REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange On Which Registered | ||
depositary share representing two Class A ordinary shares, par value US$0.00002 per share) |
(The Nasdaq Global Select Market) | |||
US$0.00002 per share |
The Stock Exchange of Hong Kong Limited |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Emerging growth company |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ |
Other ☐ |
1 |
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5 |
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6 |
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Item 1. |
6 |
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Item 2. |
6 |
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Item 3. |
6 |
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Item 4. |
78 |
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Item 4A. |
133 |
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Item 5. |
133 |
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Item 6. |
155 |
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Item 7. |
165 |
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Item 8. |
169 |
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Item 9. |
171 |
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Item 10. |
171 |
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Item 11. |
183 |
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Item 12. |
184 |
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189 |
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Item 13. |
189 |
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Item 14. |
189 |
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Item 15. |
189 |
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Item 16A. |
190 |
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Item 16B. |
190 |
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Item 16C. |
190 |
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Item 16D. |
190 |
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Item 16E. |
191 |
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Item 16F. |
191 |
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Item 16G. |
191 |
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Item 16H. |
191 |
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Item 16I. |
192 |
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193 |
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Item 17. |
193 |
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Item 18. |
193 |
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Item 19. |
194 |
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202 |
• | “ADSs” are to our American depositary shares, each of which represents two Class A ordinary shares; |
• | “annual active customer accounts” are to customer accounts that made at least one purchase during the twelve months ended on the respective dates, including both online retail and online marketplace; |
• | “CCASS” are to the Central Clearing and Settlement System established and operated by Hong Kong Securities Clearing Company Limited, a wholly-owned subsidiary of Hong Kong Exchange and Clearing Limited; |
• | “China” or the “PRC” are to the People’s Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan; |
• | “Companies (WUMP) Ordinance” are to the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong), as amended or supplemented from time to time; |
• | “CSRC” are to the China Securities Regulatory Commission; |
• | “HFCAA” are to the Holding Foreign Companies Accountable Act; |
• | “HK$” or “Hong Kong dollars” or “HK dollars” are to Hong Kong dollars, the lawful currency of Hong Kong; |
• | “Hong Kong” or “HK” or “Hong Kong S.A.R.” are to the Hong Kong Special Administrative Region of the PRC; |
• | “Hong Kong Listing Rules” are to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended or supplemented from time to time; |
• | “Hong Kong Share Registrar” are to Computershare Hong Kong Investor Services Limited; |
• | “Hong Kong Stock Exchange” are to The Stock Exchange of Hong Kong Limited; |
• | “JD Health” are to JD Health International Inc., a consolidated subsidiary of our company and the shares of which are listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 6618), and, except where the context otherwise requires, its subsidiaries and its consolidated variable interest entities and their subsidiaries; |
• | “JD Logistics” are to JD Logistics, Inc., a consolidated subsidiary of our company and the shares of which are listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 2618), and, except where the context otherwise requires, its subsidiaries and its consolidated variable interest entities and their subsidiaries; |
• | “Main Board” are to the stock market (excluding the option market) operated by the Hong Kong Stock Exchange which is independent from and operated in parallel with the Growth Enterprise Market, or GEM, of the Hong Kong Stock Exchange; |
• | “ordinary shares” are to our Class A and Class B ordinary shares, par value US$0.00002 per share; |
• | “PCAOB” are to the Public Company Accounting Oversight Board of the United States; |
• | “SEC” are to the United States Securities and Exchange Commission; |
• | “SFC” are to the Securities and Futures Commission of Hong Kong; |
• | “SFO” are to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended or supplemented from time to time; and |
• | “we,” “us,” “our company” or “our” are to JD.com, Inc., its subsidiaries, and, in the context of describing our operations and consolidated financial information, our consolidated variable interest entities and their subsidiaries. Our consolidated variable interest entities include, among others, Beijing Jingdong 360 Degree E-Commerce Co., Ltd., Jiangsu Yuanzhou E-Commerce Co., Ltd., Xi’an Jingdong Xincheng Information Technology Co., Ltd., Jiangsu Jingdong Bangneng Investment Management Co., Ltd., and Suqian Juhe Digital Enterprise Management Co., Ltd. References to our consolidated variable interest entities may include their subsidiaries, depending on the context as appropriate. |
• | If we are unable to manage our growth or execute our strategies effectively, our business and prospects may be materially and adversely affected; |
• | We incurred net losses in the past and we may not be able to maintain profitability in the future; |
• | If we are unable to provide superior customer experience, our business and reputation may be materially and adversely affected; |
• | Uncertainties relating to the growth and profitability of the retail industry in China in general, and the online retail industry in particular, could adversely affect our revenues and business prospects; |
• | Any harm to our JD brand or reputation may materially and adversely affect our business and results of operations; |
• | If we are unable to offer products that attract purchases from new and existing customers, our business, financial condition and results of operations may be materially and adversely affected; |
• | If we are unable to manage our nationwide fulfillment infrastructure efficiently and effectively, our business prospects and results of operations may be materially and adversely affected; |
• | We face intense competition. We may not be able to maintain or may lose market share and customers if we fail to compete effectively; |
• | Our expansion into new product categories and substantial increase in the number of products may expose us to new challenges and more risks; |
• | If we fail to manage our inventory effectively, our results of operations, financial condition and liquidity may be materially and adversely affected; |
• | Our business is subject to complex and evolving Chinese and international laws and regulations regarding data privacy and cybersecurity. Failure to protect confidential information of our customers and network against security breaches could damage our reputation and brand and substantially harm our business and results of operations; |
• | The approval of the CSRC or other PRC government authorities may be required in connection with our offshore offerings under PRC law, and, if required, we cannot predict whether or for how long we will be able to obtain such approval; and |
• | The PCAOB is currently unable to inspect our auditor in relation to their audit work performed for our financial statements and the inability of the PCAOB to conduct inspections over our auditor deprives our investors with the benefits of such inspections. |
• | Our ADSs will be prohibited from trading in the United States under the HFCAA in 2024 if the PCAOB is unable to inspect or fully investigate auditors located in China, or in 2023 if proposed changes to the law are enacted. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. On December 16, 2021, the PCAOB issued a report to notify the SEC of its determination that the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. The PCAOB identified our auditor as one of the registered public accounting firms that the PCAOB is unable to inspect or investigate completely. |
• | We are a Cayman Islands holding company with no equity ownership in our variable interest entities and we conduct certain of our operations through our variable interest entities, with which we have maintained contractual arrangements. Investors in our ADSs or Class A ordinary shares thus are not purchasing equity interest in our variable interest entities in China but instead are purchasing equity interest in a Cayman Islands holding company. If the PRC government finds that the agreements that establish the structure for operating our business do not comply with PRC laws and regulations, or if these regulations or their interpretations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. Our holding company, variable interest entities and investors of our company face uncertainty about potential future actions by the PRC government that could affect the enforceability of the contractual arrangements with our variable interest entities and, consequently, significantly affect the financial performance of our variable interest entities and our company as a whole. The PRC regulatory authorities could disallow the variable interest entities structure, which would likely result in a material adverse change in our operations, and our ADSs or Class A ordinary shares may decline significantly in value. |
• | Any failure by our variable interest entities or their shareholders to perform their obligations under our contractual arrangements with them would have a material and adverse effect on our business; and |
• | The shareholders of our variable interest entities may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition. |
• | PRC government’s significant authority in regulating our operations and its oversight and control over offerings conducted overseas by, and foreign investment in, China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Implementation of industry-wide regulations in this nature may cause the value of such securities to significantly decline; |
• | Changes in China’s or global economic, political or social conditions or government policies could have a material and adverse effect on our business and operations; |
• | Uncertainties with respect to the PRC legal system could adversely affect us; |
• | We are subject to consumer protection laws that could require us to modify our current business practices and incur increased costs; and |
• | We may be adversely affected by the complexity, uncertainties and changes in PRC regulation of internet-related business and companies. |
• | The trading price of our ADSs and Class A ordinary shares have been and are likely to continue to be volatile, which could result in substantial losses to holders of our Class A ordinary shares and/or ADSs; |
• | We adopt different practices as to certain matters as compared with many other companies listed on the Hong Kong Stock Exchange; |
• | We cannot guarantee that any share repurchase program will be fully consummated or that any share repurchase program will enhance long-term shareholder value, and share repurchases could increase the volatility of the price of our Class A ordinary shares and/or ADSs and could diminish our cash reserves; and |
• | If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for our Class A ordinary shares and/or ADSs and trading volume could decline. |
• | our goals and strategies; |
• | our future business development, financial conditions and results of operations; |
• | the expected growth of the retail and online retail markets in China; |
• | our expectations regarding demand for and market acceptance of our products and services; |
• | our expectations regarding our relationships with customers, suppliers and third-party merchants; |
• | our plans to invest in our fulfillment infrastructure and technology platform as well as new business initiatives; |
• | competition in our industry; and |
• | relevant government policies and regulations relating to our industry. |
Item 1. |
Identity of Directors, Senior Management and Advisers |
Item 2. |
Offer Statistics and Expected Timetable |
Item 3. |
Key Information |
For the Year Ended December 31, |
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2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in millions, except for share, per share and per ADS data) |
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Selected Consolidated Statements of Operations Data: |
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Net Revenues (1) : |
||||||||||||||||||||||||
Net product revenues |
331,824 | 416,109 | 510,734 | 651,879 | 815,655 | 127,994 | ||||||||||||||||||
Net service revenues |
30,508 | 45,911 | 66,154 | 93,923 | 135,937 | 21,332 | ||||||||||||||||||
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|
|
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|
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|
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|
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Total net revenues |
362,332 |
462,020 |
576,888 |
745,802 |
951,592 |
149,326 |
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Cost of revenues |
(311,517 | ) | (396,066 | ) | (492,467 | ) | (636,694 | ) | (822,526 | ) | (129,072 | ) | ||||||||||||
Fulfillment |
(25,865 | ) | (32,010 | ) | (36,968 | ) | (48,700 | ) | (59,055 | ) | (9,267 | ) | ||||||||||||
Marketing |
(14,918 | ) | (19,237 | ) | (22,234 | ) | (27,156 | ) | (38,743 | ) | (6,080 | ) | ||||||||||||
Research and development |
(6,652 | ) | (12,144 | ) | (14,619 | ) | (16,149 | ) | (16,332 | ) | (2,563 | ) | ||||||||||||
General and administrative |
(4,215 | ) | (5,160 | ) | (5,490 | ) | (6,409 | ) | (11,562 | ) | (1,814 | ) | ||||||||||||
Impairment of goodwill and intangible assets |
— | (22 | ) | — | — | — | — | |||||||||||||||||
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Gain on sale of development properties |
— | — | 3,885 | 1,649 | 767 | 120 | ||||||||||||||||||
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Income/(loss) from operations (2)(3) |
(835 |
) |
(2,619 |
) |
8,995 |
12,343 |
4,141 |
650 |
||||||||||||||||
Other income/(expense): |
||||||||||||||||||||||||
Share of results of equity investees |
(1,927 | ) | (1,113 | ) | (1,738 | ) | 4,291 | (4,918 | ) | (772 | ) | |||||||||||||
Interest expense |
(964 | ) | (855 | ) | (725 | ) | (1,125 | ) | (1,213 | ) | (190 | ) | ||||||||||||
Others, net (4) |
3,847 | 2,213 | 7,161 | 35,310 | (590 | ) | (93 | ) | ||||||||||||||||
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Income/(loss) before tax |
121 | (2,374 | ) | 13,693 | 50,819 | (2,580 | ) | (405 | ) | |||||||||||||||
Income tax expenses |
(140 | ) | (427 | ) | (1,803 | ) | (1,482 | ) | (1,887 | ) | (296 | ) | ||||||||||||
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Net income/(loss) from continuing operations |
(19 |
) |
(2,801 |
) |
11,890 |
49,337 |
(4,467 |
) |
(701 |
) | ||||||||||||||
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Net income from discontinued operations, net of tax |
7 |
— |
— |
— |
— |
— |
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Net income/(loss) |
(12 |
) |
(2,801 |
) |
11,890 |
49,337 |
(4,467 |
) |
(701 |
) | ||||||||||||||
Net loss from continuing operations attributable to non-controlling interests shareholders |
(135 | ) | (311 | ) | (297 | ) | (75 | ) | (923 | ) | (145 | ) | ||||||||||||
Net loss from discontinued operations attributable to non-controlling interests shareholders |
(5 | ) | — | — | — | — | — | |||||||||||||||||
Net income from continuing operations attributable to mezzanine equity classified as non-controlling interests shareholders |
— | 2 | 3 | 7 | 16 | 3 | ||||||||||||||||||
Net income from discontinued operations attributable to mezzanine equity classified as non-controlling interests shareholders |
281 | — | — | — | — | — | ||||||||||||||||||
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Net income/(loss) attributable to ordinary shareholders |
(153 |
) |
(2,492 |
) |
12,184 |
49,405 |
(3,560 |
) |
(559 |
) | ||||||||||||||
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Including: |
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Net loss from discontinued operations attributable to ordinary shareholders |
(269 | ) | — | — | — | — | — | |||||||||||||||||
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Net income/(loss) from continuing operations attributable to ordinary shareholders |
116 |
(2,492 |
) |
12,184 |
49,405 |
(3,560 |
) |
(559 |
) | |||||||||||||||
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For the Year Ended December 31, |
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2017 |
2018 |
2019 |
2020 |
2021 |
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RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
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(in millions, except for share, per share and per ADS data) |
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Net income/(loss) per share |
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Basic |
||||||||||||||||||||||||
Continuing operations |
0.04 | (0.87 | ) | 4.18 | 16.35 | (1.15 | ) | (0.18 | ) | |||||||||||||||
Discontinued operations |
(0.09 | ) | — | — | — | — | — | |||||||||||||||||
Net income/(loss) per share |
(0.05 | ) | (0.87 | ) | 4.18 | 16.35 | (1.15 | ) | (0.18 | ) | ||||||||||||||
Diluted |
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Continuing operations |
0.04 | (0.87 | ) | 4.11 | 15.84 | (1.15 | ) | (0.18 | ) | |||||||||||||||
Discontinued operations |
(0.09 | ) | — | — | — | — | — | |||||||||||||||||
Net income/(loss) per share |
(0.05 | ) | (0.87 | ) | 4.11 | 15.84 | (1.15 | ) | (0.18 | ) | ||||||||||||||
Net income/(loss) per ADS (5) |
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Basic |
||||||||||||||||||||||||
Continuing operations |
0.08 | (1.73 | ) | 8.37 | 32.70 | (2.29 | ) | (0.36 | ) | |||||||||||||||
Discontinued operations |
(0.19 | ) | — | — | — | — | — | |||||||||||||||||
Net income/(loss) per ADS |
