In the fourth quarter, Jingdong’s revenue was 224.3 billion yuan, up 31% year on year, and its active buyers exceeded 470 million yuan

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Key points
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According to Tencent technology news on March 11, Jingdong group today released its unaudited fourth quarter and full year results of fiscal year 2020 up to December 31, 2020.
Key performance points for the fourth quarter and full year of fy2020
Net income in the fourth quarter of 2020 was 224.3 billion yuan (about 34.4 billion US dollars), up 31.4% year on year. In the fourth quarter of 2020, the net service revenue was 32.1 billion yuan (about 4.9 billion US dollars), a year-on-year increase of 53.2%. In 2020, the annual net income was 745.8 billion yuan (about 114.3 billion US dollars), up 29.3% year on year. In 2020, the annual net service revenue was 93.9 billion yuan (about 14.4 billion US dollars), a year-on-year increase of 42.0%.
In the fourth quarter of 2020, the operating profit will be RMB 590 million (about US $90 million), and RMB 530 million in the same period of 2019. In the fourth quarter of 2020, non GAAP operating profit was RMB 1.21 billion (about US $190 million), compared with RMB 700 million in the same period of 2019. In 2020, the annual operating profit will be 12.3 billion yuan (about 1.9 billion US dollars), and in 2019, it will be 9 billion yuan. In 2020, the non GAAP operating profit is 15.3 billion yuan (about 2.4 billion US dollars), and the operating profit rate is 2.1%. In 2019, the non GAAP operating profit is RMB 8.9 billion, and the operating profit margin is 1.5%.
Net profit attributable to common shareholders in the fourth quarter of 2020 was RMB 24.3 billion (about US $3.7 billion), compared with RMB 3.6 billion in the same period of 2019. In the fourth quarter of 2020, the net profit attributable to common shareholders under non GAAP was RMB 2.4 billion (about US $400 million), an increase of 194% compared with RMB 800 million in the same period of 2019. The net profit attributable to common shareholders in 2020 is RMB 49.4 billion (about US $7.6 billion), and that in 2019 is RMB 12.2 billion. The net profit attributable to common shareholders under non GAAP is 16.8 billion yuan (about 2.6 billion US dollars) in 2020 and 10.7 billion yuan in 2019.
In the fourth quarter of 2020, the diluted net income per ads share was RMB 15.18 (about US $2.33), compared with RMB 2.44 in the same period of 2019. In the fourth quarter of 2020, non GAAP diluted net income per American Depository Share was RMB 1.49 (about US $0.23), compared with RMB 0.54 in the same period of 2019. In 2020, the diluted net income per American Depository Share is 31.68 yuan (about 4.86 US dollars), and in 2019, it is 8.21 yuan. In 2020, the diluted net income per ads under non GAAP is RMB 10.56 (about US $1.62), and in 2019, it is RMB 7.25.
The operating cash flow in 2020 will grow to RMB 42.5 billion (about US $6.5 billion) and RMB 24.8 billion in 2019. Excluding the influence of Jingdong Baitiao in the operating cash flow, the free cash flow in 2020 will grow to 34.9 billion yuan (about 5.4 billion US dollars), and the free cash flow in 2019 will be 19.5 billion yuan.
As of December 31, 2020, the number of active purchasing users of JD in the past 12 months has increased by 30.3% to 471.9 million compared with 362 million in the same period of 2019.
