Under continuous profit, JD revenue still maintained accelerated growth.

Editor’s note: This article is from Tencent Technology.

On the evening of November 15, Jingdong Group released its third-quarter earnings report. The financial report showed that Jingdong’s third-quarter net income reached 134.8 billion yuan, a year-on-year increase of 28.7%, significantly higher than market expectations. In the third quarter, under non-GAAP (Non-GAAP) net profit attributable to ordinary shareholders was 3.1 billion yuan, an increase of 160.6%; as of September 30, 2019, Jingdong’s free cash flow in the past 12 months It increased to 15.6 billion yuan, a significant increase from the same period last year.

It is reported that as of September 30, 2019, Jingdong’s free cash flow in the past 12 months increased to 15.6 billion yuan (about 2.2 billion US dollars), a significant increase over the same period in the second quarter; active purchase users in the past 12 months The number was 334.4 million, an increase of 13 million from the same period in the second quarter, the largest increase since nearly seven quarters.

In terms of the number of employees, as of September 30, 2019, Jingdong Group had more than 200,000 employees, an increase of 25,000 last year, and continued to contribute more jobs to the society.

The income continues to grow at a sustained profit

Since the third quarter of 2018, Jingdong Group has experienced a bottom-up rebound to resume growth in core performance indicators such as revenue growth, profit growth, user growth, and cash flow growth, from shifting speed to returning to high-speed growth. .

In the first three quarters of 2019, JD.com achieved a cumulative net profit of nearly 10 billion yuan, while net income growth in the three quarters reached 20.9%, 22.9%, and 28.7%, respectively.

As of September 30, 2019, Jingdong third-party platform has more than 250,000 contracted merchants; Jingdong Logistics Group’s outsourcing business has continued to expand rapidly, and has served more than 200,000 corporate customers. External revenues have accounted for the overall logistics group. The income is nearly 40%.

By benefiting from the rapid growth of revenues from marketing services, logistics services and technical services, Jingdong Group’s net service revenue in the third quarter continued to maintain a high growth rate of 47% year-on-year. The proportion of net service income to net income increased steadily to 11.9%, the income structure is more balanced.

The low-line market has become an accelerated growth “turbine” Consumers choose to rely on Jingdong

As of September 30, 2019, the number of active purchases of Jingdong Group in the past 12 months was 13 million more than the same period in the second quarter, the largest increase in nearly seven quarters. In September 2019, the number of active users of Jingdong mobile terminal increased by 36% compared with the same period of last year. The third quarter, JingdongMore than 70% of new users come from the low-line market and become one of the main drivers of JD’s accelerated growth.

Data shows that orders for high-value goods such as home appliances and mobile phone communications from low-end markets, and “trust-worthy” products that involve consumers’ health, such as food and health care, are significantly higher than those in first- and second-tier cities. The high-quality goods and services represented, as well as the trustworthy image, have been fully recognized by users in the low-end market.

Jingdong Logistics Group officially launched the “Qianxian Wanzhen 24-hour” aging time-saving plan in the third quarter. In the coming year, the plan will focus on improving the logistics service experience in low-city urban areas, county towns and surrounding townships. The logistics experience has driven the growth of the low-line market.

At the end of the third quarter, as part of the strategy to develop a sinking market, the social e-commerce platform “Jingxi” was officially launched. Consumers can access Jingxi through independent channels such as Jingxi App, Jingxi Small Program, and WeChat Level 1 Portal. Jingxi has laid out more than 100 industrial belts across the country and has become a bridge between manufacturers and consumers. During the “11.11 Jingdong Global Good Things Festival”, about 75% of the new users of Jingxi came from low-tier cities, and about 55% of Jingxi’s total users were women.

R&D investment sustained output value The profit in the first three quarters is nearly 10 billion

After the strong performance in the first quarter and second quarter of this year, the growth of the main core performance indicators of Jingdong Group began to accelerate in the third quarter. Under the promotion of economies of scale and technological innovation, the industry-leading operational efficiency advantage Further highlighted.

As of September 30, 2019, Jingdong Logistics operated more than 650 warehouses, including the Yuncang area managed by Jingdong Logistics. The total storage area of ​​Jingdong Logistics is about 16 million square meters. By continuously utilizing artificial intelligence-driven technology to optimize the expanding storage network, the 25 “Asian One” that Jingdong Logistics has put into operation is currently the largest intelligent warehouse group in Asia, and 70 different levels of robotic warehouses are also the largest in the country. The size of the robot warehouse group.

