Oriental Fortune Network reported on the 28th that JD.com’s financial report released before the US stock market opened on Thursday showed that JD.com’s adjusted income per ADS in the fourth quarter of fiscal year 2018 was 0.51 yuan, and the market estimated a loss of 0.20 yuan. Net revenue in the fourth quarter was 134.8 billion yuan, compared with market estimates of 132.47 billion yuan.
The financial report shows that in the 12 months ended December 31, 2018, JD.com’s active accounts increased from 292.5 million to 305.3 million. The net loss attributable to shareholders in the fourth quarter was 4.8 billion yuan, compared with a loss of 909 million yuan in the same period last year. Online direct sales revenue in the fourth quarter was 120.2 billion yuan, compared with 100.1 billion yuan in the same period last year. Online direct sales revenue in fiscal year 2018 was 416.1 billion yuan, compared with 331.8 billion yuan in the same period last year. Active accounts increased by 22 and 20 respectively in the third and fourth quarters of 2018 compared with the same period last year.
The report shows that in 2018, JD.com Group’s investment in technology research and development reached 12.1 billion yuan, a year-on-year increase of 82.6. In 2018, JD.com’s patent applications exceeded 3,407.
JD.com expects first-quarter revenue of 118 billion yuan to 122 billion yuan.
“In the fourth quarter of 2018, JD.com’s sales revenue growth rate in core categories continued to be higher than the industry average,” Mr. Liu Qiangdong said. “JD.com’s investment in technology has improved user experience and greatly improved Improve operational efficiency. As JD.com promotes its 'unbounded retail' strategy, we will be committed to optimizing the company's resources in various businesses and creating long-term value for shareholders."
JD Logistics CEO Wang Zhenhui said that this quarter we have completed. We have exceeded our upper limit of performance and the growth is in line with expectations. Although consumers are now spending relatively less on electronic products. In the fourth quarter of 2018, our number of active users increased by 22.4. It should be said that the fourth quarter of 2018 was stronger than the fourth quarter of 2017.
Huang Xuande, chief financial officer of JD.com, said that overall, the revenue and profit performance in the fourth quarter were solid, reflecting that JD.com has well balanced the needs of current financial income and future development investment. "It is particularly important. What’s more, the profit margin of JD.com’s core business continues to rise.”
Detailed financial report
JD.com Group’s 2018 full-year GMV was nearly 1.7 trillion yuan
On February 28, Beijing time, JD.com Group (Nasdaq Stock) Code: JD) released the fourth quarter and full-year results of 2018: GMV for the whole year of 2018 was nearly 1.7 trillion yuan; net income for the fourth quarter of 2018 was 134.8 billion yuan (approximately US$19.6 billion), 5 consecutive The quarterly revenue exceeded 100 billion yuan, and the net income for the whole year of 2018 was 462 billion yuan (about 67.2 billion U.S. dollars); with the construction and opening of retail infrastructure, the net service income for the whole year of 2018 was 45.9 billion yuan. (approximately US$6.7 billion), a year-on-year increase of 50.5, accounting for approximately 10% of the overall net income; the non-GAAP net profit from continuing operations attributable to ordinary shareholders in the fourth quarter of 2018 was 749.9 million yuan RMB (approximately 109.1 million U.S. dollars), achieving profitability for 12 consecutive quarters. The non-GAAP net profit from continuing operations attributable to ordinary shareholders in 2018 was RMB 3.5 billion (approximately 5 billion US dollars).
JD.com Group has developed into a comprehensive retail platform and retail infrastructure service provider covering nine major business sectors including retail, logistics, technology, logistics real estate, insurance and overseas. As of December 31, 2018, JD.com operates more than 550 large warehouses across the country, with a total area of ??approximately 12 million square meters. It has more than 210,000 contracted merchants and more than 178,000 regular employees, creating indirect employment of more than 10 million people. .
With high-quality growth, JD.com continues to promote the deep integration of the digital economy and the real industry, actively promotes employment, supports steady consumption growth, and continues to fulfill its social responsibilities.
Although faced with the unfavorable factors of slowing consumption growth in the Chinese market, JD.com has maintained a strong growth trend above the industry average in core categories by virtue of its excellent infrastructure, services and experience. As the core business of Jingdong Group, Jingdong Mall’s operating profit margin for the whole year of 2018 was 1.6, reaching the best profitability level in history.