(0.11 | ) | (1.73 | ) | 8.37 | 32.70 | (2.29 | ) | (0.36 | ) | ||||||||||||||
Diluted |
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Continuing operations |
0.08 | (1.73 | ) | 8.21 | 31.68 | (2.29 | ) | (0.36 | ) | |||||||||||||||
Discontinued operations |
(0.18 | ) | — | — | — | — | — | |||||||||||||||||
Net income/(loss) per ADS |
(0.11 | ) | (1.73 | ) | 8.21 | 31.68 | (2.29 | ) | (0.36 | ) | ||||||||||||||
Weighted average number of shares: |
||||||||||||||||||||||||
Basic |
2,844,826,014 | 2,877,902,678 | 2,912,637,241 | 3,021,808,985 | 3,107,436,665 | 3,107,436,665 | ||||||||||||||||||
Diluted |
2,911,461,817 | 2,877,902,678 | 2,967,321,803 | 3,109,024,030 | 3,107,436,665 | 3,107,436,665 |
(1) | Our net revenues include net product revenues and net service revenues. Product sales is further divided into sales of electronics and home appliances products and sales of general merchandise products. Net revenues from electronics and home appliances products include revenues from sales of computer, communication and consumer electronics products as well as home appliances. Net revenues from general merchandise products mainly include revenues from sales of food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, books, automobile accessories, apparel and footwear, bags and jewelry. Net service revenues are further divided into revenues from online marketplace and marketing and revenues from logistics and other services. The following table breaks down our total net revenues by these categories, by amounts and as percentages of total net revenues: |
For the Year Ended December 31, |
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2017 |
2018 |
2019 |
2020 |
2021 |
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RMB |
% |
RMB |
% |
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||||||||||||||
(in millions, except for percentages) |
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Electronics and home appliances revenues |
236,269 | 65.2 | 280,059 | 60.6 | 328,703 | 57.0 | 400,927 | 53.8 | 492,592 | 77,298 | 51.8 | |||||||||||||||||||||||||||||||||
General merchandise revenues |
95,555 | 26.4 | 136,050 | 29.5 | 182,031 | 31.5 | 250,952 | 33.6 | 323,063 | 50,696 | 33.9 | |||||||||||||||||||||||||||||||||
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Net product revenues |
331,824 | 91.6 | 416,109 | 90.1 | 510,734 | 88.5 | 651,879 | 87.4 | 815,655 | 127,994 | 85.7 | |||||||||||||||||||||||||||||||||
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Marketplace and marketing revenues |
25,391 | 7.0 | 33,532 | 7.2 | 42,680 | 7.4 | 53,473 | 7.2 | 72,118 | 11,317 | 7.6 | |||||||||||||||||||||||||||||||||
Logistics and other service revenues |
5,117 | 1.4 | 12,379 | 2.7 | 23,474 | 4.1 | 40,450 | 5.4 | 63,819 | 10,015 | 6.7 | |||||||||||||||||||||||||||||||||
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Net service revenues |
30,508 | 8.4 | 45,911 | 9.9 | 66,154 | 11.5 | 93,923 | 12.6 | 135,937 | 21,332 | 14.3 | |||||||||||||||||||||||||||||||||
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Total net revenues |
362,332 | 100.0 | 462,020 | 100.0 | 576,888 | 100.0 | 745,802 | 100.0 | 951,592 | 149,326 | 100.0 | |||||||||||||||||||||||||||||||||
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(2) | Includes share-based compensation expenses as follows: |
For the Year Ended December 31, |
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2017 |
2018 |
2019 |
2020 |
2021 |
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RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
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(in millions) |
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Cost of revenues |
(28 | ) | (72 | ) | (82 | ) | (98 | ) | (102 | ) | (16 | ) | ||||||||||||
Fulfillment |
(426 | ) | (419 | ) | (440 | ) | (646 | ) | (882 | ) | (138 | ) | ||||||||||||
Marketing |
(136 | ) | (190 | ) | (259 | ) | (347 | ) | (586 | ) | (92 | ) | ||||||||||||
Research and development |
(671 | ) | (1,163 | ) | (1,340 | ) | (1,400 | ) | (1,781 | ) | (280 | ) | ||||||||||||
General and administrative |
(1,520 | ) | (1,816 | ) | (1,574 | ) | (1,665 | ) | (5,783 | ) | (907 | ) |
(3) | Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows: |
For the Year Ended December 31, |
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2017 |
2018 |
2019 |
2020 |
2021 |
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RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
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(in millions) |
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Fulfillment |
(164 | ) | (168 | ) | (165 | ) | (193 | ) | (220 | ) | (35 | ) | ||||||||||||
Marketing |
(1,222 | ) | (1,232 | ) | (637 | ) | (692 | ) | (854 | ) | (134 | ) | ||||||||||||
Research and development |
(84 | ) | (98 | ) | (99 | ) | (99 | ) | (104 | ) | (16 | ) | ||||||||||||
General and administrative |
(308 | ) | (308 | ) | (308 | ) | (309 | ) | (309 | ) | (48 | ) |
(4) | Interest income was included in Others, net since 2021, and the presentation of prior years was also updated to conform to current presentation. |
(5) | Each ADS represents two Class A ordinary shares. |
For the Year Ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in millions, except for share data) |
||||||||||||||||||||||||
Selected Consolidated Balance Sheets Data: |
||||||||||||||||||||||||
Cash and cash equivalents |
25,688 | 34,262 | 36,971 | 86,085 | 70,767 | 11,105 | ||||||||||||||||||
Restricted cash |
4,110 | 3,240 | 2,941 | 4,434 | 5,926 | 930 | ||||||||||||||||||
Short-term investments |
8,588 | 2,036 | 24,603 | 60,577 | 114,564 | 17,978 | ||||||||||||||||||
Accounts receivable, net |
16,359 | 11,110 | 6,191 | 7,112 | 11,900 | 1,867 | ||||||||||||||||||
Inventories, net |
41,700 | 44,030 | 57,932 | 58,933 | 75,601 | 11,863 | ||||||||||||||||||
Property, equipment and software, net |
12,574 | 21,083 | 20,654 | 22,597 | 32,944 | 5,170 | ||||||||||||||||||
Land use rights, net |
7,051 | 10,476 | 10,892 | 11,125 | 14,328 | 2,248 | ||||||||||||||||||
Operating lease right-of-use |
— | — | 8,644 | 15,484 | 19,987 | 3,136 | ||||||||||||||||||
Investment in equity investees |
18,551 | 31,357 | 35,576 | 58,501 | 63,222 | 9,921 | ||||||||||||||||||
Investment securities |
10,028 | 15,902 | 21,417 | 39,085 | 19,088 | 2,995 | ||||||||||||||||||
Other non-current assets |
2,228 | 5,284 | 6,806 | 13,316 | 21,804 | 3,423 | ||||||||||||||||||
Total assets |
184,055 | 209,165 | 259,724 | 422,288 | 496,507 | 77,912 | ||||||||||||||||||
Accounts payable |
74,338 | 79,985 | 90,428 | 106,818 | 140,484 | 22,045 | ||||||||||||||||||
Accrued expenses and other current liabilities |
15,118 | 20,293 | 24,656 | 30,035 | 34,468 | 5,409 | ||||||||||||||||||
Non-recourse securitization debt |
17,160 | 4,398 | — | — | — | — | ||||||||||||||||||
Unsecured senior notes |
6,447 | 6,786 | 6,912 | 12,854 | 9,386 | 1,473 | ||||||||||||||||||
Long-term borrowings |
— | 3,088 | 3,139 | 2,936 | — | — | ||||||||||||||||||
Operating lease liabilities |
— | — | 8,717 | 15,763 | 20,386 | 3,199 | ||||||||||||||||||
Total liabilities |
131,666 | 132,337 | 159,099 | 200,669 | 249,723 | 39,187 | ||||||||||||||||||
Total mezzanine equity |
— | 15,961 | 15,964 | 17,133 | 1,212 | 190 | ||||||||||||||||||
Total JD.com, Inc. shareholders’ equity |
52,041 | 59,771 | 81,856 | 187,543 | 208,911 | 32,782 | ||||||||||||||||||
Number of outstanding ordinary shares |
2,852,663,429 | 2,894,296,355 | 2,924,315,263 | 3,103,499,039 | 3,110,791,649 | 3,110,791,649 |
For the Year Ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in millions) |
||||||||||||||||||||||||
Selected Consolidated Cash Flows Data: |
||||||||||||||||||||||||
Net cash provided by continuing operating activities |
29,342 | 20,881 | 24,781 | 42,544 | 42,301 | 6,638 | ||||||||||||||||||
Net cash used in discontinued operating activities |
(2,486 | ) | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash provided by operating activities (6) |
26,856 | 20,881 | 24,781 | 42,544 | 42,301 | 6,638 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash used in continuing investing activities |
(21,944 | ) | (26,079 | ) | (25,349 | ) | (57,811 | ) | (74,248 | ) | (11,651 | ) | ||||||||||||
Net cash used in discontinued investing activities |
(17,871 | ) | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash used in investing activities (6) |
(39,815 | ) | (26,079 | ) | (25,349 | ) | (57,811 | ) | (74,248 | ) | (11,651 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash provided by continuing financing activities |
5,180 | 11,220 | 2,572 | 71,072 | 19,503 | 3,060 | ||||||||||||||||||
Net cash provided by discontinued financing activities |
14,055 | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash provided by financing activities |
19,235 | 11,220 | 2,572 | 71,072 | 19,503 | 3,060 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(642 | ) | 1,682 | 406 | (5,082 | ) | (1,498 | ) | (235 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash |
5,634 | 7,704 | 2,410 | 50,723 | (13,942 | ) | (2,188 | ) | ||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of year, including cash and cash equivalents classified within assets held for sale |
24,164 | 29,798 | 37,502 | 39,912 | 90,635 | 14,223 | ||||||||||||||||||
Less: cash, cash equivalents, and restricted cash classified within assets held for sale at beginning of year |
— | — | — | — | 116 | 18 | ||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of year |
24,164 | 29,798 | 37,502 | 39,912 | 90,519 | 14,205 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash, cash equivalents and restricted cash at end of year, including cash and cash equivalents classified within assets held for sale |
29,798 | 37,502 | 39,912 | 90,635 | 76,693 | 12,035 | ||||||||||||||||||
Less: cash, cash equivalents, and restricted cash classified within assets held for sale at end of year |
— | — | — | 116 | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of year |
29,798 | 37,502 | 39,912 | 90,519 | 76,693 | 12,035 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(6) | As a result of new accounting guidance adopted on January 1, 2018, the consolidated statements of cash flows were retrospectively adjusted to include restricted cash in cash and cash equivalents when reconciling the beginning-of-period end-of-period |
For the Year Ended December 31, 2021 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) |
||||||||||||||||||||
Net revenues |
— | 922,629 | 117,419 | (88,456 | ) | 951,592 | ||||||||||||||
Third-party revenues |
— | 892,468 | 59,124 | — | 951,592 | |||||||||||||||
Inter-company revenues |
— | 30,161 | 58,295 | (88,456 | ) | — | ||||||||||||||
Cost of revenues |
— | (794,102 | ) | (104,564 | ) | 76,140 | (822,526 | ) | ||||||||||||
Fulfillment |
— | (59,682 | ) | (4,657 | ) | 5,284 | (59,055 | ) | ||||||||||||
Marketing |
(4 | ) | (36,269 | ) | (3,108 | ) | 638 | (38,743 | ) | |||||||||||
Research and development |
— | (17,282 | ) | (5,420 | ) | 6,370 | (16,332 | ) | ||||||||||||
General and administrative |
(465 | ) | (8,764 | ) | (2,357 | ) | 24 | (11,562 | ) | |||||||||||
Gain on sale of development properties |
— | 767 | — | — | 767 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income/(loss) from operations |
(469 |
) |
7,297 |
(2,687 |
) |
— |
4,141 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income/(loss) from subsidiaries and VIEs |
(2,708 | ) | (3,226 | ) | — | 5,934 | — | |||||||||||||
Other income/(expense), net |
(376 | ) | (5,997 | ) | (348 | ) | — | (6,721 | ) | |||||||||||
Income/(loss) before tax |
(3,553 | ) | (1,926 | ) | (3,035 | ) | 5,934 | (2,580 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income tax expenses |
(7 | ) | (1,846 | ) | (34 | ) | — | (1,887 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income/(loss) |
(3,560 |
) |
(3,772 |
) |
(3,069 |
) |
5,934 |
(4,467 |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2020 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) |
||||||||||||||||||||
Net revenues |
— | 729,906 | 86,054 | (70,158 | ) | 745,802 | ||||||||||||||
Third-party revenues |
— | 708,826 | 36,976 | — | 745,802 | |||||||||||||||
Inter-company revenues |
— | 21,080 | 49,078 | (70,158 | ) | — | ||||||||||||||
Cost of revenues |
— | (621,000 | ) | (74,425 | ) | 58,731 | (636,694 | ) | ||||||||||||
Fulfillment |
— | (50,738 | ) | (2,949 | ) | 4,987 | (48,700 | ) | ||||||||||||
Marketing |
(11 | ) | (25,673 | ) | (1,886 | ) | 414 | (27,156 | ) | |||||||||||
Research and development |
— | (16,875 | ) | (5,265 | ) | 5,991 | (16,149 | ) | ||||||||||||
General and administrative |
(453 | ) | (4,368 | ) | (1,623 | ) | 35 | (6,409 | ) | |||||||||||
Gain on sale of development properties |
— | 1,649 | — | — | 1,649 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income/(loss) from operations |
(464 |
) |
12,901 |
(94 |
) |
— | 12,343 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income/(loss) from subsidiaries and VIEs |
50,154 | (550 | ) | — | (49,604 | ) | — | |||||||||||||
Other income/(expense), net |
(266 | ) | 39,018 | (276 | ) | — | 38,476 | |||||||||||||
Income/(loss) before tax |
49,424 | 51,369 | (370 | ) | (49,604 | ) | 50,819 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income tax expenses |
(19 | ) | (1,411 | ) | (52 | ) | — | (1,482 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income/(loss) |
49,405 |
49,958 |
(422 |
) |
(49,604 |
) |
49,337 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2019 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) | ||||||||||||||||||||
Net revenues |
— | 565,095 | 59,306 | (47,513 | ) | 576,888 | ||||||||||||||
Third-party revenues |
— | 550,043 | 26,845 | — | 576,888 | |||||||||||||||
Inter-company revenues |
— | 15,052 | 32,461 | (47,513 | ) | — | ||||||||||||||
Cost of revenues |
— | (481,740 | ) | (52,379 | ) | 41,652 | (492,467 | ) | ||||||||||||
Fulfillment |
— | (37,280 | ) | (2,863 | ) | 3,175 | (36,968 | ) | ||||||||||||
Marketing |
(301 | ) | (21,119 | ) | (891 | ) | 77 | (22,234 | ) | |||||||||||
Research and development |
— | (13,533 | ) | (3,659 | ) | 2,573 | (14,619 | ) | ||||||||||||
General and administrative |
(470 | ) | (2,996 | ) | (2,060 | ) | 36 | (5,490 | ) | |||||||||||
Gain on sale of development properties |
— | 3,885 | — | — | 3,885 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income/(loss)from operations |
(771 |
) |
12,312 |
(2,546 |
) |
— | 8,995 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income/(loss) from subsidiaries and VIEs |
12,576 | (2,262 | ) | — | (10,314 | ) | — | |||||||||||||
Other income/(expense), net |
379 | 3,961 | 358 | — | 4,698 | |||||||||||||||
Income/(loss) before tax |
12,184 | 14,011 | (2,188 | ) | (10,314 | ) | 13,693 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income tax expenses |
— | (1,723 | ) | (80 | ) | — | (1,803 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income/(loss) |
12,184 |
12,288 |
(2,268 |
) |
(10,314 |
) |
11,890 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
7,417 | 57,799 | 5,551 | — | 70,767 | |||||||||||||||
Restricted cash |
— | 5,917 | 9 | — | 5,926 | |||||||||||||||
Short-term investments |
1 | 108,837 | 5,726 | — | 114,564 | |||||||||||||||
Accounts receivable, net |
— | 7,601 | 4,299 | — | 11,900 | |||||||||||||||
Inventories, net |
— | 71,765 | 3,836 | — | 75,601 | |||||||||||||||
Internal balance |
65,120 | 42,751 | — | (107,871 | ) | — | ||||||||||||||
Investment in equity investees |
— | 40,475 | 22,747 | — | 63,222 | |||||||||||||||
Investments in subsidiaries and VIEs |
148,607 | 1,138 | — | (149,745 | ) | — | ||||||||||||||
Investment securities |
— | 15,881 | 3,207 | — | 19,088 | |||||||||||||||
Property, equipment and software, net |
— | 24,376 | 8,568 | — | 32,944 | |||||||||||||||
Operating lease right-of-use |
— | 7,922 | 14,472 | (2,407 | ) | 19,987 | ||||||||||||||
Prepayments and other assets |
419 | 70,441 | 11,723 | (75 | ) | 82,508 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
221,564 |
454,903 |
80,138 |
(260,098 |
) |
496,507 |
||||||||||||||
Liabilities |
||||||||||||||||||||
Short-term debts |
2,869 | 1,499 | — | — | 4,368 | |||||||||||||||
Accounts payable |
— | 132,638 | 7,846 | — | 140,484 | |||||||||||||||
Internal balance |
— | 65,120 | 42,787 | (107,907 | ) | — | ||||||||||||||
Operating lease liabilities |
— | 8,034 | 14,785 | (2,433 | ) | 20,386 | ||||||||||||||
Unsecured senior notes |
9,461 | — | — | (75 | ) | 9,386 | ||||||||||||||
Accrued expenses and other liabilities |
323 | 62,336 | 12,440 | — | 75,099 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
12,653 |
269,627 |
77,858 |
(110,415 |
) |
249,723 |
||||||||||||||
Convertible redeemable non-controlling interests |
— | 467 | 745 | — | 1,212 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total shareholders’ equity |
208,911 |
184,809 |
1,535 |
(149,683 |
) |
245,572 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities, mezzanine equity and shareholders’ equity |
221,564 |
454,903 |
80,138 |
(260,098 |
) |
496,507 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
As of December 31, 2020 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
25,544 | 58,159 | 2,382 | — | 86,085 | |||||||||||||||
Restricted cash |
— | 4,371 | 63 | — | 4,434 | |||||||||||||||
Short-term investments |
3,437 | 52,792 | 4,348 | — | 60,577 | |||||||||||||||
Accounts receivable, net |
— | 3,768 | 3,344 | — | 7,112 | |||||||||||||||
Inventories, net |
— | 55,377 | 3,556 | — | 58,933 | |||||||||||||||
Internal balance |
49,555 | 28,586 | — | (78,141 | ) | — | ||||||||||||||
Investment in equity investees |
— | 38,237 | 20,264 | — | 58,501 | |||||||||||||||
Investments in subsidiaries and VIEs |
121,231 | — | — | (121,231 | ) | — | ||||||||||||||
Investment securities |
— | 35,455 | 3,630 | — | 39,085 | |||||||||||||||
Property, equipment and software, net |
— | 16,033 | 6,564 | — | 22,597 | |||||||||||||||
Operating lease right-of-use |
— | 4,316 | 12,282 | (1,114 | ) | 15,484 | ||||||||||||||
Prepayments and other assets |
3,889 | 56,508 | 9,161 | (78 | ) | 69,480 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
203,656 |
353,602 |
65,594 |
(200,564 |
) |
422,288 |
||||||||||||||
Liabilities |
||||||||||||||||||||
Accounts payable |
— | 99,444 | 7,374 | — | 106,818 | |||||||||||||||
Internal balance |
— | 49,555 | 28,571 | (78,126 | ) | — | ||||||||||||||
Operating lease liabilities |
— | 4,408 | 12,472 | (1,117 | ) | 15,763 | ||||||||||||||
Unsecured senior notes |
12,932 | — | — | (78 | ) | 12,854 | ||||||||||||||
Long-term borrowings |
2,936 | — | — | — | 2,936 | |||||||||||||||
Accrued expenses and other liabilities |
245 | 51,172 | 10,881 | — | 62,298 | |||||||||||||||
Total liabilities |
16,113 |
204,579 |
59,298 |
(79,321 |
) |
200,669 |
||||||||||||||
Convertible redeemable non-controlling interests |
— | 16,407 | 726 | — | 17,133 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total shareholders’ equity |
187,543 |
132,616 |
5,570 |
(121,243 |
) |
204,486 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities, mezzanine equity and shareholders’ equity |
