On May 16, JD Logistics Co., Ltd. (stock abbreviation "JD Logistics", stock code: 2618) released its first quarter 2024 performance report. In the first quarter, JD Logistics' performance continued to grow steadily, with total revenue reaching 42.14 billion yuan, a year-on-year increase of 14.7%, of which external customer revenue reached 29.25 billion yuan, accounting for about 7%. It is worth mentioning that JD Logistics has continuously optimized its business and customer structure, continuously improved the operational efficiency and quality of each link, and continued to release economies of scale, with an adjusted net profit of 660 million yuan in the first quarter of 2024, and the core profit indicators have reached the best level in the first quarter since listing, and the revenue, growth rate, and net profit have exceeded market expectations.
JD Logistics continues to integrate multiple resources, improve solutions and product service capabilities, and continuously upgrade the high-quality express service experience. In the first quarter, JD's logistics integrated supply chain revenue reached 20.5 billion yuan, reproducing double-digit growth; The revenue from other customers, including express delivery and express delivery, was 21.64 billion yuan, a year-on-year increase of 18.4%.
Hu Wei, CEO of JD Logistics, said that with the steady and rising economic growth, JD Logistics continues to give full play to its supply chain infrastructure advantages, industry insight capabilities and technical strength, create a first-class customer experience in the industry, promote the cost reduction and efficiency increase of the industrial chain and supply chain, and contribute to the high-quality development of enterprises, industries and society.
Take multiple measures to take the initiative to change
The integrated supply chain continues to reduce costs and increase efficiency
JD Logistics continues to focus on the construction of supply chain logistics service capabilities in six major industries, including FMCG, home appliances and furniture, clothing, 3C, automobiles, and fresh food, and creates differentiated service products and solutions by integrating multiple resources. Thanks to good products and services, JD Logistics' cooperation with existing customers has also deepened, and the average income of a single customer has continued to increase.
Adhering to the operation philosophy of "the least number of handling times and the shortest transportation distance", since last year, JD Logistics has continued to promote the transformation of logistics network layout, operation process, automation application and other aspects to achieve efficiency improvement and reduce comprehensive costs, and has achieved a number of results.
For example, in the first quarter, JD Logistics deepened its cooperation with a leading domestic home appliance customer, integrating its commodity inventory from multiple online channels and achieving efficient product fulfillment for the customer through an inventory model. In addition, in view of the problem of high reverse logistics damage rate of large goods, JD Logistics uses the warehouse distribution network all over the country to provide customers with nearby reverse quality inspection and replacement packaging services, which effectively reduces the logistics costs and secondary losses caused by multiple handling, and realizes cost reduction and efficiency increase for the customer.
At the same time, JD Logistics actively responds to the trade-in policy of consumer goods, relying on the warehouse and distribution network all over the country and the professional service ability of "delivery and pick-up synchronization", through integrated supply chain solutions and service products, to achieve cost reduction and efficiency increase for more home appliance enterprises. Today, with the advantages of nationwide network and supply chain, JD Logistics has become the industry's leading trade-in logistics service provider.
In addition, in the apparel industry, JD Logistics has successfully created a service model of "cross-docking, value-added processing, and dropshipping" in view of the current e-commerce channel with the business characteristics of sales and procurement, fast in and out, which can meet the high timeliness requirements of same-day entry and same-day delivery of goods, and effectively help merchants cope with seasonal fluctuations and achieve rapid turnover.
In the first quarter of this year, JD Logistics further deepened its cooperation with MINISO to provide integrated supply chain logistics services such as warehousing and distribution for its stores in Australia and Malaysia.
