In recent years, with the rapid development of e-commerce, the logistics industry has become the focus of market attention, especially the performance of various logistics head enterprises are much concerned, this is not the financial performance of JD Logistics, to achieve steady growth of JD Logistics? How to analyze the future of JD Logistics?
1. JD Logistics' Q1 performance has grown steadily?
According to the report of Cover News, JD Logistics Co., Ltd. (hereinafter referred to as "JD Logistics") 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.
There are several characteristics of JD Logistics' financial report that are particularly obvious:
Feature 1: The core profit indicators have reached the best level in the first quarter since listing. Over the years, JD Logistics has continuously adjusted and optimized its business structure, strengthened its attractiveness to external customers, and achieved rapid growth in external customer revenue. At the same time, JD Logistics has also improved the average revenue of a single customer by optimizing the customer structure and deepening cooperation with existing customers. These changes not only improve the speed and accuracy of logistics services, but also reduce operating costs, thereby improving overall operational efficiency and operational quality. With the continuous expansion of the scale of JD's logistics business, its economies of scale have gradually emerged.
Feature 2: Integrated supply chain achieves double-digit growth. JD Logistics' total revenue reached 42.14 billion yuan, an increase of 14.7% year-on-year. Combined with the development of JD Logistics over the years, we can find that in recent years, JD Logistics has continuously improved its logistics network, including warehouses, sorting centers, distribution sites, etc., so that it can better cover a wider range of regions and meet the needs of more customers. At the same time, JD Logistics has improved the operation process by introducing advanced logistics management systems and intelligent equipment. These improvements enable JD Logistics to better realize real-time information sharing and process automation, thereby reducing manual intervention and error rates, improving logistics efficiency, and also feeding back to performance, bringing continuous performance growth.
Feature 3: Express delivery and express delivery business also maintained double-digit growth. The revenue from other customers, including express delivery and express delivery, was 21.64 billion yuan, which shows that JD Logistics' perfect logistics network and distribution system are continuing to play a role in meeting customers' fast and accurate distribution needs through extensive regional coverage. At the same time, JD Logistics has invested heavily in logistics technology, introducing advanced logistics management systems and intelligent equipment to realize process automation and real-time information sharing. While the service quality continues to improve, it has won the trust and reputation of customers.
Second, what should we look at the future of JD Logistics?
In today's rapid development of the digital economy, the logistics industry is becoming increasingly important as a bridge connecting producers and consumers. As a leading logistics service provider in China, JD Logistics' every move affects the nerves of the market. Especially in the first quarter of this year, the steady growth of JD Logistics' performance not only reflects its strong market competitiveness, but also makes the market more curious about the development of JD Logistics.
First of all, we should build the core momentum for long-term development with continuous innovation. JD Logistics' continuous innovation is the key to distinguishing it from other logistics companies, and the ultimate services such as 211 time-limited delivery and door-to-door delivery have become the representatives of the highest service standards in the industry. In the first quarter of 2024, JD Logistics continued to make efforts to improve timeliness and user experience, and achieved continuous improvement in efficiency by investing in all-freighter aviation resources and route optimization.
For example, the launch of services such as "1 hour without pick-up" and night pick-up in many cities have further consolidated JD Express's high-quality service image in the minds of consumers. These services not only meet the diverse needs of consumers, but also reflect JD Logistics' continuous pursuit and innovation of service quality.
For another example, JD Logistics has also innovated in after-sales service. In March this year, JD Laundry announced the launch of the after-sales service "loss compensation" upgrade program, consumers will enjoy non-depreciation 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. This innovative move not only enhances consumer trust, but also further consolidates JD Logistics' leading position in after-sales service.
In such a situation, the sustainable development of JD Logistics is bringing more innovation momentum to the market, and even guiding the market to develop in a better direction.
Secondly, deeply integrate the integrated supply chain system. JD Logistics' forward-looking and executive ability in building an integrated supply chain is undoubtedly an important force to promote supply chain reform. By continuously promoting the transformation of logistics network layout, operation process, automation application and other aspects, it has not only improved efficiency and reduced comprehensive costs, but also become the key to the development of JD Logistics to help partners.