203,656 |
353,602 |
65,594 |
(200,564 |
) |
422,288 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2021 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) |
||||||||||||||||||||
Net cash provided by/(used in) operating activities |
(411 |
) |
41,119 |
1,593 |
— | 42,301 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flows from investing activities |
— | |||||||||||||||||||
(Increase)/decrease in short-term investments, net |
3,357 | (56,448 | ) | (1,231 | ) | — | (54,322 | ) | ||||||||||||
Prepayments and investments in equity investees |
— | (6,356 | ) | (5,220 | ) | — | (11,576 | ) | ||||||||||||
Loans (provided to)/settled by internal companies |
(20,900 | ) | (11,717 | ) | 1,122 | 31,495 | — | |||||||||||||
Cash paid for property, equipment, software and construction in progress |
— | (9,848 | ) | (4,582 | ) | — | (14,430 | ) | ||||||||||||
Other investing activities |
3,147 | 3,111 | (178 | ) | — | 6,080 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash used in investing activities |
(14,396 |
) |
(81,258 |
) |
(10,089 |
) |
31,495 |
(74,248 |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flows from financing activities |
||||||||||||||||||||
Capital injection from non-controlling interest shareholders |
— | 27,600 | 62 | — | 27,662 | |||||||||||||||
Increase/(decrease) in short-term borrowings, net |
— | 1,251 | (100 | ) | — | 1,151 | ||||||||||||||
Net proceeds from internal companies |
— | 19,778 | 11,717 | (31,495 | ) | — | ||||||||||||||
Repayment of unsecured senior notes |
(3,246 | ) | — | — | — | (3,246 | ) | |||||||||||||
Other financing activities |
62 | (6,058 | ) | (68 | ) | — | (6,064 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by/(used in) financing activities |
(3,184 |
) |
42,571 |
11,611 |
(31,495 |
) |
19,503 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(136 | ) | (1,362 | ) | — | — | (1,498 | ) | ||||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash |
(18,127 | ) | 1,070 | 3,115 | — | (13,942 | ) | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of year, including cash and cash equivalents classified within assets held for sale |
25,544 | 62,646 | 2,445 | — | 90,635 | |||||||||||||||
Less: cash, cash equivalents and restricted cash classified within assets held for sale at beginning of year |
— | 116 | — | — | 116 | |||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year |
25,544 |
62,530 |
2,445 |
— |
90,519 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash, cash equivalents and restricted cash at end of year |
7,417 |
63,716 |
5,560 |
— | 76,693 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2020 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) |
||||||||||||||||||||
Net cash provided by/(used in) operating activities |
(243 |
) |
32,875 |
9,912 |
— | 42,544 |
||||||||||||||
Cash flows from investing activities |
||||||||||||||||||||
Increase in short-term investments, net |
(3,421 | ) | (30,493 | ) | (1,685 | ) | — | (35,599 | ) | |||||||||||
Investment in subsidiaries |
— | (2,000 | ) | — | 2,000 | — | ||||||||||||||
Prepayments and investments in equity investees |
— | (12,317 | ) | (4,622 | ) | — | (16,939 | ) | ||||||||||||
Loans (provided to)/settled by internal companies |
(13,421 | ) | (1,428 | ) | 306 | 14,543 | — | |||||||||||||
Cash paid for property, equipment, software and construction in progress |
— | (7,477 | ) | (3,442 | ) | — | (10,919 | ) | ||||||||||||
Other investing activities |
40 | 7,216 | (1,610 | ) | — | 5,646 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash used in investing activities |
(16,802 |
) |
(46,499 |
) |
(11,053 |
) |
16,543 |
(57,811 |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flows from financing activities |
||||||||||||||||||||
Proceeds from issuance of ordinary shares |
31,342 | — | — | — | 31,342 | |||||||||||||||
Capital injection from controlling shareholders |
— | — | 2,000 | (2,000 | ) | — | ||||||||||||||
Capital injection from non-controlling interest shareholders |
— | 34,564 | 15 | — | 34,579 | |||||||||||||||
Increase in short-term borrowings, net |
— | (932 | ) | (884 | ) | — | (1,816 | ) | ||||||||||||
Net proceeds from internal companies |
— | 13,115 | 1,428 | (14,543 | ) | — | ||||||||||||||
Proceeds from unsecured senior notes |
6,804 | — | — | — | 6,804 | |||||||||||||||
Other financing activities |
236 | (173 | ) | 100 | — | 163 | ||||||||||||||
Net cash provided by financing activities |
38,382 |
46,574 |
2,659 |
(16,543 |
) |
71,072 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(2,369 | ) | (2,713 | ) | — | — | (5,082 | ) | ||||||||||||
Net increase in cash, cash equivalents and restricted cash |
18,968 | 30,237 | 1,518 | — | 50,723 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash, cash equivalents and restricted cash at beginning of year |
6,576 |
32,409 |
927 |
— | 39,912 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash, cash equivalents and restricted cash at end of year, including cash and cash equivalents classified within assets held for sale |
25,544 | 62,646 | 2,445 | — | 90,635 | |||||||||||||||
Less: cash, cash equivalents and restricted cash classified within assets held for sale at end of year |
— | 116 | — | — | 116 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash, cash equivalents and restricted cash at end of year |
25,544 |
62,530 |
2,445 |
— | 90,519 |
For the Year Ended December 31, 2019 |
||||||||||||||||||||
Parent |
Subsidiaries |
Consolidated Variable Interest Entities |
Eliminations |
Consolidated Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(RMB in millions) |
||||||||||||||||||||
Net cash provided by operating activities |
698 |
23,129 |
954 |
— | 24,781 |
|||||||||||||||
Cash flows from investing activities |
||||||||||||||||||||
Increase in short-term investments, net |
— | (20,493 | ) | (1,990 | ) | — | (22,483 | ) | ||||||||||||
Prepayments and investments in equity investees |
— | (9,164 | ) | (1,344 | ) | — | (10,508 | ) | ||||||||||||
Loans (provided to)/settled by internal companies |
5,203 | (5,589 | ) | (1,428 | ) | 1,814 | — | |||||||||||||
Cash paid for property, equipment, software and construction in progress |
— | (6,240 | ) | (1,679 | ) | — | (7,919 | ) | ||||||||||||
Other investing activities |
(1,632 | ) | 17,202 | (9 | ) | — | 15,561 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by/(used in) investing activities |
3,571 |
(24,284 |
) |
(6,450 |
) |
1,814 |
(25,349 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flows from financing activities |
||||||||||||||||||||
Capital injection from non-controlling interest shareholders |
— | 6,557 | 92 | — | 6,649 | |||||||||||||||
Increase in short-term borrowings, net |
— | (29 | ) | (137 | ) | — | (166 | ) | ||||||||||||
Proceeds from/(repayment to) internal companies |
— | (3,774 | ) | 5,588 | (1,814 | ) | — | |||||||||||||
Other financing activities |
(19 | ) | (3,892 | ) | — | — | (3,911 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by/(used in) financing activities |
(19 |
) |
(1,138 |
) |
5,543 |
(1,814 |
) |
2,572 |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
129 | 277 | — | — | 406 | |||||||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash |
4,379 | (2,016 | ) | 47 | — | 2,410 | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year |
2,197 |
34,425 |
880 |
— | 37,502 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash, cash equivalents and restricted cash at end of year |
6,576 |
32,409 |
927 |
— | 39,912 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
• | the growth of internet, broadband, personal computer and mobile penetration and usage in China, and the rate of any such growth; |
• | the consumers’ trust and confidence level towards online retail in China, as well as changes in customer demographics and consumer tastes and preferences; |
• | the selection, price and popularity of products as well as promotions that we and our competitors offer online; |
• | whether alternative retail channels or business models that better address the needs of consumers emerge in China; and |
• | the development of fulfillment, payment and other ancillary services associated with online purchases. |
• | provide a compelling shopping experience to customers; |
• | maintain the popularity, attractiveness, diversity, quality and authenticity of the products we offer; |
• | maintain the efficiency, reliability and quality of our fulfillment services; |
• | maintain or improve customers’ satisfaction with our after-sale services; |
• | support third-party merchants to provide satisfactory customer experience through our online marketplace; |
• | increase brand awareness through marketing and brand promotion activities; and |
• | preserve our reputation and goodwill in the event of any negative publicity, including those on customer service, customer and supplier relationships, internet security, product quality, price or authenticity, or other issues affecting us or other online retail businesses in China. |
• | potential disruptions to the operation of the warehousing and logistics facilities operated by us or other third-party transportation companies and couriers that facilitate our logistics services, or to the development of new warehousing and logistics facilities; |
• | risk that our customers may reduce their expenditure on third-party supply chain solutions and logistics services or increase utilization of their internal solutions; |
• | tightening of the labor market, increases in labor costs or any labor unrest, as we operate in a labor-intensive industry; |
• | failure to maintain positive relationships with our third-party logistics service providers; |
• | risks associated with the items we deliver and the contents of shipments and inventories handled through our logistics networks, including real or perceived quality or health issues with the products that are handled through our logistics networks; and |
• | risks inherent in the logistics industry, including personal injury, product damage, and transportation-related incidents. |
• | inability to successfully execute effective advertising, marketing and promotional activities necessary to maintain and increase the awareness of JD Health and the products and services it offers; |
• | failure to implement effective pricing and other strategies in response to intense market competition in the pharmaceutical industry in China; |
• | inability to upgrade intelligent healthcare solutions in response to changing consumer demand and preference; |
• | inability to stock adequate supply of pharmaceutical and healthcare products that customers desire; |
• | potential medical liability claims in connection with our online healthcare services; |
• | potential penalties or disputes against us for failure to manage our in-house medical team and external doctors; |
• | failure of in-house medical team or external doctors to provide adequate and proper medical services on our platform; |
• | inability to obtain and maintain regulatory or governmental permits, approvals and clearances, or to pass PRC government inspections; and |
• | the risk of, and resulting liability from, any contamination, injury or other harm caused by any use, misuse, misdiagnosis or side-effects involving products distributed or services provided by JD Health. |
• | impact on business growth due to the COVID-19 pandemic . COVID-19 over economic development; |
• | fluctuations in the macroeconomic environment. |
• | concentration risk of business operations. |
• | uncertainties in the overseas market. |
• | difficulties in developing, staffing and simultaneously managing a foreign operation as a result of distance, language and cultural differences; |
• | challenges in formulating effective local sales and marketing strategies targeting users from various jurisdictions and cultures, who have a diverse range of preferences and demands; |
• | challenges in identifying appropriate local business partners and establishing and maintaining good working relationships with them; |
• | dependence on local platforms in marketing our international products and services overseas; |
• | challenges in selecting suitable geographical regions for international business; |
• | longer customer payment cycles; |
• | currency exchange rate fluctuations; |
• | political or social unrest or economic instability; |
• | protectionist or national security policies that restrict our ability to invest in or acquire companies; develop, import or export certain technologies, such as the national AI initiative proposed by the U.S. government; or utilize technologies that are deemed by local governmental regulators to pose a threat to their national security; |
• | compliance with applicable foreign laws and regulations and unexpected changes in laws or regulations, including compliance with privacy laws and data security laws, including the European Union General Data Protection Regulation, or GDPR, and compliance costs across different legal systems; |
• | differing, complex and potentially adverse customs, import/export laws, tax rules and regulations or other trade barriers or restrictions which may be applicable to transactions conducted through our international and cross-border platforms, related compliance obligations and consequences of non-compliance, and any new developments in these areas; and |
• | increased costs associated with doing business in foreign jurisdictions. |
• | exercise effective control over Jingdong 360, Jiangsu Yuanzhou, Xi’an Jingdong Xincheng and other variable interest entities in China; |
• | receive substantially all of the economic benefits of Jingdong 360, Jiangsu Yuanzhou, Xi’an Jingdong Xincheng and other variable interest entities in China; and |
• | have an exclusive option to purchase all or part of the equity interests in Jingdong 360, Jiangsu Yuanzhou, Xi’an Jingdong Xincheng and other variable interest entities in China when and to the extent permitted by PRC law. |
• | revoking the business licenses of such entities; |
• | discontinuing or restricting the conduct of any transactions between certain of our PRC subsidiaries and variable interest entities; |
• | imposing fines, confiscating the income from our variable interest entities, or imposing other requirements with which we or our variable interest entities may not be able to comply; |
• | requiring us to restructure our ownership structure or operations, including terminating the contractual arrangements with our variable interest entities and deregistering the equity pledges of our variable interest entities, which in turn would affect our ability to consolidate, derive economic interests from, or exert effective control over our variable interest entities; or |
• | restricting or prohibiting our use of the proceeds of any of our financing outside China to finance our business and operations in China. |
• | regulatory developments affecting us or our industry, customers, suppliers or third-party merchants; |
• | announcements of studies and reports relating to the quality of our product and service offerings or those of our competitors; |
• | changes in the economic performance or market valuations of other online retail or e-commerce companies; |
• | actual or anticipated fluctuations in our quarterly results of operations and changes or revisions of our expected results; |
• | changes in financial estimates by securities research analysts; |
• | conditions in the online retail market; |
• | announcements by us or our competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures, capital raisings or capital commitments; |
• | additions to or departures of our senior management; |
• | political or market instability or disruptions, and actual or perceived social unrest in the United States, Hong Kong or other jurisdictions; |
• | fluctuations of exchange rates among RMB, the Hong Kong dollar and the U.S. dollar; |
• | release or expiry of lock-up or other transfer restrictions on our Class A ordinary shares or ADSs; |
• | sales or perceived potential sales of additional Class A ordinary shares or ADSs; |
• | any actual or alleged illegal acts of our senior management or other key employees; |
• | any share repurchase program; and |
• | proceedings instituted by the SEC against PRC-based accounting firms, including our independent registered public accounting firm. |
• | we have instructed the depositary that we do not wish a discretionary proxy to be given; |
• | we have informed the depositary that there is substantial opposition as to a matter to be voted on at the meeting; |
• | a matter to be voted on at the meeting would have a material adverse impact on shareholders; or |
• | the voting at the meeting is to be made on a show of hands. |
• | the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K; |
• | the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; |
• | the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and |
• | the selective disclosure rules by issuers of material nonpublic information under Regulation FD. |
Item 4. |
Information on the Company |
A. |
History and Development of the Company |
• | Jingdong Century, established in April 2007, and certain of its subsidiaries in China, which primarily engage in retail business; |
• | Shanghai Shengdayuan Information Technology Co., Ltd., or Shanghai Shengdayuan, which was established in April 2011 and primarily operates our online marketplace business; and |
• | Xi’an Jingxundi Supply Chain Technology Co., Ltd., or Xi’an Jingxundi, which was established in May 2017 and primarily provides technology and consulting services relating to logistics services. |
• | Jingdong 360, which was established in April 2007 and holds our ICP license as an internet information provider and operates our www.jd.com website; |
• | Jiangsu Yuanzhou, which was established in September 2010 and primarily engages in the business of selling books, audio and video products; |
• | Xi’an Jingdong Xincheng, which was established in June 2017 and primarily provides technology and consulting services relating to logistics services; |
• | Jiangsu Jingdong Bangneng, which was established in August 2015 and primarily engages in business of investment management; and |
• | Suqian Juhe, which was established in June 2020 and primarily provides enterprise management services. |
B. |
Business Overview |
• | Our team is the foundation of our company. We have built a strong and dedicated team and made significant efforts in hiring, training and retaining the best talent. |
• | Technology is a key contributor to maintaining our competitive advantage. Upgrading core technologies can effectively reduce cost, improve operating efficiency, and deliver best-in-class |
• | To create value for our customers, partners and society, we make continuous efforts to reduce cost, improve efficiency, and deliver better customer experiences: |
• | Our technology and data-driven management employ an array of key performance indicators to minimize costs and maximize efficiency in our operations; |
