Chinese Logistics Firm JD Logistics’s Revenue in Q1 2023 Exceeds CNY 36.73 Bn, Up 34.3% Yo

Consumer Discretionary Author: Zhisheng Wang, Yiran Xing Editor: Yiran Xing May 15, 2023 12:21 PM (GMT+8)

On May 11, JD Logistics released its first quarterly results for 2023, indicating revenue of CNY 36.73 billion, an increase of 34.3% year-over-year.

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Jingdong Logistics, Inc. (hereinafter referred to as "JD Logistics"), headquartered in Beijing, China, recently released its first quarterly report for 2023. In Q1 2023, JD Logistics achieved revenue of CNY 36.73 billion (USD 5.27 billion), up 34.3% year-over-year; gross profit was CNY 1.64 billion, 11.9% higher than in the previous year; and loss before tax was CNY 1.01 billion, down 22.1% year-over-year. Overall, JD Logistics reported a net loss of CNY 1.04 billion, 23.2% lower than in the previous year, and an adjusted net loss of CNY 712 million, a decline of 10.8% year-on-year.

Founded in 2017, JD Logistics is a leading technology-driven supply chain solutions and logistics services provider in China, and integrated supply chain logistics services are at its core track in the market. In Q1 2023, revenue from external customers of JD Logistics reached CNY 25.52 billion, up 59.8% year-on-year, accounting for 69.5% of total revenue. Revenue from integrated supply chain services of JD Logistics reached CNY 18.5 billion, 3.1% higher than in the previous year. The growth was mainly due to the increase in the average revenue of external integrated supply chain customers and single customers.

JD Logistics remains committed to global supply chain logistics infrastructure development. As of December 31, 2022, JD Logistics had close to 90 bonded warehouses, direct mail warehouses and overseas warehouses, with a total managed area of close to 900,000 square meters. Since 2020, JD Logistics has successively landed self-operated overseas warehouses in the United States, Germany, the Netherlands, France, the United Kingdom, Vietnam, the United Arab Emirates, Australia, Malaysia, Poland and other regions. JD Logistics continues to expand its end-to-end global network, with its warehousing network as its core, and further leverages intercontinental freight air, rail, ocean and multi-modal transportation to improve regional synergies.

According to the world's leading market research firm China Insights Consultancy, China’s leading integrated supply chain service providers are mainly third-party providers and logistics subsidiaries of large enterprises. In terms of revenue in 2020, JD Logistics ranked first in China with a market share of 2.7%. In terms of improving warehouse network capacity, as of March 31, 2023, JD Logistics' warehouse network has covered almost all districts and counties in China, with a warehouse network management area of over 31 million square meters.

The major competitors of JD Logistics include Chinese companies such as SF Express (Chinese: 顺丰), YTO Express (Chinese: 圆通), Yunda Express (Chinese: 韵达) and ZTO Express (Chinese: 中通), as well as international players such as DHL from Germany and Fedex from the US.

Based on current industry trends, Yu Rui, CEO of JD Logistics, said that in the face of the complex and changing external environment, an increasing number of enterprises are paying attention to supply chain management and making changes to further achieve cost reduction and efficiency, which will drive the growing demand for integrated supply chain logistics services. With the supply chain infrastructure, technical strength and industry insight ability accumulated for over ten years, JD Logistics will seize the market opportunity, create the industry's first-class customer service experience, and focus on promoting cost reduction and efficiency improvement of the whole chain of industrial supply chain, contributing to the high-quality development of the real economy.

 As of press time, JD Logistics closed at CNY 11.68 apiece, with a market cap of CNY 77.10 billion.