Investment Rating - The report maintains a "Recommended" rating for JD Logistics (02618.HK) [1][3] Core Views - JD Logistics achieved profitability in 2023, with a total revenue of 166.6 billion yuan, representing a year-on-year growth of 21.3%. The net profit attributable to shareholders was 6.2 billion yuan, marking a turnaround from losses in 2022. Adjusted net profit reached 27.6 billion yuan, up 218.8% year-on-year, with an adjusted net profit margin of 1.7%, an increase of 1 percentage point [1][9][10]. Summary by Sections Financial Performance - In 2023, JD Logistics reported a gross margin of 7.6%, an increase of 0.3 percentage points year-on-year. The operating expense ratio was 7.2%, down 0.3 percentage points. Labor costs accounted for 33.2% of revenue, up 0.7 percentage points, while outsourcing costs decreased to 36.2%, down 1.4 percentage points [1][7][10]. Revenue Breakdown - Revenue from external customers reached 116.6 billion yuan, a year-on-year increase of 30.8%, accounting for 70% of total revenue. The integrated supply chain revenue from external customers was 31.4 billion yuan, up 7.6% year-on-year, with the average revenue per customer increasing to 420,363 yuan, a rise of 15.2% [1][7][10]. Future Outlook - The company plans to further develop in areas such as the JD ecosystem, digitalization, collaboration with Deppon, and overseas expansion. The integration with Deppon is expected to enhance logistics resources and operational capabilities, while overseas logistics services are anticipated to grow rapidly [1][9][10]. Investment Projections - The report conservatively adjusts the net profit forecasts for 2024 and 2025 to 970 million yuan and 1.3 billion yuan, respectively, with a new forecast for 2026 set at 1.65 billion yuan. The target market capitalization for 2023 is approximately 77.4 billion HKD, corresponding to a target price of 11.7 HKD per share, indicating a potential upside of 45% [1][9][10].

Investment Rating - Maintain "Overweight" rating [2][5] Core Views - The company's 2023Q4 revenue reached RMB 47.2 billion, a YoY increase of 9.7% [2][5] - Internal integrated supply chain revenue growth benefited from increased revenue from JD Retail, driven by the reduction in free shipping thresholds [2][5] - External integrated supply chain revenue growth was driven by service diversification and increased customer stickiness, with average customer spending rising by 15.4% YoY [2][5] - Other customer revenue growth was driven by increased express and freight business volumes, with future growth expected from increased penetration on platforms like Douyin, Kuaishou, and Xiaohongshu [2][5] - Adjusted net profit for 2023Q4 was RMB 1.804 billion, a YoY increase of 79.6%, with an adjusted net profit margin of 3.8%, up 1.5 percentage points YoY and 1.8 percentage points QoQ [2][5] - The company is expected to maintain high single-digit revenue growth in 2024, with adjusted net profit margins improving to the range of 1.7%-2.0% [2][5] Financial Projections - Revenue for 2024-2026 is projected to be RMB 181.4 billion, RMB 195.9 billion, and RMB 210.2 billion, with growth rates of 8.9%, 8.0%, and 7.3% respectively [2][5] - Adjusted net profit for 2024-2026 is projected to be RMB 3.352 billion, RMB 3.987 billion, and RMB 5.003 billion, with adjusted net profit margins of 1.8%, 2.0%, and 2.4% respectively [2][5] - Gross margin is expected to improve from 7.6% in 2023 to 9.9% in 2026 [1][5] - ROE is projected to increase from 2.1% in 2023 to 4.2% in 2026 [1][5] Market Data - Closing price on 2024/3/13 was HKD 8.32, with a total market capitalization of HKD 55.1 billion [2] - Total equity attributable to the parent company was RMB 6.8 billion, with total assets of RMB 15.9 billion [2] - EPS for 2023-2026 is projected to be RMB 0.10, RMB 0.20, RMB 0.27, and RMB 0.36 respectively [1][5]