• | We continue to encourage innovation with our partners in order to offer customers a holistic shopping experience through both online and offline channels, thereby increasing customer loyalty; and |
• | We continuously open up our infrastructure, such as logistics, systems and technologies, to our business partners to develop more innovative solutions that could reduce cost and/or enhance efficiency for society as a whole. |
• | As a result, we are able to offer a broad selection of products, services and solutions at competitive prices as well as excellent experiences. We strive to deliver a sustainable best-in-class |
• | home appliances; |
• | mobile handsets and other digital products; |
• | computers, including desktop, laptop and other varieties, as well as printers and other office equipment; |
• | furniture and household goods; |
• | apparel; |
• | cosmetics and other personal care items and pet products; |
• | women’s shoes, bags, watches, jewelry and luxury goods; |
• | men’s shoes, sports gear and fitness equipment; |
• | automobiles and accessories; |
• | real estate; |
• | maternal and childcare products, toys and musical instruments; |
• | food, beverage and fresh produce; |
• | gifts, flowers and plants; |
• | pharmaceutical and healthcare products, including OCT pharmaceutical products, nutritional supplements, healthcare services and other healthcare equipment; |
• | books, e-books, music, movies and other media products; |
• | virtual goods, including online travel agency, attraction tickets, and prepaid phone cards and game cards; |
• | industrial products; and |
• | installation and maintenance services. |
• | brand recognition and reputation; |
• | product quality and selection; |
• | pricing; |
• | fulfillment capabilities; and |
• | customer service. |
(1) |
JD Assets Holding Limited has 38 subsidiaries holding, directly or indirectly, non-logistics properties. |
(2) |
JD Asia Development Limited has 361 subsidiaries holding, directly or indirectly, logistics properties. |
(3) |
Jingdong 360, Jiangsu Yuanzhou, Xi’an Jingdong Xincheng, Jiangsu Jingdong Bangneng and Suqian Juhe are our significant consolidated variable interest entities. Each of these entities is 45% owned by Mr. Richard Qiangdong Liu, our chairman of board of directors, 30% owned by Ms. Yayun Li, chief executive officer of JD Technology, a significant investee of our company, and 25% owned by Ms. Pang Zhang, our chief human resources officer. We effectively control these entities through contractual arrangements. Jiangsu Jingdong Bangneng owns Suqian Jingdong Sanhong Enterprise Management Center (L.P.), Suqian Jingdong Mingfeng Enterprise Management Co., Ltd., and Suqian Jingdong Jinyi Enterprise Management Co., Ltd., each of which constitutes a significant subsidiary of Jiangsu Jingdong Bangneng. |
(4) |
Jingdong Century has 187 subsidiaries that engage in retail business. |
(5) |
JD.com Investment Limited has 75 subsidiaries that hold, directly or indirectly, the companies invested by us. |
• | exercise effective control over our variable interest entities; |
• | receive substantially all of the economic benefits of our variable interest entities; and |
• | have an exclusive option to purchase all or part of the equity interests in our variable interest entities when and to the extent permitted by PRC law. |
• | the ownership structures of our variable interest entities and the PRC subsidiaries that have entered into contractual arrangements with the variable interest entities, including Jingdong Century, will not result in any violation of PRC laws or regulations currently in effect; and |
• | the contractual arrangements among the PRC subsidiaries, including Jingdong Century, the variable interest entities and their respective shareholders governed by PRC law are valid, binding and enforceable, and will not result in any violation of PRC laws or regulations currently in effect. |
Item 4A. |
Unresolved Staff Comments |
Item 5. |
Operating and Financial Review and Prospects |
• | our ability to increase active customer accounts and customer purchases; |
• | our ability to manage our mix of product and service offerings; |
• | our ability to further increase and leverage our scale of business; |
• | our ability to effectively invest in our fulfillment infrastructure and technology platform; and |
• | our ability to conduct and manage strategic investments and acquisitions. |
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in millions, except for percentages) |
||||||||||||||||||||||||||||
Electronics and home appliances revenues |
328,703 | 57.0 | 400,927 | 53.8 | 492,592 | 77,298 | 51.8 | |||||||||||||||||||||
General merchandise revenues |
182,031 | 31.5 | 250,952 | 33.6 | 323,063 | 50,696 | 33.9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net product revenues |
510,734 | 88.5 | 651,879 | 87.4 | 815,655 | 127,994 | 85.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Marketplace and marketing revenues |
42,680 | 7.4 | 53,473 | 7.2 | 72,118 | 11,317 | 7.6 | |||||||||||||||||||||
Logistics and other service revenues |
23,474 | 4.1 | 40,450 | 5.4 | 63,819 | 10,015 | 6.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net service revenues |
66,154 | 11.5 | 93,923 | 12.6 | 135,937 | 21,332 | 14.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total net revenues |
576,888 | 100.0 | 745,802 | 100.0 | 951,592 | 149,326 | 100.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in millions, except for percentages) |
||||||||||||||||||||||||||||
Net revenues: |
||||||||||||||||||||||||||||
Net product revenues |
510,734 | 88.5 | 651,879 | 87.4 | 815,655 | 127,994 | 85.7 | |||||||||||||||||||||
Net service revenues |
66,154 | 11.5 | 93,923 | 12.6 | 135,937 | 21,332 | 14.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total net revenues |
576,888 | 100.0 | 745,802 | 100.0 | 951,592 | 149,326 | 100.0 | |||||||||||||||||||||
Cost of revenues |
(492,467 | ) | (85.4 | ) | (636,694 | ) | (85.4 | ) | (822,526 | ) | (129,072 | ) | (86.4 | ) | ||||||||||||||
Fulfillment |
(36,968 | ) | (6.4 | ) | (48,700 | ) | (6.5 | ) | (59,055 | ) | (9,267 | ) | (6.2 | ) | ||||||||||||||
Marketing |
(22,234 | ) | (3.8 | ) | (27,156 | ) | (3.6 | ) | (38,743 | ) | (6,080 | ) | (4.1 | ) | ||||||||||||||
Research and development |
(14,619 | ) | (2.5 | ) | (16,149 | ) | (2.2 | ) | (16,332 | ) | (2,563 | ) | (1.7 | ) | ||||||||||||||
General and administrative |
(5,490 | ) | (1.0 | ) | (6,409 | ) | (0.9 | ) | (11,562 | ) | (1,814 | ) | (1.2 | ) | ||||||||||||||
Gain on sale of development properties |
3,885 | 0.7 | 1,649 | 0.2 | 767 | 120 | 0.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income from operations |
8,995 | 1.6 | 12,343 | 1.6 | 4,141 | 650 | 0.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other income/(expense): |
||||||||||||||||||||||||||||
Share of results of equity investees |
(1,738 | ) | (0.3 | ) | 4,291 | 0.6 | (4,918 | ) | (772 | ) | (0.5 | ) | ||||||||||||||||
Interest expense |
(725 | ) | (0.1 | ) | (1,125 | ) | (0.2 | ) | (1,213 | ) | (190 | ) | (0.1 | ) | ||||||||||||||
Others, net |
7,161 | 1.2 | 35,310 | 4.8 | (590 | ) | (93 | ) | (0.1 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income/(loss) before tax |
13,693 | 2.4 | 50,819 | 6.8 | (2,580 | ) | (405 | ) | (0.3 | ) | ||||||||||||||||||
Income tax expenses |
(1,803 | ) | (0.3 | ) | (1,482 | ) | (0.2 | ) | (1,887 | ) | (296 | ) | (0.2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income/(loss) |
11,890 | 2.1 | 49,337 | 6.6 | (4,467 | ) | (701 | ) | (0.5 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in millions) |
||||||||||||||||
Net revenues: |
||||||||||||||||
JD Retail |
545,281 | 693,965 | 866,303 | 135,942 | ||||||||||||
JD Logistics |
49,848 | 73,375 | 104,693 | 16,429 | ||||||||||||
New Businesses |
11,740 | 17,601 | 26,063 | 4,090 | ||||||||||||
Inter-segment* |
(31,127 | ) | (39,945 | ) | (46,043 | ) | (7,225 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total segment net revenues |
575,742 | 744,996 | 951,016 | 149,236 | ||||||||||||
Unallocated items** |
1,146 | 806 | 576 | 90 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total consolidated net revenues |
576,888 | 745,802 | 951,592 | 149,326 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income/(loss): |
||||||||||||||||
JD Retail |
14,991 | 20,611 | 26,613 | 4,176 | ||||||||||||
JD Logistics |
(508 | ) | 1,098 | (1,827 | ) | (287 | ) | |||||||||
New Businesses |
(1,730 | ) | (4,723 | ) | (10,600 | ) | (1,663 | ) | ||||||||
Including: gain on sale of development properties |
3,885 | 1,649 | 767 | 120 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total segment operating income |
12,753 | 16,986 | 14,186 | 2,226 | ||||||||||||
Unallocated items** |
(3,758 | ) | (4,643 | ) | (10,045 | ) | (1,576 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total consolidated operating income |
8,995 | 12,343 | 4,141 | 650 | ||||||||||||
|
|
|
|
|
|
|
|
* | The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics services provided by JD Logistics to JD Retail, and property leasing services provided by JD Property to JD Logistics. |
** | Unallocated items include share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, and impairment of goodwill and intangible assets, which are not allocated to segments. |
B. |
Liquidity and Capital Resources |
• | In April 2016, we issued an aggregate of US$500 million unsecured senior notes due 2021, with stated annual interest rate of 3.125%, and an aggregate of US$500 million unsecured senior notes due 2026, with stated annual interest rate of 3.875%. The net proceeds from the sale of these notes were used for general corporate purposes. As of December 31, 2021, the notes due 2021 were paid off, and the carrying value and estimated fair value of the notes due 2026 were US$494.6 million and US$536.1 million, respectively. The estimated fair values were based on quoted prices for our publicly traded debt securities as of December 31, 2021. The unsecured senior notes contain covenants including, among others, limitation on liens, and restriction on consolidation, merger and sale of all or substantially all of our assets. We are in compliance with all the covenants. During 2021, we paid an aggregate of US$27.2 million in interest payments related to these notes. |
• | In December 2017, we entered into a five-year US$1.0 billion term and revolving credit facility with a group of 24 arrangers. The facility was priced at 115 basis points over LIBOR. The use of proceeds of this facility was intended for general corporate purposes. As of the date of this annual report, US$0.45 billion of this facility was drawn down and outstanding. |
• | In January 2020, we issued an aggregate of US$700 million senior unsecured notes due 2030, with stated annual interest rate of 3.375%, and an aggregate of US$300 million senior unsecured notes due 2050, with stated annual interest rate of 4.125%. The net proceeds from the sale of these notes are used for general corporate purposes and refinancing. As of December 31, 2021, the total carrying value and estimated fair value were US$690.5 million and US$726.7 million, respectively, with respect to the notes due 2030, and US$287.1 million and US$308.8 million, respectively, with respect to the notes due 2050. The estimated fair values were based on quoted prices for our publicly traded debt securities as of December 31, 2021. The unsecured senior notes contain covenants including, among others, limitation on liens, and restriction on consolidation, merger and sale of all or substantially all of our assets. We are in compliance with all the covenants. During 2021, we paid an aggregate of US$36.0 million in interest payments related to these notes. |
• | In June 2020, our Class A ordinary shares commenced trading on the Main Board of the Hong Kong Stock Exchange under the stock code “9618.” We raised from our global offering in connection with the listing in Hong Kong approximately RMB31.3 billion (US$4.8 billion) in net proceeds after deducting underwriting commissions, share issuance costs and the offering expenses. |
• | In December 2021, we entered into a five-year US$2.0 billion unsecured term and revolving loan facility with five lead arrangers. This loan facility is our first green loan facility. The term and revolving loans under this facility are priced at 85 basis points over LIBOR. As of the date of this annual report, none of this loan facility was drawn down and outstanding. We intend to use the proceeds from this loan facility to (i) finance or refinance in whole or in part, one or more of its new or existing eligible green projects and/or (ii) general corporate purposes. |
• | In May 2021, shares of JD Logistics commenced trading on the Main Board of the Hong Kong Stock Exchange under the stock code “2618.” JD Logistics raised from the global offering in connection with the listing in Hong Kong approximately RMB22.9 billion (US$3.6 billion) in net proceeds after deducting underwriting commissions, share issuance costs and the offering expenses. |
• | In November 2019, our healthcare subsidiary, JD Health, completed the non-redeemable series A preference share financing with a group of third-party investors. The total amount of financing raised was US$931 million, representing 13.5% of the ownership of JD Health on a fully diluted basis upon the completion of this transaction. |
• | In August 2020, JD Health completed the non-redeemable series B preference share financing with a group of third-party investors. The total amount of financing raised was US$914 million, representing 4.5% of the ownership of JD Health on a fully diluted basis. |
• | In December 2020, shares of JD Health, commenced trading on the Main Board of the Hong Kong Stock Exchange under the stock code “6618.” JD Health raised from its global offering in connection with the listing in Hong Kong approximately RMB25.7 billion (US$3.9 billion) in net proceeds after deducting underwriting commissions, share issuance costs and the offering expenses. |
• | In March 2021, JD Property entered into definitive agreements for the non-redeemable series A preference share financing with co-lead investors Hillhouse Investment and Warburg Pincus, among others. The total amount raised was US$703 million. We remained the majority shareholder of JD Property after the completion of this transaction. |
• | In March 2022, JD Property entered into definitive agreements for its non-redeemable series B preferred share financing with investors led by Hillhouse Investment, Warburg Pincus, and one leading global institutional investor, among others. The total amount raised in this round is expected to be approximately US$800 million. The transaction is subject to customary closing conditions. We will remain the majority shareholder of JD Property after the completion of this transaction. |
• | In April and December 2020, JD Industry entered into definitive agreements for non-redeemable series A and series A-1 preference share financing with a group of third-party investors. The total amount of financing arising was approximately US$335 million. Upon completion of such financing, we still hold more than 80% of the issued and outstanding shares of JD Industry. |
• | In July 2021, Jingdong Century, one of our subsidiaries, issued a one-year corporate bond of RMB1.5 billion (US$0.2 billion), with fixed interest rate of 2.8%. |
For the Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in millions) |
||||||||||||||||
Summary Consolidated Cash Flows Data: |
||||||||||||||||
Net cash provided by operating activities |
24,781 | 42,544 | 42,301 | 6,638 | ||||||||||||
Net cash used in investing activities |
(25,349 | ) | (57,811 | ) | (74,248 | ) | (11,651 | ) | ||||||||
Net cash provided by financing activities |
2,572 | 71,072 | 19,503 | 3,060 | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
406 | (5,082 | ) | (1,498 | ) | (235 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash |
2,410 | 50,723 | (13,942 | ) | (2,188 | ) | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of year, including cash and cash equivalents classified within assets held for sale |
37,502 | 39,912 | 90,635 | 14,223 | ||||||||||||
Less: cash, cash equivalents, and restricted cash classified within assets held for sale at beginning of year |
— | — | 116 | 18 | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of year |
37,502 | 39,912 | 90,519 | 14,205 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents and restricted cash at end of year, including cash and cash equivalents classified within assets held for sale |
39,912 | 90,635 | 76,693 | 12,035 | ||||||||||||
Less: cash, cash equivalents and restricted cash classified within assets held for sale at end of year |
— | 116 | — | — | ||||||||||||
Cash, cash equivalents and restricted cash at end of year |
39,912 | 90,519 | 76,693 | 12,035 | ||||||||||||
|
|
|
|
|
|
|
|
Payment Due by Period |
||||||||||||||||||||
Total |
Less than 1 year |
1-3 years |
3-5 years |
More than 5 years |
||||||||||||||||
(RMB in millions) |
||||||||||||||||||||
Operating lease commitments for offices and fulfillment infrastructures |
23,562 | 6,778 | 8,145 | 3,796 | 4,843 | |||||||||||||||
Commitments for internet data center service fee |
5,498 | 958 | 1,596 | 681 | 2,263 | |||||||||||||||
Capital commitments (1) |
10,207 | 10,207 | — | — | — | |||||||||||||||
Long-term debt obligations (2) |
12,255 | 2,869 | — | 3,154 | 6,232 | |||||||||||||||
Estimated interest payments in relation to long-term debt (2) |
4,165 | 434 | 706 | 644 | 2,381 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
55,687 | 21,246 | 10,447 | 8,275 | 15,719 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Our capital commitments primarily relate to commitments on construction of office buildings and warehouses, and are expected to be paid in the following years according to the construction progress. |
(2) | Our long-term debt obligations are mainly unsecured senior notes and long-term borrowings, including the portion due within one year. |
Item 6. |
Directors, Senior Management and Employees |
Directors and Executive Officers |
Age |
Position/Title | ||||
Richard Qiangdong Liu |
49 | Chairman of the Board of Directors | ||||
Lei Xu |
47 | Director and Chief Executive Officer | ||||
Ming Huang |
58 | Independent Director | ||||
Louis T. Hsieh |
57 | Independent Director | ||||
Dingbo Xu |
59 | Independent Director | ||||
Caroline Scheufele |
60 | Independent Director | ||||
Sandy Ran Xu |
45 | Chief Financial Officer | ||||
Pang Zhang |
33 | Chief Human Resources Officer |
• | appointing the independent auditors and pre-approvingall auditing and non-auditing services permitted to be performed by the independent auditors; |
• | reviewing with the independent auditors any audit problems or difficulties and management’s response; |
• | discussing the annual audited financial statements with management and the independent auditors; |
• | reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; |
• | reviewing and approving all proposed related party transactions; |
