JD and Sinopec to Build Digital Supply Chain Model Aiming Broad Partnership

Posted on by Yuchuan Wang

by Yuchuan Wang

The Anhui province branch of China Petroleum and Chemical Corporation (Sinopec) inked a partnership with JD.com on March 15, in which the two parties will cooperate on a series of supply chain services and promote omni-channel business.

The agreement covers smart logistics, warehousing facility sharing, product supply chain and digital supply chain. JD will leverage its advantages in supply chain services and technology to help Sinopec Anhui increase efficiency and lower cost. The two companies plan to turn Sinopec’s 1,400 Easy Joy convenience stores into JD.com’s pick-up stations, further expanding the online and offline consumption scenarios.

At the same time, JD and Sinopec will explore retail store operation, B2B and business procurement, joint marketing and auto-market product supply, so on and so forth, based on the Easy Joy convenience store. Business opportunities in the area of digital membership, digital transformation and digital operations will also be explored.

In the future, JD and Sinopec are expected to deal with more consumption scenarios and models to realize the digital transformation of gas stations.

 

(yuchuan.wang@jd.com)

JD and Kimberly-Clark Deepen Cooperation

Posted on by Mengyang He

by Mengyang He

JD Super, JD.com’s online supermarket business, and Kimberly-Clark, the leading American personal care corporation, signed an MOU on March 8, seeking a compound growth of 20 percent in the next three years and aiming to deepen cooperation in C2M and large-scale marketing campaigns. Kimberly-Clark also presented the “2021 Kimberly-Clark Most Valuable Strategic Partner Award” to JD.com.

Yi Chen (left), Managing Director of Kimberly-Clark China, and Tao Ren (right), Vice President of JD.com and President of Non-Food Business Department of JD Retail

JD.com and Kimberly-Clark have demonstrated cooperation in various aspects, such as user recruitment and multi-channel, and have launched multi-dimensional cooperation in physical maternal and baby stores and SEVEN FRESH supermarkets. JD.com and Kimberly-Clark also built five collaborative warehouses in 2021 to enhance the efficiency of logistics and distribution, bringing consumers a fast and convenient shopping experience.

Based on the cooperation, Kimberly-Clark’s sales on JD.com have repeatedly hit new highs. For example, during JD.com’s 618 Grand Promotion in 2021, the sales growth rate of Kimberly-Clark’s exclusive royal series exceeded 100%.

“Thanks to the constant support from JD.com, Kimberly-Clark China’s sales exceeded RMB 10 billion yuan in 2021. In the future, we will work closely with JD.com to consolidate Kimberly-Clark’s market share in high-end hygiene products in the Chinese market and meet consumers’ needs for a better life,” noted Yi Chen, Managing Director of Kimberly-Clark China.

Tao Ren, Vice President of JD.com and President of Non-Food Business Department of JD Retail, said “our constant pursuit is to create value for partners. We look forward to more extensive and closer cooperation with Kimberly-Clark in various non-centralized channels in the future, so as to bring sustained high-quality growth.”

As an industry-leading omni-channel supermarket, JD Super offers a wide range of products. The deepened cooperation between JD Super and Kimberly-Clark will reinforce the advantages of both sides and help to create more market segments, bringing better quality products and services to consumers and helping brands grow business.

Since Kimberly-Clark first entered China in 1994, it has positioned itself in the local market and continuously launched new products that fulfil Chinese consumers’ demand for high-quality hygiene products. Established in 1872 in Wisconsin, Kimberly-Clark runs business in more than 175 countries and regions worldwide.

 

(hemengyang5@jd.com)

JD.com’s Carbon Reduction Efforts Recognized by Global Compact Network China

Posted on by Vivian Yang

by Vivian Yang

JD.com’s extensive carbon reduction efforts across its business operations were recognized by the Global Compact Network China as one of Chinese enterprises’ “best practice in realizing the Sustainable Development Goals(SDG) 2021”. The full list of awarded enterprises was released by the organizer on Feb 28, 2022.

