Highlights: JD Executives on Q2 2020 Earnings

Posted on by Yuchuan Wang

by Ella Kidron and Yuchuan Wang

On August 17th, JD.com reported second quarter 2020 earnings results. Net revenues grew by 33.8% in the second quarter. Annual active customers for the twelve months ended June 30, 2020 reached 417.4 million, up 29.9% compared with the twelve months ended June 30, 2019. On the earnings call to discuss the results, JD’s management team emphasized the company’s commitment to its partners, the integral role of supply chain across its businesses, as its unrelenting effort to provide the best possible experience for customers and clients alike.

On JD’s Q2 performance, CFO Sandy Xu said, “We are proud that JD played an important role to help our suppliers and users in this extraordinary time and contribute to society. As domestic consumption is still recovering from the disruptions brought by the pandemic, both the release of pent-up demand and a structural shift of consumers’ purchasing behavior from offline to online have added to our strong performance in the quarter.”

Among the highlights, general merchandise grew by 45% year over year, led by key categories such as supermarket and healthcare, demonstrating JD’s position as the leading reliable, full-category platform for consumers in China. Ms. Xu said, “Our supermarket category, including FMCG and Fresh Produce, became the single largest product category by revenue in first half of 2020, surpassing mobile phones, home appliances, and computers, our former champion categories… this steady shift demonstrates our strengthened brand recognition and consumer perception as an everything-store with increasingly broader selections.”

JD Retail CEO Xu Lei emphasized: JD Super has already become China’s largest supermarket online or offline. Going forward, we will further strengthen the establishment of our middle platform supply chain capabilities to satisfy consumers in different scenarios and provide more competitive prices. In addition, we (JD Super) will collaborate with JD Logistics on warehousing, including investments in cold chain logistics, to improve fulfillment efficiency and lower fulfillment costs. Lastly, we will keep promoting our omnichannel (strategy) to provide our supply chain capabilities to create more values not only for JD’s first-party businesses but also hundreds of thousands of offline stores.

In terms of key strategic priorities for JD Retail, Xu added that: First, we will keep opening up our supply chain. Second, we will further develop in lower-tier city markets and industrial belts. Third, we will keep promoting the building up of omnichannel capabilities. Fourth, we, including the whole JD.com group, have been strengthening our investment in technology and services and we will continue collaborating with enterprises on the business side.

JD Logistics was also a strong driver of profitability improvement from new businesses. CFO Ms. Xu mentioned on the earnings call that JD Logistics turned profitable on a non-GAAP basis in the quarter, driven by high order volume during the peak season and technology-driven productivity gains thanks to JD’s “best-in-class” fulfillment capacity. CEO of JD Logistics, Zhenhui Wang said: JD Logistics has attached great importance to the FMCG category this year. We will place more warehouses in the lower-tier markets, enabling more goods to reach customers and more customers to experience better JD Logistics services. In addition to our same- and next-day delivery program, we will provide one-hour delivery service for different categories and cities, letting our customers to choose for themselves.

For JD Health, on top of online pharmacy sales, which saw strong top line growth in Q2, JD’s online medical consultation service volume delivered 400% growth YOY as more users are aware of and get accustomed to the new service. User engagement was a key growth driver, especially lower-tier city users. In Q2, over 80% of new customers came from lower-tier cities, an improvement from previous quarters.

In terms of investments at the group level, CSO Jon Liao reiterated the company’s commitment to investing in companies which are complementary in terms of scale, scope, capability and long-term business value to build long-term strategic value. He also mentioned the company’s strong continued investment in lower-tier cities, supply chain and infrastructure.

 

*Note that all statements above are based on JD’s Q2 earnings call, and are under the Safe Harbor statement in the press release, available here: https://ir.jd.com/news-releases/news-release-details/jdcom-announces-2020-second-quarter-and-interim-financial

 

(ella@jd.com; yuchuan.wang@jd.com)

JD Logistics Releases Digital Twin Supply Chain White Paper

Posted on by Yuchuan Wang

by Yuchuan Wang

On August 14th, JD Logistics and China Federation of Logistics & Purchasing jointly released the “Digital Twin Supply Chain” white paper (in Chinese) at the “2020 Global Logistics Technology Conference” held in Shanghai.

