JD.com’s annual active customer accounts increased to 588.3 million in the twelve months that ended September 30, 2022.

In August, JD Logistics deployed the first batch of battery swapping vehicles. It expects to expand the scale to approximately 1,000 EVs in operation across China by the end of 2022.

As the first logistics enterprise that adopts battery swapping vehicles on a large scale, JD Logistics is committed to reducing the number of vehicles used in its logistics parks by over 20% and carbon emissions by 15% for each vehicle, with overall carbon emissions down by nearly 35%.

In August, JD.com upgraded its trade-in services to support cross-category trade-in for cell phones, computers, digital devices, and home appliances. After the upgrade, users can also trade in a mix of up to six electronic products for new ones.

Some of such recycling and trade-in services are facilitated by ATRenew, an investee of JD.com that aims at prolonging the life cycle of electronic devices and thereby promoting environmental sustainability.

In September, JD Ehome, the first Apple authorized offline store operated by JD.com, was officially launched in Beijing, providing customers an integrated online to offline shopping experience.

This is the first time for JD.com and Apple to expand collaboration from online to offline by leveraging JD.com’s proprietary business model.

In the third quarter, FENDI, a luxury fashion brand under LVMH, launched a flagship store on JD.com, making the company the first with full partnerships with the nine top fashion brands under LVMH.

Meanwhile, Italian high-end clothing brand Max Mara and French luxury footwear brand Roger Vivier also joined JD.com. In terms of beauty brands, JD.com welcomed Christian Louboutin Beauty, BOBBI BROWN and LA PRAIRIE, among others, further enriching the Company’s offerings of high-end beauty and cosmetic products.

In addition, Canadian fashion and sportswear brand Lululemon launched its flagship store on JD.com during the third quarter.

See a comparison of annual buyers growth of Alibaba, JD, Pinduoduo here.

Financial Highlights

For the third quarter of 2022, JD.com reported net revenues of RMB243.5 billion (US$34.2 billion), representing an 11.4% increase from the same period in 2021. Net product revenues increased by 5.9%, while net service revenues increased by 42.2% for the third quarter of 2022, as compared to the same period of 2021.

The cost of revenues increased by 10.5% to RMB207.3 billion (US$29.1 billion) for the third quarter of 2022 from RMB187.6 billion for the third quarter of 2021.

Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 0.5% to RMB14.4 billion (US$2.0 billion) for the third quarter of 2022 from RMB14.3 billion for the third quarter of 2021. Fulfillment expenses as a percentage of net revenues was 5.9% for the third quarter of 2022, compared to 6.5% for the same period last year.

Marketing expenses was RMB7.6 billion (US$1.1 billion) for the third quarter of 2022, as compared to RMB7.8 billion for the third quarter of 2021.

Research and development expenses was RMB4.1 billion (US$0.6 billion) for the third quarter of 2022, as compared to RMB4.0 billion for the third quarter of 2021.

General and administrative expenses was RMB2.6 billion (US$0.4 billion) for the third quarter of 2022, as compared to RMB3.1 billion for the third quarter of 2021.

Income from operations for the third quarter of 2022 was RMB8.7 billion (US$1.2 billion), compared to RMB2.6 billion for the same period last year. Non-GAAP income from operations was RMB9.9 billion (US$1.4 billion) for the third quarter of 2022, as compared to RMB4.6 billion for the third quarter of 2021.

The operating margin of JD Retail before unallocated items for the third quarter of 2022 was 5.2%, compared to 4.0% for the third quarter of 2021.

Non-GAAP EBITDA was RMB11.5 billion (US$1.6 billion) for the third quarter of 2022, compared to RMB5.9 billion for the third quarter of 2021.

Share of results of equity investees was an income of RMB0.4 billion (US$0.1 billion) for the third quarter of 2022, as compared to a loss of RMB1.9 billion for the third quarter of 2021. The loss for the third quarter of 2021 was primarily due to non-cash impairment from certain equity investees.

Other non-operating loss was RMB0.8 billion (US$0.1 billion) for the third quarter of 2022, as compared to loss of RMB3.1 billion for the third quarter of 2021. The decrease of loss was primarily due to the fair value change of investment securities.

Net income attributable to ordinary shareholders for the third quarter of 2022 was RMB6.0 billion (US$0.8 billion), compared to a net loss of RMB2.8 billion for the same period last year. Non-GAAP net income attributable to ordinary shareholders for the third quarter of 2022 was RMB10.0 billion (US$1.4 billion), as compared to RMB5.0 billion for the same period last year.

Diluted net income per ADS for the third quarter of 2022 was RMB3.57 (US$0.50), compared to a diluted net loss per ADS of RMB1.81 for the third quarter of 2021. Non-GAAP diluted net income per ADS for the third quarter of 2022 was RMB6.27 (US$0.88), compared to RMB3.16 for the third quarter of 2021.

JD targets China middle-class with membership online platform Yihaodian