In the third quarter, Jingdong Group’s performance fee rate was 6.5%, down 0.9 percentage points from the same period last year. The value of continuous technology investment has become increasingly prominent in the improvement of operational efficiency. In the first three quarters of this year, the total investment in R&D of listed and unlisted enterprises in the Jingdong system exceeded 13 billion yuan.

Technology innovation, model innovation, and management innovation have jointly promoted the improvement of JD’s profit margin. Jingdong Retail’s operating profit margin reached a new high of 3.3% in the third quarter after an all-time high of 2.8% in the first half of 2019. Jingdong Retail’s operating profit margin also entered the “3 era” for the first time.

The effective improvement of retail business operation efficiency and the rapid growth of service revenue have laid a stable profit base for Jingdong Group. In the first three quarters of this year, Jingdong Group’s net profit attributable to ordinary shareholders under non-GAAP (Non-GAAP) totaled nearly 10 billion yuan, significantly exceeding the previous market.expected.

Jingdong Group’s initiatives in the medium and full-scale promotion of the technical system, not only effectively improved the internal research and development efficiency of JD.com, expanded the innovation space, and provided a solid foundation for the external technical service window such as Jingdong Cloud. Let Jingdong’s technical service revenue continue to grow at a high speed, and the industry scope of services continues to expand.

In August, at the 2019 WAIC World Artificial Intelligence Conference held in Shanghai, Jingdong Group was selected as the latest batch of national artificial intelligence open innovation platform of the Ministry of Science and Technology to participate in the construction of the national new generation intelligent supply chain artificial intelligence open innovation platform, leading intelligence Strategic development of the supply chain country.

From open empowerment to ecological co-creation Jingdong supply chain industry innovation emerges endlessly

In the third quarter, JD.com continued to leverage its big data-based consumer insights to help brands launch tailor-made products on the JD platform to meet consumer demand. In the reverse customization (C2M) business, taking the Jingpin home appliance project as an example, Jingdong has established cooperation with more than 140 electrical brands including Gree, Midea, Philips, Siemens and Hisense, C2M mode. The birth of a large number of new products has won widespread recognition from consumers.

Jingdong has become the largest incremental field of more than 2,000 billion-dollar brands and 250,000 third-party merchants. During the “11.11 Jingdong Global Good Food Festival” this year, two billion-level brands and 16 billion were generated. Grade brand, 125 billion brand.

JD.com, a subsidiary of Jingdong Group, successfully completed the A-round preferred stock financing in November this year, with a post-investment valuation of approximately US$7 billion. In the past few years, Jingdong Health has established a complete “Internet + medical health” ecosystem, providing consumers with products and services in the four business segments of medical health e-commerce, Internet medical, health management, and smart solutions.

According to the income scale, Jingdong Pharmacy has become the largest online pharmacy in China. Benefiting from Jingdong’s trustworthy brand image and in-depth cooperation with industry leaders, Jingdong Health will continue to expand its user base and rich service categories, and has become the most trusted “Chief Health Butler”.

As of the end of October 2019, JD.com’s joint venture Dada-Jingdong has reached more than 300 well-known chain retailers and more than 50 domestic and international well-known fast-moving brands.

In the third quarter, Dada-Jingdong came home to provide omni-channel customer relationship management (CRM) services to a growing number of retail partners, helping retailers develop their digital membership programs to enable them to drive more effectively. Access to a digital customer base. Up to now, 135 merchants and more than 18,000 stores have joined the omni-channel customer relationship management project of Dada-Jingdong.

Since the second half of this year, Jingdong Group has completed a number of strategic investment projects such as Colour Life, Dixintong, Xinchao Media, Life Care, and Auto Street.At the same time, it has launched comprehensive strategic cooperation with large enterprise groups such as General Technology Group and BAIC Group.

With the increasingly active strategic investment, strategic cooperation and commercial co-creation, JD.com is diversifying into a rich retail-based scenario, expanding from a first- and second-tier market with obvious advantages to a more sustainable low-line. Level market, by connecting new scenarios, new contacts, new people, new needs, complementing partners and exploring new models, transforming the data chain and supply chain into economies of value and transforming them into powerful value chains. Innovate, optimize and export technical capabilities and resources.