...November 19, 2023 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Nov. 20, 2023--JD.com Inc.'s ongoing focus on profitability and cash flow this year has strengthened its credit metrics. The China-based online retailer has deepened its net cash position to about Chinese renminbi (RMB) 125 billion, despite a weak retail environment and heated competition. JD.com's (A-/Stable/--) revenue rose 1.7% year on year in the third quarter of 2023, slower than the 6.9% growth in online sales of physical goods in the same period. The company said growth in its core gross merchandise value was higher than in online sales. The gap is likely due to JD.com's subsidy program and, to a lesser extent, lower monetization rate from online marketplace orders. The subsidy program is an attempt to expand JD.com's user base into lower-tier cities and more price-sensitive customers, which would help the online retailer to stay competitive. JD.com's EBITDA continues to expand faster...
