083)(4) Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows:
Fulfillment(41,433)(51,584)(7,906)(165,223)(192,801)(29,548)
Marketing(140,430)(218,936)(33,553)(637,374)(692,471)(106,126)
Research and development(24,700)(24,700)(3,785)(99,280)(98,800)(15,142)
General and administrative(77,314)(77,314)(11,849)(307,776)(308,761)(47,320)
Net income per share:
Basic
Diluted

1.24
1.22

7.84
7.59

1.20
1.16

4.18
4.11

16.35
15.84

2.51
2.43

Net income per ADS:
Basic
Diluted

2.49
2.44

15.68
15.18

2.40
2.33

8.37
8.21

32.70
31.68

5.01
4.86

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 year ended

December
31,
2019

December
31,
2020

December
31,
2020

December
31,
2019

December
31,
2020

December
31,
2020

RMB

RMB

US$

RMB

RMB

US$

810,722

2,386,234

365,7072,923,258
2,980,261

3,102,969
3,204,906

Non-GAAP net income per share:
Basic
Diluted0.28
0.27

Non-GAAP net income per ADS:
Basic
Diluted

0.55
0.54

Non-GAAP net income attributable to ordinary shareholders
Weighted average number of shares:
Basic
Diluted10,749,907 16,827,643

2,578,951

3,102,969
3,204,906

2,912,637
2,967,322

3,021,809
3,109,024

3,021,809
3,109,024

0.77
0.74

0.12
0.11

3.69
3.62

5.57
5.28

0.85
0.81

1.54
1.49

0.24
0.23

7.38
7.25

11.14
10.56

1.71
1.62

JD.com, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows and Free Cash Flow
(In thousands)
For the three months ended

Net cash provided by operating activities
Net cash provided by/(used in) investing activities
Net cash provided by financing activities
Effect of exchange rate changes on cash, cash equivalents
and restricted cash
Net increase in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of
period/year
Cash, cash equivalents and restricted cash at end of
period/year (5)For the year ended

December
31,
2019

December
31,
2020

December
31,
2020

December
31,
2019

December
31,
2020

December
31,
2020

RMB

RMB

US$

RMB

RMB

US$

3,701
2,452,444
3,087,869

5,213,568(13,705,425)
23,412,604

799,014(2,100,448)
3,588,139

24,781,220 42,544,317
6,520,202(25,349,357) (57,810,588) (8,859,860)
2,572,467 71,071,595 10,892,198(390,963)(2,971,701)(455,433)

405,891(5,082,380)(778,908)

5,153,051

11,949,046

1,831,272

2,410,221

50,722,944

7,773,632

34,759,228

78,686,177

12,059,184

37,502,058

39,912,279

6,116,824

39,912,279

90,635,223

13,890,456

39,912,279

90,635,223

13,890,456

3,701

5,213,568

799,014

24,781,220

42,544,317

6,520,202(311,718)

207,10231,740(4,233,884)

47,9387,347

1,055,277(903,487)

1,125,815(1,971,418)

172,539(302,133)

2,420,401(3,514,741)(3,533,666)(4,136,344)(541,558)(633,923)(156,227)

4,575,067

701,160

19,452,996

34,922,245

5,352,068

Q2 2020

Q3 2020

Q4 2020

Net cash provided by operating activities
Add/(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 flow(5) Including cash, cash equivalents and restricted cash classified as assets held for sale.

JD.com, Inc.
Supplemental Financial Information and Business Metrics
Q4 2019
Q1 2020
Free cash flow (in RMB billions) – trailing twelve months (“TTM”)

19.5
35.8

15.2
35.4

22.7
34.8

30.2
34.3

34.9

Inventory turnover days(6) – TTM
Accounts payable turnover days(7) – TTM

54.5

51.7

50.8

49.2

47.1

Accounts receivable turnover days(8) – TTM

3.2

2.8

Annual active customer accounts (in millions)

362.0

3.1
387.4

2.9
417.4

441.6

2.7
471.9

33.3

For the year ended

GMV(9) (in RMB billions)

