On May 11, 2023, JD.com released its first 2023 quarterly report, indicating revenue of CNY 243 billion and operating profit of CNY 6.4 billion.
JD.com, Inc. (hereinafter referred to as "JD.com", Chinese: 京东), headquartered in Beijing, China, recently released its 2023 quarterly report. In Q1 2023, the company achieved a revenue of CNY 243 billion (USD 34.90 billion), up 1.4% year-over-year, and net profit attributable to its parent reached CNY 6.3 billion, compared to a loss of CNY 3 billion in the same period last year.
Founded in 1998, JD.com is a leading supply chain-based technology and service provider, with core businesses in four segments, JD Retail, JD Logistics, Dada and New businesses, covering millions of high-quality goods in twelve categories, including online e-commerce home appliances, digital communications, computers, home department stores, apparel, etc. In Q1 2023, the company's electronic products and household appliances revenue was CNY 117 billion, a decrease of CNY 1.37 billion year-on-year, while daily necessities revenue was CNY 78.57 billion, an annual decline of CNY 7.48 billion compared with that of last year. Revenue from platform and advertising services was CNY 19.06 billion, up 7.84% over the previous year; revenue from logistics and other services was CNY 28.33 billion, 61.3% higher than in the previous year.
Internationalization has been a crucial strategy of JD.com. In April 2023, JD International released a new strategic plan for 2023, stating that the company will continue to leverage JD’s intelligent supply chain capabilities, the ecosystem of authentic products, logistics fulfillment, and high-quality service assurance. Currently, JD International covers over 100 countries or regions, bringing together more than 20,000 brands around the globe. JD International has also opened warehouses in the UK, Germany, the Netherlands, the Middle East, Australia and other regions, more than half of which are automated warehouses. Up until now, JD International has a total of 90 bonded warehouses and overseas warehouses around the world.
According to the world's leading market research institute Foresight Industry Research Institute, in 2021, JD.com's e-commerce retail turnover reached 3,200 billion, with a market share of 20%, second only to Alibaba Taobao. According to JD.com's 2022 annual report, the company's average daily active users grew by double-digit year-on-year, and retail user shopping frequency and average user contribution revenue (ARPU) continued to maintain growth momentum. Among them, the number of active JD PLUS members reached 34 million as of the end of the fourth quarter in 2022.
The major competitors of JD.com mainly include Chinese companies such as Taobao (Chinese: 淘宝), Tmall (Chinese: 天猫), Pinduoduo (Chinese: 拼多多) and Suning Commerce (Chinese: 苏宁易购), as well as international players such as Amazon and eBay from the US.
Xu Lei, former CEO of JD.com, commented on the 2023 quarterly report and outlook, saying that the significant improvement in JD.com's profitability level in the first quarter was mainly due to JD.com's efforts in refining its operations, optimizing its merchandise portfolio, and enriching its range of services. In the coming quarters, Xu Lei said, the business structure will be further improved to serve a broader user base across China.
As of press time, JD.com closed at CNY 262.08 apiece, with a market cap of CNY 412.52 billion.