JD Group's overall number of merchants reached a new high in the third quarter of 2023

On November 15th, Beijing time, JD Group released its performance for the third quarter of 2023. Despite continuing to maintain true low prices for products, genuine subsidies from merchants, and genuine investment in services, its revenue in the third quarter still achieved a year-on-year positive growth

On November 15th, Beijing time, JD Group released its performance for the third quarter of 2023. Despite continuing to maintain true low prices for products, genuine subsidies from merchants, and genuine investment in services, its revenue in the third quarter still achieved a year-on-year positive growth. At the same time, thanks to continuous optimization of supply chain efficiency and steady improvement in profitability, its net profit in the third quarter exceeded market expectations again. Over the past year, JD has consistently maintained stable financial performance, which fully proves that by continuously improving supply chain efficiency, it can achieve a model of benefiting consumers, brands and merchants, and JD improving quality and efficiency - a tripartite benefit.

In the third quarter of 2023, JD Group's revenue reached 247.7 billion yuan (approximately 34 billion US dollars); As a core category, electronic products and household appliances continue to maintain a year-on-year growth rate of revenue higher than the industry average; The service revenue reached 52.4 billion yuan (approximately 7.2 billion US dollars), accounting for over 20% of the overall revenue for the first time, reaching 21.2%, with logistics and other service revenue increasing by 19.3% year-on-year.

With JD Group's firm commitment and unremitting efforts to create more job opportunities and contribute to society, the company's total human resources expenditure (including its own employees and external personnel) in the third quarter and first nine months of 2023 reached RMB 25.9 billion and RMB 76.3 billion, respectively.

In the third quarter, JD Group's net profit attributable to common shareholders of listed companies under non US GAAP was 10.6 billion yuan (approximately 1.5 billion US dollars), exceeding market expectations; Under non US GAAP, the net profit margin attributable to common shareholders of listed companies is 4.3%, and the retail operating profit margin is 5.2%.

The "Chunxiao Plan" upgraded 20 measures to support businesses again in the third quarter, driving the number of new merchants to reach a new high, and the overall number of merchants in the third quarter maintained a three-digit growth year-on-year.

In the third quarter, we achieved stable revenue performance and reached a historic high in profit levels, mainly due to our proactive efforts in price competitiveness and platform ecological construction, as well as supply chain advantages, "said Ms. Xu Ran, CEO of JD Group. We are encouraged to see the progress made through a series of proactive efforts, such as the further expansion of the number of merchants and the improvement of user purchasing behavior. With our clear strategy of creating value for users and business partners, and our value proposition of further optimization with a focus on the future, I believe JD is in a favorable position to achieve long-term sustainable growth

Core category growth surpasses industry advantages, consolidates and enhances user experience, creating over 200 services

In the third quarter, JD continued to do its utmost to provide consumers with high-quality and affordable products and upgrade merchant support measures. Although in the self operated mode, price reductions and subsidies will put pressure on revenue, JD's retail revenue remains stable, with revenue from electronic products and home appliances remaining at the same level as the same period last year. The growth rate of revenue in the first three quarters is higher than the industry average, and the industry advantage continues to consolidate.

Starting from August 23 of this year, JD PLUS members who purchase JD's self operated products will enjoy an unlimited number of times, unit price, and amount of annual free shipping services. Ordinary users will also upgrade from "99 yuan free shipping" to "59 yuan free shipping". At the same time, JD Express service has also led the industry in proposing three major service commitments: "compensation for non pickup within one hour", "compensation for overtime throughout the process", and "compensation for non door-to-door delivery", continuing to lead the industry standards. After years of accumulation, JD can provide more than 200 services for users' consumption pain points, including more than 80 industry-first and unique services. Service projects such as price protection and on-site renewal have been established more than 10 years ahead of the industry.

