Fan Jialai, a surging journalist
JD.COM The Group (Nasdaq: JD) took the lead in delivering the first quarterly report.
According to the financial report released on May 17, JD's total revenue in the first quarter of this year was 239.7 billion yuan, up 18% year on year, and the market expected 236.7 billion yuan. The operating profit was 2.4 billion yuan, compared with 1.7 billion yuan in the same period last year. The net loss attributable to common shareholders was 3 billion yuan, while the net profit of the same period last year was 3.6 billion yuan.
As for the reason for the loss, JD explained that it was mainly due to the continuous investment in infrastructure, technology research and development, employee compensation and welfare, reducing the impact of the epidemic and giving away profits to consumers. At the same time, due to JD's completion of subscription in February Dada For the transaction of issuing common shares of the Group, Dada's revenue is also included in Jingdong's first quarter financial report.
As of the closing of US stocks on May 17, JD rose 4.15% to close at $53.67.
Xu Lei: The epidemic has put pressure on retail business, and the number of order cancellations in April increased
From the breakdown data, JD's total revenue is mainly divided into four parts: retail, logistics, Dada and new business. Financial reports showed that under the influence of the epidemic, JD's core business retail remained relatively stable, with total revenue reaching 217.524 billion yuan, up 17.07% year on year, and its operating profit was 7.891 billion yuan, up 7.5% year on year.
In the teleconference, JD CEO Xu Lei was also asked about the specific impact of the epidemic. He said frankly that the number of order cancellations in April had increased significantly, and had improved by May. At the same time, big cities including Beijing, Shanghai, Guangzhou and Shenzhen were affected by the epidemic, and the sales of communication electronics, clothing and other inventory slowed down.
Xu Lei said that Omikron has a dual impact on online and offline consumption. He believes that the test of the epidemic has given JD's supply chain capability and organization and scheduling capability the opportunity to test and iterate. "In the environment of increased uncertainty under the impact of the epidemic, JD is more strictly controlling the pace of investment and focusing on efficiency, while also better reducing costs and increasing efficiency and resisting the impact of external factors."
As for the upcoming 618, Xu Lei said that under the impact of offline consumption, brands and businesses may be more actively involved in online e-commerce shopping festivals, which will also improve the performance of the second quarter as much as possible.
It is worth noting that the overall number of active users of JD has increased: financial reports show that the number of active purchasing users of JD in the past 12 months has increased by 16.2% to 580.5 million compared with 499.8 million in the same period of 2021. In particular, the average shopping frequency of users in the first quarter of this year reached a record high, and the average contribution revenue (ARPU) of users was close to the highest in three years.
The financial report shows that in addition to the impact of the epidemic and R&D investment mentioned earlier, there are other reasons for JD's loss in the first quarter. Some of this was caused by investment losses: JD recorded an investment loss of 1.1 billion yuan in the first quarter with the equity method, compared with a profit of 700 million yuan in the same period last year. JD said that it was mainly due to the losses of several investees accounted by the shared equity method.
Also, the impact of the merger of Dada: other non operating losses in the first quarter were 3.9 billion yuan, compared with a profit of 2 billion yuan in the same period last year. JD said that the losses were mainly due to the recognized losses of 3.6 billion yuan caused by the acquisition of Dada's stock price changes and the changes in the fair value of investment securities caused by the market price fluctuations of equity investments in listed companies.
The loss of community group purchase has decreased month on month, and the "close and close" has been adopted
Another reason for JD's loss comes from new businesses, which mainly include community group buying businesses such as Jingxi, Jingxi Pinpin, etc.
The financial report shows that the loss range of the new business sector has declined month on month. In the first quarter, it recorded an operating loss of 2.39 billion yuan, compared with 2.28 billion yuan in the same period last year, a huge loss of 3.22 billion yuan compared with the previous quarter, which narrowed the loss range.
"In the first quarter, the operating efficiency of Jingxi Pinpin has improved." Xu Lei said in the conference call that since the end of last year, user growth has continued to be under pressure, and the new business sector was adjusted in the first quarter to shut down and transfer projects that are not conducive to short-term commercialization, and will continue to focus on key businesses in the future. Xu Ran, the CFO of JD, also said that JD had taken new cost control measures since March.
Previously, the surging journalists had learned that the Jingxi Business Unit had been abolished and optimized in some areas, with a proportion of about 10-15%, mainly focusing on the Jingxi business.
Losses of JD Logistics declined year on year, and the order fulfillment rate of JD was basically normal except for Shanghai
Another "big spender" Jingdong Logistics performed well this quarter.
The financial report shows that JD Logistics' total revenue in the first quarter was 27.4 billion yuan, a year-on-year increase of 22%, of which the revenue from external customers reached 16 billion yuan, accounting for 58.4%, and the revenue from integrated supply chain customers reached 17.9 billion yuan; The adjusted net loss was 798 million yuan, 1.366 billion yuan in the same period last year, 41.6% lower than the same period last year.
"Except for Shanghai, the fulfillment rate of JD's orders is basically normal at present." Xu Lei said that in the future, JD will continue to strengthen its supply chain, warehousing, distribution, fulfillment and algorithm capabilities to meet the needs of the macro environment.
As for the role played in Shanghai's epidemic resistance, JD Logistics said that more than 80000 tons of materials, including rice, flour, grain and oil, medicines, mother and baby supplies, have been transported to Shanghai by air, sea, railway, road and other means; More than 4000 express boys, sorters and other front-line employees were mobilized nationwide to support the operation and material distribution in Shanghai.
At the same time, JD Logistics also landed more than 1600 contactless community supply guarantee stations, deployed more than 100 intelligent express vehicles and dozens of indoor distribution robots to conduct contactless distribution of materials for closed communities, shelter hospitals and other places.
By the beginning of May, JD Logistics had resumed its nationwide logistics to merchants in Shanghai, Jilin and other places, and basically achieved full and normal business. The order volume of Shanghai merchants in JD had recovered to more than 60% before the closure of the epidemic. In addition, JD has helped businesses reduce operating costs by reducing "three fees" and other support measures. By the beginning of May, it had reduced or exempted more than 200 million yuan from fees for businesses settled in.
As of March 31 this year, JD Logistics has operated about 1400 warehouses, including the cloud warehouse area managed by JD Logistics, with a total storage area of more than 25 million square meters. Compared with the fourth quarter of 2021, JD Logistics added 100 warehouses in one quarter, and the total storage area increased by 1 million square meters.