“Although the market environment is still full of challenges, driven by the company’s long-term business philosophy and customer-centered value orientation, JD’s revenue and number of users in the fourth quarter have achieved accelerated growth,” said Mr. Liu qiangdong, chairman of the board of directors and chief executive officer of JD group. “In this quarter, JD continued to promote its supply chain based technology and service strategy, and continued to improve its competitiveness Enrich the diversity of the company’s income. The company’s strong development momentum will continue since 2021. At the same time, Jingdong will actively respond to market development and changes in demand, and continue to invest in innovative and high growth potential businesses to help the company grow sustainably in the long term. ”
“We are very pleased to see that Jingdong group’s strong revenue, profit and cash flow performance in the fourth quarter of 2020 ended perfectly.” Ms. Xu ran, chief financial officer of Jingdong group, said, “driven by technology and innovation, the company’s operational efficiency has been further improved. At the same time, several new business sectors incubated by the company are progressing smoothly, including the successful listing of Jingdong health on the main board of the stock exchange of Hong Kong, the submission of listing application form by Jingdong Logistics to the stock exchange of Hong Kong, and the promotion of round a financing of Jingdong Industrial Development. ”
Business highlights
Environment, society and Governance
In the fourth quarter, Jingdong Logistics became the first logistics enterprise in China to complete the establishment of scientific carbon target Initiative (SBTI), and plans to further reduce the total carbon emission by 50% by 2030 compared with that in 2019. The scientific carbon target Initiative (SBTI) is a global initiative jointly launched by the United Nations Global Environmental Information Research Center (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for nature (WWF). It provides clear guidance framework for enterprises to set emission reduction targets based on climate science for specific resources and practices of different industries It’s a shelf. JD logistics is committed to using more new energy logistics vehicles, promoting and using more renewable energy and environmental protection materials, and enabling partners to practice green environmental protection measures.

In November, song Xuewen, a courier from Jingdong Logistics, was elected as the “national labor model in 2020”, which is the highest national honor in commending the outstanding integrity of labor workers and the contribution of the country and society. Since joining Jingdong in 2011, Mr. Song has traveled 320000 km, delivered 300000 packages, and maintained the work record of zero error, zero complaint and zero safety accident.
Jingdong retail
Many international famous fashion and luxury brands have settled in Jingdong, including John Lobb, a high-end customized shoes brand of herm รจ s group, Stefano Ricci, a top men’s clothing brand in Italy, Vivienne Westwood, a British designer brand, JW Anderson, a fashion brand of LVMH group, and Anya, a designer accessories brand Hindmarch, French silver and jewelry brand christofle and Japanese fashion brand white mountaineering. In addition, Prada and Miu Miu became the first luxury brands to explore the “factory direct store empowerment” mode with Jingdong, so that consumers of Jingdong can have more choices of goods, including the special products of Prada and Miu Miu offline stores. At the same time, the “factory direct store empowerment” mode can effectively help brands improve the operation efficiency and inventory management ability of their stores.
In the fourth quarter, Jingdong retail won a number of top awards from well-known advertising agencies, including Effie Award (Greater China), modern advertising award and golden reward Business Creativity Award, in recognition of Jingdong retail’s innovative empowerment and outstanding contribution to the marketing strategies of major brands.
Jingdong health
On December 8, 2020, Jingdong health successfully listed on the main board of the stock exchange of Hong Kong with the stock code of “6618”. Including the shares offered by fully exercising the over allotment right, JD Health Global offered a total of 439185000 new shares. Without deduction of underwriting expenses and selling expenses, the total amount raised in this offering is about HK $31 billion. As a technology driven health management platform with medicine and health product supply chain as the core, medical service as the starting point, and user’s whole life cycle and whole scene, JD health is committed to improving user experience and providing users with efficient, convenient, affordable and high-quality medical and health products and services.
Jingdong Logistics
In January 2021, the American Society for operations research and Management Sciences (INFORMS) announced the final shortlist of the 50th Franz Edelman award. The Franz Edelman award is the highest award in the world’s operations research and management sciences. The application of unmanned warehouse scheduling algorithm independently developed by Jingdong is among them, and is shortlisted together with 7 global enterprises and institutions such as Amazon. Jingdong is one of the few Chinese companies to be shortlisted for the final award.
In January 2021, Jingdong Logistics signed a cooperation agreement with Chinese sugar point giant Xu Fuji. Relying on its technical capabilities, Jingdong Logistics will help Xu Fuji’s supply chain management system transform to digital, and provide Omni channel intensive services in multi scenario sales channels.
