JD.com Announces Updates of Its Share Repurchase Program

Rhea-AI Summary

JD.com, a leading supply chain-based technology and service provider, announced the repurchase of 87.5 million Class A ordinary shares for $1.2 billion in the first quarter of 2024. The company has repurchased approximately 2.8% of its outstanding shares. The new share repurchase program, effective through March 18, 2027, has a remaining amount of $2.5 billion.

Insights

Financial Analyst

The repurchase activity by JD.com signals a substantial investment back into the company, indicative of the management's confidence in the firm's intrinsic value. A share repurchase of 1.2 billion accounting for roughly 2.8 of outstanding shares is a robust move. It is important to assess the effect on earnings per share (EPS). With fewer shares outstanding, the EPS typically increases, potentially making the stock more attractive to investors. The financial maneuver also reflects on the company's cash reserves and the allocation of its capital. One must consider the opportunity cost of these buybacks, weighing against other potential investments or debt reduction strategies. Moreover, the longevity of the new repurchase program until 2027 outlines a long-term strategy, which investors might interpret as a positive signal regarding the future stability and growth prospects of the company.

Market Research Analyst

Looking at JD.com's repurchase from a market sentiment perspective, such aggressive buyback activity can be construed by the market as a bullish sign, especially when a company buys back its shares on the open market. It's indicative of the leadership’s belief that the stock is undervalued. This can lead to a positive feedback loop in the market, potentially bolstering the stock price in the short term. However, an astute observer should also consider the broader market trends and the sector performance. Current market conditions, competitive landscape and the overall investor sentiment towards tech stocks must also be factored in, as these elements can mitigate or amplify the impact of the share repurchase on the stock price.

BEIJING, April 18, 2024 (GLOBE NEWSWIRE) -- JD.com, Inc. (“JD.com” or the “Company”) (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, today announced that, during the quarter ended March 31, 2024, the Company repurchased a total of 87.5 million Class A ordinary shares (equivalent of 43.8 million ADSs) for a total of US$1.2 billion. All of these shares were repurchased in the open markets from both NASDAQ and the Hong Kong Stock Exchange pursuant to the Company’s share repurchase programs publicly announced. The total number of shares repurchased by the Company in the first quarter of 2024 amounted to approximately 2.8% of its ordinary shares outstanding as of December 31, 2023¹.

Pursuant to the Company’s previous share repurchase program, expired on March 17, 2024, the Company has repurchased a total of approximately US$2.1 billion as of March 17, 2024.

Pursuant to the Company’s new share repurchase program, which is effective through March 18, 2027, the Company has repurchased a total of approximately US$0.5 billion as of March 31, 2024. The remaining amount under the Company’s new share repurchase program was US$2.5 billion as of March 31, 2024.

About JD.com, Inc.

JD.com is 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.

For investor and media inquiries, please contact:

Investor Relations
Sean Zhang
+86 (10) 8912-6804
IR@JD.com

Media Relations
+86 (10) 8911-6155
Press@JD.com

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. 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 announcements made on the website of the Stock Exchange of Hong Kong Limited, 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; laws, regulations and governmental policies relating to the industries in which JD.com or its business partners operate; potential changes in laws, regulations and governmental policies or changes in the interpretation and implementation of laws, regulations and governmental policies that could adversely affect the industries in which JD.com or its business partners operate, including, among others, initiatives to enhance supervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with JD.com’s acquisitions, investments and alliances, including fluctuation in the market value of JD.com’s investment portfolio; natural disasters and geopolitical events; change in tax rates and financial risks; intensity of competition; and general market and economic conditions in China and globally. Further information regarding these and other risks is included in JD.com’s filings with the SEC and the announcements on the website of the Stock Exchange of Hong Kong Limited. All information provided herein is as of the date of this announcement, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law.

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¹ The number of ordinary shares outstanding as of December 31, 2023 was 3,137,663,915 shares, being 3,183,434,337 issued shares minus 45,770,422 treasury stock. 

FAQ

How many Class A ordinary shares did JD.com repurchase in the first quarter of 2024?

JD.com repurchased 87.5 million Class A ordinary shares in the first quarter of 2024.

What was the total amount spent by JD.com on share repurchases in the first quarter of 2024?

JD.com spent a total of $1.2 billion on share repurchases in the first quarter of 2024.

What percentage of its outstanding shares did JD.com repurchase in the first quarter of 2024?

JD.com repurchased approximately 2.8% of its outstanding shares in the first quarter of 2024.

When does JD.com's new share repurchase program expire?

JD.com's new share repurchase program is effective through March 18, 2027.

How much is the remaining amount under JD.com's new share repurchase program as of March 31, 2024?

The remaining amount under JD.com's new share repurchase program was $2.5 billion as of March 31, 2024.