One of the biggest benefits of digital twin technology is its ability to improve effectiveness of processes. “We hope the white paper could be a for reference for the industry,” said Wenming Zhe, chief architect and head of logistics R&D Architecture at JD Logistics. “The essence of supply chain and logistics is the optimization of resources, but the cost of trials in the physical world is often very high. Through digital twin supply chain, we hope to move the trials for optimization and simulation from the physical to digital world, which will ultimately assist the improvement of efficiency and cost in the physical supply chain.”

JD Logistics technology conference

A digital twin is a virtual replica of a physical asset and/or process that relies on real-time data to mimic any changes that occur throughout its lifecycle. The development of digital twin technology is dependent upon the progress of innovative technologies such as 5G, cloud computing, IoT, AI, blockchain and robotics.

As digital twin technology is being applied in more and more industries such as smart city, the white paper, for the first time, introduces the concept of “digital twin supply chain”. The white paper introduces the definition of digital twin, fundamental technologies, applications in supply chain and suggestions for further development.

A digital twin supply chain integrates forecasting technologies and decision-making tools with digital twin technology, thus improving supply chain efficiency and lowering costs.

As early as 2019, JD Logistics created its own digital twin supply chain platform “LoMir”, which is short for Logistics Mirror. The platform was first applied in JD’s Beijing Asia No.1 logistics park, and now covers over 8,000 transportation routes in JD’s self-owned logistics and warehousing network and provides accurate capacity forecasting and alert for sales peaks such as 618 and Singles Day (November 11th).

 

(yuchuan.wang@jd.com)

JD.com Announces 2020 Second Quarter and Interim Financial Results

Posted on by Yuchuan Wang

BEIJING, Aug. 17, 2020 (GLOBE NEWSWIRE) — JD.com, Inc. (NASDAQ: JD and HKEX: 9618), China’s leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider, today announced its unaudited financial results for the three months and six months ended June 30, 2020.

Second Quarter 2020 Highlights

  • Net revenues for the second quarter of 2020 were RMB201.1 billion (US$1 28.5 billion), an increase of 33.8% from the second quarter of 2019. Net revenues from the sales of general merchandise products for the second quarter of 2020 were RMB64.0 billion (US$9.1 billion), an increase of 45.4% from the second quarter of 2019. Net service revenues for the second quarter of 2020 were RMB22.9 billion (US$3.2 billion), an increase of 36.4% from the second quarter of 2019.
  • Income from operations for the second quarter of 2020 was RMB5.0 billion (US$0.7 billion), compared to RMB2.3 billion for the same period last year. Non-GAAP2 income from operations for the second quarter of 2020 was RMB5.6 billion (US$0.8 billion) with a non-GAAP operating margin of 2.8%, as compared to RMB3.2 billion for the second quarter of 2019 with a non-GAAP operating margin of 2.1%.
  • Net income attributable to ordinary shareholders for the second quarter of 2020 was RMB16.4 billion (US$2.3 billion), compared to RMB0.6 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the second quarter of 2020 increased by 66.1% to RMB5.9 billion (US$0.8 billion) from RMB3.6 billion for the same period last year.
  • Diluted net income per ADS for the second quarter of 2020 was RMB10.47 (US$1.48), compared to RMB0.36 for the second quarter of 2019. Non-GAAP diluted net income per ADS for the second quarter of 2020 was RMB3.51 (US$0.50), compared to RMB2.30 for the same period last year.
  • Annual active customer accounts3 increased by 29.9% to 417.4 million in the twelve months ended June 30, 2020 from 321.3 million in the twelve months ended June 30, 2019. Mobile daily active users4 in June 2020 increased by 40% as compared to June 2019.