“In the fourth quarter of 2018, JD.com’s sales revenue growth rate in core categories continued to be higher than the industry average,” said Mr. Liu Qiangdong, Chairman and CEO of JD Group. “JD.com is technologically advanced. The investment has improved the user experience and greatly improved operational efficiency. As JD.com promotes its 'unbounded retail' strategy, we will be committed to optimizing the resources of the company's various businesses and creating long-term value for shareholders."
Annual GMV of nearly 1.7 trillion yuan continues to drive the growth of China's consumer market
In 2018, the domestic retail market continued to show a slowdown in growth. Data released by the National Bureau of Statistics showed that from January to December 2018 The retail sales of consumer goods increased by 9.0% year-on-year, and the online retail sales of physical goods increased by 25.4% year-on-year. As a representative of high-quality consumption, JD.com's overall retail business and various categories of businesses have always maintained strong growth. JD.com Group's GMV for the whole of 2018 was close to 1.7 trillion yuan, a year-on-year increase of 30%, continuing to lead the domestic retail market.
JD Group ranked 181st among the Fortune Global 500 in 2018, ranking third among the world's six largest Internet companies, second only to Amazon and Google parent company Alphabet. In 2018, JD Group ranked Annual net income reaches 462 billion yuan, which will once again improve its ranking among the world's largest companies.
As of December 31, 2018, the number of contracted merchants on JD’s third-party platform exceeded 210,000, and *** there were more than 178,000 regular employees, an increase of more than 20,000 regular employees compared with the same period last year , In addition, JD.com has also indirectly boosted employment to more than 10 million people.
In October 2018, JD.com’s ranking on the “2018 World’s Best Employers List” published by Forbes increased to 131st, a significant increase from 251st in 2017. At the same time, JD.com’s ranking on this list is also far ahead of other major domestic Internet companies.
JD.com’s growth is rooted in the Chinese market, and JD.com’s development will always serve the Chinese economy. JD.com will continue to create new demands for the Chinese consumer market with high-quality growth, promote a more dynamic domestic consumption environment, and promote steady consumption growth.
Under the goal of "unbounded retail", during the 2018 11.11 Global Goods Festival, JD.com not only attracted more than 600,000 offline stores to participate in the promotion, but also promoted the manufacturing and circulation industries through smart supply chains and other methods. Upgrade, reduce social logistics costs, enhance the supply capacity of the domestic market, and help many brands improve consumer quality.
In 2018, JD.com upgraded its e-commerce poverty alleviation model to version 3.0 through extensive practice, and actively participated in the national poverty alleviation and rural revitalization strategy through "six major boosts". By the end of 2018, JD.com had launched more than 3 million products in poverty-stricken areas, achieving sales of more than 50 billion yuan, directly increasing the income of 700,000 registered poor households.
In October 2018, JD.com cooperated with the World Wildlife Fund (WWF) and the China Children and Teenagers' Fund to hold the second "Blue Earth Sustainability Week", carrying out old-school environmental protection projects in nearly 50 cities in China. Activities such as recycling of clothes and old electrical appliances. By the end of 2018, JD.com had recycled nearly 1.9 million pieces of idle materials.
With greater scale comes greater responsibility.
JD.com is committed to becoming a company that creates the greatest value for society. It remains true to its original aspirations and actively fulfills its corporate social responsibilities. In addition to providing Chinese consumers with the most trustworthy consumption experience, it also promotes employment, improves industry operation efficiency, and feeds back the real economy. Continuously contribute to society in other aspects.
Core business is stable, service revenue surges, and quality growth is achieved
JD.com’s core competitive advantage of using technological innovation to promote supply chain efficiency improvement continued to be consolidated in 2018. Under the strategic direction of "retail as a service", JD.com is also making every effort to promote the transformation and upgrading from "technology retail" to "retail technology", shifting from the extensive growth of traditional e-commerce to more quality growth.
Previously, Jingdong Mall was upgraded to a Jingdong retail sub-group, which will have major changes in three aspects: business model, business chain and target users: the business model will change from open shelves to a full retail form; the business chain The aspect has changed from "commodity" to "commodity service"; at the same time, as a comprehensive retail platform, it will achieve full coverage of target users such as corporate users, home users, male users, female users, people in high-tier cities and people in low-tier cities.