Investment Rating - The investment rating for JD Logistics is maintained at "Buy" [1][8] Core Views - JD Logistics achieved a revenue of 166.625 billion RMB in 2023, representing a year-on-year growth of 21.27%, and successfully turned a profit with a net profit of 1.167 billion RMB compared to a net loss of 1.09 billion RMB in the previous year [2][5] - The company demonstrated improved self-sustainability with a net profit of 616 million RMB attributable to the parent company, marking a significant turnaround [3][5] - External revenue accounted for nearly 70% of total revenue, indicating strengthened customer acquisition capabilities [6][5] Summary by Sections Financial Performance - In Q4 2023, JD Logistics recorded a revenue of 47.2 billion RMB, a year-on-year increase of 9.75%, with a net profit of 1.242 billion RMB, up 152.46% [2][5] - The gross profit for 2023 was 12.683 billion RMB, reflecting a 25.58% increase, with a gross margin of 7.61%, an increase of 0.26 percentage points [5][6] Revenue Breakdown - Internal revenue from JD Group was 50.063 billion RMB, growing 3.73%, while external revenue reached 116.561 billion RMB, up 30.76% [6][5] - The number of customers contributing over 10 million RMB in revenue increased by 6.08% to 384, with average revenue per customer rising by 8.77% to 45.9 million RMB [6][5] Profitability Forecast - The forecast for 2024-2026 anticipates revenues of 183.974 billion RMB, 199.837 billion RMB, and 216.164 billion RMB, with net profits of 1.271 billion RMB, 1.937 billion RMB, and 2.802 billion RMB respectively [7][8] - The projected P/E ratios for 2024, 2025, and 2026 are 37.45, 24.57, and 16.98 respectively, indicating a positive outlook for profitability [7][8]

业绩简评 2024年 3月 6日，京东物流发布2023 年年度报告。2023 年公司 实现营业收入1666.25 亿元，同比增长21.27%；实现归母净利润 6.16 亿元，同比增长 20.78 亿元，扭亏为盈。其中 4Q2023 公司实 现营收472.01 亿元，同比增长9.75%；实现归母净利润10.39 亿 元，同比增长194.72%。 经营分析 营收同比增长，其他客户收入增长较快。2023 年公司营业收入达 1666.25 亿元，同比增长21.27%，分客户看：1）公司一体化供应 链客户收入为 815 亿元，其中外部一体化客户收入为 314 亿元， 同比增长7.7%。外部一体化供应链客户ARPC 同比增长 15.2%至 42 万元，主要系公司持续拓展现有客户合作广度与服务深度。其中， 收入贡献不低于一千万的外部一体化供应链客户数量为 384 名， 同比增长 6.1%；单客户平均收入为 4590 万元，同比增长 8.8%。 港币(元) 成交金额(百万元) 2）公司其他客户收入为852 亿元，同比增长42%，主要系公司持 16.00 2,500 续拓展与抖音快手等电商平台合作、推进与德邦的网络融合。 14 ...

Investment Rating - The report assigns a "Neutral" rating for JD Logistics (2618 HK) with a target price adjusted from HKD 11.6 to HKD 9.5, indicating a potential upside of 17% from the current price of HKD 8.11 [7][11]. Core Insights - The fourth quarter performance exceeded expectations, with total revenue of RMB 47.2 billion, a year-on-year increase of 10%, and a significant profit increase of 124% compared to expectations. The adjusted net profit reached RMB 1.8 billion, reflecting an 80% year-on-year growth [6][8]. - The revenue outlook for 2024 has been revised down to an 8% growth forecast, previously estimated at 11%, due to lower visibility on revenue recovery in the core external integrated supply chain business [7][10]. Summary by Sections Financial Performance - In Q4 2023, total revenue was RMB 47.2 billion, exceeding Bloomberg consensus by 2%. The external revenue grew by 9%, contributing 70% to total revenue. The internal order revenue increased by 11%, benefiting from adjustments in JD Retail's free shipping thresholds [6][8]. - The adjusted net profit for 2023 was RMB 1.8 billion, with a net profit margin of 3.8%, up 1.5 percentage points year-on-year, driven by business structure optimization and operational efficiency improvements [6][8]. Revenue Breakdown - Internal orders accelerated with an 11% year-on-year growth, while external integrated revenue grew by 5%, driven by a 15% increase in average revenue per external customer [6][8]. - The number of external customers contributing over RMB 10 million in revenue increased by 22 to 384 in 2023, indicating a gradual recovery in customer numbers expected in 2024 [6][7]. Future Outlook - The 2024 revenue forecast has been adjusted to RMB 180.8 billion, reflecting an 8% growth, with an adjusted net profit margin projected at 2.0%, up 3 percentage points from 2023 [7][10]. - The report highlights that while cost reduction and operational efficiency improvements may help maintain profit margins, the visibility for a return to double-digit growth in external integrated supply chain revenue remains uncertain [7][10].

