JD com : 3Q2021 Financial and Operational Highlights

JD.com, Inc.

Financial and Operational Highlights

Nov 2021

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This document speaks as of September 30, 2021. Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

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Fragmented Retail Market & Rapid Shift to Online

Robust Growth	… Yet Highly	… With Increasing	… Leading to Significant
in China Retail …	Fragmented ...	Online Penetration ...	Online Growth
China Total Retail	Top 20 Retailers'	China Online Retail	China Online Retail
Market Size (1)	Market Concentration in 2020 (2)	Penetration (3)	Market Size (4)
(RMB Trillions)			(RMB Trillions)

7.8%			China
			24.9%
2012 -20 CAGR
					17%
		China			20.7%
			41
		US	39	18.4%	32%

30	15.0%	2012 -20E
US	12.6%	CAGR
21	10.8%

52%

		6.2%	1.2
2012	2020	2012 2015 2016 2017 2018 2019 2020	2012A

10%

2020 -23E

CAGR

15.1

11.3

2020E 2023E

	(1)	Source: National Bureau of Statistics of China, and U.S. Census Bureau. Total retail consumption includes food services. US consumption is translated into RMB using the year-end foreign exchange
		rates, which were 6.2301 for 2012, and 6.5250 for 2020, respectively.
	(2)	Source: Euromonitor 2020. Concentration for China retail market excludes pure platform operators.
2	(3)	Source: National Bureau of Statistics of China. Online retail penetration is calculated as online physical goods consumption divided by total retail consumption.
(4)	Source: iResearch, 2019. Market size in terms of GMV.

Larger Growth Potential and Smaller Competitors (vs. US Market)

Top 10 Listed Retailers in China (1)

Top 10 Listed Retailers in US (2)

	CAGR
(Net Revenue in US$ bn)	2016-2020

		114.3	30%
	38.7		14%
Alibaba New	25.7		-
Retail Initiatives
	15.6		16%
	14.6		(1)%
	14.3		17%
	7.9		10%
	6.8		(13)%
	5.4		(7)%
	3.2		(11)%

						CAGR
(Net Retail Sales in US$ bn)	2016-2020
			4%
				433.9
				236.3		31%
132.5			4%
122.2			9%
122.1			9%
107.7			6%
93.6			7%
91.2			3%
89.6			8%
47.3			5%

Market leadership and operating efficiency allow everyday low price and tremendous margin potential, driven by economies of scale in procurement and cost advantage as an online retailer.

1. Source: company filings. Based on total net revenues for top 10 listed Chinese retailers in Jan - Dec 2020 (Alibaba's number is updated as of FY21). Alibaba New Retail Initiatives primarily include Intime, Tmall Imports, Sun Art and Hema. The conversion of RMB into US$ is based on the year-end exchange rate which was 0.1533. The CAGR growth rates were calculated based on revenues in RMB.
2. Source: company filings. Based on retail sales in the United States segments of top 10 listed US retailers, for fiscal year ended Jan 31, 2021 for Walmart and Lowe's, Dec 31, 2020 for Amazon and CVS

3 Caremark, Sept 1, 2020 for Costco, Aug 31, 2020 for Walgreens, Feb 1, 2021 for Kroger, best buy and Target, and Feb 2, 2021 for Home Depot.

Financial and Operational Highlights

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