“Since the COVID-19 outbreak, JD has steadfastly leveraged our distinctive supply chain and technology capabilities to contribute to society and ensure the steady supply and undisrupted delivery of daily necessities to consumers, while helping to create jobs within our ecosystem and support business partners amidst the dynamic economic environment,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “I’m grateful for the efforts of JD’s employees and business partners in driving another solid quarter of accelerated revenue growth, as our extensive product offerings and superior services continue to attract large numbers of new users.”

“Our scale advantages and cost efficiency enabled us to provide attractive prices during our June 18 sales promotions, benefiting consumers and society as China’s economy emerges from the difficult pandemic period, and helped drive solid top and bottom line results for the second quarter,” said Sandy Xu, Chief Financial Officer of JD.com. “Our strong financial and operating performance form the basis for JD’s continued investment in innovative supply chain capabilities and a superior customer experience to support our long term growth.”

Business Highlights

Hong Kong Listing

  • On June 18, 2020, JD.com successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited under the stock code “9618”, with a global offering of 152,912,100 new Class A ordinary shares (including a partial exercise of the over-allotment option completed on July 15, 2020) (the “Global Offering”). The Hong Kong-listed shares are fully fungible with JD.com’s American depositary shares (“ADSs”) listed on the Nasdaq Stock Exchange, based on the ratio of two ordinary shares per ADS. The gross proceeds from the Global Offering, before deducting underwriting fees and the offering expenses, amounted to approximately HK$34,558 million. JD.com plans to use the net proceeds to invest in key supply chain-based technology initiatives to further enhance customer experience and improve operating efficiency.

Environment, Social and Governance

  • In response to the COVID-19 resurgence in Beijing in June, JD.com rapidly deployed prevention measures to protect consumers and employees while ensuring the steady supply of daily necessities. As the new outbreak was linked to a wholesale food market in Beijing, JD.com carried out virus screening on fresh produce. Contactless deliveries were made widely available in local residential compounds, and JD delivery staff, truck drivers and warehouse workers were all tested for the virus.
  • In the second quarter, JD.com continued to contribute to China’s poverty alleviation efforts, including joining a nationwide program to offer tens of thousands jobs in its logistic and retail operations and hosting live stream shows with rural counties to promote local specialties. JD Health and JD Foundation launched online purchase subsidies for low income families covering selected medicines, creating the largest health poverty alleviation project in China in terms of geographical coverage, population benefited and total monetary amount.

JD Retail

  • JD.com continued to attract premium global brands to its platform as a widely trusted retailing channel for high quality products. In the second quarter, brands including Prada’s high end footwear brand Church’s, London based innovative luxury fashion label Christopher Kane, well-known British furniture design brand Tom Dixon, Italian luxury shoe brand Sergio Rossi, Korean high street apparel brand SJYP and affordable Japanese cosmetics and drug store Daikoku, all launched flagship stores on JD.com.
  • In the second quarter, livestreaming continued to grow in popularity as a tool for suppliers and merchants to engage with customers. Ms. Dong Mingzhu, Chairwoman of Gree Electronic Appliances, booked a record-breaking sale during a three-hour livestream show, featuring pre-sale customer education and product recommendations. In order to diversify its user engagement channels and fully leverage its supply chain strengths, JD Retail announced a strategic partnership with Kwai, one of China’s leading short video platforms. The debut event, a one-day livestream show jointly held by the two companies, was a great success connecting Kwai’s large user base to JD.com’s broad selection of high quality products and superior online shopping experience.
  • In April, JD Retail launched “Instant Delivery” services for mobile products, with delivery of mobile phones in as fast as one hour through JD Daojia. The initiative applies its omni-channel strategies to more diversified categories and further improves customer experience. The service currently covers selected authorized stores as well as other partners within JD.com’s omni-channel ecosystem.
  • JD Retail continued to apply advanced technology to various consumption scenarios in order to facilitate online purchasing. Following the launch of its AR-based virtual shoe “try-on” service – the first for an e-commerce platform in China – JD Retail launched its AI-powered skin evaluation service in June, allowing users to upload images from their mobile phone for analysis and receive customized shopping guidance on suitable skincare and cosmetics products.