JD Logistics' logistics network layout is the core of its integrated supply chain strategy. By establishing multiple large-scale intelligent logistics parks and thousands of warehouses across the country, JD Logistics has built a highly collaborative and multi-level logistics infrastructure and warehouse distribution network. Such a layout not only ensures that the goods can be delivered to consumers quickly and accurately, but also provides more service possibilities for JD Logistics.
At the same time, the optimization of JD Logistics' operation process also provides strong support for the implementation of its integrated supply chain strategy. For example, in response to the problem of high damage rate of reverse logistics for large goods, JD Logistics uses a nationwide warehouse distribution network to provide customers with nearby reverse quality inspection and replacement packaging services. This service model not only reduces the damage and loss that may occur in the process of multiple handling of goods, but also reduces logistics costs and achieves the goal of reducing costs and increasing efficiency.
For another example, in the apparel industry, JD Logistics has successfully created a service model of "cross-docking, value-added processing, and dropshipping" by virtue of its integrated supply chain services. This model makes full use of the advantages of JD Logistics' warehousing and distribution network to realize the efficient flow of goods from warehousing to warehousing. At the same time, JD Logistics also provides a more flexible and agile supply chain solution for apparel brands for the operation characteristics of e-commerce channels with fixed sales and procurement, fast in and fast out. Through this model, apparel brands can respond to market changes more flexibly, achieve rapid turnover and efficient sales of goods, and truly enable apparel companies to have the competitiveness to compete with international giants.
Third, help brands go overseas and promote the deepening of internationalization. In the context of global economic integration, Chinese brands are seeking to expand overseas markets. As a leading enterprise in the field of supply chain logistics, JD Logistics continues to provide solid supply chain logistics support for Chinese brands to go overseas with its strong logistics network and service capabilities, and truly promotes the landing of all parties in the industry.
For example, JD Logistics further deepened its partnership with MINISO in the first quarter of this year. As a well-known retail brand, MINISO has a well-known popularity in Australia and Malaysia. By providing integrated supply chain logistics services such as warehousing and distribution for MINISO's stores in these two countries, JD Logistics ensures that products can be delivered to consumers on time and efficiently, which greatly improves the shopping experience of consumers.
JD Logistics also joined hands with Honor to launch an overseas "front warehouse" service model in Europe. This innovative model stores smart terminal devices such as mobile phones in JD Logistics' warehouses in Paris, France and other places, and realizes the fastest delivery of orders in France, Belgium, Luxembourg and other countries within 1 day, and 2-3 days to cover core European countries and regions. This not only speeds up the flow of products, but also reduces logistics costs and improves overall operational efficiency.
The case of cooperation with MINISO and Honor shows that JD Logistics has the ability to provide efficient supply chain solutions on a global scale. This pace of internationalization not only creates value for partners, but also opens up new growth points for JD Logistics itself.
Fourth, stimulate the enthusiasm of talent development and build a foundation for sustainable development. In addition to business development, JD Logistics also attaches great importance to fulfilling corporate social responsibility, which can be described as a two-pronged approach in motivating employees, on the one hand, JD Logistics realizes that employees are the most valuable wealth of the enterprise, therefore, they are committed to providing employees with a stable and reliable pension security system. By formulating a reasonable salary and welfare policy, JD Logistics provides employees with a series of pension security measures to ensure that employees can enjoy due benefits after retirement.
On the other hand, in order to attract more outstanding talents, JD Logistics has launched the "10,000 people recruitment plan". This program aims to attract talented people from different fields and backgrounds to join the JD Logistics family through a wide range of recruitment activities. This not only helps to enhance the company's social image, but also injects fresh blood into the company's long-term development.
In the long run, JD Logistics' innovative spirit and ability to continue to change, as well as its efforts in talent training, provide a broad imagination space for the market. Through continuous optimization of services and improvement of technical level, JD Logistics is expected to maintain a leading position in the fierce market competition and explore more growth opportunities. #记录我的2024#