JD.com’s carbon reduction effort was named a best practice in realizing the Sustainable Development Goals 2021

Over nine continuous years, the selection activities have been held to identify and promote meaningful SDG-focused practices by China-based  member companies of the United Nations Global Compact (UNGC) and encourage experience sharing among peers.

JD.com was listed under the special contribution to the “carbon peak and carbon neutrality” category of the selection, in recognition of its low-carbon productivity enabled by green infrastructure and technological innovation ranging from warehousing, packaging, transportation to algorithm, such as its photovoltaic powered logistic parks, ultra-low 1.1 PUE (power usage effectiveness) data centers, more than 20,000 new energy delivery vehicles across the country, and more.

Recently, JD’s Asia No.1 Logistics Industrial Park in Xi’an was certified carbon neutral by China Beijing Environment Exchange and Centre Testing International Group. The park also marks the establishment of China’s first carbon-neutral logistics park.

JD’s Asia No.1 Logistics Industrial Park in Xi’an became China’s first carbon-neutral logistics park

Read more about JD’s sustainability efforts, known as the Green Stream Initiative here.

 

(vivian.yang@jd.com)

Posted in ESG

Dada’s Q4 and Fiscal Year 2021 Updates: Q4 Revenue Growth Maintained Strong at 80% YOY

Posted on by Mengyang He

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.

 

Financial highlights:

  • 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.

Operation highlights:

  • 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.

SEVEN FRESH Deploys Autonomous Vehicles in Shenzhen as COVID-19 Severely Recurs

Posted on by Mengyang He

by Mengyang He

As COVID-19 cases surge across China, JD.com’s fresh food supermarket, SEVEN FRESH, rolled out autonomous vehicles in Shenzhen to ensure food supply with contact-free delivery. Five SEVEN FRESH stores in Shenzhen quadrupled the stock of over 10 product categories, including fresh vegetables, rice, cooking oil, drinking water, milk, frozen food as well as instant food as a response to the COVID spike.

A JD autonomous vehicle

SEVEN FRESH is one of the first supermarkets in China to deploy autonomous vehicles for food delivery. Fully automated and capable of traveling up to 100 kilometers, the vehicles are equipped with a laser sensor camera in order to avoid obstacles automatically.

After consumers place an order through the SEVEN FRESH application, the supermarket staff pack the goods and load them into the storage compartments of the autonomous vehicles, which are then ready to deliver to the consumers.

A SEVEN FRESH store

As an omni-channel retail brand, SEVEN FRESH has opened 66 stores in 13 cities across China with a primary focus on two regions, Beijing-Tianjin-Hebei Urban Agglomeration and Guangdong-Hong Kong-Macao Greater Bay Area. Within the next 5-7 years, SEVEN FRESH strives to become a top-tier chain retail brand in China.

 

(hemengyang5@jd.com)

JD.com Starts Selling COVID Self-Test Kits in China

Posted on by Vivian Yang

by Vivian Yang

JD Health, a healthcare subsidiary under JD.com, started online booking of COVID antigen self-test kits on March 13th. JD Health is one of China’s first online distributors of the test kits after China’s National Medical Products Administration approved them to enter the market on the same day.

China’s National Health Commission said last Friday that the tests would be used by the general public for early detection.

Anybody can now start to book self-test kits through JD’s App and place orders as soon as the official sales process kicks off in the coming days.

JD Health offers one-stop anti-COVID support online

JD Health has immediately formed a collaboration with three test kits manufacturers for online supplies, including Hotgen Biotech, Wantai Biological, and Lepu Technology.

Compared with nucleic acid tests, though not as accurate, antigen tests provide a more convenient and rapid way for everyone to detect and report early cases, thus improving monitoring response speed and virus tractability in face of China’s new waves of local infections.

 

(vivian.yang@jd.com)

JD.com’s Logistics Industrial Park in Xi’an Certified as Carbon Neutral

Posted on by Yuchuan Wang

by Yuchuan Wang

JD.com announced on March 9 that the company’s Xi’an Asia No.1 Logistics Industrial Park has been certified carbon neutral by China Beijing Environment Exchange and Centre Testing International Group. The park also marks the establishment of China’s first carbon-neutral logistics park.