Financial Performance - Total revenue for 2023 reached RMB 166.6 billion, a year-on-year increase of 21.3%[3] - Revenue from external clients in 2023 was RMB 116.6 billion, accounting for 70.0% of total revenue, a 30.8% increase year-on-year[4] - Gross profit for 2023 was RMB 12.68 billion, a 25.6% increase compared to 2022[3] - Non-IFRS profit for 2023 was RMB 2.76 billion, a 218.8% increase year-on-year[3] - Non-IFRS EBITDA for 2023 was RMB 14.61 billion, a 32.9% increase compared to 2022[3] - Total revenue reached RMB 166.6 billion, a year-on-year increase of 21.3%, with external customer revenue accounting for RMB 116.6 billion, up 30.8% and representing 70.0% of total revenue[7] - Revenue from integrated supply chain customers reached RMB 81.5 billion, with external integrated supply chain customer revenue at RMB 31.4 billion, up 7.7% year-on-year[7] - Revenue from other clients reached RMB 85.2 billion, a year-on-year increase of 42.0%[12] - The company's revenue for the three months ended December 31, 2023, was RMB 47.2 billion, an increase from RMB 43.0 billion in the same period in 2022[26] - The company's gross profit for the three months ended December 31, 2023, was RMB 4.35 billion, up from RMB 3.82 billion in the same period in 2022[26] - The company's non-IFRS profit for the three months ended December 31, 2023, was RMB 1.80 billion, compared to RMB 1.00 billion in the same period in 2022[26] - Total revenue increased by 9.7% from RMB 43.0 billion in Q4 2022 to RMB 47.2 billion in Q4 2023[27] - Revenue from integrated supply chain customers grew by 8.8% from RMB 21.1 billion in Q4 2022 to RMB 23.0 billion in Q4 2023[27] - Revenue from other customers increased by 10.6% from RMB 21.9 billion in Q4 2022 to RMB 24.2 billion in Q4 2023[27] - Average revenue per integrated supply chain customer rose by 15.4% from RMB 135,172 in Q4 2022 to RMB 155,974 in Q4 2023[27] - Gross profit margin improved from 8.9% in Q4 2022 to 9.2% in Q4 2023[30] - Net profit surged from RMB 491.9 million in Q4 2022 to RMB 1,241.8 million in Q4 2023[34] - Annual revenue increased by 21.3% from RMB 137.4 billion in 2022 to RMB 166.6 billion in 2023[35] - Annual gross profit rose by 25.6% from RMB 10.1 billion in 2022 to RMB 12.7 billion in 2023[35] - Non-IFRS annual profit increased by 218.8% from RMB 866.0 million in 2022 to RMB 2,760.8 million in 2023[35] - Non-IFRS annual EBITDA grew by 32.9% from RMB 10.99 billion in 2022 to RMB 14.61 billion in 2023[35] - Total revenue increased by 21.3% from RMB 137.4 billion in 2022 to RMB 166.6 billion in 2023[36] - Revenue from integrated supply chain customers grew by 5.2% from RMB 77.4 billion in 2022 to RMB 81.5 billion in 2023[36] - Revenue from other customers surged by 42.0% from RMB 60.0 billion in 2022 to RMB 85.2 billion in 2023[36] - Average revenue per integrated supply chain customer increased by 15.2% from RMB 365,015 in 2022 to RMB 420,363 in 2023[36] - Operating costs rose by 20.9% from RMB 127.3 billion in 2022 to RMB 153.9 billion in 2023[38] - Gross profit and gross margin improved to RMB 12.7 billion and 7.6% in 2023, compared to RMB 10.1 billion and 7.4% in 2022[39] - R&D expenses increased by 14.4% from RMB 3.1 billion in 2022 to RMB 3.6 billion in 2023[41] - The company recorded a net profit of RMB 1.2 billion in 2023, compared to a net loss of RMB 1.1 billion in 2022[44] - Non-IFRS profit for the quarter increased to RMB 1,803,595 thousand, up from RMB 1,004,210 thousand in the same period last year[45] - Non-IFRS profit margin for the quarter improved to 3.8%, compared to 2.3% in the previous year[45] - Annual Non-IFRS profit surged to RMB 2,760,844 thousand from RMB 866,031 thousand in 2022[46] - Annual Non-IFRS profit margin rose to 1.7%, up from 0.6% in 2022[46] - Quarterly Non-IFRS EBITDA reached RMB 4,970,796 thousand, with a margin of 10.5%, up from 9.2% in 2022[47] - Annual Non-IFRS EBITDA increased to RMB 14,605,753 thousand, with a margin of 8.8%, compared to 8.0% in 2022[47] - Net cash from operating activities for the year was RMB 16,352,016 thousand, up from RMB 13,314,224 thousand in 2022[49] - Free cash inflow for 2023 was RMB 2.8 billion, compared to RMB 1.3 billion in 2022[49] - Total cash resources at the end of 2023 amounted to RMB 42.2 billion[49] - Net cash used in investing activities in 2023 was RMB 15.1 billion, primarily due to RMB 13.5 billion in fixed deposits, RMB 12.9 billion in financial assets at fair value through profit or loss, and RMB 8.9 billion in amortized cost financial investments[52] - Net cash used in financing activities in 2023 was RMB 5.5 billion, mainly due to RMB 7.4 billion in lease principal payments and RMB 4.4 billion in loan repayments[53] - The company's capital-to-debt ratio as of December 31, 2023, was approximately 20.7%[54] - Total employee compensation and benefits expenses in 2023, including share-based payment expenses, were RMB 62.2 billion, a 22.3% increase from 2022[56] - The company's outstanding borrowings as of December 31, 2023, were