As of December 31, 2020, Jingdong Logistics operates more than 900 warehouses. Including the cloud warehouse area managed by Jingdong Logistics, the total storage area of Jingdong Logistics is about 21 million square meters.
Jingxi business group
In order to deeply cultivate and expand its influence in the sinking market, Jingdong group recently announced the establishment of “Jingxi business group” to better meet the needs of consumers in the sinking market and empower local small and medium-sized business owners. “Jingxi business group” integrates social e-commerce platform “Jingxi”, convenience store business “Jingxi Tong” (the original Jingdong new channel) and community group buying business “Jingxi Pinpin”. In addition, Jingdong group will strengthen its supply chain capacity in the sinking market through business cooperation and strategic investment. Recently, Jingdong group announced its strategic investment in Hunan Xingsheng youyou e-commerce Co., Ltd., a leading community group buying e-commerce platform, and China Dili group, a leading wholesale market operator of agricultural products and a Hong Kong listed enterprise, hoping to achieve synergy and mutual empowerment in the sinking market by virtue of their close cooperation in technology, supply chain and logistics.
Jingdong Industrial Development Co., Ltd
After the successful completion of two core logistics real estate funds, Jingdong Industrial Development Co., Ltd. launched its first logistics real estate development fund in the fourth quarter of 2020, with an asset management scale of 3 billion yuan. The core investors include GIC, Singapore’s sovereign wealth fund, and mubadara, UAE’s sovereign investment company. So far, the total asset management scale of core funds and development funds has exceeded 19 billion yuan.
Other highlights
Jingdong group and Jingdong Digital Technology Co., Ltd. have become the first batch of e-commerce and technology enterprises to cooperate with the digital currency Research Institute of the people’s Bank of China to carry out the pilot work of digital RMB. At present, the pilot cities that have participated in include Beijing, Suzhou and Chengdu. In order to promote the pilot implementation, Jingdong group has created a digital RMB featured payment scene for local citizens, covering online e-commerce platform, as well as offline formats such as Jingdong home appliance stores and Jingdong convenience stores. At the same time, in the digital RMB pilot project, Jingdong Digital Technology Co., Ltd. has provided “technology + service” support for financial institutions and businesses, boosting the integration development of digital economy and real economy.
Latest operation data
As of December 31, 2020, in addition to part-time staff and interns, JD has about 310000 employees.
Financial results for the fourth quarter of fy2020
net income
Net income in the fourth quarter of 2020 was 224.3 billion yuan (about 34.4 billion US dollars), up 31.4% year on year. In the fourth quarter of 2020, the net Commodity sales revenue increased by 28.4% and the net service revenue increased by 53.2%.
Operating profit and non GAAP operating profit

In the fourth quarter of 2020, the operating profit will be RMB 590 million (about US $90 million), and RMB 530 million in the same period of 2019. In the fourth quarter of 2020, non GAAP operating profit was RMB 1.21 billion (about US $190 million), compared with RMB 700 million in the same period of 2019. In the fourth quarter of 2020, the operating profit margin of Jingdong retail is 1.5%, and in the same period of 2019, it is 1.4%.
Non GAAP earnings before interest, tax, depreciation and amortization
In the fourth quarter of 2020, non GAAP earnings before interest, tax, depreciation and amortisation were RMB 2.7 billion (about US $400 million), compared with RMB 2 billion in the same period of 2019.
Net profit attributable to common shareholders and non GAAP net profit attributable to common shareholders
Net profit attributable to common shareholders in the fourth quarter of 2020 was RMB 24.3 billion (about US $3.7 billion), compared with RMB 3.6 billion in the same period of 2019. In the fourth quarter of 2020, non GAAP net profit attributable to common shareholders was RMB 2.4 billion (about US $400 million), compared with RMB 800 million in the same period of 2019.
