JD.com Inc. [Nasdaq Code: JD, HKEX Code: 9618 (HKD counter) and 89618 (RMB counter)] has released its financial results for the second quarter and the first half of 2024.
Based on the effective strategic execution over the past six months, users have received genuine benefits, brands and merchants have achieved quality growth, and JD.com has maintained robust growth in user numbers, shopping frequency, and the number of new merchants.
As the "fast, good, and economical" user experience becomes more deeply rooted, JD.com's quarterly active user count and shopping frequency continued to grow at a double-digit rate in the second quarter.
This also led to JD.com Group's net profit attributable to ordinary shareholders of the listed company under non-GAAP accounting standards reaching 14.5 billion yuan (approximately $2 billion) in the second quarter, a year-on-year increase of 69.0%.
The net profit margin reached 5.0% for the first time, significantly exceeding market expectations.
In the second quarter, JD.com Group's revenue reached 291.4 billion yuan (approximately $40.1 billion), and the first half-year revenue reached 551.4 billion yuan (approximately $75.9 billion), maintaining growth.
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In the second quarter, logistics and other service revenues reached 34.1 billion yuan, a year-on-year increase of 7.9%.
As of the second quarter, JD Logistics' operating profit under non-GAAP accounting standards has been profitable for five consecutive quarters, and the operating profit margin under non-GAAP accounting standards in the second quarter set a new high since JD Logistics went public.
"In the second quarter, we continued to focus on sustainable and high-quality development of our business," said Ms. Xu Ran, CEO of JD.com Group.
"We continue to solidify our supply chain capabilities and user experience, helping JD.com establish differentiated capabilities in China's e-commerce industry.
Through continuous improvement in scale effects and procurement efficiency, we bring daily low prices to users while ensuring quality.
Combined with the increasingly prosperous platform ecosystem, these advancements have been recognized by users, with a steady increase in user numbers in the second quarter and continued positive user engagement.
In the future, we will continue to focus on our strengths, concentrate on user experience, price competitiveness, and platform ecosystem, to lay the foundation for sustainable business growth."
Empowering merchants for a positive cycle of service and growth, JD.com focuses on user experience, sustainable investment, and quality growth, ensuring that benefits truly reach users and support measures effectively help brands and merchants grow and improve efficiency.
Since the first half of the year, JD.com's "Chun Xiao Plan" has upgraded 32 support measures for merchants, which has also driven a 46% increase in the number of new third-party merchants in the second quarter compared to the first quarter.
More fashion and beauty brands such as Hermès Fragrances & Beauty, SAINT LAURENT, and Massimo Dutti have joined JD.com.
Since the beginning of the year, JD.com has worked with more than 20 provinces and cities to promote the exchange of old home appliances for new ones, and during the JD.com 618 period, it drove more than 700 brands to achieve a year-on-year transaction growth of over 100%.
After the JD.com billion-yuan subsidy launched beauty giveaways in the second quarter, it further increased its efforts in August, investing more than 3 billion yuan to focus on the entire beauty category, with no upper limit, benefiting both users and helping the growth of new users for brands and merchants.
Since the second quarter, the coverage of merchants providing services such as door-to-door delivery, free shipping, free door-to-door returns, and late delivery compensation has been continuously increasing.
After JD.com's free door-to-door return service almost fully covered its own operations, it has also driven the coverage rate of third-party merchants to over 90%, with more and more brands and merchants using service as a differentiated competitive advantage.
As of the second quarter, nearly 50,000 JD.com self-operated food and beverage items, as well as tens of thousands of third-party food stores, provide a "no love, no return" service for users.
JD.com's instant retail upgraded to JD Second Delivery in the second quarter, which can now provide consumers in more than 2,400 counties and cities across the country with the fastest shopping experience of delivery within 9 minutes.
The European omnichannel retail brand ochama launched hourly delivery in the Netherlands, bringing instant retail to Europe.
