Aug 23, 2021|
JD Logistics 2021 Interim Results: Revenue from External Customers Accounts for over 50% of Total Revenue
by Yuchuan Wang
On August 23, JD Logistics (2618.HK) reported its 2021 interim results. The company’s revenue increased by 53.7% from RMB31.5 billion for the six months ended June 30, 2020 to RMB48.5 billion for the six months ended June 30, 2021. Revenue from external customers of JD Logistics for the first half of 2021 was RMB26.5 billion, accounting for 54.7% of JD Logistics’ total revenue, showing the increasing trust and stickiness from the market, and that more and more partners are leveraging JD Logistics’ infrastructure to improve their operational efficiency.
In the first half of 2021, JD Logistics (JDL) kept investing in the infrastructure construction, supply chain technology R&D, and further expanded the width and depth of its supply chain solutions and services.
As of June 30, 2021, JDL operated approximately 1,200 warehouses, which covered an aggregate gross floor area of approximately 23 million square meters. Four hundred and fifty additional warehouses were added in the past year to JD Logistics’ network, which is equivalent to the total increase in warehouses in the 10 years from 2007 to 2017.
JDL also introduced its premium delivery services to more customers in remote areas and lower-tier cities in China. During JD.com’s 618 Grand Promotion this year, JDL provided delivery service within minutes in over 200 cities and same- or next-day delivery service covering 92% of districts and counties and 84% of townships in China.
Technology is a key driver for JDL’s development. In the first half of 2021, the R&D expenses were RMB1.4 billion, representing 2.8% of the total revenue. The company opened its first highly automated Asia No. 1 logistics park in Shanghai in 2014, and it ran 38 such logistics parks in 28 cities in China as of June 30, 2021.
Revenue from integrated supply chain customers grew 29.6% year-over-year in the first half of 2021 to RMB33.6 billion. As of June 30, 2021, the number of external integrated supply chain customers reached over 59,000, including industry leaders such as Xiaomi Youpin, CHEERS, Volvo, Midea, Tsingtao Beer and more.
“Our quality service is inseparable from our 260,000 front-line employees. Their enthusiastic, professional and high-quality service is the key for us to gain users’ trust,” said Yui Yu, CEO of JD Logistics. “We always believe that if the enterprise does good to its employees, the employees can better serve our users. For a long time, we have insisted on providing our employees with competitive salaries and benefits. We’ve been paying social insurance and housing funds for our employees for more than a decade. We hope that every employee can work and live with dignity and confidence.”
According to JDL’s earnings, salary and benefit expenses for employees involved in warehouse management, sorting, picking, packaging, shipping, delivery and customer services were RMB17.2 billion for the six months ended June 30, 2021.
JDL also plays an important role in leading sustainable supply chain in China. In 2019 it was the first Chinese logistics company to join the Science Based Targets initiative (SBTi). Through its Green Stream Initiative, JDL is making significant efforts with its up and downstream partners to counter global climate change.
Note: For all material above, please refer to the full release here.