In 2018, the operating profit margin of JD.com, as its core business, reached 1.6, showing a significant growth trend compared with 0.1, 0.9 and 1.4 in 2015, 2016 and 2017.
Among the various categories of JD.com’s retail business, the revenue from 3C and home appliance products in 2018 was still higher than the growth rate of similar products announced by the National Bureau of Statistics. JD.com’s market advantage in the 3C and home appliance categories has been further consolidated. In the non-electronics category, JD.com’s revenue growth rate reached 42% in 2018, which is also much higher than the growth rate of the same category in the industry.
The number of quarterly active users of JD.com Group in the fourth and third quarters of 2018 increased by 20 and 22 respectively year-on-year, which represents a significant increase in the repurchase rate and contribution rate of consumers, and also reflects the attraction of them in The main motivation for consumption on the JD.com platform is expanding from a high degree of trust in genuine licensed products to a high degree of reliance on precise and convenient services and experiences. JD.com not only covers the largest middle-income consumer group in China, but also continues to expand its user base through social e-commerce, channel sinking and other means to provide more consumers with high-quality services.
Mr. Huang Xuande, Chief Financial Officer of Jingdong Group, said, "Jingdong Mall, as the core business of the group, continues to grow and profit margins continue to rise. We focus on industry-leading technological innovation and infrastructure construction to further improve efficiency in the future , to achieve economies of scale.”
In 2018, while continuing to consolidate its logistics network advantages in China’s e-commerce field, JD.com also fully opened its logistics network to the society. As of December 31, 2018, JD.com operated more than 550 large warehouses across the country, with a total area of ??approximately 12 million square meters. During the 11.11 Global Goods Festival in 2018, the country’s largest JD robot warehouse cluster was put into use. Coupled with the collaborative optimization of smart systems and digital supply chains, more than 90 of JD’s logistics warehousing and distribution integrated service orders achieved same-day and next-day delivery. , which includes not only the explosive growth of JD.com’s self-operated orders, but also a large number of merchant orders using JD.com’s logistics warehousing and distribution integrated services.
Under the strategy of building and opening retail infrastructure, JD Group’s logistics and other service revenue in 2018 increased significantly by 142% year-on-year, which drove the full-year net service revenue in 2018 to 45.9 billion yuan. RMB (approximately US$6.7 billion), a year-on-year increase of 50.5, accounting for nearly 10% of the overall net income, and the income structure has become more balanced; in the fourth quarter of 2018, JD Group’s performance expenses accounted for 6.6% of net income, a year-on-year increase of 6.6%. 7.2, showing a significant improvement in operating efficiency and continued and stable growth momentum.
In 2018, the financial market experienced drastic changes. Affected by fluctuations in the fair value of long-term equity investments, JD.com’s net loss from continuing operations attributable to ordinary shareholders in 2018 was RMB 2.5 billion (approximately 4 billion); in addition, due to the impact of the domestic consumption environment, especially the sluggish growth in durable goods consumption, JD.com Group’s full-year net income growth rate has slowed down compared to the previous period. However, with its huge size, the largest revenue scale among Chinese Internet companies, Still maintained a growth rate of 27.5. Goldman Sachs, an internationally renowned investment bank, released a research report in the fourth quarter of 2018, believing that the current slowdown in revenue growth faced by JD.com is mainly due to the reduction in consumer spending caused by the cyclical weakness of the macro environment. In the long term, this phenomenon will disappears as consumer demand recovers.
Full-year technology investment reached RMB 12.1 billion to continue innovation to create future growth momentum
Technology drive has become JD.com’s core measure to win the future. In 2018, JD.com invested in technology research and development The investment reached 12.1 billion yuan, a year-on-year increase of 82.6. A large number of technological innovations have not only fully optimized JD.com's own costs, efficiency and user experience, but also begun to open services to the outside world to promote the common growth of industry partners.
By introducing the world's top scientists, JD.com continues to strengthen its core technology R&D and application innovation capabilities, and achieves deep integration of R&D and application scenarios in cloud computing, smart supply chain, smart logistics, IoT and other fields, thus forming Unique Internet technology system integrating software and hardware. In 2018, JD.com’s number of patent applications exceeded 3,407, making it the first company among domestic Internet companies. With the rapid growth of JD's technology open platforms such as NeuHub, Zhizhen Chain, and Jingyu Zuo, they not only meet their own applications, but also effectively help partners achieve digital transformation and upgrading.