Diluted earnings per share and non GAAP diluted earnings per share
In the fourth quarter of 2020, the diluted net income per ads share was RMB 15.18 (about US $2.33), compared with RMB 2.44 in the same period of 2019. Under non GAAP, the diluted net income of each American Depository Share in the fourth quarter of 2020 was RMB 1.49 (about US $0.23), compared with RMB 0.54 in the same period of 2019.
Cash reserves
As of December 31, 2020, the total amount of cash and cash equivalents, restricted funds and short-term investment of JD is 151.1 billion yuan (about 23.2 billion US dollars). As of December 31, 2019, the total amount of cash and cash equivalents, restricted funds and short-term investment of JD is RMB 64.5 billion.
Financial performance of fy2020
net income
In 2020, the annual net income was 745.8 billion yuan (about 114.3 billion US dollars), up 29.3% year on year. In 2020, the year-on-year growth of net Commodity sales revenue was 27.6%, and the year-on-year growth of net service revenue was 42.0%.
Operating profit and non GAAP operating profit
In 2020, the annual operating profit will be 12.3 billion yuan (about 1.9 billion US dollars), and in 2019, it will be 9 billion yuan. In 2020, the non GAAP operating profit is 15.3 billion yuan (about 2.4 billion US dollars), and the operating profit rate is 2.1%. In 2019, the non GAAP operating profit is RMB 8.9 billion, and the operating profit margin is 1.5%. In 2020, the profit margin of Jingdong’s retail business will be 2.8%, and in 2019, it will be 2.5%.
Non GAAP earnings before interest, tax, depreciation and amortization
In 2020, the non GAAP profit before interest, tax, depreciation and amortization is 20.7 billion yuan (about 3.2 billion US dollars), and the profit rate before interest, tax, depreciation and amortization is 2.8%. In 2019, the non GAAP profit before interest, tax, depreciation and amortization is RMB 13.8 billion, and the profit rate before interest, tax, depreciation and amortization is 2.4%.
Net profit attributable to common shareholders and non GAAP net profit attributable to common shareholders
The net profit attributable to common shareholders in 2020 is RMB 49.4 billion (about US $7.6 billion), and that in 2019 is RMB 12.2 billion. The net profit attributable to common shareholders under non GAAP is 16.8 billion yuan (about 2.6 billion US dollars) in 2020 and 10.7 billion yuan in 2019.
Diluted earnings per share and non GAAP diluted earnings per share
In 2020, the diluted net income per American Depository Share is 31.68 yuan (about 4.86 US dollars), and in 2019, it is 8.21 yuan. Under non GAAP, the diluted net income per American Depository Share in 2020 is RMB 10.56 (about US $1.62) and that in 2019 is RMB 7.25.
Recent developments
Jingdong Logistics
On February 16, 2021, through its co sponsors, Jingdong Logistics submitted a listing application form (form A1) to the stock exchange of Hong Kong to apply for approval to be listed on the main board of the stock exchange of Hong Kong and conduct trading of shares (i.e. ordinary shares with a par value of US $0.000025 per share in the share capital of Jingdong Logistics). At present, it is not sure whether or when it can be successfully listed.
Jingdong Industrial Development Co., Ltd
On March 10, 2021, the sub group of Jingdong group, which provides infrastructure asset management and comprehensive services, Jingdong Industrial Development Co., Ltd. and the joint leading investors, Hillhouse capital, Warburg Pincus and other investors, signed the final agreement on the financing of non redeemable series a preferred shares. The total amount of financing for this transaction is expected to be about US $700 million, and the completion of the transaction will also depend on the conventional transaction conditions. After the completion of the transaction, Jingdong group will remain the controlling shareholder of Jingdong industrial development. Relying on the industry expertise and resources of Huaping investment and Hillhead capital, Jingdong Industrial Development Co., Ltd. will further strengthen its infrastructure property management capability and position itself as a leading enterprise in the development, operation and management of high-quality infrastructure property.