Nov 17, 2020|
JD Q3 2020 Earnings: The “35-Cents Theory”, JD’s Business Principle with its Partners and Employees
by Vivian Yang
“If we make $1 profit, 30 cents go to our business partners, 35 cents for our employees and the remaining 35 cents for JD’s continuous growth,” said Jon Liao, Chief Strategy Officer of JD.com during the company’s third quarter earnings call on November 16th, as he explained JD’s “35-Cents Theory” put forward by Richard Liu, the company’s founder and CEO.
Guided by this business principle, “JD is fully committed to a healthy ecosystem relying on cooperation, coexistence and co-evolution,” Liao added.
An analyst during the call mentioned that, under the impact of COVID-19, more and more brands and merchants are willing to use JD’s services. This not only demonstrates JD’s ability to provide advanced supply chain and logistics services at all times to its customers but also reflects its business philosophy for long-term and “win-win” growth with its upstream and downstream partners.
Earlier this year, JD provided a number of supportive measures to its brand partners and merchants, as well as to offline small businesses to help them recover from the epidemic. In the first nine months of 2020, there were 2,004 brand partners on JD’s platform achieving over RMB 100 million yuan in sales. During this year’s Singles Day Grand Promotion, 13,532 key brands increased their sales growth by over 300%, and the transaction growth rate of third-party merchants on JD doubled, comparing with the same period last year, far exceeding the industry average.
On the employee side, as of September 30th, the overall employee number of JD.com surpassed 320,000. According to the earnings report, the number of employees for listed JD branches excluding part-time staff and interns reached 284,000.
During the first three quarters this year, JD has recruited 60,000 new employees despite COVID-19 pressure to ensure service quality and user experience and to support employment. Beyond that, it is estimated that JD’s growth has also helped to create over 18 million job opportunities in its business ecosystem during this period.
Nov 14, 2024|
JD.com Announces Third Quarter 2024 Results
On November 14, JD.com announced its unaudited financial results for the three months ended September 30, 2024.
Read our full report here.
Sep 7, 2024|
Moody’s Upgrades JD.com to A3 Rating, Citing Resilient E-commerce Business Model Operations and Supply Chain Capabilities
On September 4th, Moody’s Ratings updated JD.com’s issuer and senior unsecured ratings to A3 from Baa1 and revised the outlook to stable. This marks the third time Moody’s has upgraded the company’s rating since 2016.
“The ratings upgrade and stable outlook reflect JD.com’s leading market position in China’s e-commerce market with a unique and resilient business model, supported by deep supply-chain capability and economies of scale as well as its prudent financial policy that underpins low leverage and a solid net cash position,” Shawn Xiong, a Moody’s Ratings Vice President and Senior Analyst.
Moody’s anticipates that JD’s core retail business will experience steady to moderate revenue growth over the next 12-18 months, thanks to its expanding third-party marketplace business (3P) and an increase in the number of 3P merchants, along with a growing revenue share from JD Logistics.
Moreover, the ratings agency expects margins to remain stable during this period, driven by efficient cost control, improved operational efficiency, and ongoing product category optimization. JD’s second-quarter earnings report disclosed that its Non-GAAP net margin reached 5% for the first time, influenced by a gross margin expansion to a record level of 15.8% in the quarter, reflecting enhancements across nearly every category.
(vivian.yang@jd.com)
JD Q3 2020 Earnings: A Great Potential for Fresh Produce on JD
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JD.com Ranks #47 on 2024 Fortune Global 500
