Aug 25, 2022|
JD Logistics Interim 2022 Financial Results Show Strong Growth
by Yuchuan Wang
JD Logistics released its interim 2022 earnings results on August 23, with revenue increasing by 20.9 percent to RMB58.6 billion yuan, a growth rate that is higher than the industry’s average.
External factors including the pandemic have posed challenges to the global logistics industry, while JD Logistics’ continuous investment in supply chain infrastructure and intelligent technology empowers the company to leverage flexible and resilient integrated supply chain solutions. In the second quarter of 2022, JD Logistics’ revenue from external customers increased by 27.7 percent YoY to RMB18.2 billion yuan, accounting for nearly 60 percent of total revenue for the quarter, thanks to the company’s tailored supply chain solutions and products for customers from various industries including FMCG, home appliance, apparel, 3C, automotive, fresh produce and more.
At the same time, JD Logistics keeps expanding its logistics infrastructure at home and abroad. As of June 30, 2022, JD Logistics operated over 1,400 self-operated warehouses and over 1,700 owner-operator cloud warehouses under its Open Warehouse Platform, with an aggregated floor area (GFA) of approximately 26 million square meters. Same-day or next-day delivery service covered China’s 94 percent counties and 84 percent towns and villages.
In June, JD Logistics launched the first automated warehouse in the United States, “Los Angeles No.2”, enlarging its self-operated warehouses in the country reaching an area of approximately 1,000,000 square feet. Since 2020, JD Logistics has launched self-operated overseas warehouses in the United States, Germany, the Netherlands, France, the United Kingdom, Vietnam, the United Arab Emirates, Australia, Malaysia and so on, representing the company’s initial milestone achievements in its global network expansion plan. As of June 30, 2022, JD Logistics operated approximately 90 bonded warehouses, international direct mail warehouses and overseas warehouses, covering an aggregate GFA of approximately 900,000 square meters with an over 70 percent increase year-over-year.
JD Logistics has been investing in smart technologies regarding warehousing and delivery. JD Logistics had applied for over 7,000 patents and software licenses, among which more than 4,000 are related to automation technology and unmanned technology. As the first company in China to apply autonomous delivery vehicles commercially on public roads, JD Logistics now deploys over 400 such vehicles in more than 25 cities including Beijing, Tianjin, Changshu and more.
Additionally, JD Logistics is deeply aware that the future of the company is closely tied to the environment, society and the industry. In May, JD Logistics published its first ESG report; and in June, JD Logistics and partners jointly released the “Carbon Neutral Guide for Logistics Parks” and took the lead in presenting a comprehensive solution for carbon neutrality in logistics parks. JD Logistics also released the industry’s first Delivered with Original Package (“DWOP”) green packaging certification, and joined hands with many partners to set the new goal of green packaging, aiming at achieving more than 80 percent of e-commerce products support DWOP by 2030.