May 18, 2022| Financial
JD Executives: Supply Chain Capability Drives Growth amid COVID Uncertainties
by Doris Liu
JD’s supply chain capabilities and resilient business model had helped the company achieve healthy and high-quality earning results amid external challenges, with an 18 percent year-on-year (YOY) rise in net revenue to RMB239.7 billion (US$ 37.8 billion) yuan in the first quarter, announced Lei Xu, CEO of JD.com, on a conference call to discuss the results of the Q1 2022 earnings released on May 17.
As a supply chain-based technology and service provider, JD’s supply chain capabilities are not limited to the physical forms of warehousing, delivery, fulfilment network, Xu said, but also the algorithm capability that has been accumulated for 19 years, the industry know-how, and the supply chain collaboration with some major brands, he emphasized.
“Facing the more transmissible Omicron variant, JD once again fully leveraged our supply chain and mobilized all of the group’s forces to fight the epidemic and ensure supply of daily necessities across China,” said Xu. “Our efforts and commitment to social responsibility enabled us to win society’s trust and resulted in stronger reputation and appreciation among our users and business partners. This is highly significant for our long-term development.”
JD.com generated RMB35.2 billion yuan (US$5.6 billion) in net service revenue, an increase of 26.3 percent from the first quarter of 2021. Income from operations went up to RMB2.4 billion yuan (US$0.4 billion), compared to RMB1.7 billion for the same period last year. Non-GAAP income from operations in Q1 increased by 32.8 perce to RMB4.7 billion yuan (US$0.7 billion) from RMB3.5 billion yuan for the first quarter of 2021.
Confronted with COVID resurgence and soft consumer sentiment, JD.com has further expanded its annual active users to 580.5 million in the twelve months ended March 31, 2022, up 16.2 percent YOY, with record-high accelerating growth in purchasing frequency and Average Revenue Per User (ARPU).
“We are encouraged to see user engagement metrics continue to improve, demonstrating our strengthened brand image and expanded consumer mindshare,” said Sandy Xu, CFO of JD.com.
JD’s retail business, its largest division by revenue, brought in revenue of RMB217.5 billion yuan in the first quarter with a 17 percent YOY increase. As the mid-year shopping festival JD 618 Grand Promotion approaches, merchant registration and engagement are seen to reach a higher level than previous years as brands and merchants are eagerly looking for sales growth in the complex epidemic situation and macro economy.
Revenue of JD Logistics reached RMB27.3 billion yuan, up 22 percent YOY. The growth of JD Logistics’ revenues from external customers accounted for a record high of nearly 60 percent of total revenues in Q1. Meanwhile, the strengthening of logistics infrastructure is also progressing, with approximately 1,400 warehouses being operated by JD Logistics.
Mar 15, 2022| Financial
Dada’s Q4 and Fiscal Year 2021 Updates: Q4 Revenue Growth Maintained Strong at 80% YOY
On March 8, Dada Nexus Limited (Dada Group), China’s leading local on-demand delivery and retail platform, announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2021.
- Improvement in operating efficiency: Dada’s Q4 total revenue growth maintained strong at 80% YOY, and the non-GAAP net loss was RMB485.4 million, 11% less than the average analyst estimate of RMB545 million on ThomsonOne.
- Total net revenue in the fourth quarter and in 2021 were RMB2,032.1 million and RMB6,866.3 million. Aligning the revenue of Dada Now last-mile delivery services to a comparable basis, revenue growth separately would have been 80% and 78% year over year.
- Total net revenues in the fourth quarter and in 2021 generated from Dada Now were RMB718.4 million and RMB2,820.7 million. Aligning the revenue of Dada Now last-mile delivery services to a comparable basis, revenue growth separately would have been 81% and 83% year over year.
- Total net revenues in the fourth quarter and in 2021 generated from JDDJ were RMB1,313.7 million and RMB4,045.6 million, increased by 80% and 75% respectively year over year.
- Business Outlook: For the first quarter of 2022, Dada expects total revenue to be between RMB2,000 million and RMB2,050 million. Aligning the revenue of Dada Now last-mile delivery services to a comparable basis in the first quarters of 2021 and 2022, total revenue of the first quarter of 2022 will realize 72% to 76% year-over-year growth1.
- Total Gross Merchandise Volume (“GMV”) of JDDJ for the twelve months ended December 31, 2021 was RMB43.1 billion, an increase of 71% year over year from RMB25.3 billion in 2020, generated by 62.3 million active consumers during the period.
- In 2021, as local on-demand retail platform, JDDJ’s market share in the supermarket segment by GMV has been increased to 27%, from 25% in 2020, according to iResearch Report.
- com’s investment in Dada has obtained all the requisite regulatory approvals and closed at the end of February, in which Dada issued to JD.com certain number of ordinary shares of Dada in consideration for US$546 million in cash and certain strategic resources from JD.com.
- By the end of 2021, more than 70% of retail stores on JDDJ have been launched in Shop Now. In the fourth quarter of 2021, the GMV of Shop Now maintained a rapid growth of several times YoY. Nearby tab, the key LBS entrance for Shop Now, has covered major cities across the country.
Please find the full version of the financial report here.
Stay up to date on the latest news from JD.com
Enter your email address to subscribe to this blog and receive notifications of new posts by email.