• | meeting separately and periodically with management and the independent auditors; and |
• | monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. |
• | reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers; |
• | reviewing and recommending to the board for determination with respect to the compensation of our non-employee directors; |
• | reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements; and |
• | selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person’s independence from management. |
• | selecting and recommending to the board nominees for election by the shareholders or appointment by the board; |
• | reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity; |
• | making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and |
• | advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken. |
Board Diversity Matrix |
||||||||||||||||
Country of Principal Executive Offices: |
People’s Republic of China | |||||||||||||||
Foreign Private Issuer |
Yes | |||||||||||||||
Disclosure Prohibited Under Home Country Law |
No | |||||||||||||||
Total Number of Directors |
6 | |||||||||||||||
Female |
Male |
Non- Binary |
Did Not Disclose Gender |
|||||||||||||
Part I: Gender Identity |
| |||||||||||||||
Directors |
1 | 5 | N/A | N/A | ||||||||||||
Part II: Demographic Background |
| |||||||||||||||
Underrepresented Individual in Home Country Jurisdiction |
— | |||||||||||||||
LGBTQ+ |
— | |||||||||||||||
Did Not Disclose Demographic Background |
1 |
D. |
Employees |
Function |
Number |
|||
Procurement |
26,376 | |||
Warehouses |
74,176 | |||
Delivery |
224,541 | |||
Customer Service |
23,331 | |||
Research and Development |
16,828 | |||
Sales and Marketing |
12,525 | |||
General and Administrative |
7,580 | |||
|
|
|||
TOTAL |
385,357 |
* | The number of employees shown above excludes part-time staff and interns. |
E. |
Share Ownership |
• | each of our directors and executive officers; and |
• | each person known to us to own beneficially more than 5% of our total outstanding shares. |
Class A Ordinary Shares |
Class B Ordinary Shares |
Total Ordinary Shares |
% of Total Ordinary Shares |
% of Aggregate Voting Power |
||||||||||||||||
Directors and Executive Officers: |
||||||||||||||||||||
Richard Qiangdong Liu |
25,174,550 | (1) |
408,007,423 | (1) |
433,181,973 | (1) |
13.8 | (1) |
76.1 | (2) | ||||||||||
Lei Xu |
* | — | * | * | * | |||||||||||||||
Ming Huang (3) |
* | — | * | * | * | |||||||||||||||
Louis T. Hsieh (4) |
* | — | * | * | * | |||||||||||||||
Dingbo Xu (5) |
* | — | * | * | * | |||||||||||||||
Caroline Scheufele (6) |
* | — | * | * | * | |||||||||||||||
Sandy Ran Xu |
* | — | * | * | * | |||||||||||||||
Pang Zhang |
* | — | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group |
26,259,626 | 408,007,423 | 434,267,049 | 13.8 | 76.1 | (2) | ||||||||||||||
Principal Shareholders: |
||||||||||||||||||||
Max Smart Limited (7) |
6,974,550 | 408,007,423 | 414,981,973 | 13.3 | 72.6 | |||||||||||||||
Walmart (8) |
289,053,746 | — | 289,053,746 | 9.3 | 2.6 | |||||||||||||||
Fortune Rising Holdings Limited (9) |
— | 19,873,672 | 19,873,672 | 0.6 | 3.5 |
* | Less than 1% of our total outstanding ordinary shares. |
** | Except for Mr. Ming Huang, Mr. Louis T. Hsieh, Mr. Dingbo Xu and Ms. Caroline Scheufele, the business address of our directors and executive officers is JD national headquarters at No. 18 Kechuang 11 Street, Yizhuang Economic and Technological Development Zone, Daxing District, Beijing 101111, P.R. China. |
(1) | Represents (i) 408,007,423 Class B ordinary shares directly held by Max Smart Limited, (ii) 3,487,275 ADSs, representing 6,974,550 Class A ordinary shares, held by Max Smart Limited, and (iii) 18,200,000 Class A ordinary shares that Mr. Liu had the right to acquire upon exercise of options that shall have become vested within 60 days after March 31, 2022. As of March 31, 2022, Mr. Liu has not exercised his right to acquire such Class A ordinary shares. Max Smart Limited is a British Virgin Islands company beneficially owned by Mr. Richard Qiangdong Liu through a trust and of which Mr. Richard Qiangdong Liu is the sole director, as described in footnote (7) below. The ordinary shares beneficially owned by Mr. Liu do not include 19,873,672 Class B ordinary shares held by Fortune Rising Holdings Limited, a British Virgin Islands company, as described in footnote (9) below. Mr. Liu will donate 62,376,643 Class B ordinary shares of the Company to a third-party foundation for charitable purposes. Assuming the donation had been completed as of March 31, 2022, Mr. Liu would have beneficially owned a total of 370,805,330 ordinary shares, representing 11.8% of our total outstanding ordinary shares, and the voting power of the shares beneficially owned represented 72.7% of the total outstanding voting power. |
(2) | The aggregate voting power includes the voting power with respect to the 19,873,672 Class B ordinary shares held by Fortune Rising Holdings Limited. Mr. Richard Qiangdong Liu is the sole shareholder and the sole director of Fortune Rising Holdings Limited and he may be deemed to beneficially own the voting power with respect to all of the ordinary shares held by Fortune Rising Holdings Limited in accordance with the rules and regulations of the SEC, notwithstanding the facts described in footnote (9) below. |
(3) | The business address of Mr. Huang is China Europe International Business School, 699 Hongfeng Road, Pudong District, Shanghai 201206, China. |
(4) | The business address of Mr. Hsieh is Tower 2,37-B, I Austin Road West, Kowloon, Hong Kong. |
(5) | The business address of Professor Xu is China Europe International Business School, 699 Hongfeng Road, Pudong, Shanghai 201206, China. |
(6) | The business address of Ms. Scheufele is Chopard & Cie SA, Rue de Veyrot 8, 1217 Meyrin, Switzerland. |
(7) | Represents (i) 408,007,423 Class B ordinary shares directly held by Max Smart Limited and (ii) 3,487,275 ADSs, representing 6,974,550 Class A ordinary shares, held by Max Smart Limited. Max Smart Limited is a British Virgin Islands company beneficially owned by Mr. Richard Qiangdong Liu through a trust and of which Mr. Richard Qiangdong Liu is the sole director. The registered address of Max Smart Limited is P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. |
(8) | Based on the information provided by Walmart, represents (i) 144,952,250 Class A ordinary shares and (ii) 72,050,748 ADSs, representing 144,101,496 Class A ordinary shares, owned jointly by (i) Walmart, a corporation organized under the laws of the State of Delaware, (ii) Newheight Holdings Ltd., or Newheight, a company organized under the laws of the Cayman Islands, and (iii) Qomolangma Holdings Ltd., or Qomolangma, a company organized under the laws of the Cayman Islands. Walmart wholly owns each of Qomolangma and Newheight indirectly through a number of other wholly-owned subsidiaries. Newheight is a wholly-owned subsidiary of Qomolangma. The address of the principal business office of Walmart is 702 S.W. Eighth Street, Bentonville, Arkansas 72716. The address of the principal business office of Newheight is PO Box 472, 2nd Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman KY1-1106, Cayman Islands. The address of the principal business office of Qomolangma is 190 Elgin Avenue, George Town, Grand Cayman KY1-9005, Cayman Islands. |
(9) | Represents 19,873,672 Class B ordinary shares held by Fortune Rising Holdings Limited. Fortune Rising Holdings Limited holds these Class B ordinary shares for the purpose of transferring such shares to the plan participants according to our awards under our Share Incentive Plan, and administers the awards and acts according to our instruction. Fortune Rising Holdings Limited exercises the voting power with respect to these shares according to our instruction. Fortune Rising Holdings Limited is a company incorporated in the British Virgin Islands. Mr. Richard Qiangdong Liu is the sole shareholder and the sole director of Fortune Rising Holdings Limited. The registered address of Fortune Rising Holdings Limited is P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. |
Item 7. |
Major Shareholders and Related Party Transactions |
A. |
Major Shareholders |
B. |
Related Party Transactions |
C. |
Interests of Experts and Counsel |
Item 8. |
Financial Information |
A. |
Consolidated Statements and Other Financial Information |
B. |
Significant Changes |
Item 9. |
The Offer and Listing |
A. |
Offering and Listing Details |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
Item 10. |
Additional Information |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
• | authorize our board of directors to issue preference shares in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preference shares without any further vote or action by our shareholders; and |
• | limit the ability of shareholders to requisition and convene general meetings of shareholders. |
• | the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer; |
• | the instrument of transfer is in respect of only one class of shares; |
• | the instrument of transfer is properly stamped, if required; |
• | the ordinary shares transferred are free of any lien in favor of us; |
• | any fee related to the transfer has been paid to us; or |
• | in the case of a transfer to joint holders, the transfer is not to more than four joint holders. |
• | the designation of the series; |
• | the number of shares of the series; |
• | the dividend rights, dividend rates, conversion rights, voting rights; and |
• | the rights and terms of redemption and liquidation preferences. |
• | an exempted company does not have to file an annual return of its shareholders with the Registrar of Companies; |
• | an exempted company’s register of members is not required to be open to inspection; |
• | an exempted company does not have to hold an annual general meeting; |
• | an exempted company may issue no par value, negotiable or bearer shares; |
• | an exempted company may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance); |
• | an exempted company may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands; |
• | an exempted company may register as a limited duration company; and |
• | an exempted company may register as a segregated portfolio company. |
• | the names and addresses of our members, together with a statement of the shares held by each member, and such statement shall confirm (i) the amount paid or agreed to be considered as paid, on the shares of each member, (ii) the number and category of shares held by each member, and (iii) whether each relevant category of shares held by a member carries voting rights under the articles of association of the company, and if so, whether such voting rights are conditional; |
• | the date on which the name of any person was entered on the register as a member; and |
• | the date on which any person ceased to be a member. |
C. |
Material Contracts |
• | Observer right non-voting observer capacity; |
• | Registration rights F-3 registration rights under the investor rights agreement with respect to their registrable securities, including ordinary shares issued under the share subscription agreement; |
• | Preemptive rights with respect to share issuance |
• | Transfer restrictions lock-up, standstill, rights of first refusal and other transfer restrictions provided in the investor rights agreement. |
D. |
Exchange Controls |
E. |
Taxation |
• | the excess distribution or gain will be allocated ratably over the U.S. Holder’s holding period for the ADSs or ordinary shares; |
• | amounts allocated to the current taxable year and any taxable years in a U.S. Holder’s holding period prior to the first taxable year in which we are classified as a PFIC (a “pre-PFIC year”) will be taxable as ordinary income; and |
• | amounts allocated to each prior taxable year, other than the current taxable year or a pre-PFIC year, will be subject to tax at the highest tax rate in effect applicable to such U.S. Holder for that year, and such amounts will be increased by an additional tax equal to interest on the resulting tax deemed deferred with respect to such years. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
Item 11. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 12. |
Description of Securities Other than Equity Securities |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
• | directly, by having a certificated ADS, or an ADR, registered in the holder’s name, or by holding in the direct registration system, pursuant to which the depositary may register the ownership of uncertificated ADSs, which ownership shall be evidenced by periodic statements issued by the depositary to the ADS holders entitled thereto; or |
• | indirectly, through the holder’s broker or other financial institution. |
Service |
Fees | |
• to any person to whom ADSs are issued or to any person to whom a distribution is made in respect of ADS distributions pursuant to stock dividends or other free distributions of stock, bonus distributions, stock splits or other distributions (except where converted to cash) |
Up to US$0.05 per ADS issued | |
• Surrendering ADSs for cancellation and withdrawal of deposited securities |
Up to US$0.05 per ADS surrendered | |
• Distribution of cash dividends |
Up to US$0.05 per ADS held | |
• Distribution of cash entitlements (other than cash dividends) and/or cash proceeds, including proceeds from the sale of rights, securities and other entitlements |
Up to US$0.05 per ADS held | |
• Distribution of ADSs pursuant to exercise of rights |
Up to US$0.05 per ADS held | |
• Operation and maintenance costs |
Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary bank |
• | Fees for the transfer and registration of ordinary shares charged by the registrar and transfer agent for the ordinary shares in the Cayman Islands (i.e., upon deposit and withdrawal of ordinary shares). |
• | Expenses incurred for converting foreign currency into U.S. dollars. |
• | Expenses for cable, telex, fax and electronic transmissions and for delivery of securities. |
• | Taxes and duties upon the transfer of securities, including any applicable stamp duties, any stock transfer charges or withholding taxes (i.e., when ordinary shares are deposited or withdrawn from deposit). |
• | Fees and expenses incurred in connection with the delivery of ordinary shares on deposit or the servicing of ordinary shares, deposited securities and/or ADSs. |
• | Fees and expenses incurred in connection with complying with exchange control regulations and other regulatory requirements applicable to ordinary shares, deposited securities, ADSs and ADRs. |
• | Hong Kong Stock Exchange trading fee of 0.005% of the consideration of the transaction, charged to each of the buyer and seller; |
• | Securities and Futures Commission of Hong Kong, or SFC, transaction levy of 0.0027% of the consideration of the transaction, charged to each of the buyer and seller; |
• | trading tariff of HK$0.50 on each and every purchase or sale transaction. The decision on whether or not to pass the trading tariff onto investors is at the discretion of brokers; |
• | transfer deed stamp duty of HK$5.00 per transfer deed (if applicable), payable by the seller; |
• | ad valorem stamp duty at a total rate of 0.2% of the value of the transaction, with 0.1% payable by each of the buyer and the seller; |
• | stock settlement fee, which is currently 0.002% of the gross transaction value, subject to a minimum fee of HK$2.00 and a maximum fee of HK$100.00 per side per trade; |
• | brokerage commission, which is freely negotiable with the broker (other than brokerage commissions for IPO transactions which are currently set at 1% of the subscription or purchase price and will be payable by the person subscribing for or purchasing the securities); and |
• | the Hong Kong Share Registrar will charge between HK$2.50 to HK$20.00, depending on the speed of service (or such higher fee as may from time to time be permitted under the Hong Kong Listing Rules), for each transfer of ordinary shares from one registered owner to another, each share certificate canceled or issued by it and any applicable fee as stated in the share transfer forms used in Hong Kong. |
• | If Class A ordinary shares have been deposited with CCASS, the investor must transfer Class A ordinary shares to the depositary’s account with the custodian within CCASS by following the CCASS procedures for transfer and submit and deliver a duly completed and signed letter of transmittal to the custodian via his or her broker. |
• | If Class A ordinary shares are held outside CCASS, the investor must arrange to deposit his or her Class A ordinary shares into CCASS for delivery to the depositary’s account with the custodian within CCASS, submit and deliver a duly completed and signed letter of transmittal to the custodian via his or her broker. |
• | Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, if applicable, and subject in all cases to the terms of the deposit agreement, the depositary will issue the corresponding number of ADSs in the name(s) requested by an investor and will deliver the ADSs to the designated DTC account of the person(s) designated by an investor or his or her broker. |
• | To withdraw Class A ordinary shares from our ADS program, an investor who holds ADSs may turn in such ADSs at the office of the depositary (and the applicable ADR(s) if the ADSs are held in certificated form), and send an instruction to cancel such ADSs to the depositary. |
• | Upon payment or net of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, if applicable, and subject in all cases to the terms of the deposit agreement, the depositary will instruct the custodian to deliver Class A ordinary shares underlying the canceled ADSs to the CCASS account designated by an investor. |
• | If an investor prefers to receive Class A ordinary shares outside CCASS, he or she must receive Class A ordinary shares in CCASS first and then arrange for withdrawal from CCASS. Investors can then obtain a transfer form signed by HKSCC Nominees Limited (as the transferor) and register ordinary shares in their own names with the Hong Kong Share Registrar. |
• | production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and |
• | compliance with procedures it may establish, from time to time, consistent with the deposit agreement, including, but not limited to, presentation of transfer documents. |
Item 13. |
Defaults, Dividend Arrearages and Delinquencies |
Item 14. |
Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. |
Controls and Procedures |
Item 16A. |
Audit Committee Financial Expert |
Item 16B. |
Code of Ethics |
Item 16C. |
Principal Accountant Fees and Services |
For the year ended December 31, |
||||||||||||||||
2020 |
2021 |
|||||||||||||||
Audit fees (2) |
US$ | 2,880,000 | US$ | 3,230 ,000 |
||||||||||||
Audit-related fees (3) |
US$ | 4,922,594 | US$ | 5,675,140 | ||||||||||||
Tax fees (4) |
US$ | 475,053 | US$ | 268,987 | ||||||||||||
All other fees (5) |
US$ | 503,442 | US$ | 174,044 |