December 31,
2018

December 31,
2019

December 31,
2020

1,676.9

2,085.4

2,612.5(6) TTM inventory turnover days are the quotient of average inventory over the immediately preceding five quarters, up to and including the lastquarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.
(7) TTM accounts payable turnover days are the quotient of average accounts payable for retail business over the immediately preceding fivequarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by
360 days.
(8) TTM accounts receivable turnover days are the quotient of average accounts receivable over the immediately preceding five quarters, up to andincluding the last quarter of the annual period, to total net revenues for the last twelve months and then multiplied by 360 days. Presented are theaccounts 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 retail business and on
the company’s online marketplaces, regardless of whether the goods are sold or delivered or whether the goods are returned. GMV includes thevalue from orders placed on the company’s mobile apps and websites as well as orders placed on third-party mobile apps and websites that are
fulfilled by the company or by the company’s 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. The company believes that GMV only provides a measure of theoverall volume of transactions that flow through the company’s platform in a given period. Therefore, it should not be used as a financial metric orindustry and peer comparisons.

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,
2019

December
31,
2020

December
31,
2020

December
31,
2019

December
31,
2020

December
31,
2020

RMB

RMB

US$

RMB

RMB

US$

529,547
1,031,365

594,947
1,494,651

91,179229,0658,994,880
3,694,955

12,342,820
4,155,933

1,891,620
636,926

147,655

228,623

35,038885,385

723,420

110,870

Reversal of: Gain on sale of development properties(190,139)(814,412)

4,485(1,109,179)

687(169,989)(822,161)(3,884,709)(236,539)(1,648,747)(36,252)(252,682)

Non-GAAP income from operations
Add: Depreciation and other amortization

704,016

1,213,527

185,980

8,868,350

15,336,887

2,350,482

1,261,687

1,451,079

222,388

4,942,671

5,344,234

819,039

Non-GAAP EBITDA

1,965,703

2,664,606

408,368

13,811,021

20,681,121

3,169,521

Total net revenues

170,684,038

224,328,155

34,379,794

576,888,484

745,801,886

114,299,140

Income from operations
Add: Share-based compensation
Add: Amortization of intangible assets resulting fromassets and business acquisitions
Add/(Reversal of): Effects of business cooperation
arrangements

Non-GAAP operating margin

0.4%

0.5%

0.5%

1.5%

2.1%

2.1%

Non-GAAP EBITDA margin

1.2%

1.2%

1.2%

2.4%

2.8%

2.8%

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

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

For the year ended

December
31,
2019

December
31,
2020

December
31,
2020

December
31,
2019

December
31,
2020

December
31,
2020

RMB

RMB

US$

RMB

RMB

US$

3,633,954
1,031,365

24,325,451
1,494,651

3,728,039
229,065

12,184,155
3,694,955

49,405,223
4,155,933

7,571,682
636,926

147,655

228,623

35,038885,385

723,420

110,870

155,358

357,890

54,849456,468

530,046

81,2331,000,056

33,6795,162

2,750,769

695,414106,577(4,210,355) (20,474,859)(3,137,909)(3,495,710) (29,482,650)(4,518,414)(814,412)(1,099,100)(168,444)(3,997,416)(1,638,668)(251,137)(8,891)(2,101,380)(322,051)(1,236,726)(6,903,937)(1,058,075)(211,077)
87,069(15,199)(363,522)(2,330)(55,712)(904,284)
412,311(318,705)(338,433)(48,844)(51,867)

Non-GAAP net income attributable to ordinary
shareholders
Total net revenues
Non-GAAP net margin

810,722

2,386,234

365,707

10,749,907

16,827,643

2,578,951

170,684,038

224,328,155

34,379,794

576,888,484

745,801,886

114,299,140

0.5%

1.1%

1.1%

1.9%

2.3%

2.3%

(10) To exclude the GAAP to non-GAAP reconciling items on the share of equity method investments, and share of amortization of intangibles not on
their books.

________________________
1 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, arepresented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate
set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 31, 2020, which was RMB6.5250 to
US$1.00. The percentages stated in this press release are calculated based on the RMB amounts
2 See the sections entitled “Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” for more information about the
non-GAAP measures referred to in this press release.
3 Annual active customer accounts are customer accounts that made at least one purchase during the twelve months ended on the respective dates,
whether through online retail or online marketplace.