RMB 10 billion[58] - Revenue for the year ended December 31, 2023, was RMB 166.6 billion, compared to RMB 137.4 billion in 2022[60] - Net profit for the year ended December 31, 2023, was RMB 1.17 billion, compared to a net loss of RMB 1.09 billion in 2022[60] - Total assets as of December 31, 2023, were RMB 112.9 billion, compared to RMB 106.7 billion in 2022[62] - Total revenue for 2023 reached RMB 166,624,712 thousand, a 21.3% increase from RMB 137,402,008 thousand in 2022[68] - Integrated supply chain customers contributed RMB 81,470,338 thousand to revenue in 2023, up 5.2% from RMB 77,435,959 thousand in 2022[68] - Other customers' revenue surged 42.1% to RMB 85,154,374 thousand in 2023 from RMB 59,966,049 thousand in 2022[68] - Net cash generated from operating activities increased to RMB 16,352,016 thousand in 2023, up 22.8% from RMB 13,314,224 thousand in 2022[64] - Total equity grew to RMB 55,373,635 thousand in 2023, a 4.1% increase from RMB 53,208,561 thousand in 2022[63] - Total liabilities increased to RMB 57,528,082 thousand in 2023, up 7.5% from RMB 53,488,710 thousand in 2022[63] - Cash and cash equivalents decreased to RMB 17,207,027 thousand at the end of 2023, down 20% from RMB 21,495,352 thousand at the end of 2022[64] - Basic earnings per share improved to RMB 0.10 in 2023 from a loss of RMB 0.23 per share in 2022[69] - Employee compensation and benefits expenses rose 22.3% to RMB 62,174,846 thousand in 2023 from RMB 50,826,522 thousand in 2022[69] - Outsourcing costs increased 16.9% to RMB 60,257,890 thousand in 2023 from RMB 51,554,840 thousand in 2022[69] - Trade receivables as of December 31, 2023, amounted to RMB 15,251,399 thousand, with a credit loss provision of RMB 542,274 thousand, resulting in a net trade receivables of RMB 14,709,125 thousand[73] - Trade payables as of December 31, 2023, totaled RMB 8,729,612 thousand, including RMB 33,438 thousand under supplier financing arrangements[73] - Overdue but not credit-impaired trade receivables as of December 31, 2023, were RMB 832.0 million, up from RMB 776.5 million in 2022[73] - Trade payables aged within 3 months as of December 31, 2023, were RMB 7,785,554 thousand, down from RMB 8,403,131 thousand in 2022[74] Logistics and Supply Chain - The number of external integrated supply chain clients with annual revenue contribution of at least RMB 10 million increased in both quantity and average revenue per client in 2023[5] - JD Logistics continued to enhance its logistics infrastructure and integrate with Deppon Logistics in 2023[5] - The company's warehouse automation solutions and products have been adopted by external clients in industries such as auto parts, apparel, and pharmaceuticals[5] - The number of external integrated supply chain customers contributing at least RMB 10 million annually increased to 384, up 6.1%, with average revenue per customer reaching RMB 45.9 million, up 8.8%[8] - External integrated supply chain customers totaled 74,714, with average revenue per customer at RMB 420,000, up 15.2%[9] - Revenue from external integrated supply chain customers contributing at least RMB 10 million accounted for 56.1% of total external integrated supply chain revenue, up from 52.3% in 2022[10] - The company operates over 1,600 warehouses, 19,000 delivery stations, and employs nearly 350,000 self-operated delivery personnel[8] - The company has nearly 4,600 professional R&D personnel, focusing on automation, digitalization, and intelligent decision-making[8] - In the automotive sector, the company provided exclusive nationwide home charging pile integrated supply chain services for a leading international new energy vehicle brand[10] - For the apparel industry, the company developed a full-scenario supply chain service, enhancing efficiency and offering value-added services for returned goods[10] - The company completed the transfer of assets from 83 JD Logistics freight forwarding centers to Deppon Logistics by the end of December 2023[13] - JD Logistics has obtained over 4,000 authorized patents and software, with more than 2,000 related to automation and unmanned technologies[15] - The company operates over 1,600 warehouses and manages a total storage area exceeding 32 million square meters, including cloud warehouses[17] - JD Logistics operates 41 Asia No. 1 smart industrial parks across 30 cities in China[17] - The Kunshan Asia No. 1 smart industrial park Phase II, covering over 500,000 square meters, processes more than 4.5 million packages daily during peak periods[17] - The company’s logistics network includes 1,600+ self-operated warehouses and 2,000+ cloud warehouses, forming one of China’s largest storage networks[17] - JD Logistics launched "Next Morning Delivery" service in 9 cities, including Beijing and Shanghai, with delivery as early as 8 AM[12] - The company deepened cooperation with a Chinese tech company to optimize inventory allocation in Europe, ensuring rapid delivery in core regions[11] - JD Logistics supported a U.S. water bottle