Not only that,JD Logistics also joined hands with Glory in Europe to launch an overseas "front warehouse" service model,By storing smart terminal devices such as mobile phones in warehouses such as JD Logistics' Paris warehouse in France,European consumers can place orders on any platform,You can quickly produce and leave the warehouse in the warehouse,Through JD Logistics's efficient logistics network,Orders can be delivered in France、Belgium、Luxembourg and other countries at the earliest1day,2-3Day delivery covers the core countries and regions of Europe。
Upgrade your service offerings
Helping to experience "climbing to the top"
Over the years, JD Logistics has continued to explore the limits of industry services, including many extreme services represented by 211 time-limited delivery, door-to-door delivery, etc., and has become the representative of the industry's highest service standards. In the first quarter of 2024, JD Logistics will continue to make efforts to improve timeliness and user experience, and promote the further improvement of intra-provincial and inter-provincial timeliness by continuously investing in all-cargo aircraft aviation resources and optimizing routes. According to the public satisfaction score of express delivery services released by the State Post Bureau, JD Express continues to be at the forefront of the industry.
In addition, JD Logistics continues to launch industry-leading high-standard and personalized services, such as providing services such as "1 hour of non-pickup must be compensated" and night pick-up in many cities across the country, further consolidating JD Express's high-quality service image in the hearts of consumers. Not only that, in March this year, JD Laundry announced the launch of after-sales service "loss compensation" upgrade program, consumers will enjoy non-depreciation of the original price compensation if the clothes are lost after using JD Laundry. This standard breaks the practice of depreciation and compensation for lost clothes in the laundry industry, and becomes the first laundry brand in the industry to pay no depreciation for lost clothes.
Not only that, JD Express continues to deepen the "express + industry", and constantly deepens the cooperation between the industrial belt of origin and the interest e-commerce platform. In order to better protect Ningxia beef and mutton on the eve of the Spring Festival, in the first quarter of this year, Jingdong Logistics opened a special line for Ningxia beef and mutton, transporting fresh beef and mutton from Yinchuan, Ningxia to the whole country, Shanghai, Jiangsu, Zhejiang, Shandong, Guangdong and other provinces and cities across the country to achieve next-day delivery, and in Beijing to achieve next-day delivery.
For example, when the horse face skirt is popular all over the country, JD Express actively meets the needs of consumers and provides relevant express logistics solutions. According to the data, in a week in February this year, the Jingdong Express Heze Cao County Business Department alone sent out tens of thousands of Hanfu packages, accounting for 80% of the Hanfu shipments in Cao County during the same period.
Focusing on event logistics services, as of the first quarter of this year, JD Logistics has served about 100 sports events and expos at all levels at home and abroad. In addition, Jingdong Express also continues to deepen the "express + cultural tourism", in Harbin, Tianshui and other hot tourist cities, at the beginning of this year, only Gansu Tianshui Gangu pepper delivery volume increased by nearly 5 times, a number of express brother daily delivery of thousands of peppers.
In terms of express business, the freight volume and revenue scale of JD Logistics' express business, including Debang, have ranked first in the country. In the first quarter of 2024, we will steadily promote the synergy with Deppon in terms of business and network as planned, continue to strengthen the integration of sites and routes, continue to improve operational efficiency, reduce operating costs, and support the expansion of integrated supply chain logistics services. At present, JD Logistics has a complete express product line, covering different kilogram segments and price bands, which can effectively meet the specific transportation needs of customers in different scenarios.
Develop new quality productive forces
Cutting-edge technology is integrated into the whole scenario of the supply chain
JD Logistics continues to develop new quality productivity, and promotes the continuous improvement of the supply chain network through cutting-edge logistics technology, thereby reducing logistics costs. Today, JD Logistics' warehousing network has covered almost all counties and districts in the country, on this basis, JD Logistics continues to explore new quality productivity such as logistics models, big data, and unmanned technology, so as to promote the quality and efficiency of the whole process of the supply chain, as well as reduce logistics costs.
In April this year, JD.com won the 2024 INFORMS Prize, the top award in the field of international operations research, for its supply chain operations research optimization technology, becoming the first Asian company to receive this honor in the 34-year history of the award. As of the end of 2023, the number of "Asia No. 1" smart industrial parks put into operation by JD Logistics across the country has reached more than 40, and both the order satisfaction rate of local goods and the coverage rate of 211 time-limited delivery in remote areas have been greatly improved.
In the first quarter of this year, the National Development and Reform Commission released the list of national enterprise technology centers in 2023 (the 30th batch), and JD Logistics became the first enterprise in the industry to be selected for the list, which once again proved JD Logistics' own innovation ability and good innovation mechanism, as well as the important leading and exemplary role it plays in the industry.
