Mar 11, 2022|

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


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.