brand during Black Friday, significantly improving fulfillment rates through advanced automation and inventory management[11] - The company operates over 40,000 self-owned transportation vehicles and has deployed new energy vehicles in multiple cities across the country[19] - The company covers more than 600 railway routes and over 1,000 air cargo routes through partnerships[19] - The company has nearly 350,000 self-owned delivery and operational personnel and operates over 19,000 delivery stations and outlets[20] - The company manages over 200 large and heavy goods warehouses and sorting centers, with a total management area exceeding 4 million square meters[21] - The company operates approximately 100 temperature-controlled cold chain warehouses for fresh, frozen, and refrigerated foods, covering an area of about 500,000 square meters[22] - The company has close to 90 bonded warehouses, direct mail warehouses, and overseas warehouses, with a total management area of nearly 900,000 square meters[23] - The company's global offering net proceeds amounted to RMB 22,945 million, with 55% allocated to upgrading and expanding the logistics network[80] - As of December 31, 2023, RMB 10,260 million of the global offering net proceeds had been utilized, with RMB 5,733 million remaining unused[80] - The placement and subscription net proceeds totaled RMB 6,924 million, with 85% allocated to optimizing the logistics network and solutions[82] - As of December 31, 2023, RMB 1,039 million of the placement and subscription net proceeds had been utilized, with RMB 712 million remaining unused[82] Innovation and Technology - JD Logistics is exploring the application of large language models in various internal operational scenarios[5] - The company has established a supply chain carbon management platform to promote low-carbon and green sustainable development[5] - The company has nearly 4,600 professional R&D personnel, focusing on automation, digitalization, and intelligent decision-making[8] - JD Logistics has obtained over 4,000 authorized patents and software, with more than 2,000 related to automation and unmanned technologies[15] Sustainability and Green Development - The company has established a supply chain carbon management platform to promote low-carbon and green sustainable development[5] - The company operates over 40,000 self-owned transportation vehicles and has deployed new energy vehicles in multiple cities across the country[19]

Financial Performance - For the three months ended September 30, 2023, JD Logistics reported revenue of RMB 41.66 billion, a 16.5% increase from RMB 35.77 billion in the same period of 2022[6] - The gross profit for the same period was RMB 3.30 billion, compared to RMB 2.65 billion in 2022, reflecting a significant improvement in profitability[5] - The pre-tax profit for the quarter was RMB 591.66 million, a significant turnaround from a loss of RMB 111.94 million in the same period last year[5] - Non-IFRS profit for the period was RMB 843.08 million, up from RMB 446.77 million in 2022, indicating strong operational performance[5] - The net profit for the three months ended September 30, 2023, was RMB 454.3 million, compared to a net loss of RMB 148.7 million in the same period of 2022[14] - Non-IFRS profit for the period was RMB 843.1 million, up from RMB 446.8 million in the same period of 2022, with a non-IFRS profit margin of 2.0%[15] - For the three months ended September 30, 2023, the group's free cash flow was RMB 2.1 billion, compared to RMB 0.2 billion in the same period of 2022, representing a significant increase[18] - The net cash generated from operating activities was RMB 5.7 billion, after deducting capital expenditures of RMB 1.5 billion and lease-related payments of RMB 2.2 billion[18] Customer Dynamics - The number of external integrated supply chain customers decreased to 54,212 from 62,629 year-over-year, indicating a shift in customer dynamics[6] - Revenue from integrated supply chain customers increased by 7.5% to RMB 19.61 billion, driven by higher average revenue per customer, which rose by 22.7% to RMB 143,497[6] - Revenue from other customers surged by 25.7% to RMB 22.06 billion, partly due to increased business volume from express delivery services and the consolidation of Debon Logistics[6] Operating Costs and Expenditures - Operating costs increased by 15.8% from RMB 33.1 billion for the three months ended September 30, 2022, to RMB 38.4 billion for the same period in 2023[8] - Employee compensation and benefits for operational staff rose by 23.9% from RMB 11.2 billion to RMB 13.9 billion, driven by an increase in the number of operational employees[8] - Outsourcing costs increased by 9.4% from RMB 13.4 billion to RMB 14.6 billion, partly due to business growth requiring more outsourced services[8] - Sales and marketing expenses rose by 38.0% from RMB 981.4 million to RMB 1,354.7 million, influenced by an increase in promotional service product sales and marketing personnel[11] - R&D expenses increased by 9.3% from RMB 792.5 million to RMB 866.5 million, primarily due to the consolidation of Debon Logistics[12] - General and administrative expenses decreased by 8.5% from RMB 884.5 million to RMB 809.1 million, mainly due to a reduction in share-based payment expenses[13] Logistics and Infrastructure - JD Logistics launched its first international cargo route from Shenzhen to Ho Chi Minh City in September 2023, enhancing cross-border logistics capabilities[4] - The company's warehousing network now covers nearly all counties in China, with over 1,600 warehouses and a total management area exceeding 32 million square meters[4] Cash Resources - Total cash resources amounted to RMB 36.9 billion as of September 30, 2023[17]

