Richard Liu’s JD.com has announced its unaudited financial outcomes for the period to June 30, 2023. JD.com, also known as Jingdong, is a technology and service enterprise with supply chain at its core.

The NASDAQ stock exchange lists JD.com under the ticker symbol “JD.” The Hong Kong Stock Exchange lists it under the ticker symbols 9618 (HKD counter) and 89618 (RMB counter).

Strong Performance for Richard Liu’s JD.com in Q2 2023

JD.com has reported impressive financial and operational performance for Q2 2023. Sandy Xu, CEO of JD.com, credited this performance to the company’s leading supply chain capabilities and enhanced business structure.

An Increase in JD.com’s Net Revenues

The company’s net revenues for Q2 2023 were $39.7 billion (RMB 287.9 billion), an increase of 7.6%from Q2 2022. In addition, net service revenues for Q2 2023 were $7.5 billion (RMB 54.1 billion), a notable 30.1% increase from Q2 2022.

Income From Operations

In 2023 JD.com achieved a Q2 income from operations of $1.1 billion (RMB 8.3 billion). This is a significant increase on Q2 2022 (RMB 3.8 billion).

The non-GAAP income from operations for Q2 2023 was $1.2 billion (or RMB 8.7 billion) an increase from Q2 2022’s RMB 5.8 billion.

JD Retail’s operating margin before unallocated items for Q2 2023 was 3.2%, a slightly lower figure than the 3.4% recorded in Q2 2022.

An Increase in Net Income Attributable to JD.com’s Ordinary Shareholders

In Q2 2023, the net income attributable to JD.com’s ordinary shareholders was $0.9 billion (RMB 6.6 billion, compared to RMB 4.4 billion for Q2 2022).

The non-GAAP net income attributable to the company’s ordinary shareholders for Q2 2023 was $1.2 billion (RMB 8.6 billion). This represents an increase from Q2 2022, when JD.com reported a non-GAAP net income attributable to shareholders of RMB 6.5 billion.

Diluted Net Income Per American Depositary Share (ADS)

For JD.com’s Q2 2023, the diluted net income per ADS reached $0.57 (RMB 4.15), surpassing the figure reported for Q2 2022 (RMB 2.74).

Likewise, the non-GAAP diluted net income per ADS for Q2 2023 was $0.74 (RMB 5.39, compared to RMB 4.06 for the same period in 2022).

Operating Cash Flow

JD.com’s operating cash flow for the 12 months ending June 30, 2023, amounted to $7.2 billion (RMB 52.5 billion). This figure was higher than the period for the 12 months ending June 30, 2022 (RMB 51.1 billion).

Free cash flow from the 12 months ending June 30, 2023, was $4.6 billion (RMB 33.5 billion). This compares to free cash flow of RMB 27.7 billion for the 12 months ending June 30, 2022. Free cash flow excludes the influence of JD Baitiao — JD.com’s consumer credit product — receivables included in the operating cash flow.

JD.com’s Superior Marketplace Ecosystem

Xu explained that the number of JD.com’s marketplace merchants more than doubled during Q2 2023, reaching a new record. This impressive increase demonstrates the company’s efforts to develop what Xu called a “superior marketplace ecosystem.”

Building this advanced ecosystem and offering customers enhanced supplies at more favorable prices as a result is one of JD.com’s priorities.

Many customers appreciate JD.com’s dedication to delivering unparalleled choice, swift service, exceptional quality, and outstanding value. Xu expressed her confidence that JD.com’s commitment to these values will continue to strike a chord with shoppers, paving the way for long-term success.

JD.com Surpasses Expectations

Ian Su Shan, Chief Financial Officer (CFO) of JD.com, said the company surpassed expectations in Q2 2023, achieving higher-than-anticipated revenues and profitability.

The CFO noted that this is an “encouraging trend,” especially in light of JD.com’s business adjustments and the highly competitive market landscape.

The company also feels encouraged by the solid results achieved at JD Retail, JD.com’s core retail division. JD Retail maintained its market share growth in key categories such as computer, communication, and consumer electronic products (3C) and home appliances.

Shan said the company’s supply chain strengths and high-quality services have propelled JD Retail’s growth. Additionally, the supermarket category progressed steadily as anticipated, helping to build a more robust business model.

JD.com will continue to optimize its business model and invest in the long-term, sustainable growth of the company.

Read the full press release from Richard Liu’s JD.com.

About JD.com (a.k.a. Jingdong)

JD.com, also known as Jingdong, is a technology and service enterprise with supply chain at its core. Founded by Richard Qiangdong Liu, JD.com is a renowned leader in China’s e-commerce industry and the company has expanded across retail, technology, logistics, healthcare, insurance, property development, industrials, private label, and international business. Ranking 46 on the Fortune Global 500, JD.com is China’s largest retailer by revenue.

JD.com serves nearly 600 million customers and has set the standard for e-commerce through its commitment to quality, authenticity, and competitive pricing. The company operates the largest logistics infrastructure of any e-commerce company in China, pioneering a standard experience of same- and next-day delivery. JD.com also promotes productivity and innovation across a range of industries by offering its cutting-edge technology and infrastructure to partners, brands, and diverse sectors.