On May 16, Jingdong Group-SW (09618.HK) announced its results for the first quarter of 2024, with revenue of 260.05 billion yuan, an increase of about 7.0% year-on-year, net profit attributable to the parent company of about 7.13 billion yuan, an increase of about 13.9% year-on-year, and the company's non-GAAP net profit of 8.90 billion yuan, a year-on-year increase of 17.2%, exceeding market expectations.
In the first quarter, the company achieved significant improvements in various user indicators, among which the number of quarterly active users has maintained double-digit year-on-year growth for two consecutive quarters, and the shopping frequency, NPS (Net Promoter Score) and the number of users in lower-tier cities have also increased significantly.
Specifically, in the first quarter, the revenue of daily necessities in Jingdong's commodity revenue reached 85.30 billion yuan, with a year-on-year growth rate of 8.6%, higher than the industry average.
This may be due to the fact that under the pressure of new retailers such as Pinduoduo, JD.com's 10 billion subsidy has been launched, and in the past year or so, after experiencing category expansion and the improvement of the price comparison mechanism, the low-price strategy has begun to show its power in the daily necessities category that pays more attention to price power. In addition, JD.com's expansion in e-commerce live streaming also plays a role.
Xu Ran, CEO of JD.com, said that although the competition in the supermarket category is very fierce, we are full of confidence in the growth of the supermarket category, and the supermarket category will also become an important driving force for JD's growth again.
It is worth noting that JD.com's logistics is also a highlight of this quarter. Finet noted that Jingdong Logistics (02618. HK) achieved revenue of 42.14 billion yuan in the first quarter, a significant increase of 14.7% year-on-year, and the revenue and growth rate exceeded market expectations, of which external customers (except JD Group) accounted for nearly 70% of the revenue.
In addition, Jingdong Logistics achieved a profit of about 322 million yuan in the first quarter, turning losses into profits year-on-year, and the core profit indicators reached the best level in the first quarter since listing.
At the same time as the performance is red, the management is also buying back "real money" to demonstrate confidence in future development. According to the announcement, from January 1, 2024 to May 15, 2024, JD.com repurchased a total of 98.3 million Class A ordinary shares, with a total amount of up to $1.3 billion.
This year marks the 10th anniversary of JD.com's listing on NASDAQ, with the Company's revenue increasing 16 times from RMB69.3 billion in 2013 before listing to RMB1.1 trillion in 2023, and non-GAAP net profit attributable to ordinary shareholders of the Company increasing 157 times from RMB224 million to RMB35.2 billion.
By the end of 2023, JD.com has created full-time employment opportunities for 517,000 employees, enjoying social insurance and housing provident fund benefits, and the number of jobs has increased by 13 times compared to a decade ago. Behind it is the vitality of the domestic economy and the huge potential of Internet retail.
Author: Flying Fish