Revenue and Growth - Total revenue for the first half of 2023 reached RMB 77.76 billion, a year-on-year increase of 32.6%[6] - Revenue from external customers amounted to RMB 53.9 billion, representing a year-on-year growth of 57.7% and accounting for 69.3% of total revenue[7] - Revenue from integrated supply chain customers reached RMB 38.9 billion in the first half of 2023, with external integrated supply chain customer revenue at RMB 15 billion, a year-on-year increase of 10.0%[12] - Revenue from other customers reached RMB 38.9 billion in the first half of 2023, representing a year-on-year growth of 89.2%[14] - Total revenue increased by 32.6% from RMB 58,623,176 thousand in the six months ended June 30, 2022, to RMB 77,761,309 thousand in the same period of 2023[35] Profitability and Loss - Gross profit for the first half of 2023 was RMB 5.03 billion, up 38.4% from RMB 3.63 billion in the same period of 2022[6] - The company reported a pre-tax loss of RMB 382.21 million, significantly reduced from a loss of RMB 1.32 billion in the previous year, marking a 71.1% improvement[6] - The net loss for the six months ended June 30, 2023, was RMB 528.9 million, a significant improvement from a net loss of RMB 1,433.5 million in the same period of 2022[44] - The company reported a loss of RMB 637,211 in the six months ended June 30, 2023, compared to a loss of RMB 1,462,059 in the same period in 2022[30] Operational Metrics - The total number of warehouses operated by the company exceeded 1,600, with over 19,000 distribution stations and points[10] - The company employed over 300,000 self-operated delivery personnel as of June 30, 2023[10] - The company operates over 40,000 self-owned transportation vehicles and approximately 400 sorting centers in China[21] - The company has established around 100 temperature-controlled cold chain warehouses for fresh, frozen, and refrigerated foods, with an operational area of approximately 500,000 square meters as of June 30, 2023[25] Research and Development - The company has over 4,600 R&D professionals focused on technological innovation and operational automation[10] - Research and development expenses rose by 26.9% to RMB 1,824,511 thousand, driven by ongoing investments in technology and innovation[42] - The company has over 3,500 authorized patents and software licenses, with more than 2,000 related to automation and unmanned technology as of June 30, 2023[17] Customer Engagement - Average revenue per external integrated supply chain customer (ARPC) was RMB 247,000, reflecting a year-on-year increase of 23.8%[7] - Customer satisfaction for the company's express delivery services remains among the top tier in the industry according to national postal statistics[8] - The number of external integrated supply chain customers decreased from 68,399 to 60,792, indicating a shift in customer dynamics[35] Financial Position - The total cash resources of the group as of June 30, 2023, amounted to RMB 35.8 billion[48] - The company has outstanding borrowings of RMB 7.5 billion as of June 30, 2023[60] - The capital-to-debt ratio as of June 30, 2023, was approximately 15.8%[54] - The company reported a basic and diluted loss per share of RMB (0.10) for the six months ended June 30, 2023, compared to RMB (0.25) in the same period of 2022[102] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 4,298,913 thousand, an increase from RMB 4,094,308 thousand in the previous year[49] - Free cash flow outflow for the six months ended June 30, 2023, was RMB 2.1 billion, compared to RMB 0.7 billion in the same period last year[49] - The company did not make any significant investments during the six months ended June 30, 2023[55] Corporate Governance and Compliance - The financial statements were prepared in accordance with International Accounting Standards, ensuring compliance with relevant regulations and standards[111] - The company has adhered to all applicable corporate governance codes during the reporting period[91] - The company continues to comply with the new Chapter 17 of the listing rules regarding stock incentive plans[74] Shareholder Information - Liu Qiangdong holds 4,291,457,805 shares, representing 64.98% of the total shares as of June 30, 2023[62] - The total number of JD.com ordinary shares outstanding is 6,604,681,772 as of June 30, 2023[62] - The company has three existing stock incentive plans, including pre-IPO employee stock incentive plans and post-IPO stock option plans[74] Strategic Initiatives - The company launched the Supply Chain Emission Management Platform (SCEMP) in April 2023 to monitor and manage carbon emissions in logistics operations[27] - The company aims to enhance its integrated supply chain logistics capabilities and infrastructure to support sustainable and high-quality development[28] - The company is continuously optimizing service capabilities in the automotive sector, providing efficient logistics services to leading brands like Volvo and Li Auto[13]

