Jingdong (JD.com) annual active customer accounts increased by 30.3% to 471.9 million in the 12 months ended December 30, 2020, from 362 million in 2019.
Highlighting the commitment to enhancing its presence in lower-tier cities, JD.com formed Jingxi Business Group recently, to better serve customer demands and empower small business owners in lower-tier cities.
Jingxi Business Group mainly consolidates social e-commerce platform Jingxi, convenience store business Jingxitong (formerly known as Xintonglu or JD New Markets), and community group purchase business Jingxi Pinpin.
JD.com is also making efforts to strengthen its supply chain capabilities in lower-tier market through business cooperation and strategic investments.
Several fashion and luxury brands launched flagship stores on JD.com, including Hermès Group’s luxury shoe brand John Lobb, Italian luxury brand Stefano Ricci, British designer brand Vivienne Westwood, LVMH Group’s fashion brand JW Anderson, designer accessories brand Anya Hindmarch, French silverware and jewelry brand Christofle and Japanese streetwear label White Mountaineering.
Furthermore, Prada and Miu Miu became the first batch of luxury brands to partner with JD.com to implement omnichannel initiatives. Customers on JD platforms now have access to a wider range of Prada and Miu Miu products, including exclusive items from their physical stores.
The initiatives also help to improve the operational efficiency and inventory management capability of these brands’ physical stores.
Jingdong (JD) has upgraded Yihaodian (yhd.com) to Yihaodian Membership Store, the first online membership-only retail platform in China.
On December 8, 2020, JD Health successfully listed on the Main Board of the Hong Kong Stock Exchange under the stock code “6618,” with a global offering of 439,185,000 new shares (including a full exercise of the over-allotment option).
Gross proceeds from this offering, before deducting underwriting fees and offering expenses, amounted to approximately HK$31 billion.
As a technology-driven platform centered on the supply chain of pharmaceutical and healthcare products and strengthened by healthcare services, JD Health strives to improve user experience and provide easily accessible, convenient, high-quality yet affordable healthcare products and services, encompassing a user’s full life span.
In January 2021, JD.com was selected by INFORMS as one of the seven finalists for the 50th annual Franz Edelman Award for Achievement in Advanced Analytics, Operations Research and Management Science, the world’s most prestigious award for achievements in the practice of analytics and operations research.
In January 2021, JD Logistics signed an agreement with Chinese confectionary manufacturer Xu Fu Chi. Leveraging JD Logistics’s technology capabilities, the collaboration will support Xu Fu Chi’s supply chain management system digitalization efforts and enhance the confectionary manufacturer’s omni-channel service capabilities across various distribution channels.
As of December 31, 2020, JD Logistics operated over 900 warehouses, which covered an aggregate gross floor area of approximately 21 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform.
JD.com Financial Results Highlights
For the full year of 2020, JD.com reported net revenues of RMB745.8 billion (US$114.3 billion), representing a 29.3% increase from the full year of 2019.
For Q4 2020, JD.com reported net revenues of RMB224.3 billion (US$34.4 billion), representing a 31.4% increase YoY. Net product revenues increased by 28.4%, while net service revenues increased by 53.2% for the fourth quarter of 2020, as compared to the same period of 2019.
Net product revenues increased by 27.6%, while net service revenues increased by 42.0% for the full year of 2020, as compared to the full year of 2019.
Cost of revenues increased by 29.3% to RMB636.7 billion (US$97.6 billion) for the full year of 2020 from RMB492.5 billion for the full year of 2019.
Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 31.7% to RMB48.7 billion (US$7.5 billion) for the full year of 2020 from RMB37.0 billion for the full year of 2019.
Marketing expenses increased by 22.1% to RMB27.2 billion (US$4.2 billion) for the full year of 2020 from RMB22.2 billion for the full year of 2019.
Research and development expenses increased by 10.5% to RMB16.1 billion (US$2.5 billion) for the full year of 2020 from RMB14.6 billion for the full year of 2019.
General and administrative expenses increased by 16.7% to RMB6.4 billion (US$1.0 billion) for the full year of 2020 from RMB5.5 billion for the full year of 2019.
Income from operations for the full year of 2020 was RMB12.3 billion (US$1.9 billion), compared to RMB9.0 billion for the full year of 2019.
Non-GAAP income from operations for the full year of 2020 was RMB15.3 billion (US$2.4 billion) with a non-GAAP operating margin of 2.1%, as compared to non-GAAP income from operations of RMB8.9 billion for the full year of 2019 with a non-GAAP operating margin of 1.5%.
The operating margin of JD Retail before unallocated items for the full year of 2020 was 2.8%, compared to 2.5% for the full year of 2019.
Non-GAAP EBITDA for the full year of 2020 was RMB20.7 billion (US$3.2 billion) with a non-GAAP EBITDA margin of 2.8%, compared to RMB13.8 billion with a non-GAAP EBITDA margin of 2.4% for the full year of 2019.