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JD.com, Inc., (NYSE: JD) a prominent player in the supply chain-based technology and service sector, has reported a solid performance for the third quarter of 2024, showcasing a notable increase in both revenue and profitability. The company achieved net revenues of RMB260.4 billion (US$137.1 billion), marking a 5.1% increase compared to the same quarter in 2023. This growth was primarily driven by a rebound in electronics and home appliances sales, alongside sustained momentum in general merchandise.
The company’s income from operations saw a significant jump, reaching RMB12.0 billion (US$1.7 billion), up by 29.5% from the previous year. This improvement in operational income is reflected in the operating margin, which rose to 4.6% from 3.8% in the same period last year. Non-GAAP income from operations also increased by 17.9%, indicating a healthy operational efficiency across JD.com’s business segments.
Net income attributable to ordinary shareholders surged by 47.8% to RMB11.7 billion (US$1.7 billion), with a corresponding net margin increase to 4.5%.
JD Reports Third Quarter Results, Beats EPS Expectations, Revenue in Line
Despite the positive performance, JD.com’s results fell slightly short of market expectations. Analysts had anticipated earnings per share (EPS) of RMB7.5 ($1.04) and revenue of $260.47 billion. The actual EPS reported was RMB7.73 (US$1.10), which translates to a non-GAAP diluted net income per ADS of RMB8.68 (US$1.24). The revenue, while robust, matched the expected RMB260.4 billion, showcasing the company’s ability to meet revenue forecasts despite challenging market conditions.
The company’s marketing expenses increased by 25.7% to RMB10.0 billion, reflecting intensified promotional activities aimed at boosting market presence. This strategic spending contributed to the revenue growth but also impacted the overall cost structure. However, JD.com’s focus on enhancing its operational efficiencies helped offset these costs, as evidenced by the improved operating and net margins.
The non-GAAP net income attributable to ordinary shareholders increased by 23.9% to RMB13.2 billion, reinforcing the company’s commitment to shareholder value. This growth was supported by JD.com’s strategic focus on expanding its market share and enhancing its product offerings, particularly in the apparel and accessories sector, which saw the launch of flagship stores for luxury brands like BALENCIAGA and SAINT LAURENT.
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Guidance and Future Outlook
Looking ahead, JD.com remains optimistic about its growth prospects, underpinned by its robust supply chain capabilities and strategic initiatives. The company has announced a new US$5.0 billion share repurchase program extending through August 2027, signaling confidence in its long-term growth trajectory and commitment to enhancing shareholder value.
JD.com’s management highlighted the importance of its strategic partnerships and expansions, such as the cooperation with Taobao and Tmall Group, which is expected to further strengthen its logistics business. The integration of JD Logistics with these platforms is anticipated to enhance service offerings and drive future growth. Additionally, JD Health’s innovation in enabling online payments through medical insurance accounts is set to expand its reach and service capabilities.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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