Financial Performance - For the six months ended June 30, 2023, total revenue reached RMB 77.76 billion, representing a year-on-year increase of 32.6%[5] - Gross profit for the same period was RMB 5.03 billion, reflecting a year-on-year growth of 38.4%[5] - The company reported a pre-tax loss of RMB 382.21 million, a significant improvement of 71.1% compared to the previous year[5] - For the three months ended June 30, 2023, the company reported revenue of RMB 41,032,908, a 31% increase from RMB 31,271,702 in the same period of 2022[25] - Gross profit for the same period was RMB 3,394,186, compared to RMB 2,173,228 in the previous year, reflecting a significant increase[25] - The company achieved a net profit of RMB 507,964 for the three months ended June 30, 2023, compared to a loss of RMB 83,382 in the same period of 2022[25] - The company reported a net loss of RMB 528,874 thousand for the six months ended June 30, 2023, an improvement from a net loss of RMB 1,433,499 thousand in the prior year[35] - Basic and diluted loss per share was RMB 0.10, an improvement from RMB 0.25 in the same period of 2022[58] Revenue Breakdown - External customer revenue amounted to RMB 53.9 billion, with a year-on-year increase of 57.7%, accounting for 69.3% of total revenue[6] - Revenue from integrated supply chain customers reached RMB 38.9 billion in the first half of 2023, with external integrated supply chain customer revenue at RMB 15 billion, a year-on-year increase of 10.0%[10] - Revenue from other customers increased to RMB 38.9 billion in the first half of 2023, representing a year-on-year growth of 89.2%[12] - Revenue from integrated supply chain customers rose by 2.1% to RMB 38.9 billion, while revenue from other customers surged by 89.2% to RMB 38.9 billion, driven by increased express delivery services and the acquisition of Debon Group[36] Customer Metrics - The average revenue per external integrated supply chain customer (ARPC) was RMB 247,000, marking a year-on-year increase of 23.8%[7] - The Average Revenue Per Customer (ARPC) for external integrated supply chain customers reached RMB 247,000, reflecting a year-on-year growth of 23.8%[10] - The number of external integrated supply chain customers decreased from 62,566 in Q2 2022 to 52,063 in Q2 2023, despite an increase in ARPC from RMB 113,617 to RMB 148,860, reflecting a 31.0% growth[26] Operational Efficiency - The company operates over 1,600 warehouses and more than 19,000 distribution stations and points, employing over 300,000 self-operated delivery personnel[8] - The company continues to enhance its logistics capabilities in key cities, improving collection and delivery coverage and overall operational efficiency[12] - The company has established a highly coordinated logistics infrastructure network, including warehousing, transportation, and last-mile delivery, to support its supply chain solutions[14] - The last-mile delivery network includes over 300 administrative regions across 31 provinces, with more than 300,000 self-owned delivery personnel and over 19,000 delivery stations and outlets[17] Research and Development - The company has over 4,600 R&D professionals focused on technological innovation and operational efficiency[7] - R&D expenses increased by 32.6% to RMB 920.7 million, driven by ongoing investments in technology and innovation[32] - Research and development expenses grew by 26.9% to RMB 1.8 billion, reflecting ongoing investment in technology and innovation[42] Cash Flow and Financial Position - As of June 30, 2023, the total cash resources amounted to RMB 35.8 billion, primarily sourced from operating activities[47] - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 4.3 billion, up from RMB 4.1 billion in the same period of 2022[48] - The company experienced a free cash flow outflow of RMB 2.1 billion for the first half of 2023, compared to RMB 700 million in the same period of 2022[48] - The net cash used in investing activities was RMB 7.3 billion for the six months ended June 30, 2023, primarily due to deposits in fixed-term accounts and capital expenditures[50] - The company's capital-to-debt ratio was approximately 15.8% as of June 30, 2023[52] Governance and Compliance - The company continues to comply with the corporate governance code and has established