JD.com pre-market shares rose 10%! Q4 net profit increased by 190.8% year-on-year, and it will repurchase up to $5 billion in stock over the next 36 months

JD.com Q4 revenue increased by 13.4% year-on-year, the fastest growth rate in nearly two years; operating profit increased by 319.3% year-on-year. The continuous improvement in profitability is mainly attributed to the company's optimization in cost control and operational efficiency. JD.com announced that it may repurchase up to $5 billion worth of shares (including American Depositary Shares) within the next 36 months.

On March 6, before the U.S. stock market opened, JD Group announced its fourth-quarter financial report:

1) Key Financial Data:

• Revenue: The revenue for the fourth quarter of 2024 was RMB 347 billion (approximately $47.5 billion), an increase of 13.4% year-on-year. The growth was mainly due to the dual increase in merchandise revenue and service revenue, with merchandise revenue increasing by 6.5% year-on-year and service revenue increasing by 8.1% year-on-year.
• Net Profit: The net profit attributable to ordinary shareholders for the fourth quarter was RMB 9.9 billion, an increase of 190.8% year-on-year, with a net profit margin of 2.8%.
• Operating Profit: The operating profit for the fourth quarter was RMB 8.5 billion, an increase of 319.3% year-on-year, with an operating profit margin of 2.4%.
• Earnings Per Share: The diluted earnings per American Depositary Share (ADS) for the fourth quarter were RMB 6.47, an increase of 203.8% year-on-year.

For the whole year, JD.com’s total revenue for 2024 was RMB 1,158.8 billion (approximately $158.8 billion), an increase of 6.8% year-on-year. The total operating profit for the year was RMB 38.7 billion, an increase of 48.8%, with an operating profit margin of 3.3%.

The total net profit for the year was RMB 41.4 billion, an increase of 71.1%, with a net profit margin of 3.6%. The diluted earnings per ADS for the year were RMB 26.86, an increase of 76.4%.

2) Core Business Highlights:

• JD Retail: In January 2025, the PLUS membership service will be fully upgraded, adding new benefits such as "life service package" and "180 days exchange only" to further enhance user experience.

• JD Health: In the fourth quarter, the service experience was upgraded, expanding the coverage of the "home quick testing" service, launching 149 types of rapid testing products, and covering 12 core cities nationwide.

• JD Logistics: During the 2024 Double 11 shopping festival, the express delivery service in Hong Kong and Macau was upgraded to provide indiscriminate door-to-door delivery service. At the same time, a clear overseas strategic roadmap was established to promote the construction of a global logistics network.

Mr. Dan Su, Chief Financial Officer of JD Group, stated:

"In the fourth quarter, JD's revenue increased by 13.4% year-on-year. Multiple categories and business segments showed healthy growth momentum, which fully reflects the recovery of the macro consumption market, while JD's market share is also steadily expanding."

In 2024, our profitability continues to improve, mainly due to our relentless efforts in cost control and operational efficiency optimization. We are confident in gradually achieving our long-term profit goals. Based on this, we are pleased to announce an increase in the cash dividend distribution amount for the year 2024, along with our existing $5 billion stock repurchase plan, which further demonstrates JD.com's firm commitment to creating value for shareholders.

Business Flourishing in Multiple Areas, Retail, Health, and Logistics Advancing Together

JD Group has made significant progress in multiple business segments. JD Retail has enhanced the PLUS membership service by adding "Life Service Package" and "180-day exchange only" benefits, further improving user experience and user stickiness.

JD Health expanded the coverage of its "Home Quick Testing" service in the fourth quarter, launching 149 rapid testing products, serving 12 core cities nationwide, with a total coverage population of over 150 million.

JD Logistics upgraded its express delivery services in Hong Kong and Macau during the 2024 Double 11 shopping festival and clarified its overseas strategic roadmap to promote the construction of a global logistics network.

JD Group has also shown positive performance in shareholder returns. The company announced a cash dividend of $0.5 per share of common stock (or $1.0 per American depositary share) for the year 2024, with a total expected payout of approximately $1.5 billion. Additionally, JD repurchased approximately 255.3 million Class A ordinary shares throughout 2024, totaling about $3.6 billion, and launched a new $5 billion share repurchase plan in August 2024, effective until August 2027.

JD Group's CEO Ms. Xu Ran stated:

"Against the backdrop of a gradually warming consumer market, JD has concluded 2024 with a strong performance in the fourth quarter. We are confident about 2025, as consumer sentiment steadily rebounds and strategic priorities are effectively executed, JD will continue to unleash high-quality growth potential."

After the earnings report was released, JD's U.S. stock rose over 10% in pre-market trading.