Aug 26, 2021|
JD News Roundup Vol. 18: Q2 2021 Earnings, Gen Z Insights and More
Welcome to volume 18 (August 16-23) of our 2021 weekly digest. Here we consolidate a selection of JD news and give context on why it matters. If you have any questions or topics you are hoping we will explore, please email press@jd.com.
BUSINESS HIGHLIGHTS
JD announces Q2 2021 Earnings
On August 23, JD announced its earnings results for Q2 2021, with key figures including revenue of RMB253.8 billion yuan; service revenue of RMB 34.1 billion yuan, and user base growth of 27.4%, bringing JD.com’s annual activer users to 531.9 million.
Speaking during the call, JD Retail CEO Xu Lei highlighted various achievements. During this year’s 618 Grand Promotion, over 236 brands achieved sales of over RMB 100 million; net proceeds of RMB 23 billion yuan from JD Logistics‘ IPO on the Hong Kong Stock Exchange; exciting partnerships with BVLGARI, Guerlain, benefit and more; and omni-channel expansion.
Xu believes omni-channel expansion will help “break the glass ceiling for JD’s long-term growth,” he said during the call. “I’d like to reiterate that only JD’s business model has the ability to truly land the omni-channel plan. This is because the strategy is founded on JD’s supply chain capabilities, which we have built and honed over the past 18 years.”
JD LOGISTICS
JD Logistics (2618.HK) also announced its 2021 interim results on August 23, with the company’s revenue increasing by 53.7% from 31.5 billion for the six months ended June 30, 2020 to RMB 48.5 billion for the six months ended June 30, 2021. Additionally, 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 that more and more partners are leveraging JD Logistics’ infrastructure to improve their operational efficiency.
JD HEALTH
Monthly user growth rate doubles for JD Health’s Family Doctor services
On the first anniversary of JD Health’s Family Doctor services on August 18, the company showcased two impressive achievements: one being active users accounting for 87% of the total number of service users; and the other being a 220% average monthly user growth rate.
On the occasion of the celebration, JD Health also inaugurated a public welfare program to help Alzheimer patients in partnership with the China Aging Development Foundation, a national charity organization.
JD RETAIL
China’s Gen Z to fuel auto boom in lower-tier cities, according to new JD report
Over the next decade, China’s automotive market will see a boom in third- to fourth-tier cities, with Gen Z being the main consumption force, according to the 2021 Automotive Consumption Report of Gen-Z published by JD Big Data Research Institute on August 18. Additionally, online sales of new energy vehicles on JD.com increased by 6.7 times YOY, and another 4.3 times in the first half of 2021 compared with the same period in 2020.
Aug 3, 2023|
JD.com Ranks 52nd on the 2023 Fortune Global 500
by Vivian Yang
Securing a position on the Fortune Global 500 list for the eighth consecutive year, JD.com proudly announces its rank of No.52 in the newly released 2023 edition, released on August 2, 2023. The annual ranking recognizes the largest companies measured by their revenues. In 2022, JD.com achieved a 9.9 percent year-over-year growth, reaching full-year net revenues of RMB 1.0462 trillion. This notable achievement also marked the first time JD.com surpassed the milestone of RMB 1 trillion yuan.
JD.com’s inclusion on the Fortune Global 500 list since 2016 demonstrates eight years of significant expansion and progress, as illustrated by the following figures:
- Created 45,000 new jobs.
- Expanded its customer base to nearly 600 million.
- Increased warehouses from 214 to over 1,500.
- Amplified the output value of real economies by nearly 4.8 times.
- Successfully reduced the fulfillment expense rate by over 20%.
These numbers reflect JD.com’s relentless pursuit of technological and service innovation in the supply chain sector. Leveraging these capabilities JD.com has bolstered its portfolio of businesses, which spans across e-commerce, logistics, technology, health, industrials, property management, insurance, and more. Furthermore, these capabilities have been instrumental in merging digital and physical economies across various sectors, generating societal value and benefiting a wider demographic.
Supporting Employment and Consumption
By harnessing its robust supply chain capabilities, JD.com is serving millions of merchants both online and offline. The company’s mission is to augment merchants’ operational efficiency and cost-effectiveness while offering consumers a superior shopping experience defined by variety, speed, quality, and value.
JD.com is committed to the welfare of its over 560,000-strong workforce and has invested nearly RMB 50 billion yuan in initiatives such as housing funds, relief, and family support for staff. In May, JD.com announced a significant investment of RMB 6 billion for the “JD Youth City” project, , offering nearly 4,000 furnished apartments and leisure facilities for employees and interns embarking on their careers. Moreover, JD’s extensive supply chain system is estimated to have created approximately 25 million stable jobs across a wide range of industries.
Promoting Digitalization and Rural Revitalization
In the realm of technological innovation, JD.com has invested over RMB 100 billion yuan in research and development over the past six years. The company’s focus has been on enhancing supply chain efficiency and sharing infrastructure and technologies with traditional enterprises to usher them into the digital age. For instance, JD’s consumer-to-manufacturer (C2M) platform has enabled thousands of brands to decrease product demand research time by nearly 80 percent and reduce new product release cycles by nearly 70 percent.
Moreover, JD’s supply chain infrastructure and digital technologies have brought about positive changes in rural areas. The “March to Rich” plan, launched in October 2020, has generated over RMB 1 trillion in output value in rural regions over the past three years, thereby facilitating efficient sales of agricultural products for farmers while empowering them with sustainable development models.
JD.com’s “35711 Vision”
On its 20th anniversary in June, JD.com unveiled the “35711 Vision”, an ambitious roadmap for the next two decades. The vision outlines goals to establish three companies with over RMB 1 trillion in revenue and RMB 70 billion in net profits, positioning five JD companies on the Fortune Global 500, and seeing seven startups become publicly listed companies and attain a market value of RMB 100 billion. JD.com also plans to contribute RMB 100 billion in taxes and create over one million jobs.
Beyond financial milestones. The company aims to deliver substantial societal value, including providing over RMB 3 trillion in benefits to front-line employees, increasing the income of 100 million farmers, aiding 60 million small and medium-sized enterprises in their digital transformation, and establishing a global supply chain infrastructure that covers economies that represent 80% of the world’s economic volume., JD.com is also deeply committed to achieving carbon neutrality, further underscoring its dedication to environmental sustainability.
JD Q2 2021 Earnings Call Highlights