In November 2018, the first native regional unmanned cargo aircraft independently developed by JD.com officially completed its first flight. Currently, JD.com has established a full-process drone R&D, production and supply chain control system. . Technological innovation is also promoting JD.com’s smart logistics terminal equipment to go abroad. In January 2019, JD.com’s drone completed its first flight outside China in West Java Province, Indonesia; in the following February, JD.com Group and Japan’s Rakuten Co., Ltd. Reached a cooperation agreement to provide terminal delivery drones, delivery robots and other intelligent logistics equipment and supporting solutions.
In the deep integration of retail infrastructure and the real economy, JD.com also brings the driving force of supply-side structural reform to the manufacturing industry through intelligent supply chain and other methods.
Create an unbounded retail ecosystem and work with partners to expand the Chinese market
JD.com’s ecosystem for unbounded retail has become increasingly complete. Farfetch Limited, the leading global luxury fashion industry technology platform, has just announced that it will deepen its strategic cooperation with JD.com to provide luxury brands with the preferred channel to enter the Chinese market. According to the agreement, JD.com’s luxury e-commerce platform Toplife will be merged into Farfetch China. In addition, Farfetch will gain first-level access to JD.com’s APP. Through Farfetch’s network covering more than 1,000 luxury brands and boutique partners, JD.com’s more than 300 million active users can conveniently purchase products from more than 3,000 luxury brands. Professor Liao Jianwen, Chief Strategy Officer of JD.com, said: This win-win cooperation allows us to bring together the best professional resources in the global and local markets in the field of luxury goods. This is also a core step for JD.com to expand the global fashion and luxury ecosystem.
Recently, JD.com cooperated with the Government Investment Corporation of Singapore (GIC) to jointly establish the JD Logistics Real Estate Core Fund. JD.com promised to subscribe for 20 shares of the fund and serve as the general partner and asset manager of the fund. people.
The fund is expected to manage assets of approximately 10.9 billion yuan in the future. The fund will acquire some modern logistics and warehousing infrastructure from JD.com and JD.com will continue to rent these infrastructures. This transaction will help JD.com unlock the value of these assets and recover the The funds will be used for JD.com’s future development.
In the fourth quarter of 2018, JD.com reached a strategic cooperation with Xinyu Group, China’s largest international watch retailer. World-renowned watch brands such as Radar, Hamilton, and Certina have also entered the JD platform; recently, the United States New York's fashionable luxury brand DKNY and South Korea's well-known high-end skin care brand Sulwhasoo, owned by Amorepacific, have both opened official JD flagship stores.
After more than a year of development, JD.com’s fresh food supermarket 7FRESH has opened multiple stores across the country. At the same time, the original fresh food business department of JD.com was integrated into 7FRESH, integrating its two fresh food business sectors into one, and realizing a "big fresh food" development model that links online and offline and supports consumption in multiple scenarios.
JD Shopping, which combines JD’s quality shopping genes and social genes, has become a leader in quality social e-commerce. By the end of 2018, the total number of JD Shopping merchants had reached 135,000, covering all retail categories. .
As of the end of the fourth quarter, JD.com’s joint venture Dada-JD Daojia has reached cooperation with more than 100,000 stores under well-known brands, and its logistics service network has covered more than 450 cities across the country.
At present, JD.com Group has developed into a comprehensive retail platform and retail infrastructure service provider including nine major business sectors including retail, logistics, technology, logistics real estate, insurance and overseas.
In order to clarify the positioning of the group headquarters and business units, JD.com is making every effort to upgrade its organizational structure to "small group, big business", upgrade the headquarters from a management headquarters to a strategic headquarters, and transform operations Functions are decentralized, giving more authorization to business segments, giving full play to organizational vitality, so that each business segment can be more willing and better equipped to operate independently and achieve higher quality growth. Facing 2019, JD.com is confident in the high-quality development of itself and the entire industry. It will continue to contribute to China's economic growth by continuously optimizing costs, efficiency and user experience, and opening up infrastructure resources such as services and technology to the outside world. (Global Network)