(1) | We engaged 20-F, and Deloitte Touche Tohmatsu in Hong Kong as external auditor for our HK annual report. Deloitte Touche Tohmatsu Certified Public Accountants LLP’s PCAOB ID is |
(2) | “Audit fees” means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal auditors for the audit of our annual financial statements and assistance with and review of documents filed with the SEC. In 2020 and 2021, the audit refers to financial audit and audit pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. |
(3) | “Audit-related fees” means fees billed in each of the fiscal years listed for the issue of comfort letter, rendering of listing advice and other audit-related services to the company, including its consolidated subsidiaries. |
(4) | “Tax Fees” means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal auditors for tax compliance, tax advice and tax planning. |
(5) | “All other fees” means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal auditors associated with certain financial due diligence projects, permissible services to review and comment on internal control design over financial reporting and other advisory services. |
Item 16D. |
Exemptions from the Listing Standards for Audit Committees |
Item 16E. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Period |
Total Number of ADSs Purchased |
Average Price Paid Per ADS |
Total Number of ADSs Purchased as Part of the Publicly Announced Plan |
Approximate Dollar Value of ADSs that May Yet Be Purchased Under the Plan* |
||||||||||||
March 17, 2020 — March 31, 2020 |
1,191,370 | 37.04 | 1,191,370 | 2,955,868,397 | ||||||||||||
March 1, 2021 — March 31, 2021 |
7,583,810 | 82.52 | 7,583,810 | 2,330,029,654 | ||||||||||||
May 1, 2021 — May 31, 2021 |
2,607,401 | 68.51 | 2,607,401 | 2,151,387,896 | ||||||||||||
July 1, 2021 — July 31, 2021 |
23,616 | 69.94 | 23,616 | 2,149,736,231 | ||||||||||||
March 1, 2022 — March 31, 2022 |
533,072 | 57.63 | 533,072 | 2,119,017,691 | ||||||||||||
April 1, 2022 — April 28, 2022 |
4,477,131 | 57.08 | 4,477,131 | 1,863,474,190 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
16,416,400 |
69.23 |
16,416,400 |
1,863,474,190 |
||||||||||||
|
|
|
|
|
|
|
|
* | The dollar value in this column is based on US$3.0 billion after the adjustment of repurchase authorization. |
Item 16F. |
Change in Registrant’s Certifying Accountant |
Item 16G. |
Corporate Governance |
Item 16H. |
Mine Safety Disclosure |
Item 16I. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 17. |
Financial Statements |
Item 18. |
Financial Statements |
Item 19. |
Exhibits |
Exhibit Number |
Description of Document | |
4.19 | • Schedule A of this exhibit includes information about the business cooperation agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.20 | • Schedule A of this exhibit includes information about the exclusive option agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.21 | • Schedule A of this exhibit includes information about the loan agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.22 | • Schedule A of this exhibit includes information about the shareholders’ rights entrustment agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.23 | • Schedule A of this exhibit includes information about the power of attorney substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.24 | • Schedule A of this exhibit includes information about the equity pledge agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant |
Exhibit Number |
Description of Document | |
4.25* | • Schedule A of this exhibit includes information about the equity pledge agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.26* | • Schedule A of this exhibit includes information about the power of attorney substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.27* | • Schedule A of this exhibit includes information about the exclusive technology consulting and service agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.28* | • Schedule A of this exhibit includes information about the business operations agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.29* | • Schedule A of this exhibit includes information about the exclusive purchase option agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.30* | • Schedule A of this exhibit includes information about the loan agreements substantially in form as this exhibit that the Registrant entered into with certain other Chinese variable interest entities of the Registrant | |
4.31 | Investor Rights Agreement between the Registrant and Newheight Holdings Ltd., dated June 20, 2016 (incorporated herein by reference to Exhibit 4.35 to the annual report on Form 20-F filed by the Registrant with the Securities and Exchange Commission on May 1, 2017) | |
4.32 | Investor Rights Agreement by and among Vipshop Holdings Limited, Windcreek Limited, Tencent Mobility Limited and other parties listed therein, dated December 29, 2017 (incorporated herein by reference to Exhibit 99.4 to our report on Schedule 13D filed with the Securities and Exchange Commission with respect to Vipshop Holdings Limited on January 8, 2018) |
Exhibit Number |
Description of Document | |
13.2** | Certification by Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
15.1* | Consent of Deloitte Touche Tohmatsu Certified Public Accountants LLP | |
15.2* | Consent of Shihui Partners | |
101.INS* | Inline XBRL Instance Document—this instance document does not appear in the Interactive Data File because its XBRL tags are not embedded within the Inline XBRL document | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
** | Furnished herewith |
† | Portions of this exhibit have been omitted pursuant to Rule 406 under the Securities Act. |
JD.com, Inc. | ||
By: | /s/ Lei Xu | |
Name: | Lei Xu | |
Title: | Chief Executive Officer |
Page(s) | ||
F-2 ~ F-4 | ||
F-5 ~ F-6 | ||
F-7 ~ F-8 | ||
F-9 ~ F-11 | ||
F-12 ~ F-13 | ||
F-14 ~ F-87 |
• |
We tested the effectiveness of the controls over the estimated net realizable value of inventories, including the review of historical and forecasted consumer demand and the calculation of inventory valuation allowance; |
• |
We evaluated the reasonableness of the valuation methodologies and assumptions applied by management to determine slow-moving and damaged inventories; |
• |
We tested the accuracy and completeness of the underlying data that served as the basis for the calculation of inventory valuation allowance, and the mathematical accuracy of management’s calculation of inventory valuation allowance; |
• |
We performed inquiries with appropriate finance and operations personnel, and reviewed the actual sales subsequent to December 31, 2021 to corroborate management’s quantitative and qualitative judgments applied over the indicators of slow-moving and damaged inventories, and to evaluate the reasonableness of management’s estimate of the impact of interaction among various factors; |
• |
We performed retrospective reviews by comparing subsequent actual inventory write-downs with historical estimates to evaluate management’s ability to perform reasonable estimate of inventory valuation allowance. |
As of December 31, |
||||||||||||||
Notes |
2020 |
2021 |
||||||||||||
RMB |
RMB |
US$ Note 2(g) |
||||||||||||
(in millions, except share and per share data) |
||||||||||||||
ASSETS |
||||||||||||||
Current assets |
||||||||||||||
Cash and cash equivalents |
||||||||||||||
Restricted cash |
4, 5 | |||||||||||||
Short-term investments |
5 | |||||||||||||
Accounts receivable, net |
9 | |||||||||||||
Advance to suppliers |
||||||||||||||
Inventories, net |
10 | |||||||||||||
Prepayments and other current assets |
||||||||||||||
Amount due from related parties |
32 | |||||||||||||
Assets held for sale |
19 | — | — | |||||||||||
|
|
|
|
|
|
|||||||||
Total current assets |
||||||||||||||
Non-current assets |
||||||||||||||
Property, equipment and software, net |
11 | |||||||||||||
Construction in progress |
2(o) | |||||||||||||
Intangible assets, net |
13 | |||||||||||||
Land use rights, net |
12 | |||||||||||||
Operating lease right-of-use |
18 | |||||||||||||
Goodwill |
14 | |||||||||||||
Investment in equity investees |
8 | |||||||||||||
Investment securities |
5 | |||||||||||||
Deferred tax assets |
22 | |||||||||||||
Other non-current assets |
||||||||||||||
Amount due from related parties |
32 | |||||||||||||
Assets held for sale |
19 | — | — | |||||||||||
|
|
|
|
|
|
|||||||||
Total non-current assets |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total assets |
||||||||||||||
|
|
|
|
|
|
As of December 31, |
||||||||||||||
Notes |
2020 |
2021 |
||||||||||||
RMB |
RMB |
US$ Note 2(g) |
||||||||||||
(in millions, except share and per share data) |
||||||||||||||
LIABILITIES |
||||||||||||||
Current liabilities RMB |
||||||||||||||
Short-term debts |
35 | — | ||||||||||||
Accounts payable |
15 | |||||||||||||
Advance from customers |
||||||||||||||
Deferred revenues (including amounts in relation to traffic support, marketing and promotion services to be provided to related parties of RMB million as of December 31, 2020 and 2021, respectively) |
||||||||||||||
Taxes payable |
||||||||||||||
Amount due to related parties |
32 | |||||||||||||
Accrued expenses and other current liabilities |
16 | |||||||||||||
Operating lease liabilities |
18 | |||||||||||||
Unsecured senior notes |
17 | — | — | |||||||||||
Liabilities held for sale |
19 | — | — | |||||||||||
|
|
|
|
|
|
|||||||||
Total current liabilities |
||||||||||||||
Non-current liabilities |
||||||||||||||
Deferred revenues (including amounts in relation to traffic support, marketing and promotion services to be provided to related parties of RMB |
||||||||||||||
Unsecured senior notes |
17 | |||||||||||||
Deferred tax liabilities |
22 | |||||||||||||
Long-term borrowings |
35 | — | — | |||||||||||
Operating lease liabilities |
18 | |||||||||||||
Other non-current liabilities |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total non-current liabilities |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total liabilities |
||||||||||||||
|
|
|
|
|
|
|||||||||
Commitments and contingencies |
36 | |||||||||||||
MEZZANINE EQUITY |
||||||||||||||
Convertible redeemable non-controlling interests |
23 | |||||||||||||
SHAREHOLDERS’ EQUITY: |
||||||||||||||
JD.com, Inc. shareholders’ equity |
||||||||||||||
Ordinary shares (US$ |
2 7 |
* |
* |
* | ||||||||||
Additional paid-in capital |
||||||||||||||
Statutory reserves |
2(oo) | |||||||||||||
Treasury stock |
( |
) | ( |
) | ( |
) | ||||||||
Retained earnings |
||||||||||||||
Accumulated other comprehensive loss |
29 | ( |
) | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||||
Total JD.com, Inc. shareholders’ equity |
||||||||||||||
Non-controlling interests |
2(d) | |||||||||||||
|
|
|
|
|
|
|||||||||
Total shareholders’ equity |
||||||||||||||
|
|
|
|
|
|
|||||||||
Total liabilities, mezzanine equity and shareholders’ equity |
||||||||||||||
|
|
|
|
|
|
* |
Absolute value is less than RMB1 million. |
For the year ended December 31, |
||||||||||||||||||
Notes |
2019 |
2020 |
2021 |
|||||||||||||||
RMB |
RMB |
RMB |
US$ Note 2(g) |
|||||||||||||||
(in millions, except share and per share data) |
||||||||||||||||||
Net revenues |
||||||||||||||||||
Net product revenues |
2(z) | |||||||||||||||||
Net service revenues |
2(z) | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total net revenues |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Cost of revenues |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Fulfillment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Marketing |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Research and development |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
General and administrative |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Gain on sale of development properties |
19 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Income from operations |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Other income/(expense) |
||||||||||||||||||
Share of results of equity investees |
8 | ( |
) | ( |
) | ( |
) | |||||||||||
Interest expense |
20 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Others, net |
21 | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Income/(loss) before tax |
( |
) | ( |
) | ||||||||||||||
Income tax expenses |
22 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net income/(loss) |
( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net loss attributable to non-controlling interests shareholders |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Net income attributable to mezzanine equity classified as non-controlling interests shareholders |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net income/(loss) attributable to ordinary shareholders |
( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||||||
Notes |
2019 |
2020 |
2021 |
|||||||||||||||||
RMB |
RMB |
RMB |
US$ Note 2(g) |
|||||||||||||||||
(in millions, except share and per share data) |
||||||||||||||||||||
Net income/(loss) |
( |
) | ( |
) | ||||||||||||||||
Other comprehensive income/(loss): |
29 | |||||||||||||||||||
Foreign currency translation adjustments |
( |
) | ( |
) | ( |
) | ||||||||||||||
Net change in unrealized gains/(losses) on available-for-sale |
||||||||||||||||||||
Unrealized gains, net of tax |
— | — | ||||||||||||||||||
Reclassification adjustment for gains recorded in net income, net of tax |
( |
) | ( |
) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net unrealized gains/(losses) on available-for-sale |
( |
) | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total other comprehensive income/(loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income/(loss) |
( |
) | ( |
) | ||||||||||||||||
Total comprehensive loss attributable to non-controlling interests shareholders |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Total comprehensive income attributable to mezzanine equity classified as non-controlling interests shareholders |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income /(loss) attributable to ordinary shareholders |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income/(loss) per share |
31 | |||||||||||||||||||
Basic |
||||||||||||||||||||
Net income/(loss) per share |
( |
) | ( |
) | ||||||||||||||||
Diluted |
||||||||||||||||||||
Net income/(loss) per share |
( |
) | ( |
) | ||||||||||||||||
Weighted average number of shares |
||||||||||||||||||||
Basic |
||||||||||||||||||||
Diluted |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Note 2(g) |
||||||||||||||||
(in millions) |
||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income/(loss) |
( |
) | ( |
) | ||||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
Share-based compensation |
||||||||||||||||
Losses from disposal of property, equipment and software |
||||||||||||||||
Gain from extinguishment of debt |
— | ( |
) | — | — | |||||||||||
Deferred income tax |
( |
) | ( |
) | ( |
) | ||||||||||
Amortization of discounts and issuance costs of the unsecured senior notes |
||||||||||||||||
Allowance for doubtful accounts |
||||||||||||||||
Impairment of investments |
||||||||||||||||
Fair value change of long-term investments |
( |
) | ( |
) | ||||||||||||
Gain from business and investment disposals |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Gain on sale of development properties |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Share of results of equity investees |
( |
) | ||||||||||||||
Foreign exchange (gains)/losses |
( |
) | ( |
) | ( |
) | ||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Accounts receivable |
( |
) | ( |
) | ( |
) | ||||||||||
Advance to suppliers |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Inventories |
( |
) | ( |
) | ( |
) | ||||||||||
Prepayments and other current assets |
( |
) | ( |
) | ( |
) | ||||||||||
Amount due from related parties |
( |
) | ( |
) | ( |
) | ||||||||||
Operating lease right-of-use |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other non-current assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Accounts payable |
||||||||||||||||
Advance from customers |
||||||||||||||||
Deferred revenues |
( |
) | ( |
) | ( |
) | ||||||||||
Taxes payable |
( |
) | ( |
) | ||||||||||||
Amount due to related parties |
( |
) | ( |
) | ||||||||||||
Accrued expenses and other current liabilities |
||||||||||||||||
Operating lease liabilities |
||||||||||||||||
Other non-current liabilities |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities |
||||||||||||||||
|
|
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Note 2(g) |
||||||||||||||||
(in millions) |
||||||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Purchase of short-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Maturity of short-term investments |
||||||||||||||||
Purchases of long-term time deposits |
— | ( |
) | ( |
) | ( |
) | |||||||||
Purchases of investment securities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash received from disposal of investment securities |
||||||||||||||||
Prepayments and investments in equity investees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash received from disposal of equity investment s |
||||||||||||||||
Cash paid for loan originations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash received from loan repayments |
||||||||||||||||
Purchase of property, equipment and software |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Disposal of equipment and other assets (Note 6) |
— | — | ||||||||||||||
Purchase of intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash paid for asset acquisitions, net of cash acquired |
— | — | ( |
) | ( |
) | ||||||||||
Purchase of land use rights |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash paid for construction in progress |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash received from sale of development properties |
||||||||||||||||
Cash received from/( paid for) business combinations, net of cash acquired |
( |
) | ( |
) | ( |
) | ||||||||||
Loans settled by/( provided to) JD Technology |
( |
) | ( |
) | ( |
) | ||||||||||
Other investing activities |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ Note 2(g) |
|||||||||||||
(in millions) |
||||||||||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from issuance of ordinary shares |
— | — | — | |||||||||||||
Repurchase of ordinary shares |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from issuance of ordinary shares pursuant to share-based awards |
||||||||||||||||
Proceeds from issuance of convertible redeemable preferred shares of JD Logistics |
— | — | — | |||||||||||||
Capital injection from non-controlling interest shareholders |
||||||||||||||||
Return of capital to non-controlling interests |
— | — | ( |
) | ( |
) | ||||||||||
Acquisition of additional equity interests in non-wholly owned subsidiaries |
— | — | ( |
) | ( |
) | ||||||||||
Proceeds from short-term borrowings |
||||||||||||||||
Repayment of short-term borrowings |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Repayment of long-term borrowings |
— | ( |
) | ( |
) | ( |
) | |||||||||