Not only that, JD Logistics' leading logistics technology has also been recognized by many customers. In the first quarter of this year, the intelligent comprehensive three-dimensional warehouse project built by JD Logistics and Suzhou Huaxing Yuanchuang Technology Co., Ltd. (hereinafter referred to as "Huaxing Yuanchuang") was delivered and put into operation. In the construction stage of the warehouse, JD Logistics adopted the self-developed WES intelligent warehouse execution system, WCS intelligent warehouse control system and intelligent hardware equipment such as Tianluo shuttle and stacker, and at the same time realized the full-process information management and multi-scene and multi-equipment collaborative operation of the warehouse operation through the highly matched software and hardware system. The intelligent upgrade of the whole process of warehousing effectively helps customers to reduce costs and increase efficiency, including 60% increase in the efficiency of warehousing and warehousing of factory goods, 100% increase in picking efficiency, and 200% increase in ping efficiency, which breaks through the manufacturing bottleneck for the growth of the business in the next five years and provides a guarantee for the implementation of intelligent factory benchmark projects.
Create jobs and improve the quality of employment
About 20,000 people were hired in the first half of the year
JD Logistics has always been actively creating jobs and continuously improving the quality of employment, with a total human resource expenditure of 84.3 billion yuan for the 12 months ended March 31, 2024. The good employment created by JD Logistics for employees has become an important cornerstone of high-quality express logistics services, which not only effectively improves the professionalism and reliability of employees' external services, but also enhances customer satisfaction and trust.
This year's "May Day", the Propaganda Department of the Central Committee and the All-China Federation of Trade Unions publicized and released the advanced deeds of the "Most Beautiful Workers" in 2024 to the whole society, and 9 winners of the National May Day Labor Medal from various industries were honorably selected, among which Jingdong Xiaoge Tan Shiwang was listed, becoming the only courier selected among millions of practitioners in the country.
In order to further enhance the professionalism of talents, in the first quarter of this year, JD Logistics launched the "10,000 people recruitment plan", which will absorb about 20,000 new employees in the first half of 2024. While fresh blood is continuously injected, since the beginning of this year, a number of front-line employees have retired from their posts, realizing a safe life in their old age of receiving pensions and enjoying retirement medical care. In March this year, Xinjiang Urumqi Yayi Industrial Park ushered in Xinjiang's first retired express "old" brother - Wang Yi, the relevant person in charge of the Autonomous Region Express Association also said: Wang Yi's retirement is the hope and joy of all express delivery practitioners.
In April this year, JD Logistics released its 2023 ESG report, which showed a panoramic view of JD Logistics' environmental, social and governance achievements in 2023.
In terms of green supply chain construction, on the basis of building the first "carbon neutral" logistics park in China, JD Logistics has completed the layout of photovoltaic power generation systems in 17 Asia No. 1 intelligent industrial parks, in addition to a number of sorting centers, large warehouses, and logistics parks, rooftop photovoltaics, with a total installed capacity of 114.48 megawatts. In terms of green transportation, by the end of 2023, more than 8,000 self-operated new energy vehicles have been invested in JD Logistics' trunk lines and terminal transportation links, which can reduce carbon emissions by more than 35,000 tons of carbon dioxide equivalent per year on average. In addition, JD Logistics conforms to the development trend of green packaging, continuously strengthens the technological innovation, reform and application of green packaging materials, and continues to explore the refined operation of circular packaging. As of the end of 2023, JD Logistics has achieved carbon emission reduction of nearly 70,000 tons through packaging carbon reduction, and the original factory direct packaging has helped JD Logistics reduce the use of secondary packaging by more than 800 million.
Over the years, JD Logistics has always been rooted in the vast real economy, deeply integrated into the overall development of the country, helping industries and enterprises to reduce material costs and improve the efficiency of the whole process of the supply chain. In the future, JD Logistics will continue to optimize the whole process of the supply chain, continuously optimize the global supply chain network, actively explore cutting-edge technology in the industry, and contribute to the promotion of economic and social development.