On August 16, 2023, JD.com (a leading supply chain-based technology and service provider) announced its Q2 and interim results for 2023. Highlights include an increases in net revenues, income from operations and net income attributable to ordinary shareholders.
Ian Su Shan, Chief Financial Officer (CFO), JD.com, reported the company had delivered ahead of expectations in both revenues and profitability. Sandy Xu, JD.com’s CEO, noted the company’s enhanced business structure and supply chain efficiency contributing to the solid performance in Q2 2023.
JD.com’s Q2 2023 Highlights
Hhighlights of JD.com’s unaudited financial results for Q2 2023.
- Net revenues – $39.7 billion (RMB 287.9 billion), an increase of 7.6% from Q2 2022. Net service revenues – $7.5 billion (RMB 54.1 billion), an increase of 30.1% from Q2 2022.
- Income from operations – $1.1 billion (RMB 8.3 billion), compared to RMB 3.8 billion for Q2 2022. Non-GAAP income from operations – $1.2 billion (RMB 8.7 billion), compared to RMB 5.8 billion for Q2 2022.
- JD Retail’s operating margin, before unallocated items, was 3.2%, compared to 3.4% for Q2 2022.
- Net income attributable to JD.com’s ordinary shareholders was $0.9 billion (RMB 6.6 billion), compared to RMB 4.4 billion for Q2 2022. The non-GAAP net income attributable to JD.com’s ordinary shareholders was $1.2 billion (RMB 8.6 billion), compared to RMB 6.5 billion for Q2 2022.
- Diluted net income per American Depository Share (ADS) – $0.57 (RMB 4.15), compared to RMB 2.74 for Q2 2022. Non-GAAP diluted net income per ADS – $0.74 (RMB 5.39), compared to RMB 4.06 for Q2 2022.
- Operating cash flow for the 12 months ending June 30, 2023, amounted to $7.2 billion (RMB 52.5 billion), compared to RMB 51.1 billion for the period ending June 30, 2022. Free cash flow for the 12 months ending June 30, 2023, was $4.6 billion (RMB 33.5 billion), compared to RMB 27.7 billion for the 12 months ending June 30, 2022.
Recent Business Highlights for Richard Liu’s JD.com
Environment, Social, and Governance (ESG)
JD.com released its 2022 ESG Report in June 2023. The report covered the company’s progress for 2022 in areas like corporate governance, green operations, and business ethics.
The report emphasized JD.com’s dedication to aligning its business development strategy with the concept of establishing a responsible supply chain and consistently improving its ESG practices.
In April 2023, JD Logistics launched the Supply Chain Emission Management Platform (SCEMP). The verified platform for managing carbon footprints integrates more than 140 types of carbon emission factors related to road transportation in China.
JD Retail
In spring 2023, JD.com launched its “618 Grand Promotion,” committing an unprecedented investment to the shopping festival. During this time, the company enhanced its trade-in services for home appliances and household goods, offering customers:
- Attractive discounts.
- Free on-site disassembly and transportation.
- Comprehensive integrated services, including delivery, installation, and cleaning.
JD.com’s efforts during its 618 Grand Promotion have led to improvements in its user experience and raised the industry’s service benchmark for home appliances and household goods.
Shan said JD Retail’s supply chain advantages and service quality helped the company gain market share in home appliances and computer, communication, and consumer electronic products (3C). These are core categories for JD Retail.
JD Logistics
Last April, JD Airlines introduced a new all-cargo route connecting Beijing Daxing and Shenzhen. As a result, JD Airlines is in a strong position to offer reliable next-morning delivery services in key cities in the Pearl River Delta and Beijing-Tianjin-Hebei regions.
June 2022 saw the start of phase two for JD Logistics’ Kunshan Asia No.1 smart industrial park. During the 618 Grand Promotion this year, Kunshan Asia No.1 achieved an increased sorting capacity, averaging over 4.5 million parcels per day.
As of June 30, 2023, JD Logistics managed a network of more than 1,600 warehouses. When accounting for warehouse space overseen through the Open Warehouse Platform, JD Logistics boasted a combined gross floor area exceeding 32 million square meters.
Efforts such as these have contributed to JD.com’s robust financial and operational performance for Q2 2023.
Learn more about JD.com’s Q2 2023 results.
About JD.com (a.k.a. Jingdong)
JD.com, also known as Jingdong, is a technology and service enterprise with supply chain at its core. Founded by Richard Qiangdong Liu, JD.com is a renowned leader in China’s e-commerce industry and the company has expanded across retail, technology, logistics, healthcare, insurance, property development, industrials, private label, and international business. Ranking 46 on the Fortune Global 500, JD.com is China’s largest retailer by revenue.
JD.com serves nearly 600 million customers and has set the standard for e-commerce through its commitment to quality, authenticity, and competitive pricing. The company operates the largest logistics infrastructure of any e-commerce company in China, pioneering a standard experience of same- and next-day delivery. JD.com also promotes productivity and innovation across a range of industries by offering its cutting-edge technology and infrastructure to partners, brands, and diverse sectors.