Proceeds from unsecured senior notes |
— | — | — | |||||||||||||
Repurchase and repayment of unsecured senior notes |
— | ( |
) | ( |
) | ( |
) | |||||||||
Repayment of nonrecourse securitization debt |
( |
) | — | — | — | |||||||||||
Other financing activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by financing activities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash |
( |
) | ( |
) | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of year, including cash and cash equivalents classified within assets held for sale |
||||||||||||||||
Less: cash, cash equivalents, and restricted cash classified within assets held for sale at beginning of year |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents, and restricted cash at beginning of year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents, and restricted cash at end of year, including cash and cash equivalents classified within assets held for sale |
||||||||||||||||
Less: cash, cash equivalents, and restricted cash classified within assets held for sale at end of year |
— | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents, and restricted cash at end of year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Supplemental disclosure of cash flow information: |
||||||||||||||||
Cash paid for income taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash paid for interest |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Supplemental disclosures of non-cash investing and financing activities: |
||||||||||||||||
Issuance of ordinary shares in connection with strategic cooperation agreement with Tencent |
||||||||||||||||
Equity investments obtained through commitment of future services and contribution of certain business |
— | — | — | |||||||||||||
Right-of-use |
||||||||||||||||
Acquisition of equity interest in Jiangsu Five Star by loan conversion |
— | — | — | |||||||||||||
Acquisition of equity interest in Kuayue Express by issuance of ordinary shares of JD Logistics |
— | — | — |
Ordinary shares |
Treasury stock |
Additional paid-in capital |
Statutory reserves |
Accumulated other comprehensive income/(loss) |
Retained earnings/(accumulated deficit) |
Non-controlling interests |
Total shareholders’ equity |
|||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||||
(in millions, except share data) |
||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 |
* |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Issuance of ordinary shares |
* |
— | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
— | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||
Accretion of convertible redeemable non-controlling interests |
— | — | — | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Exercise of share-based awards |
— | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Share-based compensation and vesting of share-based awards |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net income/(loss) |
— | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net change in unrealized gains on available-for-sale |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Statutory reserves |
— | — | — | — | — | — | ( |
) | — | — | ||||||||||||||||||||||||||||||
Change of the capital from non-controlling interest shareholders |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Share of changes in the equity investee’s capital accounts |
— | — | — | — | ( |
) | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2019 |
* |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Issuance of ordinary shares |
* |
— | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
— | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||
Accretion of convertible redeemable non-controlling interests |
— | — | — | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Exercise of share-based awards |
— | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Share-based compensation and vesting of share-based awards |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net income/(loss) |
— | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||||||||
Net change in unrealized losses on available-for-sale |
— | — | — | — | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||
Statutory reserves |
— | — | — | — | — | — | ( |
) | — | — | ||||||||||||||||||||||||||||||
Change of the capital from non-controlling interest shareholders |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Acquisition of subsidiaries |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Share of changes in the equity investee’s capital accounts |
— | — | — | — | ( |
) | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
Conversion of profit sharing right in JD Technology |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2020 |
* |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Absolute value is less than RMB1 million. |
Ordinary shares |
Treasury stock |
Additional paid-in capital |
Statutory reserves |
Accumulated other comprehensive income/(loss) |
Retained earnings/(accumulated deficit) |
Non-controlling interests |
Total shareholders’ equity |
|||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||||
(in millions, except share data) |
||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
* |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Issuance of ordinary shares |
* |
— | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Issuance future exercise / vesting of share-based awards |
* |
( |
) | * |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
— | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||
Accretion of convertible redeemable non-controlling interests |
— | — | — | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
Exercise of share-based awards |
— | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Share-based compensation and vesting of share-based awards |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||||||||
Statutory reserves |
— | — | — | — | — | — | ( |
) | — | — | ||||||||||||||||||||||||||||||
Change of the capital from non-controlling interest shareholders |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Conversion of JD Logistics preferred shares |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Reorganization of JD Cloud & AI (Note 6 , Note 8 ) |
— | — | — | — | ( |
) | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
Acquisition of subsidiaries |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Share of changes in the equity investee’s capital accounts |
— | — | — | — | ( |
) | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2021 |
* |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Absolute value is less than RMB1 million. |
Equity interest held |
Place and date of incorporation |
|||||||
Subsidiaries |
||||||||
Beijing Jingdong Century Trade Co., Ltd. (“Jingdong Century”) |
Beijing, China, April 2007 | |||||||
Jiangsu Jingdong Information Technology Co., Ltd. |
Jiangsu, China, June 2009 | |||||||
Shanghai Shengdayuan Information Technology Co., Ltd. (“Shanghai Shengdayuan”) |
Shanghai, China, April 2011 | |||||||
JD Logistics Holding Limited |
Hong Kong, China, August 2011 | |||||||
Jingdong Technology Group Corporation |
Cayman Islands, November 2011 | |||||||
JD Property Group Corporation (“JD Property”) |
Cayman Islands, January 2012 | |||||||
JD Logistics, Inc. |
Cayman Islands, January 2012 | |||||||
JD.com E-Commerce (Technology) Hong Kong Co., Ltd. |
Hong Kong, China, February 2012 | |||||||
Jingdong E-Commerce (Trade) Hong Kong Co., Ltd. |
Hong Kong, China, February 2012 | |||||||
JD.com International Limited |
Hong Kong, China, February 2012 | |||||||
Beijing Jingdong Shangke Information Technology Co., Ltd. (“Beijing Shangke”) |
Beijing, China, March 2012 | |||||||
JD.com E-Commerce (Investment) Hong Kong Co., Ltd. |
Hong Kong, China, July 2013 | |||||||
Chongqing Jingdong Haijia E-commerce Co., Ltd. (“Chongqing Haijia”) |
Chongqing, China, June 2014 | |||||||
JD.com Overseas Innovation Limited |
Hong Kong, China, October 2014 | |||||||
JD.com Investment Limited |
British Virgin Islands, January 2015 | |||||||
JD Asia Development Limited |
British Virgin Islands, February 2015 | |||||||
Suqian Hanbang Investment Management Co., Ltd. |
Jiangsu, China, January 2016 | |||||||
Xi’an Jingxundi Supply Chain Technology Co., Ltd. (“Xi’an Jingxundi”) |
Shaanxi, China, May 2017 | |||||||
Xi’an Jingdong Xuncheng Logistics Co., Ltd. |
Shaanxi, China, June 2017 | |||||||
JD Assets Holding Limited |
Cayman Islands, March 2018 | |||||||
JD Property Holding Limited |
Cayman Islands, March 2018 | |||||||
Beijing Wodong Tianjun Information Technology Co., Ltd. (“Beijing Wodong Tianjun”) |
Beijing, China, May 2018 | |||||||
Beijing Jingdong Zhenshi Information Technology Co., Ltd. |
Beijing, China, August 2018 | |||||||
JD Health International Inc. |
Cayman Islands, November 2018 | |||||||
Jiangsu Huiji Space Technology Co., Ltd. (“Jiangsu Huiji”) |
|
|
|
|
|
|
Jiangsu, China, March 2019 |
|
JD Jiankang Limited |
British Virgin Islands, April 2019 | |||||||
JD Industrial Technology Limited |
British Virgin Islands, October 2019 | |||||||
JD Industrial Technology Inc. (“JD Industry”) |
Cayman Islands, November 2019 | |||||||
Jingdong Logistics Supply Chain Co., Ltd. |
Jiangsu, China, June 2020 | |||||||
Jingdong Five Star Appliance Group Co., Ltd. |
Jiangsu, China, December 1998 | |||||||
Consolidated VIEs |
||||||||
Beijing Jingdong 360 Degree E-commerce Co., Ltd. (“Jingdong 360”) |
Beijing, China, April 2007 | |||||||
Jiangsu Yuanzhou E-commerce Co., Ltd. (“Jiangsu Yuanzhou”) |
Jiangsu, China, September 2010 | |||||||
Jiangsu Jingdong Bangneng Investment Management Co., Ltd. (“Jingdong Bangneng”) |
Jiangsu, China, August 2015 | |||||||
Xi’an Jingdong Xincheng Information Technology Co., Ltd. (“Xi’an Jingdong Xincheng”) |
Shaanxi, China, June 2017 | |||||||
Suqian Juhe Digital Enterprise Management Co., Ltd. (“Suqian Juhe”) |
Jiangsu, China, June 2020 | |||||||
Consolidated VIEs’ Subsidiaries |
||||||||
Beijing Jingbangda Trade Co., Ltd. (“Beijing Jingbangda”) |
Beijing, China, August 2012 | |||||||
Suqian Jingdong Mingfeng Enterprise Management Co., Ltd. |
Jiangsu, China, July 2017 | |||||||
Suqian Jingdong Jinyi Enterprise Management Co., Ltd. |
Jiangsu, China, August 2017 | |||||||
Suqian Jingdong Sanhong Enterprise Management Center (L.P.) |
Jiangsu, China, August 2017 | |||||||
Beijing Jingxundi Technology Co., Ltd. |
Beijing, China, December 2017 | |||||||
Beijing Jingdong Qianshi Technology Co., Ltd. |
Beijing, China, September 2018 |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Total assets |
||||||||
Total liabilities |
|
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Total net revenues |
||||||||||||
Net loss |
( |
) | ( |
) | ( |
) |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Net cash provided by operating activities |
||||||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
|||||||
Net cash provided by financing activities |
||||||||||||
|
|
|
|
|
|
|||||||
Net increase in cash, cash equivalents, and restricted cash |
||||||||||||
Cash, cash equivalents, and restricted cash at beginning of year |
||||||||||||
|
|
|
|
|
|
|||||||
Cash, cash equivalents, and restricted cash at end of year |
||||||||||||
|
|
|
|
|
|
Category |
Estimated useful lives | |
Electronic equipment |
||
Office equipment |
||
Vehicles |
5 | |
Logistics, warehouse and other heavy equipment |
||
Leasehold improvement |
Over the shorter of the expected life of leasehold improvements or the lease term | |
Software |
||
Building |
||
Building improvement |
Category |
Estimated useful lives | |
Strategic cooperation |
||
Non-compete |
||
Domain names and trademarks |
||
Customer relationship |
||
Technology and others |
• | D Coupons are given to a customer upon current purchase or can be given for free to promote future purchases. This coupon requires the customer to make future purchase of a minimum value in order to enjoy the value provided by the coupon. The rights to purchase discounted products in the future are not considered as a separate performance obligation under ASC 606, as the discount does not represent a material rights to the customer. The Group assesses the significance of the discount by considering its percentage of the total future minimum purchase value, historical usage pattern by the customers and relative outstanding volume and monetary value of D Coupons compared to the other discounts offered by the Group. D Coupons are accounted for as a reduction of revenues on the future purchase. |
• | J Coupons are given to a customer upon their qualified purchase or can be given for free to promote future purchases and are to be used on a future purchase, with no limitation as to the minimum value of the future purchase. Accordingly, the Group has determined that J Coupons awarded are considered as a separate performance obligation within the scope of ASC 606, as J Coupons represent a material rights to the customer. Therefore, the delivered products and J Coupons awarded are treated as two distinct performance obligations identified in the contract. The total sales consideration is allocated based on management’s best estimate of the relative SSP of each performance obligation. The amount allocated to J Coupons is deferred and recognized when J Coupons are redeemed or at the coupon’s expiration, whichever occurs first. J Coupons have an expiration of one year after issuance. For the years ended December 31, 2019, 2020 and 2021, the amounts of expired J Coupons were not material. |
Fair value measurement at reporting date using |
||||||||||||||||
Description |
Fair Value as of December 31, 2020 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||
(RMB in millions) |
||||||||||||||||
Assets: |
||||||||||||||||
Restricted cash |
— | — | ||||||||||||||
Short-term investments |
||||||||||||||||
Wealth management products |
— | — | ||||||||||||||
Investment securities |
||||||||||||||||
Listed equity securities |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
— | |||||||||||||||
|
|
|
|
|
|
|
|
Fair value measurement at reporting date using |
||||||||||||||||
Description |
Fair Value as of December 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||
(RMB in millions) |
||||||||||||||||
Assets: |
||||||||||||||||
Restricted cash |
— | — | ||||||||||||||
Short-term investments |
||||||||||||||||
Wealth management products |
— | — | ||||||||||||||
Investment securities |
||||||||||||||||
Listed equity securities |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
— | |||||||||||||||
|
|
|
|
|
|
|
|
Amounts |
||||
(RMB in millions) |
||||
Conversion of loan and assuming of debt |
||||
Fair value of previously held equity interests |
||||
|
|
|||
Total |
||||
|
|
Amounts |
||||
(RMB in millions) |
||||
Net liabilities assumed |
( |
) | ||
Appreciation of property, equipment and software |
||||
Intangible assets |
||||
- Trademark |
||||
Goodwill |
||||
Deferred tax liabilities |
( |
) | ||
Non-controlling interests |
( |
) | ||
|
|
|||
Total |
||||
|
|
Amounts |
||||
(RMB in millions) |
||||
Cash |
||||
Issuance of ordinary shares of JD Logistics less cash proceeds received |
||||
|
|
|||
Total |
||||
|
|
Amounts |
||||
(RMB in millions) |
||||
Net assets acquired |
||||
Appreciation of property, equipment and software |
||||
Intangible assets |
||||
- Customer relationship |
||||
Goodwill |
||||
Deferred tax liabilities |
( |
) | ||
Non-controlling interests |
( |
) | ||
|
|
|||
Total |
||||
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Carrying value of investment in Yonghui’s ordinary shares |
||||||||
Proportionate share of Yonghui’s net tangible and intangible assets |
||||||||
|
|
|
|
|||||
Positive basis difference |
||||||||
|
|
|
|
|||||
Positive basis difference has been assigned to: |
||||||||
Goodwill(*) |
||||||||
Amortizable intangible assets (**) |
||||||||
Deferred tax liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
|
|
|
(*) | In the third quarter of 2021, the Group conducted impairment assessments on its investment in Yonghui considering the duration and severity of the decline of Yonghui’s stock price after the investment, and concluded the decline in fair value of the investment was other-than-temporary. Accordingly, the Group recorded impairment charges of RMB |
(**) | As of December 31, 2021, the weighted average remaining life of the intangible assets not included in Yonghui’s consolidated financial statements was |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Carrying value of investment in Dada’s ordinary shares |
||||||||
Proportionate share of Dada’s net tangible and intangible assets |
||||||||
|
|
|
|
|||||
Positive basis difference |
||||||||
|
|
|
|
|||||
Positive basis difference has been assigned to: |
||||||||
Goodwill |
||||||||
Amortizable intangible assets (*) |
||||||||
Deferred tax liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
|
|
|
(*) | As of December 31, 2021, the weighted average remaining life of the intangible assets not included in Dada’s consolidated financial statements was |
As of December 31, |
||||
2021 |
||||
(RMB in millions) |
||||
Carrying value of investment in ATRenew’s ordinary shares |
||||
Proportionate share of ATRenew’s net tangible and intangible assets |
||||
|
|
|||
Positive basis difference |
||||
|
|
|||
Positive basis difference has been assigned to: |
||||
Goodwill (*) |
||||
Amortizable intangible assets (**) |
||||
Deferred tax liabilities |
( |
) | ||
|
|
|||
|
|
(*) | In the fourth quarter of 2021, the Group conducted impairment assessments on its investment in ATRenew considering the duration and severity of the decline of ATRenew’s stock price after the investment, and concluded the decline in fair value of the investment was other-than-temporary. Accordingly, the Group recorded impairment charges of RMBmillion, to write down the carrying value of its investment in ATRenew to its fair value, based on quoted closing prices of ATRenew as of December 31, 2021. |
(**) | As of December 31, 2021, the weighted average remaining life of the intangible assets not included in ATRenew’s consolidated financial statements was |
8. |
Investment in equity investees (Continued) |
Equity method (Continued) |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Revenues |
||||||||||||
Gross profit |
||||||||||||
Income/(loss) from operations |
( |
) | ||||||||||
Net income/(loss) |
( |
) | ( |
) | ||||||||
Net income/(loss) attributable to ordinary shareholders |
( |
) |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Current assets |
||||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Non-controlling interests |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Logistics receivables |
||||||||
Online retail and online marketplace receivables (*) |
||||||||
Advertising receivables and others |
||||||||
|
|
|
|
|||||
Accounts receivable |
||||||||
Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Accounts receivable, net |
|
|||||||
|
|
|
|
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Balance at beginning of the year |
( |
) | ( |
) | ( |
) | ||||||
Additions |