JD Health

  • On August 17, 2020, JD Health, a subsidiary of JD.com, entered into a definitive agreement with Hillhouse Capital for its non-redeemable series B preference share financing. The total amount expected to be raised from Hillhouse Capital is over US$830 million. JD.com will remain the majority shareholder of JD Health after the completion of this transaction, which is subject to customary closing conditions. The closing is expected to occur in the third quarter of 2020. Hillhouse Capital is a leading investment management company that has established a comprehensive ecosystem in the healthcare sector in China. By leveraging Hillhouse Capital’s industry expertise and resources, JD Health will further strengthen its pharmacy supply chain capabilities and explore additional healthcare services opportunities in the broader healthcare sector.
  • In June, JD Health unveiled its Traditional Chinese Medicine Consultation Center and Intelligent Otorhinolaryngology Services Center, each bringing together the country’s top specialists and providing online consultations and disease management programs for patients nationwide. With the addition of these two centers, the specialized virtual medical treatment centers within the JD Health app cover areas including heart disease, mental health, diabetes, kidney disease, pediatrics, oncology and maternity, among others.

JD Logistics

  • In the second quarter, JD Logistics launched a new Asia No.1 warehouse in Langfang, Hebei province, near Beijing, equipped with the first automated storage and retrieval system for bulky items in Asia’s e-commerce industry, greatly improving efficiency in handling items including air conditioners, refrigerators and furniture. Thanks to its continuous focus on technology innovation, JD Logistics maintained fast delivery standards during the June 18 Anniversary Sale as orders surged to record highs, ensuring that 91% of packages from its direct sales platforms arrived at consumers’ doorsteps same or next day throughout China.
  • As of June 30, 2020, JD Logistics operated over 750 warehouses, which covered an aggregate gross floor area of approximately 18 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform.

Equity Investees Update

  • On June 25, 2020, JD.com announced that it has entered into agreements with JD Digits, pursuant to which JD.com will acquire a 36.8% equity interest in JD Digits by converting its profit sharing rights with respect to JD Digits as set forth in the Framework Agreement entered into between the two parties in 2017, and investing an additional RMB1.78 billion in cash in JD Digits to satisfy the minimum capital registration requirement under the PRC laws. Upon closing, the Framework Agreement, including the current profit-sharing arrangement between JD.com and JD Digits, will terminate, and JD Digits will become an equity method investee of JD.com.
  • Dada Group, one of JD.com’s important ecosystem partners, listed on the Nasdaq Stock Market under the ticker “DADA” on June 5, 2020. Upon its initial public offering (IPO), JD.com purchased additional shares as a cornerstone investor. As of June 30, 2020, JD.com is the largest shareholder of Dada Group with a 47.9% stake. JD.com has formed an extensive cooperation relationship with Dada, as its local on-demand delivery and retail capabilities support JD.com’s innovative projects and omni-channel strategy, together bringing consumers the most convenient and advanced shopping experience.

Operational Metrics Update

  • As of June 30, 2020, JD.com had approximately 240,000 employees excluding part-time and interns.

 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as JD.com’s strategic and operational plans, contain forward-looking statements. JD.com may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to JD.com’s industry and general economic conditions in China. Further information regarding these and other risks is included in JD.com’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law.

JD and Friesland Target to Sell RMB 10 Billion Yuan in China in 3 Years

Posted on by Rachel Liu

by Rachel Liu

On August 12th, JD Super, JD’s online supermarket, and Friesland, a Dutch international dairy company, announced that they are eyeing a sales target of RMB 10 billion yuan in China in the next three years.

Friesland is the world’s largest dairy co-operative and one of the top five dairy companies in the world. The main brand under the company is Friso, which is one of the best-selling maternal and baby brands on JD. JD has been working closely with Friesland since 2010, and is the brand’s most important sales channel in China.