JD’s Asia No.1 logistics park in Xi’an was put into use in 2019 and has deployed 100,000 square meters of rooftop solar PV to generate renewable electricity for the park’s operations. In addition to leveraging such green power, the park also constantly improves sorting and transportation processes, applies distributed air conditioning instead of traditional boiler rooms in certain areas, and widely uses new energy for special equipment and terminals. The outstanding emissions in 2021 were offset through CCER (China Certified Emission Reductions) with the support of China Beijing Environment Exchange.

A representative from Centre Testing International Group said that JD.com is leading the industry to promote dual carbon strategy and continues to contribute to sustainable development.

By the end of 2021, JD has completed installation of PV systems at 12 logistics parks. The company expects its PV system’s capacity to reach 1,000 MW in three years, aiming to provide green energy to 85% of JD’s intelligent industrial parks.

JD’s Asia No.1 logistics park in Suqian, Jiangsu province is actively promoting PV installation and comprehensive energy transformation, targeting to become carbon neutral in early 2023.

 

(yuchuan.wang@jd.com)

Posted in ESG

With Over Half Earnings from Outside, JD Logistics 2021 Revenue Surpasses RMB 100 Billion Yuan

Posted on by Yuchuan Wang

by Yuchuan Wang

On March 10，JD Logistics (JDL) announced the first annual financial results since its IPO in 2021. With the total revenue reaching RMB104.7 billion yuan, representing 42.7% growth compared with 2020, the company’s revenue from external customers exceeded 50% of the total revenue for the first year, at 56.5%. As of December 31st, 2021, JDL operated over 1,300 warehouses, over 7,200 delivery stations and employed over 200,000 in-house delivery personnel.

Behind the strong results is JDL’s integrated supply chain solutions and high quality logistics services. In 2021, the number of JDL’s external integrated supply chain customers grew significantly and reached 74,602 with a year-over-year growth rate of 41.7%. In 2021, JDL served over 300,000 industry-leading customers such as Volvo Group, Xiaomi Youpin, Cheers, Shaanxi Coal, Chemical Industry Group and more, and has been customizing its solutions to also serve middle-sized clients in the industries of FMCG, apparel, 3C and eight other areas in total.

JDL’s integrated supply chain service is also blossoming in overseas markets. In 2021, the company opened automated warehouses in six countries including the UK, the US, Australia and the Netherlands, with a total number of bonded and overseas warehouses reaching to nearly 80. Its warehouse in the Netherlands served Hunkemöller, the eminent European ready-to-wear brand, covering the full range of B2B and B2C scenarios and fulfilling orders in the Netherlands, France, Belgium and Luxemburg via automated goods-to-person AGV（Automated Ground Vehicle） robots. It also launched cargo flights from China to Thailand, the US and the UK to provide as fast as 48-hour door-to-door transportation service.

Additionally, technology is a key differentiator for JDL, in that technological innovations are applied to all key stages of supply chain services to realize service automation, operation digitalization and intelligent decision-making. A total of RMB 2.8 billion yuan was invested in technology innovation in 2021, with a year-on-year increase of 37 percent. As of December 31, 2021, JDL had applied for over 5,500 patents and software licenses, among which more than 3,000 were related to automation technology and unmanned technology. 5G was piloted in Asia No.1 logistics parks in Changsha and Beijing, and a total of nearly 400 Level-4 autonomous delivery vehicles were put into daily operations for last-mile delivery in cities such as Beijing, Shanghai and Changshu.

These achievements are in great part thanks to JDL’s employees. JDL had over 300,000 front-line employees in 2021. The compensation packages for these front-line workers in warehouse management, sorting, picking, packaging, shipping, delivery and customer services increased by 37.3% from RMB26.1 billion in 2020 to RMB35.8 billion in 2021.With over 80% of the front-line workers from rural areas, JDL provides them with industry-competitive salaries, comprehensive benefits, and broad room for career development.

According to China’s State Post Bureau, JDL continues to maintain the best-in-class customer satisfaction ratings in 2021. Now, same-day or next-day deliveries via JDL have covered 93% of China’s counties and 84% of towns and villages.

 

(yuchuan.wang@jd.com)