an audit committee to monitor risk management policies[73] - The board of directors includes executive and non-executive members, ensuring a diverse governance structure[81] Use of Proceeds - The net proceeds from the global offering amount to approximately RMB 22,945 million after deducting underwriting commissions and expenses[76] - As of June 30, 2023, 55% of the net proceeds (RMB 12,620 million) is allocated for upgrading and expanding the logistics network, with RMB 4,510 million utilized in the first six months[77] - 20% of the net proceeds (RMB 4,589 million) is designated for developing advanced technologies related to supply chain solutions and logistics services, with RMB 3,054 million used as of June 30, 2023[77] - The expected timeline for utilizing the proceeds for logistics network upgrades is within 12 to 36 months from the listing date[77]

Financial Performance - Revenue for the three months ended March 31, 2023, was RMB 36,728,401 thousand, representing a 34.3% increase from RMB 27,351,474 thousand in the same period of 2022[2] - Gross profit for the same period was RMB 1,635,736 thousand, up 11.9% from RMB 1,461,369 thousand year-over-year[2] - The company reported a loss before tax of RMB (1,012,980) thousand, an improvement of 22.1% compared to RMB (1,300,277) thousand in the previous year[2] - The company reported a net loss attributable to owners of the company of RMB (988,884) thousand for the period, compared to RMB (1,385,729) thousand in the same period last year[5] - The company’s non-IFRS loss for the period was RMB (711,544) thousand, a decrease of 10.8% from RMB (797,856) thousand year-over-year[2] - Revenue increased by 34.3% from RMB 27.4 billion for the three months ended March 31, 2022, to RMB 36.7 billion for the same period in 2023[9] - Revenue from integrated supply chain customers rose by 3.1% from RMB 17.9 billion to RMB 18.5 billion, with average revenue per customer (ARPC) increasing by 20.0% from RMB 110,762 to RMB 132,894[9] - Revenue from other customers surged by 93.4% from RMB 9.4 billion to RMB 18.3 billion, driven by increased express delivery service volume and the consolidation of Debon Group[9] - Operating costs rose by 35.5% from RMB 25.9 billion to RMB 35.1 billion, in line with revenue growth and including the impact of Debon Group's consolidation[11] - Gross profit for the three months ended March 31, 2023, was RMB 1.6 billion, with a gross margin of 4.5%, down from RMB 1.5 billion and 5.3% in the same period of 2022[13] - Free cash flow outflow was RMB 800 million for the three months ended March 31, 2023, compared to RMB 1 billion for the same period in 2022[19] - The company recorded a loss of RMB 1 billion for the three months ended March 31, 2023, an improvement from a loss of RMB 1.4 billion in the same period of 2022[17] - Total cash resources amounted to RMB 34.6 billion as of March 31, 2023[19] Operational Highlights - The total number of warehouses managed by the company exceeded 3,100,000 square meters, including over 1,500 self-operated warehouses and more than 2,000 third-party operated cloud warehouses[3] - The company launched the "Los Angeles No. 3 Warehouse" in February 2023, enhancing its supply chain service capabilities in the U.S.[3] - The company’s revenue from Debon Logistics Group for the period was RMB 7,408,279 thousand, with integrated supply chain customers contributing RMB 208,954 thousand[8] - The company continues to deepen cooperation with a beverage brand, providing tailored solutions to enhance inventory management and logistics efficiency[3] Expenses and Investments - Research and development expenses increased by 21.5% from RMB 743.6 million to RMB 903.8 million, primarily due to the consolidation of Debon Group[15] - Selling and marketing expenses increased by 20.0% from RMB 951.1 million to RMB 1.1 billion, mainly due to the consolidation of Debon Group[14] Corporate Governance - The board expresses gratitude to all employees, customers, and business partners for their continued support and trust[20] - The board includes executive and non-executive directors, ensuring diverse oversight and governance[20] - The company acknowledges the contributions of independent directors, enhancing corporate governance[20] - The executive director, Yu Rui, leads the communication, reflecting the company's leadership structure[20] - The board's composition includes a mix of experienced professionals, which may influence strategic decisions[20] - The company emphasizes its commitment to stakeholders, indicating a focus on long-term relationships[20] - The gratitude expressed may reflect positive performance and stakeholder engagement[20] - The announcement is made in Hong Kong, highlighting the company's operational presence in key markets[20] - The board's acknowledgment of support suggests a collaborative approach to achieving business objectives[20] Announcement Details - The announcement date is May 11, 2023, indicating the timeliness of the financial updates[20]