The two sides see five areas of potential cooperation:

  • JD will leverage its massive customer base and omnichannel advantages to expand the sales of Friso products, including through the cross-border model, third-party model and more.
  • The two sides will work together to build marketing solutions covering all shopping scenarios, and to cooperate more deeply on digital marketing and media resources sharing.
  • JD will provide customer insights and behavior analysis to Friesland to help the brand develop new products, and provide marketing suggestions after the new products are launched.
  • JD will help Friesland with CRM (Customer Relations Management) to develop brands’ members and improve the sales generated from members.
  • JD and the brand will integrate content management resources, such as livestreaming and KOLs, to create better content for JD customers.
  • JD will work with Friesland to explore trends in digital transformation of e-commerce.

During the epidemic, leveraging its advanced supply chain capabilities and logistics network, JD worked closely with Friesland to ensure the consistent supply of products to Chinese parents, which has largely improved the customers’ recognition of the brand. JD Super has become the first choice for international maternal and baby brands to develop in Chinese market.

 

(liuchang61@jd.com)

 

Turning Inwards: JD Helps Sell Eel across China

Posted on by Yuchuan Wang

by Yuchuan Wang

 With the help of JD, Fujian province-cultivated eel enterprises have found a new sales channel via JD’s sales approach. From February to June, sales of Fujian eel products increased 451% year-on-year on JD, with many eel farmers and manufacturers making up for losses incurred due to COVID-19.

Fujian is a major province for eel cultivation in China. In the past, 70% of Fujian eel was exported to Japan, U.S. and other overseas markets. But this year, the eel industry in Fujian suffered heavy losses on account of the COVID-19 pandemic, and exports decreased to less than half of that of previous years. At the same time, the domestic catering market was also impacted, resulting in the sharp contraction of domestic eel sales.

JD.com launched the “National Fresh Produce Green Channel” in February.

To help farmers sell their inventory amidst the pandemic, JD.com launched the “National Fresh Produce Green Channel” in February. The initiative also helped local eel companies well to the domestic market through JD’s e-commerce platform.

It wasn’t all smooth sailing. Many eel enterprises simply moved their products online without considering that many Chinese consumers do not know how to prepare eel. To boost sales and make it easier for consumers to do it, JD.com guided Fujian’s eel enterprises to develop ready-to-cook and ready-to-eat eel products.

“Based on JD’s big data insights, we developed the roast eel ready-to-eat product. On the first day of its launch during JD.com’s 618 Grand Promotion, we sold out of all roast eel products,” said Jianli Wang, sales manager of Sandugang, a Fujian-based eel producing and manufacturing company. On June 18th, transaction volume of eel products on JD was nearly RMB 1 million yuan.

During 618, JD opened up an exclusive sales and logistics channels for seafood like eel. These efforts have helped Fujian eel farmers resolve key sales challenges.

This August, JD held an “eel season” sales event online. The company hopes to bring more quality seafood to its consumers and continuously drive sales for merchants, facilitating the recovery of more enterprises.

 

(yuchuan.wang@jd.com)

Filmmaker and Actor Xu Zheng Joins JD for Livestream to Support Movie Industry

Posted on by Martin Li

by Martin Li

A recent livestream event on JD.com co-hosted by renowned Chinese comedy filmmaker and actor Xu Zheng saw 2,000 RMB10-yuan movie ticket coupons given away to viewers.

They can use the coupons to buy tickets on JD.com.

The livestream was launched by China Movie Channel as a push for people to support China’s movie industry, which has been on pause since February due to the COVID-19 pandemic.

Cinemas across China have been reopening gradually and cities like Beijing, Chengdu, Shanghai and Guangzhou have raised the limit on seat occupancy to 50% (from 30% previously) and cancelled the mandatory intermission for 120-minute-long movies.

The livestream event was also joined by Du Chunyang, senior director of the film and performance business unit of JD Life.

“JD will provide more discounted film tickets online and bring more benefits to JD Plus members (in terms of movie consumption),” said Du.