( |
) | ( |
) | ( |
) | ||||||
Write-off |
||||||||||||
|
|
|
|
|
|
|||||||
Balance at end of the year |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
(*) | For the accounts receivable in relation to consumer financing business, which is recorded in online retail and online marketplace receivables, as JD Technology performs credit risk assessment services for the individuals and purchases the over-due receivables from the Group at carrying values to absorb the risks and obtain the rewards from such business, |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Products |
||||||||
Packing materials and others |
||||||||
|
|
|
|
|||||
Inventories |
||||||||
Inventory valuation allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Inventories, net |
|
|||||||
|
|
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Electronic equipment |
||||||||
Building and building improvement |
||||||||
Logistics, warehouse and other heavy equipment |
||||||||
Vehicles |
||||||||
Leasehold improvement |
||||||||
Office equipment |
||||||||
Software |
||||||||
|
|
|
|
|||||
Total |
||||||||
Less: accumulated depreciation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net book value |
|
|||||||
|
|
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Land use rights |
||||||||
Less: accumulated amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net book value |
|
|||||||
|
|
|
|
For the year ended December 31, |
||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
2027 and thereafter |
|||||||||||||||||||
(RMB in millions) |
||||||||||||||||||||||||
Amortization expenses |
As of December 31, 2020 |
||||||||||||||||||||
Weighted- Average Amortization Period |
Gross Carrying Amount |
Accumulated Amortization |
Impairment Amount |
Net Carrying Amount |
||||||||||||||||
Year |
RMB in millions |
RMB in millions |
RMB in millions |
RMB in millions |
||||||||||||||||
Strategic cooperation |
( |
) | — | — | ||||||||||||||||
Non-compete |
( |
) | — | |||||||||||||||||
Domain names and trademarks |
( |
) | ( |
) | ||||||||||||||||
Customer relationship |
( |
) | ( |
) | ||||||||||||||||
Technology and others |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
( |
) | ( |
) | |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
||||||||||||||||||||
Weighted- Average Amortization Period |
Gross Carrying Amount |
Accumulated Amortization |
Impairment Amount |
Net Carrying Amount |
||||||||||||||||
Year |
RMB in millions |
RMB in millions |
RMB in millions |
RMB in millions |
||||||||||||||||
Strategic cooperation |
( |
) | — | — | ||||||||||||||||
Non-compete |
( |
) | — | |||||||||||||||||
Domain names and trademarks |
( |
) | ( |
) | ||||||||||||||||
Customer relationship |
( |
) | ( |
) | ||||||||||||||||
Technology and others |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
2027 and thereafter |
|||||||||||||||||||
(RMB in millions) |
||||||||||||||||||||||||
Amortization expenses |
JD Retail |
JD Logistics |
New Businesses |
Total |
|||||||||||||
(RMB in millions) |
||||||||||||||||
Balance as of December 31, 2019 |
||||||||||||||||
Goodwill |
— | |||||||||||||||
Accumulated impairment loss |
( |
) | — | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
— | — | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transaction in 2020 |
||||||||||||||||
Additions |
— | |||||||||||||||
Balance as of December 31, 2020 |
||||||||||||||||
Goodwill |
||||||||||||||||
Accumulated impairment loss |
( |
) | — | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
— | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transaction in 2021 |
||||||||||||||||
Additions |
— | — | ||||||||||||||
Balance as of December 31, 2021 |
||||||||||||||||
Goodwill |
||||||||||||||||
Accumulated impairment loss |
( |
) | — | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
— | ||||||||||||||||
|
|
|
|
|
|
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Vendor payable |
||||||||
Shipping charges payable and others |
||||||||
|
|
|
|
|||||
Total |
|
|||||||
|
|
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Deposits |
||||||||
Salary and welfare |
||||||||
Rental fee payable |
||||||||
Accrued administrative expenses |
||||||||
Professional fee |
||||||||
Liabilities for return allowances |
||||||||
Internet data center fee |
||||||||
Vehicle fee |
||||||||
Payable related to employees’ exercise of share-based awards |
||||||||
Interest payable |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
As of December 31, |
Effective interest rate |
|||||||||||
2020 |
2021 |
|||||||||||
(RMB in millions) |
||||||||||||
US$ million |
— | % | ||||||||||
US$ million |
% | |||||||||||
US$ million |
% | |||||||||||
US$ million |
% | |||||||||||
|
|
|
|
|||||||||
Carrying value |
||||||||||||
Unamortized discount and debt issuance costs |
||||||||||||
|
|
|
|
|||||||||
Total principal amounts of unsecured senior notes |
||||||||||||
|
|
|
|
Principal amounts |
||||
(RMB in millions) |
||||
Within 1 year |
||||
Between 1 to 2 years |
||||
Between 2 to 3 years |
||||
Between 3 to 4 years |
||||
Between 4 to 5 years |
||||
Beyond 5 years |
||||
|
|
|||
Total |
||||
|
|
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Operating lease ROU assets |
||||||||
Operating lease liabilities-current |
||||||||
Operating lease liabilities-non-current |
||||||||
|
|
|
|
|||||
Total operating lease liabilities |
||||||||
|
|
|
|
|||||
Weighted average remaining lease term |
||||||||
Weighted average discount rate |
% | % |
For the year ended December 31, |
||||||||||
2019 |
2020 |
2021 |
||||||||
(RMB in millions) |
||||||||||
Operating lease cost |
|
|
||||||||
Short-term lease cost |
|
|
||||||||
|
|
|
|
|
|
|||||
Total |
|
|
||||||||
|
|
|
|
|
|
|||||
Cash paid for operating leases |
|
|
As of December 31, 2021 |
||||
(RMB in millions) |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 and thereafter |
||||
|
|
|||
Total lease payments |
||||
Less: interest |
( |
) | ||
|
|
|||
Present value of operating lease liabilities |
||||
|
|
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Interest expense in relation to nonrecourse securitization debt |
( |
) | — | — | ||||||||
Interest expense in relation to unsecured senior notes, bank borrowings and others |
( |
) | ( |
) | ( |
) | ||||||
Total |
( |
) | ( |
) | ( |
) | ||||||
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Gains/(losses) from fair value change of long-term investments |
( |
) | ||||||||||
Government financial incentives |
||||||||||||
Interest income |
||||||||||||
Gain from business and investment disposals |
||||||||||||
Impairment of investments |
( |
) | ( |
) | ( |
) | ||||||
Foreign exchange gains/(losses), net |
( |
) | ||||||||||
Others |
||||||||||||
Total |
( |
) | ||||||||||
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Income/(loss) before tax |
||||||||||||
Income from China operations |
||||||||||||
Income/(loss) from non-China operations |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total income/(loss) before tax |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Income tax benefits/(expenses) applicable to China operations |
||||||||||||
Current income tax expenses |
( |
) | ( |
) | ( |
) | ||||||
Deferred tax benefits/(expenses) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Subtotal income tax expenses applicable to China operations |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total income tax expenses |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Statutory income tax rate |
||||||||||||
Tax effect of preferential tax rates and tax holiday |
( |
( |
||||||||||
Tax effect of tax-exempt entities |
( |
( |
||||||||||
Effect on tax rates in different tax jurisdiction |
( |
( |
( |
|||||||||
Tax effect of non-deductible expenses |
( |
|||||||||||
Tax effect of non-taxable income |
( |
|||||||||||
Tax effect of Super Deduction and others |
( |
( |
||||||||||
Changes in valuation allowance |
( |
|||||||||||
|
|
|
|
|
|
|||||||
Effective tax rates |
( |
|||||||||||
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Tax holiday effect (RMB in millions) |
||||||||||||
Effect of tax holiday on basic net income per share (RMB) |
||||||||||||
Effect of tax holiday on diluted net income per share (RMB) |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Deferred tax assets |
||||||||
- Net operating loss carry forwards and others |
||||||||
- Deferred revenues |
||||||||
- Inventory valuation allowance |
||||||||
- Allowance for doubtful accounts |
||||||||
- Unrealized fair value losses for certain investments |
||||||||
Less: valuation allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net deferred tax assets |
||||||||
|
|
|
|
|||||
Deferred tax liabilities |
||||||||
- Intangible assets arisen from business combination |
||||||||
- Accelerated tax depreciation and others |
||||||||
|
|
|
|
|||||
Total deferred tax liabilities |
||||||||
|
|
|
|
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Balance at beginning of the year |
||||||||||||
Additions |
||||||||||||
Reversals |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance at end of the year |
||||||||||||
|
|
|
|
|
|
(i) | any dividend relating to each JD Logistics Series A Preference Share which has been declared by JD Logistics but unpaid, to be calculated up to and including the date of the redemption; plus |
(ii) | JD Logistics Series A Preference Shares purchase price, that is US$ |
Conversion Rights (Continued) |
Number of shares |
Amount |
|||||||
(RMB in millions) |
||||||||
Balance as of December 31, 2019 |
||||||||
Issuance |
||||||||
Net loss attributable to mezzanine equity classified as non-controlling interests shareholders |
— | — | * | |||||
|
|
|
|
|||||
Balance as of December 31, 2020 |
||||||||
|
|
|
|
|||||
Net loss attributable to mezzanine equity classified as non-controlling interests shareholders |
— | ( |
) | |||||
Conversion of convertible redeemable preferred shares to ordinary shares |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Balance as of December 31, 2021 |
— | — | ||||||
|
|
|
|
* |
Absolute value is less than RMB1 million. |
Foreign currency translation adjustments |
Net unrealized gains/(losses) on available-for-sale securities |
Total |
||||||||||
(RMB in millions) |
||||||||||||
Balances as of December 31, 2018 |
||||||||||||
Other comprehensive income |
||||||||||||
|
|
|
|
|
|
|||||||
Balances as of December 31, 2019 |
||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balances as of December 31, 2020 |
( |
) | — | ( |
) | |||||||
Other comprehensive loss |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Balances as of December 31, 2021 |
( |
) | — | ( |
) | |||||||
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Cost of revenues |
||||||||||||
Fulfillment |
||||||||||||
Marketing |
||||||||||||
Research and development |
||||||||||||
General and administrative |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
Number of RSUs |
Weighted-Average Grant-Date Fair Value |
|||||||
US$ |
||||||||
Unvested as of December 31, 2018 |
||||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited or cancelled |
( |
) | ||||||
|
|
|||||||
Unvested as of December 31, 2019 |
||||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited or cancelled |
( |
) | ||||||
|
|
|||||||
Unvested as of December 31, 2020 |
||||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited or cancelled |
( |
) | ||||||
|
|
|||||||
Unvested as of December 31, 2021 |
||||||||
|
|
Number of Share Options |
Weighted Average Exercise Price |
Weighted Average Remaining Contractual Term |
Aggregate Intrinsic Value |
|||||||||||||
US$ |
Year |
US$ in millions |
||||||||||||||
Outstanding as of December 31, 2018 |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or cancelled |
( |
) | ||||||||||||||
|
|
|||||||||||||||
Outstanding as of December 31, 2019 |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or cancelled |
( |
) | ||||||||||||||
|
|
|||||||||||||||
Outstanding as of December 31, 2020 |
||||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or cancelled |
( |
) | ||||||||||||||
|
|
|||||||||||||||
Outstanding as of December 31, 2021 |
||||||||||||||||
|
|
|||||||||||||||
Vested and expected to vest as of December 31, 2021 |
||||||||||||||||
Exercisable as of December 31, 2021 |
(3) |
Share-based compensation of subsidiaries (Continued) |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Numerator: |
||||||||||||
Net income/(loss) attributable to ordinary shareholders – basic (RMB in millions) |
( |
) | ||||||||||
Impact of subsidiaries’ diluted earnings (RMB in millions) |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net income/(loss) attributable to ordinary shareholders – diluted (RMB in millions) |
( |
) | ||||||||||
Denominator: |
||||||||||||
Weighted average number of shares – basic |
||||||||||||
Adjustments for dilutive options and RSUs |
||||||||||||
|
|
|
|
|
|
|||||||
Weighted average number of shares – diluted |
||||||||||||
Basic net income/(loss) per share attributable to ordinary shareholders (RMB) |
( |
) | ||||||||||
Diluted net income/(loss) per share attributable to ordinary shareholders (RMB) |
( |
) |
Name of related parties |
Relationship with the Group | |
Tencent and its subsidiaries (“Tencent Group”) |
A shareholder of the Group | |
Dada and its subsidiaries (“Dada Group”) |
An investee of the Group | |
JD Technology (*) |
An investee of the Group, and controlled by the Founder | |
Core Fund, Core Fund II, Development Fund I and Acquisition Fund I (“Property Funds”) |
Investees of the Group | |
ATRenew and its subsidiaries (“ATRenew Group”) |
An investee of the Group |
(*) |
JD Technology became an investee of the Group since June 2020 (Note 6). |
Transactions |
For the year ended December 31, |
|||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Revenues: |
||||||||||||
Commission from cooperation on advertising business with Tencent Group(**) |
||||||||||||
Services provided and products sold to Tencent Group(**) |
||||||||||||
Services provided and products sold to Dada Group |
||||||||||||
Services provided and products sold to ATRenew Group |
||||||||||||
Services provided and products sold to JD Technology |
||||||||||||
Operating expenses: |
||||||||||||
Services received and purchases from Tencent Group(**) |
||||||||||||
Services received from Dada Group |
||||||||||||
Payment processing and other services received from JD Technology |
||||||||||||
Lease and property management services received from Property Funds |
||||||||||||
Services received from ATRenew Group |
||||||||||||
Other income: |
||||||||||||
Income from non-compete agreement with Dada Group |
||||||||||||
Interest income from loans provided to JD Technology |
||||||||||||
Interest income from loans provided to Property Funds |
(**) |
In March 2014, the Group entered into a series of agreements with Tencent and its affiliates pursuant to which the Group acquired 100% interests in Tencent’s Paipai and QQ Wanggou online marketplace businesses, a 9.9% stake in Shanghai Icson E-Commerce Development Company Limited, logistics personnel and certain other assets. The Group also entered into a five-year strategic cooperation agreement and an eight-year non-compete agreement with Tencent. In April 2016, the Group acquired the remaining equity interest in Shanghai Icson E-Commerce Development Company Limited by exercising the rights previously granted to the Group in March 2014. |
On May 10, 2019, the Company renewed the strategic cooperation agreement with Tencent, for a period of three years starting from May 27, 2019. Tencent continued to offer the Group prominent level 1 and level 2 access points on its Weixin platform to provide traffic support, and the two parties also intend to continue to cooperate in a number of areas including communications, advertising and membership services, among others. As part of the total consideration, the Company agreed to issue to Tencent a certain number of the Company’s Class A ordinary shares for a consideration of approximately US$ pre-determined dates during the three-year period, of which |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
(RMB in millions) |
||||||||
Due from Tencent Group |
||||||||
Due from JD Technology |
||||||||
Loans provided to JD Technology (***) |
||||||||
Other receivables from/(payables) to JD Technology |
( |
) | ||||||
Due from Property Funds |
||||||||
Loans provided to Property Funds |
||||||||
Other receivables from Property Funds |
||||||||
Due from ATRenew Group |
— | |||||||
Total |
||||||||
Due to Dada Group |
( |
) | ( |
) | ||||
Due to ATRenew Group |
— | ( |
) | |||||
Total |
( |
) | ( |
) | ||||
Deferred revenues in relation to traffic support, marketing and promotion services to be provided to Dada Group |
( |
) | ( |
) | ||||
Deferred revenues in relation to traffic support, marketing and promotion services to be provided to ATRenew Group |
( |
) | ( |
) | ||||
Total |
( |
) | ( |
) | ||||
Other liabilities in relation to non-compete obligation to Dada Group |
( |
) | ( |
) | ||||
Total |
( |
) | ( |
) | ||||
(***) |
In relation to the loans provided to JD Technology and Property Funds, the Group charged JD Technology and Property Funds based on fair market interest rate, and cash flows resulted from the loans were presented within investing activities in the consolidated statements of cash flows. |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Net revenues: |
||||||||||||
JD Retail |
||||||||||||
JD Logistics |
||||||||||||
New Businesses |
||||||||||||
Inter-segment(*) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total segment net revenues |
||||||||||||
Unallocated items |
||||||||||||
|
|
|
|
|
|
|||||||
Total consolidated net revenues |
||||||||||||
|
|
|
|
|
|
|||||||
Operating income/(loss): |
||||||||||||
JD Retail |
||||||||||||
JD Logistics |
( |
) | ( |
) | ||||||||
New Businesses |
( |
) | ( |
) | ( |
) | ||||||
Including: gain on sale of development properties (Note 19) |
||||||||||||
|
|
|
|
|
|
|||||||
Total segment operating income |
||||||||||||
Unallocated items(**) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total consolidated operating income |
||||||||||||
Total other income/(expense) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Income/(loss) before tax |
( |
) | ||||||||||
|
|
|
|
|
|
(*) | The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics services provided by JD Logistics to JD Retail, and property leasing services provided by JD Property to JD Logistics. |
(**) | A summary of unallocated items for the years presented is as foll o ws: |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(RMB in millions) |
||||||||||||
Share-based compensation |
( |
) | ( |
) | ( |
) | ||||||
Amortization of intangible assets resulting from assets and business acquisitions |
( |
) | ( |
) | ( |
) | ||||||
Effects of business cooperation arrangements |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
As of December 31, 2021 |
||||
(RMB in millions) |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 and thereafter |
||||
38. |
Subsequent events (Continued) |