On this year's JD 11.11, a large number of JD sales professionals who focus on the supply chain walked into the live streaming room, using their most professional perspective, plain language, and affordable prices to promote global good products to consumers. JD sales live streaming achieved the goal of "no pit fees, no commission from influencers, it is cheaper" to make consumers affordable and businesses profitable. During the November 11th period of this year on JD.com, the number of viewers of JD.com's live streaming sales exceeded 380 million, which also drove sales of over 60 brands to exceed 1 billion yuan. The transaction volume of nearly 20000 brands increased by more than three times year-on-year, and the transaction volume of new merchants increased by more than five times month on month.

The overall number of merchants has reached a record high of 400000 physical stores participating in JD 11.11

In the third quarter, JD's "Chunxiao Plan" upgraded 20 merchant support measures to create a "more traffic, faster operation, better service, and more cost-effective" store opening experience for merchants. The upgraded "Spring Dawn Plan" brings more fee reductions to merchants, allowing them to "zero burden" to settle in. On the one hand, JD has cancelled the previous 90 day "zero yuan trial operation" period, and some merchants have unlimited extension of the "zero yuan trial operation" period, during which no deposit is required; On the other hand, JD has expanded its technical service fee range from zero to 98% for individual and individual businesses. A series of merchant support measures have driven the overall number of third-party merchants to maintain a three-digit year-on-year growth in the third quarter, and the increasingly prosperous merchant ecosystem has also driven effective growth in the number of non self operated orders and users.

At the same time, the cooperation between brand merchants and JD is also becoming closer. At present, JD has become one of the companies with the largest number of luxury brands in global cooperation, and many overseas luxury brands continue to settle in. In the third quarter, the Italian boutique brand GUCCI Gucci announced a strategic cooperation with JD, and the official flagship store of GUCCI JD began operations simultaneously; The French luxury fashion group SMCP has officially settled in JD, and its fashion brands SANDRO, MAJE, and CLAUDIEIERLOT, JD's official flagship stores, are fully operational; High luxury diamond jewelry brands Debeers De Beers and Valentino Valentino from London have fully entered JD.com.

Since the third quarter, over 50 offline stores such as JD Mall and JD Home have opened in Ningbo, Shanghai, and other places. JD 3C digital stores have promoted the opening of 47 JD Home and JD Computer Digital stores in the third quarter, covering cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. JD Hougou has partnered with over 400000 physical stores to participate in this year's JD 11.11 event, building a "happy three kilometer" real-time retail ecosystem in over 2200 counties and cities, providing consumers with a "59 yuan free basic shipping" service.

Supply chain infrastructure asset size increased by 17%. JD Logistics operates over 1600 warehouses

As of the end of the third quarter, JD's supply chain infrastructure asset scale increased by 17% year-on-year, reaching 148.6 billion yuan. JD Logistics operates over 1600 warehouses, including the management area of the cloud warehouse ecological platform. The total management area of JD Logistics warehousing network exceeds 32 million square meters.

In Nyingchi, Xizang, with the official opening of Xizang's first pre intelligent warehouse for agricultural products, local agricultural products with plateau characteristics such as matsutake products, Tibetan pig products, white meat glossy ganoderma can be warehoused nearby, opening a new logistics transportation channel integrating production and marketing of "Tibetan products". In Jiashi, Xinjiang, by building a national origin intelligent supply chain center, it effectively helps local fruit merchants reduce logistics costs by about 20%, directly driving the local plum industry to increase revenue by over 1 billion yuan, and the per capita income of fruit farmers to exceed 12000 yuan. JD and Shandong Weihai jointly launched the autumn harvesting season for sea cucumber, and through 10 major measures such as e-commerce promotion, joint construction of sea cucumber e-commerce standards, logistics facility construction, landmark product development, and omnichannel sales, they have driven the Weihai sea cucumber industry belt to achieve best-selling across the country.

Through 20 years of practice, JD.com has proven that in the business ecosystem, consumers, brands, and merchants are not zero sum games. Focusing on the five factors related to consumer experience and merchant supply, including product, price, service, cost, and efficiency, JD.com continuously optimizes and pursues the ultimate. By continuously squeezing out water in the supply chain, it can give the saved money to consumers, brands, and merchants, thereby helping to stimulate market vitality with "true low prices".

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