JD Plus is JD’s premium membership program.

JD launched its online movie ticket sales business in 2012 and has been committed to supporting the industry since. It took only three days for JD to launch real-name registration for online ticket buyers – as required by the government – after cinemas resumed operation in low-risk areas on July 20th.

In addition, JD has also helped promote new movies with the help of its huge traffic resources.

 

(bjlihao3@jd.com)

Orders of JD’s Mobile Phone Trade-in Service Increased 50% Within One Week

Posted on by Rachel Liu

by Rachel Liu

On August 5th, JD launched an updated service package for mobile phone buyers. It includes five services: 30-day return, one-hour delivery, free-trial, trade-in and “30365” service. The package is provided in advance of the upcoming JD Mobile Phone Festival on August 18th. One week after the launch, orders of mobile trade-in services on JD increased over 50% compared with before.

The 30-day return service means that customers can return a mobile phone within 30 days of ordering as long as the phone has not been damaged. The one-hour delivery is a service that JD provides with JDDJ (JD Daojia), China’s leading local on-demand retail platform. JD customers can shop for products through JDDJ, and the brick and mortar stores will deliver the products to customers in as fast as in one hour. The “free-trial” service allows customers to try products for seven days and return them if they are not satisfied. The “trade-in” service enables customers to trade-in their old phones and deduct the trade-in price from the cost of new phone. The “30365” service ensures customers get a full refund if their phones have hardware problems within 30 days after the orders are made or get a brand new product if there are problems within the first year. More and more brands and products are joining the service project to provide a better shopping experience to JD customers.

On JD’s Super Honor Day on August 6th, over 150,000 customers enjoyed service products on JD, saving over RMB 4 million yuan. In JD’s vivo flagship store, vivo S7 which joined the service program, received 97% positive reviews. Some of the customers’ comments on mobile phones say that things along the lines of, “I received the product within one hour”; “I made two purchases and they both arrived very fast”.

With the online mobile phone market becoming more mature, competitive price is not the only factor affecting customers’ choices. It’s especially important to provide exceptional customer service to increase customers’ loyalty to e-commerce platforms.

 

(liuchang61@jd.com)

JD to Acquire Controlling Interest in Kuayue Express

Posted on by Yuchuan Wang

BEIJING, Aug. 13, 2020 (GLOBE NEWSWIRE) — JD.com, Inc. (the “Company”) (NASDAQ: JD; HKEX: 9618), China’s leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider, today announced that it has entered into a definitive agreement under which Jingdong Express Group Corporation (“JD Logistics”), a subsidiary of the Company, will acquire a controlling interest in Kuayue-Express Group Co., LTD. (“Kuayue Express”), a renowned modern integrated express transportation enterprise specializing in “limited-time express service” in China, for a total consideration of RMB3 billion through a combination of acquiring existing shares and subscribing for newly issued shares of Kuayue Express, subject to customary closing conditions. The Company expects to close this transaction in the third quarter of 2020.

“We are pleased to collaborate with Kuayue Express to provide customers with the best services available,” said Zhenhui Wang, CEO of JD Logistics. “Kuayue Express is a reliable delivery services provider and industry leader in express courier services with innovative technology and advanced operations. Collaborating with Kuayue Express advances our integrated supply chain management, technology initiatives and service expansion to third party merchants. We will leverage our respective advantages and the synergy the collaboration creates to enhance the client experience and increase overall supply chain efficiency for JD and society at large.”

About JD.com

JD.com is a leading technology driven e-commerce company transforming to become a leading supply chain-based technology and service provider. The Company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The Company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries. JD.com is the largest retailer in China, a member of the NASDAQ100 and a Fortune Global 500 company.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the description of the proposed offering in this announcement contain forward-looking statements. JD.com may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to JD.com’s industry and general economic conditions in China. Further information regarding these and other risks is included in JD.com’s filings with the SEC and the prospectus registered in Hong Kong. All information provided in this press release and in the attachments is as of the date of this press release, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law.