JD.com
Summary
- JD.com is China’s largest online retailer and its biggest overall retailer.
- The company is a member of the Fortune Global 500.
- JD.com is China’s leading one-stop e-commerce platform with over 580 million active customers.
JD.com is China’s largest online retailer and its biggest overall retailer as well as the country’s biggest Internet company by revenue. The company is a member of the Fortune Global 500. JD.com is China’s leading one-stop e-commerce platform with over 580 million active customers.
Recent Developments
JD Worldwide Launches the “Bayern Pavilion” in Cross-Border E-Commerce Initiative1
DEC 14, 2023; D Worldwide, the cross-border e-commerce platform under JD.com, announced a new collaboration with the city of Munich, Bavaria (Bayern in German), and digital marketing agency Hylink to introduce the “Bayern Selectives Pavilion.” This themed flagship store is designed to provide Chinese consumers with a convenient one-stop online shopping experience to discover and purchase a variety of Bavarian products and cultural items.
The inaugural brands launched in the store include Roeckl, Die Rockmacherin, Werner Christ, and Online pens, featuring a diverse range of categories such as apparel, accessories, food and beverages, and stationery. In response to evolving consumer preferences, the Pavilion intends to expand its product range by offering skincare and beauty brands, delicacies, and many more.
JD.com Launches Slovak National Pavilion2
DEC 6, 2023; JD.com announced the grand opening of the National Pavilion of Slovakia at the residence of Ambassador of the Slovak Republic to China Peter Lizák, The event marked a significant moment, as Slovakia, famously known as the “Country of Castles,” became the 20th European country to launch a country-themed flagship store on JD.com.
The Pavilion showcases a range of Slovak specialties, including the internationally acclaimed LYRA ruby milk chocolates, wine collections from 400-year-old Modra wine cellars, and exquisite RONA glassware. These specialties are now readily accessible to Chinese consumers via the JD app, offering them the ease of shopping with competitive pricing and JD’s efficient delivery services.
Financial Highlights
Third Quarter 2023 Results3
Nov. 15, 2023; JD.com, Inc. announced its unaudited financial results for the three months ended September 30, 2023.
Net revenues for the third quarter of 2023 were RMB247.7 billion (US$134.0 billion), an increase of 1.7% from the third quarter of 2022.
Income from operations for the third quarter of 2023 was RMB9.3 billion (US$1.3 billion), compared to RMB8.7 billion for the same period last year. Non-GAAP income from operations was RMB11.1 billion (US$1.5 billion) for the third quarter of 2023, as compared to RMB9.9 billion for the third quarter of 2022. Operating margin of JD Retail before unallocated items for the third quarter of 2023 was 5.2%, maintained the same level as the third quarter of 2022.
Net income attributable to the company’s ordinary shareholders for the third quarter of 2023 was RMB7.9 billion (US$1.1 billion), compared to RMB6.0 billion for the same period last year. Non-GAAP net income attributable to the company’s ordinary shareholders for the third quarter of 2023 was RMB10.6 billion (US$1.5 billion), as compared to RMB10.0 billion for the same period last year.
Diluted net income per ADS for the third quarter of 2023 was RMB5.00 (US$0.69), compared to RMB3.57 for the third quarter of 2022. Non-GAAP diluted net income per ADS for the third quarter of 2023 was RMB6.70 (US$0.92), compared to RMB6.27 for the same period last year.
Operating cash flow for the twelve months ended September 30, 2023 was RMB58.4 billion (US$8.0 billion), compared to RMB45.8 billion for the twelve months ended September 30, 2022. Free cash flow, which excludes the impact from JD Baitiao receivables included in the operating cash flow, for the twelve months ended September 30, 2023 was RMB39.4 billion (US$5.4 billion), compared to RMB25.8 billion for the twelve months ended September 30, 2022.
Company Overview
JD is a leading supply chain-based technology and service provider. The company's e-commerce business includes online retail and online marketplace. In the online retail business, the company acquire products from suppliers and sell them directly to its customers primarily through its mobile apps and websites. In the online marketplace business, third-party merchants sell products to customers primarily through its mobile apps and websites. The company also offer marketing, logistics and other value-added services.4
The company's business has grown substantially in recent years. The company generated total net revenues of RMB745.8 billion, RMB951.6 billion and RMB1,046.2 billion (US$151.7 billion) in 2020, 2021 and 2022, respectively. The company's online retail business generated net product revenues of RMB651.9 billion, RMB815.7 billion and RMB865.1 billion (US$125.4 billion) in 2020, 2021 and 2022, respectively. In addition, its marketplace and marketing, logistics and other services generated net service revenues of RMB93.9 billion, RMB135.9 billion and RMB181.2 billion (US$26.3 billion) in 2020, 2021 and 2022, respectively.
Organizational Structure
The following diagram illustrates its corporate structure, including its principal subsidiaries and consolidated variable interest entities as of the date.
Company History
Richard Liu started as JD Multimedia in June 1998.5
| Year | Milestone |
| 1998 | On June 18, Richard Liu committed RMB12,000 of his savings to lease a four-square-meter retail unit in Beijing’s technology hub of Zhongguancun. Here he established JD Multimedia, the business that would eventually become JD.com. |
| 2003 | When the SARS outbreak affected the country, Richard saw an opportunity amid the difficulty to harness the potential of the Internet to support his business and began selling products online. |
| 2004 | Richard closed his brick-and-mortar store and moved his business online. www.jdlaser.com, the earliest online predecessor of JD.com was launched. |
| 2008 | In October 2008, JD Mall began offering general merchandise, transforming the business from an electronics retailer to a full-fledged e-commerce platform. |
| 2010 | In December, JD launched its online marketplace platform, which enabled the company to expand the range of product choices for consumers. |
| 2014 | In March, JD formed a strategic partnership with Tencent, giving JD exclusive access to Tencent’s WeChat and Mobile QQ platforms. On May 22, JD became China’s first major e-commerce company to list on New York’s NASDAQ stock exchange, under the ticker ‘JD.’ In July, JD Finance launched China’s largest crowdfunding platform. In October, the company’s automated and most advanced logistics center, the Asia No. 1 Warehouse in Shanghai, began operations. |
| 2016 | In June, JD.com and Walmart announced a strategic alliance. As part of the agreement JD took control of Yihaodian’s marketplace, Walmart acquired a 5% stake in JD.com and they agreed to a number of different areas of cooperation covering the online and O2O areas of the two companies’ businesses in China. |
References
- ^ https://jdcorporateblog.com/jd-worldwide-launches-the-bayern-pavilion-in-cross-border-e-commerce-initiative/
- ^ https://jdcorporateblog.com/jd-com-celebrates-the-launch-of-slovak-national-pavilion/
- ^ https://ir.jd.com/news-releases/news-release-details/jdcom-announces-third-quarter-2023-results
- ^ https://fintel.io/doc/sec-jdcom-inc-1549802-20f-2023-april-20-19467-4238
- ^ https://corporate.jd.com/ourHistory