JD Alliance has launched a "priority rescue" service mechanism for travel insurance customers, starting from the actual needs of customers, and has upgraded the overall travel insurance service.
The logistics profitability has been further improved, and AI technology has helped millions of merchants reduce costs and increase efficiency.
As of the second quarter, the scale of JD.com's supply chain infrastructure assets has reached 156 billion yuan, a year-on-year increase of 11%.
JD Logistics has nearly 100 bonded warehouses, direct mail warehouses, and overseas warehouses globally, with a total managed area close to 1 million square meters.
JD Express international business can deliver to major European and American countries in as fast as 3 days.
By continuously optimizing network layout and iterating technology applications, it has continuously improved the efficiency and quality of each link, and the scale economy has been continuously released, driving JD Logistics towards a stable and good development stage.
Since the comprehensive technological transformation in 2017, JD.com's R&D investment has accumulated nearly 130 billion yuan as of the second quarter.
On the basis of more than 10 million self-operated product SKUs, JD.com's inventory turnover days in the second quarter continued to maintain the world-leading level of less than 30 days.
JD.com continues to promote the landing and application of digital technologies such as cloud computing, big data, and AI in the physical industry scene.
During the JD.com 618 period, Yan Xi digital people worked with 5,000 brands to broadcast stably, with a cumulative viewing of more than 100 million people, and 21 president digital people appeared in the JD.com live broadcast room, starting the industry's first large-scale practice of president digital people.
The newly released Yan Xi digital person 3.0 platform, based on JD.com's Yan Xi large model and multimodal interaction capabilities, has achieved a leap from a single product to an intelligent platform, with more than 100 personalized roles and more than 50 industry-specific attribute scenes online, covering 90% of common inquiries with zero configuration, and the accuracy rate of product recommendation responses has exceeded 90%.
With the help of JD.com's AIGC content generation platform, 140,000 third-party merchants can now generate product pictures, operation and marketing copy, product short videos and other content materials needed for store operation with one click, and the efficiency of merchants' content production has increased by more than 90%.
Based on JD.com's continuous expansion of investment and influence in the supply chain field, in the second quarter, JD.com was selected as the only Chinese retail enterprise in the 2024 Global Supply Chain Top 25 list released by Gartner.
In the past year, more than 20,000 new jobs have been added, providing a broad space for employee growth.
As of the second quarter, JD.com has added more than 20,000 new jobs in the past year.
At the beginning of August, JD.com's 2025 campus recruitment was fully launched, providing more than 16,000 positions for college students.
Over the past three years, JD.com has provided more than 50,000 positions for students.
As of this year's "519 Old Employee Day," there are more than 70,000 employees who have worked at JD.com for more than 5 years.
JD.com has always regarded employees as the most precious wealth and the cornerstone of career development.
JD.com has always provided employees with competitive compensation, comprehensive welfare protection, and broad growth space.
After the salary increase for JD.com's purchasing and sales and front-line business personnel in the first quarter, from July 1, 2024, through a year and a half, JD.com's purchasing annual fixed salary will be increased from 16 salaries to 20 salaries, and the performance incentive is uncapped.
At the end of July, the first phase of the JD.com headquarters No.
1 Park DEF building was officially put into use, and the "JD Youth City" that can provide nearly 4,000 ready-to-move-in apartments for employees has also completed the capping of the first phase project.
In the future, No.
1 Park and No.
2 Park, Building 4, and JD Youth City can build a modern office space integrating office, residence, leisure, and business for 60,000 JD.com employees.
In order to support the training and development of employees, the JD.com Group Global Training Base, covering an area of 110,000 square meters and accommodating more than 2,000 people, was officially put into use in the second quarter.
The training base will take the overall improvement of employee capabilities as the core and create a first-class learning platform.
By establishing a comprehensive talent development mechanism, it can not only effectively stimulate employee potential and expand career development space, but also inject continuous vitality into JD.com's talent construction.